PREVENTING IDENTITY THEFT: A GUIDE for CONSUMERS
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Published on: Mar 4, 2016
Transcripts - PREVENTING IDENTITY THEFT: A GUIDE for CONSUMERS
PREVENTING IDENTITY THEFT:
a GUIDE for CONSUMERS
NATIONAL CRIME PREVENTION COUNCIL
NATIONAL CRIME PREVENTION COUNCIL
The National Crime Prevention Council (NCPC) is a
private, nonprofit tax-exempt [501(c)(3)] organization
whose primary mission is to enable people to create
safer and more caring communities by addressing the
causes of crime and violence and reducing the opportunities for crime to occur. NCPC publishes books,
kits of camera-ready program materials, posters, and
informational and policy reports on a variety of crime
prevention and community-building subjects. NCPC
offers training, technical assistance, and a national
focus for crime prevention: it acts as secretariat for
the Crime Prevention Coalition of America, more than
360 national, federal, state, and local organizations
committed to preventing crime. It hosts a number of
websites that offer prevention tips to individuals,
describe prevention practices for community building,
and help anchor prevention policy into laws and
budgets. It operates demonstration programs in
schools, neighborhoods, and entire jurisdictions and
takes a major leadership role in youth crime prevention and youth service; it also administers the Center
for Faith and Service. NCPC manages the McGruff®
“Take A Bite Out Of Crime®” public service advertising
campaign. NCPC is funded through a variety of government agencies, corporate and private foundations,
and donations from private individuals.
This publication was made possible through Cooperative
Funding Agreement No. 2002-DD-BX-K004 from the
Bureau of Justice Assistance, Office of Justice Programs,
U.S. Department of Justice. Opinions are those of NCPC or
cited sources and do not necessarily reflect U.S.
Department of Justice policy or positions. The Bureau of
Justice Assistance is a component of the Office of Justice
Programs, which also includes the Bureau of Justice
Statistics, the National Institute of Justice, the Office of
Juvenile Justice and Delinquency Prevention, and the
Office for Victims of Crime.
Copyright © 2005 National Crime Prevention Council
All rights reserved.
Printed in the United States of America
National Crime Prevention Council
1000 Connecticut Avenue, NW, Thirteenth Floor
Washington, DC 20036-5325
Few crimes have made people more anxious more
quickly as the sudden onslaught of identity theft.
It’s in the newspapers every day and on the news every night. People are
worried that someone’s going to run up charges on their credit cards or fleece
their bank accounts while their backs are turned. And there’s some reason to
worry: All a thief has to do is steal something as basic as a Social Security
number to become a real public enemy. And while these crimes are relatively
easy to commit, investigating and prosecuting them are complex and timeconsuming matters. So it’s up to all of us to be identity-smart and make sure
we keep this crime from spreading. It’s a battle we can win. Follow the tips in
this booklet, be careful, and we’ll keep a big step ahead of identity thieves. It’s
up to all of us to prevent identity theft.
—Al Lenhardt, president and CEO, National Crime Prevention Council
WHAT’S IDENTITY THEFT?
The U.S. Department of Justice defines identity theft this way:
“Identity theft is a crime. Identity theft and identity fraud are terms used
to refer to all types of crime in which someone wrongfully obtains and
uses another person’s personal data in some way that involves fraud or
deception, typically for economic gain.”
FACTS AND FIGURES
These statistics about identity theft
are worth knowing.
According to the U.S. Postal Service, there were
almost ten million incidents of identity theft in
the United States in 2004, a huge figure
dwarfed only by its cost to consumers—$5 billion. And limiting your use of your personal
computer may not help much: a study released
in January 2005 by the Better Business Bureau
and Javelin Strategy and Research reported
that most identity thefts take place offline, not
online—just the opposite of what many folks
might think. In fact, the study found, the theft
of online information accounted for only 11.6
percent of identity fraud cases.
§ Half of all identity theftsthe
committed by someone
Nonetheless, a rash of headline-grabbing
scandals involving thefts of millions of personal records, together with the advent of
phishing and pharming thefts (see page 5),
may well change that figure dramatically in
2005. One other troubling finding: the study
found that half of all identity thefts are
committed by someone the victim knows.
In spring 2003, the Federal Trade
Commission (FTC)—the federal agency
responsible for tracking identity theft—conducted a major study of this crime. Among
I 12.7 percent of respondents reported that
they had been victims of identity theft at
some time over the past five years. This
implies that at least 27 million
Americans had their identities stolen.
I Victims reported that they spent 30
hours, on average, cleaning up after an
identity crime at an average cost of
In another study, covering 2004, the FTC
reported that of 635,000 complaints registered with the agency, 61 percent involved
fraud and 39 percent were identity theft
complaints. This study also revealed the following:
I Credit card fraud was the most common
form of identity theft, accounting for 28
percent of thefts reported.
I Phone or utilities fraud was next,
accounting for 19 percent of identity
I Bank fraud followed, accounting for 18
percent of identity thefts reported.
The FTC also presented some figures about
identity theft committed over the Internet.
Of 205,568 Internet-related complaints, 90
percent of the victims reported they had
suffered a financial loss. The average loss
According to the FTC, the highest reports of
identity theft occurred in Phoenix-MesaScottsdale, AZ; Riverside-San BernardinoOntario, CA; and Las Vegas-Paradise, NV.
While sunny Phoenix and Las Vegas are
retirement meccas, the FTC found that of all
those who reported being victimized in the
United States, only 9 percent were 60 and
over while the largest number, 29 percent,
were in the 18 to 29 age group.
A CROOK’S BAG OF TRICKS
Watch Out for Thefts Like These
Here’s a sample of the way identity thieves commit
I File a change of address form in your name to
divert mail and gather personal and financial
I Steal credit card payments and other outgoing
mail from private, curbside mailboxes
I Lift driver’s license numbers, Social Security
numbers, phone numbers, or other identifiers
I Steal the Social Security numbers and identities of children who are especially vulnerable because they don’t have credit histories
and it may be many years before the theft is
I Lift names and Social Security numbers
from such documents as a driver’s license,
employee badge, student ID card, check, or
I Use personal information from a Who’s
Who book or a newspaper article
I Steal mail, especially envelopes containing bill
payments, from unlocked, unguarded, “out
boxes” at work
I Use the personal information of a relative or
someone he or she knows well, perhaps by
being a frequent visitor to their home
I Go “dumpster diving” by digging through
garbage cans or communal dumpsters in search
of cancelled checks, credit card and bank statements, or preapproved credit card offers
I Pretend to be government officials or legitimate business people who need to gather
personal information from credit reporting
agencies or other sources
I Steal discarded applications for preapproved
credit cards and fill them out with a different
I Hack into a computer that contains your
personal records and steal the data
I Steal wallets and purses—and all the credit and
identification cards inside them
I Take important documents such as birth certificates, passports, copies of tax returns and the
like during a burglary of your house
I Steal Social Security cards
I Buy records stolen by a fellow employee
who’s been bribed
I “Shoulder surf” by watching from a nearby
location as he or she punches in a telephone
calling card number or listens in on a conversation in which the victim provides a
credit card number over the telephone in a
may steal the
§ Identity thievesnumbers and
identities of children who are
especially vulnerable because
they don’t already have credit
histories and it may be many
years before the theft is
I Send fraudulent spam emails that promise
huge prizes or bargains in return for personal and financial information
I Use the camera in a cell phone to photograph
someone’s credit card or ATM card while he or
she is using an ATM machine or buying something in a store
I “Phish” by sending a legitimate-looking email
that directs you to a phony website that looks
legitimate and asks for your personal and
I “Skim,” in which a dishonest merchant
secretly copies the magnetic strip on the
back of your credit or debit card in order to
make a counterfeit card that can then be
I Send a fake electronic IRS form to gather
personal information and financial data
(Note: The IRS never requests information
I “Pharm,” a tactic by which criminals “hijack”
whole domains to their own sites and gather
the personal and financial data of users who
believe they’re communicating through their
customary service provider
Identity thieves also include crimes
like these in their repertoire of dirty
I They make long-term financial
commitments, like taking out
mortgages or buying cars, using
their victim’s credit history.
I They establish, use, and abandon
dozens of charge accounts—without paying.
I They may run up huge amounts
of debt, then file for bankruptcy
in their victim’s name, ruining
their victim’s credit history and
Not the Object
Sometimes, the thieves aren’t after
money. They may use your identity to
commit crimes like these:
I They may threaten national security
or commit acts of terrorism. The
September 11 hijackers used fake IDs
to board their planes.
I They use stolen personal information
to forge military identification cards,
as recently happened at an army base
near Washington, DC. This was a
potential threat to national security.
I They pile up traffic tickets in your
name with no intent to pay them.
I They commit felonies using your
identity. Victims of identity theft have
been arrested, even jailed, for crimes
they didn’t commit.
I They may obtain a passport in your
name to bring someone into the
country for any one of a number of
illegal reasons—human trafficking, for
HOW TO PREVENT IDENTITY THEFT
Follow these tips to help ensure that you
don’t become a victim.
I Don’t put outgoing mail, especially bill payments,
in personal curbside mailboxes. Use United States
Postal Service mailboxes instead, or, better yet,
drop off your mail inside a post office.
I Make sure nobody is standing right
behind you when you’re using an ATM
machine. He or she may be trying to photograph your card number and password
with a camera cell phone. Always shield
your hand and the screen, even if no
one’s right behind you.
I Use a locked mailbox with a slot at home, if at all
I Pay your bills online using a secure site if
that service is available.
I Don’t put outgoing mail in an unguarded “out
box” at work.
I Don’t give out your credit card number on
the Internet unless it is encrypted on a
I Don’t write your account number on the outside
of envelopes containing bill payments.
I When you’re out of town, have the post office
hold your mail for you or have someone you trust
pick it up every day.
HOW TO PREVENT IDENTITY THEFT
I Examine your credit reports from the major
national credit reporting firms (see page 10)
at least once a year to make sure no one has
established credit in your name or is ruining
your credit after stealing your identity. The
recently enacted Fair and Accurate Credit
Transactions Act requires that each of the
three major credit reporting agencies provide consumers with a free credit report
once a year.
I If you have to give out personal or financial
information from a public phone or by cell
phone, make sure no one is listening or wait
until you’re in a more secure location.
I Shred all financial statements, billing statements, and preapproved credit card offers
and the like before throwing them in the
trash. Cross-cut shredding is best. No shredder? Use scissors to cut documents.
I Minimize the number of identification and credit
cards you carry with you. Take only what’s
I Cancel all credit cards that you have not used in
the last six months. Open credit is a prime target
if an identity thief spies it in your credit report.
I Write to the Direct Marketing Association to
have your name taken off direct mail lists. This
will stop the dangerous flow of preapproved
credit card offers to your address. This is where
Direct Marketing Association
Mail Preference Service
PO Box 643
Carmel, NY 10512
I Call the credit reporting industry at 888-5678688 as an extra measure to stop credit card
and insurance solicitations from coming to your
I Use traveler’s checks instead of personal bank
I Examine all of your bank and credit card statements each month for mistakes or unfamiliar
charges that might be the sign of an identity
thief at work.
I Make sure you know when your bills and
bank statements normally arrive. If one is
late, call to find out why. It may have fallen
into the wrong hands.
I Use direct deposit, whenever possible,
instead of a paper paycheck.
I Don’t have new checks mailed to you at
home; pick them up at the bank.
I Be alert if you get a call from someone purporting to be from your bank who asks for
personal data to update your “records.” This
is almost always a scam. If you’re in doubt,
hang up and call the bank yourself.
I Commit all passwords to memory. Never
write them down or carry them with you.
I Don’t give out your financial or personal
information over the phone or Internet,
unless you have initiated the contact or
know for certain with whom you
I Don’t exchange personal information for
“prizes.” Ask to have the offer put in writing
and mailed to you so you can consider it
I Give out your Social Security number only
when absolutely necessary. Treat it as confidential information.
I Identity thieves have been known to take
Social Security numbers from medical charts in
hospitals, where the numbers are frequently
used as patient identifiers. If you’re hospitalized, tell your doctor or nurse to be careful
with your chart!
I Destroy the hard drive of your computer if you
are selling it, giving it to charity, or otherwise
disposing of it. Don’t just erase the hard drive;
physically remove it.
I Keep your personal information confidential
and learn as much as you can about the various kinds of scams being perpetrated to steal
your identity. The newspapers are full of tips.
I Don’t carry your Social Security card with you.
Keep it in a safe place at home.
I Don’t carry automotive insurance policies in
your car. Keep them locked up at home.
I Don’t keep your car registration in your car. If
possible, carry it in your wallet.
I Keep your wallet in your front pocket so a
pickpocket can’t take it. Hold your purse close
against your body through its straps.
I Burglar-proof your home, then burglar-proof
what’s inside your home, especially your financial records and important documents (put
them inside a locked filing cabinet or safe).
REPAIRING THE DAMAGE
If you’re the victim of identity theft, you’ve got your work cut out for you. Not only
will you have to cope with the emotional toll of being a victim of crime, but it will
take all the effort you can muster to repair the damage done to your good name and
credit. Here’s where to start.
Contact the Credit
As soon as you know your identity has been
stolen, call one of the three major credit reporting agencies. The law requires the agency you
call to contact the other two. The agencies will
flag your account; this means that any business
that wants to view your credit report to give
you credit will first have to verify your identity.
Upon request, the three agencies will then send
you two free reports over the next 12 months.
(Beginning in September 2005, the Fair and
Accurate Credit Transactions Act requires the
three major credit reporting agencies to
provide you with a free report once a year
regardless of whether you’ve been a victim
of fraud, but you must request them from
www.annualcreditreport.com or 877-322-8228.)
The three major credit reporting agencies and
their toll-free numbers for reporting fraud are
Work With Your
If you discover unauthorized charges on your
credit report or any billing statement, contact
the fraud department of the creditors you
believe have been robbed in your name. You
have 60 days from the date you normally
receive your bill to notify them. If you notify
your creditors within this time frame, your
loss for unauthorized charges will be limited
CATCHING THE CRIMINALS
Check Your Bank Accounts
If someone is illegally using your bank account,
close the account right away and ask your bank
to notify its check verification service. The service
will notify retailers not to honor checks written
on this account. In most cases, the bank is
responsible for any losses. To find out whether
someone is passing bad checks in your name, call
the Shared Check Authorization Network at 800262-7771.
If you think someone has opened a new checking
account in your name, you can ask for a free
copy of your consumer report from Chex Systems
(800-428-9623, www.chexhelp.com), the consumer reporting service used by many banks. If
your bank doesn’t use Chex Systems, ask for the
name and number of the consumer reporting
service it uses.
What’s the Law?
The federal Identity Theft and Assumption
Deterrence Act of 1998 (18 U.S.C. Section
1028) makes it a federal crime when anyone
Call the Police
As soon as you can, contact your local police or
sheriff’s department. The police should take your
report and give you a copy, or at least the number of the report. You should also consider
reporting the crime to your state law enforcement, since many states have recently toughened their laws against identity theft. You will
need a police report to pursue your case with
creditors who have been victimized in your
name. You may also want to contact the office
of your state attorney general for consumer
fraud information. For a list of state attorneys
general, go to www.naag.org.
Be sure to give the police copies of all the documents that support your claim. You may want to
provide them with a notarized copy of the
Federal Trade Commission’s ID Theft Affidavit,
available from www.consumer.gov/idtheft.
Because an identity is frequently stolen in one
place and used in another, you may also have to
contact the police in the place where the crime
took place. Your local law enforcement or the
creditors affected can tell you if this is the case.
“knowingly transfers or uses, without lawful authority, a means of identification of another person
with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of
federal law, or that constitutes a felony under any applicable state or local law.”
Other Numbers To Call
I Call the Social Security Administration’s
Fraud Hotline at 800-269-0271 if your
Social Security number has been stolen.
I Call the U.S. Postal Inspection Service if
you suspect that a thief has used your
mailing address to commit a crime. Call
888-877-7644 for the number of your
I Call the Internal Revenue Service at 800829-0433 if you believe your identification
has been used in violation of tax laws.
I The Secret Service is responsible for
investigating financial fraud, but it doesn’t
investigate individual crimes unless a
large amount of money is involved or a
ring of thieves is operating. For more
information, go to www.treas.gov/usss.
I Report your case to the Federal Trade
Commission, which maintains a database
that law enforcement agencies use to hunt
down identity thieves. To report your theft
or to get more information on what to do,
call the FTC’s toll-free hotline at 877IDTHEFT.
Tips for Reporting Identity Theft
I Act as soon as you discover the theft. Time is
of the essence to prevent further fraud or
damage to your credit, and acting quickly
may be necessary to protect your rights.
I Keep a record of all conversations with name,
agency, phone number, date, and time.
I Keep copies of all emails.
I Never mail originals. Always send out copies,
notarized if necessary.
I Use the Federal Trade Commission’s ID
Theft Affidavit (see page 11) and get it
I Always use certified mail, return receipt
requested, so that you have a record of
who received your mail and when.
I Above all, be persistent. It can take time
and effort to clean up the mess left behind
by the criminal who stole your identity,
but only you can do the job.
I The Federal Trade Commission,
THREE STEPS TO
This booklet has talked about what you can
do to protect yourself against identity theft.
But there’s also strength in numbers: What
else can you and your family, friends, and
neighbors do to fight this type of crime?
Here are some suggestions.
I The Office for Victims of Crime at the U.S.
Department of Justice,
I The U.S. Department of Justice,
Adopt the measures suggested in this
booklet. Set half an hour aside for
three days to make the phone calls
and take the other steps suggested in
this booklet (such as stowing your
important papers in a secure place at
I The National Criminal Justice Referral Service,
Share this booklet with your family
and friends and see if they can come
up with other ways to prevent identity theft.
I The National Crime Prevention Council’s website.
Organize a meeting in your school,
community center, senior citizen’s
center, church, or synagogue and
invite a police officer to come and tell
people about the identity theft problem and what they can do to prevent
I The Identity Theft Resource Center,
Go to www.ncpc.org, click on “What We Offer,”
go to “What You Can Do,” and click on “Protect
Yourself Against Identity Theft.”
NATIONAL CRIME PREVENTION COUNCIL
1000 Connecticut Avenue, NW, Thirteenth Floor
Washington, DC 20036 www.ncpc.org