This article will make the consumer aware of the identity theft problem by discussing several types of identity theft methods, identity theft safeguards and the use of credit bureau fraud alerts.

Identity Theft Problem:

Identity theft has become a major problem not only the United States but around the world as well. Investigating identity theft is a time consuming venture. Educating your clients and potential clients on ways to make identity theft less likely to occur is an ongoing process.

As reported by the Motely Fool in the Dallas Morning News in the article entitled, How to Avoid Identity Theft, August 11, 2003, once an individual is victimized by identity theft, the victim will spend an average of 175 hours and $800 of hard earned money attempting to clear their name and clean their credit reports of this fraudulent activity. Still, these types of crimes perpetrated against an individual will have long-lasting effects on the victim and the victim’s credit.

Types of Identity Theft:

There are many types of identity theft cases that occur on a regular basis. If an individual commits one of the following types of identity theft scenarios, the perpetrator would potentially have access to a vast amount of personal identifying information of the victim and be able to take advantage of this information and process. Some examples of identity theft cases include:

* Having a third party fraudulently open a credit card account in another person’s name without the victim’s knowledge or consent.

* Having a third party fraudulently open a checking account in another person’s name without the victim’s knowledge or consent.

* Having a third party fraudulently obtaining a loan in another person’s name without the victim’s knowledge or consent.

* Having a third party fraudulently opening a cellular telephone account in another person’s name without the victim’s knowledge or consent.

* Having a third party fraudulently obtaining utilities in another person’s name without the victim’s knowledge or consent.

* Having a third party fraudulently obtain employment working using another person’s name without the victim’s knowledge or consent.

* Other related fraudulently activity using an individual’s personal information without the individual’s knowledge or consent, usually resulting in the extension of credit.

Another common method of identity theft is to have the perpetrator send a change of address card forwarding an individual’s mail without the individual’s knowledge or consent. This forwarding order diverts the victim’s mail to a private mailbox where the perpetrator has access. In a thirty-day period the unsuspected individual’s mail is forwarded such as telephone bill, credit card statements, bank statements and other similar information. In that short month the criminal has obtained the identity of the victim’s bank, bank account numbers, credit card numbers and other vital personal and financial information to possibly include the victim’s social security number from the victim’s bank statement. Armed with this type of information, the perpetrator obtains additional credit cards, makes internet or telephone credit card purchases and can proceed to wreck havoc on the victim’s finances as well as having devastating effects on the victim’s credit worthiness.

Identity Theft Safeguards:

The following are some safeguards and a checklist to keep appraised of you or your client’s vulnerability to identity theft.

* Do not put your driver’s license number on personal checks.

* Do not put your social security number on personal checks.

* Do not put your date of birth on personal checks.

* Keep a close lookout for credit card statements, bank statements and other monthly statements and know when to expect them in the mail. If they become exceedingly late immediately contact the appropriate bank, credit card company or entity to inquire as to reasons for the statement being late. Verify the address where the statements are being mailed to ensure that no change of address has been made.

* On the back of each of credit card place the words “See Photo ID” above the signature line, which will direct alert businesses to fully identify the individual that is attempting to use the credit card in person.

* Check with the post office servicing the business or residence to determine that no mail forwarding order has been placed on the individual or business name or address.

* Check every entry on credit cards and bank statements to ensure that no unauthorized charges or activity is present.

* Reconcile each bank statement immediately after receipt to ensure that there is no unknown or unauthorized activity.

* Save each credit card statement and match those receipts against the entries on the appropriate credit card statement each month as soon after receiving those statements as possible.

* Do not throw away important documents such as credit card receipts, bank statements, deposit slips, insurance documents, medical bills or records, credit card offers or any other document containing account information. If these documents are not needed for tax purposes, use a shredder and destroy these documents rather than throwing them in the trash.

* Do not give personal information over the telephone, through the mail or over the Internet unless you have initiated the contact or know the entity, and still be cautious and follow-up with the use of the information provided.

* Do not leave mail lying in the mailbox at the curb. If possible, deposit the mail in an authorized mailbox or directly at the post office.

* Check your credit report at least once a year to determine if there are any unauthorized credit cards or activity on the credit report. Check to see what entities have obtained your credit history without your knowledge. Contact these entities to ensure that no credit card or extension of credit of any kind has been tendered to someone using your name and personal information.

* If you are going to be out of town or on vacation, place a hold on your mail being delivered to your residence until you get back unless you have a trusted individual that will pick up the mail on a timely basis.

* Cancel any credit cards that are not needed or not used frequently.

* Do not carry your social security card or social security number in your wallet unless absolutely necessary.

Fraud Alert and the Credit Bureau:

If you become a victim of fraud or if you want to contact the credit bureaus to verify that no unauthorized activity is being conducted using your credit information you may contact the major credit bureaus. You can report the fraud and request that a “fraud alert” be placed on your account and request that no new credit is to be granted without your prior approval.

* Equifax (800) 525-6285

* Experian (888) 397-3742

* Trans Union (800) 680-7289