I first learned about Identity Theft when I was approached by an associate to purchase a legal plan. I was shown a DVD of the plan; and with the plan, there was an Identity Theft plan. My husband and I are both veterans, and we had just received a letter from the Department of Veterans Affairs (VA) telling us that an employee had taken home electronic data from the VA. He was not authorized to take information home, and was in violation of established policies.

The story said that the employee’s home was burglarized and the data was stolen. The data that was compromised contained the names, Social Security Numbers, dates of birth of up to 26.5 million veterans and some spouses. This was very alarming, but I did not know how alarmed I should be until I saw the DVD. That was when I learned how serious Identity Theft really is.

Imagine that you are on your way home and you are stopped by the police. You are asked for your license and registration, which you produce. You are then placed under arrest and hauled off to jail for a crime you did not commit, and know nothing about. You have the name and Social Security Number of someone else who has committed a crime. How do you prove that you are you?

Imagine also, that you get enough money to put a down payment on your dream home. When you go to apply for your loan, you are told that you are hundreds of thousands of dollars in debt for things that you did not purchase. You are turned down for the loan. How do you prove that the debt is not your debt?

These may both be victims of Identity Thefts, which occur by the seconds daily. Identity Theft has exploded in recent years into a type of crime epidemic. According to the United States Department of Justice, Identity Theft has officially surpassed drug trafficking as the number one crime in America.

Identity thieves no longer need sawed-off shotguns and ski mask to make a big haul. Nowadays, all they need is a social security number, or a pre-approved credit card application from your trash to perform a robbery.

According to FBI statistics, Identity Theft is the fastest growing crime, and Identity Theft/fraud is the fastest-growing category of Federal Trade Commission (FTC) complaints.

According to a September 2003 Federal Trade Commission (FTC) survey, 27.3 million Americans had been victims of some form of Identity Theft within the past five years. Also, according to the survey, in the year 2002, identity theft losses to businesses and financial institutions totaled nearly $48 billion and consumer victims reported $5 billion in out-of pocket expenses.

As a Certified Identity Theft Risk Management Specialist (CITRMS), it is my duty to educate and assist clients, customers, businesses, and the general public in combating the epidemic of Identity Theft and related fraud. Identity Theft is extremely broad and complex.

This book is not intended to give legal advice, but to bring awareness of the problem to consumers for the purpose of helping to prevent and protect against Identity Theft to the best of your ability.

The author takes no responsibility for the readers’ decisions based on information in this book. It is recommended that the reader seek professional counsel for individual circumstances.


CHAPTER ONE: WHAT IS IDENTITY THEFT?

Identity Theft occurs when someone uses information that they acquire about an individual without permission, such as a Social Security Number, to represent themselves as that person for fraudulent purposes.

The criminal might obtain credit cards and loans in someone else’s name with no intention of paying the bills. They might open utility accounts, rent an apartment, get a cell phone, or a house or a car. They can commit a crime in someone else’s name and leave the innocent, unsuspecting, victim with a criminal record.

Reports of Identity Theft, identity fraud, and related scams are everywhere. In these modern times, we are identified by the numbers and identifiers that are assigned to us. All of our accounts, information, and privileges are tied to these identifiers. We provide our assigned customer number, account number, or access code to the voices on computers thousands of miles away. Transactions can occur electronically within seconds without us ever being physically present.

If someone else gains access to those numbers, or to other information that identifies us, a lot of harm could occur. With the key pieces of their victim’s personal information, such as name, date of birth, Social Security Number, account number, mother’s maiden name, etc., an identity thief may:
• Access existing accounts
• Open new financial accounts
• Open utility, cable, cellular, and other non-financial accounts
• Take out loans
• Purchase cars, houses and property
• Obtain credit cards
• Obtain a driver’s license or government identification
• Receive medical care or benefits
• Obtain a Social Security card
• File bankruptcy
• Commit crimes and get arrested and more in the victim’s name

Victims of Identity Theft usually do not find out that they have been victimized until long after the fact.

Our dependence upon technology has created new ways for consumers to become victims of fraud by thieves and scam artists quicker, more often, and in larger numbers. Each time a new system is introduced or new service is developed, it is a safe bet that fraud artists are a step ahead in identifying the system’s weaknesses and devising a scheme to circumvent it to their advantage.

Identity Theft is a crime that cannot be completely prevented, regardless of how cautious you are. This is obvious because of the hundreds of reported serious data breaches. These breaches are at major financial institutions, corporations, universities and retailers. Breaches have also come from government agencies such as, state Division of Motor Vehicles (DMV), Internal Revenue Service, Social Security Administration, Veterans Administration (VA), and the military. As a consumer today, our personal information is readily accessible.