Fraud & Idenity Theft

The Crime of Identity Theft

Identity theft victims are often left with a bad credit and must spend months, or years, regaining their financial health. In the meantime, they have difficulty obtaining credit, getting loans, renting apartments, and even getting hired. Identity theft victims will find little help from the authorities as they attempt to clean up their credit.

Identity theft is on the rise. Recent surveys show there are currently 7-10 million victims per year.*

There are two types of identity theft:

  • Account takeover occurs when a thief acquires your existing credit account information and purchases products and services using either the actual credit card or simply the account number and expiration date.
  • Application fraud occurs when a thief uses your SSN and other identifying information to open new accounts in your name. Victims typically don’t learn of application fraud for some time, because the monthly account statements are mailed to an address used by the thief.

Following are strategies for reducing the risk of both types of fraud.

  • Check your credit report at least once a year. If you are a victim of identity theft, you will want to catch it early. Since December of 2004, consumers can get a free copy of their credit report annually.
  • Reduce access to your personal data and minimize the amount of information a thief can steal. Do not carry your passport, social security card or birth certificate in your wallet or purse.
  • Limit the number of pre-approved offers of credit you receive by removing your name from the marketing lists of the three credit reporting bureaus -- Equifax, Experian and Trans Union by calling 888-5OPTOUT. These offers, when trashed, are a potential target of identity thieves who use them to order credit cards in your name.

If you are a victim of identity theft place fraud alerts on your credit reports with the three bureaus right away. If your credit report shows an imposter has opened new accounts in your name, contact those creditors immediately by phone and in writing.


*Source: Better Business Bureau

 
   

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