Moments after stepping out of the taxi, Rachel plunged
through the entranceway of the hotel lobby eager to put
behind what had been a terribly exhausting day. Flight delays
due to weather had caused her LAX-MDW-BWI trip to take nearly
eleven hours to complete. All she could think of was taking
off her shoes to relieve her aching feet and dipping them
into soothing, warm bath water.
The line at the front desk was mercifully short. One clerk
caught Rachel's attention and signaled her forward she gave
him her reservation information and then dug out her American
Express card for payment. As he stepped away to verify its
authenticity Rachel's eyes surveyed the lobby.
"They've updated everything since I was last here",
she thought. Her concentration, clouded by fatigue, was
now on the mission style tables, chairs, and light fixtures,
which had replaced the heavy, wooden furniture previously
occupying the lobby. "Here is your card and room key,
ma'am," the clerk interrupted minutes later. Quickly,
Rachel stuffed her card back into her wallet, gathered her
bags and whisked away to her room.
Rachel was a victim of identity theft that night, but did
not know it at the time. Had she kept a watchful eye on
what her clerk was doing instead of studying the lobby,
she might have noticed him switching cards on her. At the
very least, she would have seen that the card handed to
her beneath her room key was not her own.
Identity theft is an exploding problem that has increased
exponentially in this technological age. Particularly since
the early 1990s thieves have been taking advantage of what
we would consider every day transactions: writing a check
at the grocery store, ordering merchandise via the internet,
applying for a credit card, using your cell phone, and more.
Each transaction requires you to share personal information:
your bank and credit card account numbers; your income,
your Social Security Number (SSN); and your name, address,
and phone numbers.
An identity thief will lift some piece of your personal
information and appropriate it without your knowledge to
commit fraud or theft. One of the most common methods is
when the identity thief uses your personal information to
open a credit card account in your name.
The Federal Trade Commission is the arm of the federal government
tasked with overseeing the problem of identity theft. A
special hotline number (1-877-IDTHEFT) was created for consumers
to call to place your information in a database which is
accessible with other law enforcement agencies and private
entities, including any companies about which you may complain.
Additionally, an ID Theft Affidavit a form you can use
to alert companies where a new account was opened in your
name can be filled out and given to the company. This affidavit
is available online to consumers.
Identity thieves can get your personal information in a
number of ways:
* They steal wallets and purse containing your i.d. and
credit and bank cards.
* They steal your mail, including your bank and credit
card statements, pre-approved credit offers, telephone calling
cards and tax information.
* They complete a "change of address form" to
divert your mail to another location.
* They rummage through your trash, or the trash of businesses,
for personal data in a practice known as "dumpster
diving."
* They fraudulently obtain your credit report by posing
as a landlord, employer or someone else who may have a legitimate
need for and a legal right to the information.
* They get your business or personnel records at work.
* They find personal information in your home.
* They use personal information you share on the internet.
* They buy your personal information from "inside"
sources. For example, an identity thief may pay a store
employee for information about you that appears on an application
for goods, services or credit.
Identity thieves will then take the personal information
they have obtained about you and use it in a number of different
ways:
* They will call your credit card issuer and, pretending
to be you, ask to change the mailing address on your credit
card account. The imposter then runs up charges on your
account. Because your bills are being sent to the new address,
it may take some time before you realize that there is a
problem.
* They open a new credit card account, using your name,
date of birth and SSN. When they sue the credit card and
don't pay the bills, the delinquent account is reported
on your credit report.
* They establish phone or wireless service in your name.
* They open a bank account in your name and write bad checks
on that account.
* They file for bankruptcy under your name to avoid paying
debts they have incurred under your name, or to avoid eviction.
* They counterfeit checks or debits cards, and drain your
bank account.
* They buy cars by taking out auto loans in your name.
Fortunately for Rachel, American Express covered her losses.
Although she didn't find out about the theft until she reached
her home in California, American Express suspended her account
when a number of suspicious charges appeared and she couldnt
be reached by them to verify the charges. Their fraud department
left a message on her phone answering machine instructing
her to call them and, when she did, Rachel was notified
that someone else was using her card. When she explained
that she had the card in her possession, she checked her
purse and found a card for someone else instead.
Visa, MasterCard and American Express absorb the cost of
fraud as long as they are notified by the consumer [certain
restrictions may apply check with your card issuer for specific
details]. Had Rachel used a debit card, the story might
have been much different. Unlike a credit card, the debit
card takes a direct hit on your bank account, meaning that
you will have to absorb the loss.
So, all is well with Rachel, right? Sure, American Express
overnighted a new card with a new account number for Rachel
to use on her next trip, but the problem could very well
have continued and deepened had she not taken three more
steps recommended by the Federal Trade Commission:
First, contact the fraud departments of each of the three
major credit bureaus.
Tell them that you are a victim of identity theft. Request
that a "fraud alert" be placed in your file, as
well as a victim's statement asking that creditors call
you before opening any new accounts or changing your existing
accounts. This can help prevent an identity thief from opening
additional accounts in your name.
At the same time, order copies of your credit reports from
the credit bureaus. Credit bureaus must give you a free
copy of your report if your report is inaccurate because
of fraud, and you make that request in writing. Review your
reports carefully to make sure no additional fraudulent
accounts have been opened in your name or unauthorized changes
made to your existing accounts.
Second, contact the creditors for any accounts that have
been tampered with or opened fraudulently. Creditors can
include credit card companies, phone companies and other
utilities, and banks and other lenders.
Third, if possible, file a report with your local police
or the police in the community where the identity theft
took place. Get a copy of the police report in case the
bank, credit card company or others need proof of the crime.
Even if the police are unable to catch the thief, the report
can be helpful when dealing with creditors.
In summation, identity theft is a problem that is causing
businesses and consumers billions of dollars per year. As
a result, higher interest rates and an increase in the cost
of goods and services is passed on to consumers. So, do
not be a victim protect yourself from identity theft by
remaining alert especially when a third party is handling
your personal information.
