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Identity Theft

What Is Identity Theft?

Identity Theft is a broad term used to refer to the variety of means by which criminals attempt to defraud you and steal your identity, and subsequently your money. Your identity is encompassed by a combination of several pieces of personal identifying information such as your full name, Social Security number, and date of birth (to name a few). Thieves then use these pieces of information to illegally access your existing accounts, open new accounts, initiate transactions in your name, and sometimes even trick you into doing this for them!

You are at risk virtually every day as identity thieves are constantly creating new ways to steal your money. They are sneaky and tricky and often try to get you to do the work for them, looking for the easiest path. You're likely familiar with some of the means by which a thief can steal your personal identifying information, but there are also many ways you might not be familiar with. Understanding the different types of fraud should help you avoid becoming a victim. Education is your best defense.

There are many ways that you can protect yourself, but many people forget to do some things or overlook some of the protections necessary. Whatever gaps you leave in your protection are obviously your biggest risks, so be sure to review your protections and close those gaps.


How thieves try to get your personal identifying information and defraud you

Following are some typical ways that Identity Theft is committed. This list is by no means complete, as criminals are always developing new ways to defraud you, but it does encompass many of the most common means used.

Loss or Theft

From sneaky pick-pockets to bold purse snatchers, simple theft of your property is an obvious means by which a criminal can steal your personal identifying information.

Of course, don't help them out by losing your purse or wallet through your own carelessness.

The good news: In these instances, you often know quickly that your information has been compromised, allowing you to take quick preventive action.


Phishing

This is a term for a variety of scams that all seek to get you to willingly share your personal identifying information with thieves. The thief impersonates a legitimate company or organization and asks you to "update, verify, or review" your information. The requests can come in the form of a phone call or fax, but most often come in the form of an email. (They are now even using text messages!)

Thieves have been known to impersonate financial institutions, government agencies, Internet service providers, online retailers, and others. They send out millions of emails with a message that often describes some sort of problem with your account that requires immediate action. The message of the email then offers a link to the "company website" for you to input your account information or other personal identifying information. If you click on the link, you are instead directed to an imposter website that sends any information you provide directly to the thieves!

The emails and imposter websites are often well crafted, including convincing language and impressive imitations of the legitimate websites. Rather than try to steal your information, they try to trick you into giving it right to them! Then they use the information you provide to access your accounts or steal your identity.

The good news: While the bank may occasionally ask you questions (for your protection and privacy) to help establish your identity in different circumstances, note that we will NEVER ask for personal identifying information, such as your account number, Social Security number, PIN or password, via a phone call or email.


Check Scams

With these scams, the thieves don't try to steal your identity, just your money! Most of the fake check scams involve a trick to get you to wire money to someone you do not know. Some of these tricks include:

  • secret shopper scams
  • internet auction scams
  • check overpayment scams
  • foreign lottery scams
  • classified ad scams

The stories and circumstances vary for each scam, but in all instances, you are given a paper check (whether it be a cashier's check, money order, corporate check or personal check) and asked to wire money off to someone you do not know as part of the transaction or program. These fake checks often look very real, may contain authentic-looking watermarks, may include names and addresses of legitimate financial institutions, and may even include legitimate account and routing numbers. But in the end, it is still just a fake check.

And just because funds are available on a check you've deposited, that still doesn't mean the check is good. Later, when the thief's check bounces, you are left liable, because money you wire can't be retrieved once it's sent. So, until your bank confirms that funds from a deposited check have actually been deposited into your account, you are responsible for any funds you withdraw against that check!

It essentially comes down to this: NEVER wire money to anyone as part of a transaction or program that involves money you've received by check.

The good news: Basic awareness of this scam is your best defense against it. Don't trust checks that come to you unexpectedly, ESPECIALLY when they are followed by a request for a wire transfer.


Spyware and Computer Hacking

Thieves often use email as a means to get us to infect our computers with malicious software (malware) designed to extract your personal identifying information, which will in turn help them steal your identity and/or your money. The malware self-installs on your computer without your knowledge and enables small pieces of information to be gathered about your Internet use, passwords, etc.

Thieves take advantage of our curiosity regarding current world events, everything from big news stories and celebrity gossip to simple "funny" stories or videos, and infect web sites, search results, and email with malware. Scam emails may promote videos and pictures thieves hope will peak your interest, enticing you to click on them, but these emails will infect your computer when you click on the link or open the attachment.

Computer hacking is a more overt, aggressive attack on your computer designed to extract your personal identifying information.

The good news: A little caution with regard to links and attachments will go a long way. Plus, for those instances when simple caution isn't enough, there are firewalls, anti-spyware and anti-virus tools available to minimize your exposure to this type of attack.


Mail Theft

Thieves will sometimes take account statements, pre-qualified credit card offers, or other mail right from your mailbox.

Statements and other mail can, of course, give them personal identifying information. Stolen credit card offers can sometimes be filled out and sent directly to the thief at another address to give the thief a credit card in your name, but in their possession, without you even knowing about it until the first bill comes!

The good news: With the ability to receive e-statements for many of your accounts and services and the ability to opt out of many direct mail offers, mail theft is getting more difficult for thieves.


Dumpster Diving

Rather than trying to visibly steal your information, some thieves will simply go through the trash, whether it is at your home or at a company you do business with, looking for discarded documents that contain your personal identifying information.

The good news: A good paper shredder at home can eliminate most of your risk exposure. And businesses are increasingly aware of the responsibility they assume for the handling of your personal identifying information and are taking the steps necessary to protect you.


Card Skimming

Sometimes thieves are able to place a "skimming" device at an unsupervised debit/credit card machine, such as at an ATM or gas station. Then when you swipe your card to use it to make a purchase or withdrawal, the device captures your card number and other information for the thief to steal.

The good news: There are limited locations at which thieves can accomplish this fraud. And careful attention to the machinery will often tip you off. (If the machinery/equipment looks odd or different and the transaction doesn't go through, you have a good hint.)


"Shoulder Surfing" and Eavesdropping

These are the very simple techniques of secretly looking over your shoulder to try to determine your PIN or password during a transaction and secretly listening when you speak personal identifying information aloud during a transaction.

The good news: Simple alertness and attentiveness to your surroundings during transactions should help you avoid exposure.


Tools to Prevent Identity Theft

The following is a list of some of the most common recommendations to better protect yourself from identity thieves for each of the categories of identity theft described above.

Loss or Theft

While you don't ever plan to lose something, and you certainly can't predict when you might be the victim of a robbery, there are a few steps you can take to minimize your losses.

  • Don't carry your Social Security card in your wallet/purse
  • Don't print your driver's license number (or your SSN) on your checks
  • Sign your new debit and credit cards immediately
  • Don't keep PIN numbers with your debit/ATM/credit cards; memorize them!
  • Only carry cards you use, safeguard all others
  • Secure all personal information in your home

Special ATM tips:

  • Survey the location before using the ATM
  • Avoid dark or "hidden" locations
  • Be ready to start your transaction as soon as you approach the ATM
  • Shield your PIN from the view of any others before entering it
  • If a walk-up ATM, park as close as possible to the ATM, turn off the engine and lock your car
  • If a drive-up ATM, keep doors locked, the engine running and open the window only when you're ready to make your transaction
  • When finished, put away your money, card and receipt as soon as possible
  • Report lost or stolen cards immediately

Phishing

In phishing cases where thieves are trying to trick you into willingly providing personal identifying information, remember that you can always end the communication THEY initiated (whether it be by phone, email or whatever) and initiate your own communication at a phone number or website you KNOW to be accurate to see if there are truly any problems with your account.

  • Beware of phone calls or emails from anyone suggesting they are from a business (a bank, a government agency, an Internet service provider, an online retailer, you name it) who asks you to "verify" or "confirm" any personal identifying information
  • Don't click on links in emails that come unsolicited; rather go to the business website you know to be accurate and see if any account problems truly exist
  • Don't open email attachments or download files from unknown parties or unverified locations
  • If you're ever unsure of a person's identity, ask for the person's name, hang up and call the business back at a number you KNOW to be legitimate
  • Caller ID can sometimes verify a caller's location
  • Trust your instincts - if an email or email attachment seems suspicious, don't open it

Check Scams

Here are a few things to remember when you are presented with a check that might be fraudulent.

  • Beware of scenarios that give you a lot in return for a minimal effort or expense on your part
  • Never wire money to anyone as part of a transaction or program that involves money you've received by check
  • Any situation that involves you sending out a WIRE TRANSFER should immediately send up a red flag, because once money is wired, it cannot be pulled back under any circumstances - once it's sent, it's gone!
  • Remember: If it seems too good to be true, it probably is

Spyware & Computer Hacking

Online banking and other electronic communications are safe as long as due diligence is given to the threats out there. The following tips encourage you to enjoy the conveniences available with proper precautions given to the dangers that exist.

  • Maintain and run updated firewall, anti-virus and anti-spyware software on your computers
  • Don't download files from unverified locations
  • Be wary of unsolicited attachments, even from people you know
  • Turn off the option to automatically download attachments
  • Save and scan all attachments before opening them
  • Use a pop-up blocker
  • Visit only trusted news sites
  • Only click on search results for sites you know
  • Use strong passwords (containing a mixture of upper-case letters, lower-case letters, numbers and symbols)
  • Change your passwords periodically
  • Don't use non-encrypted wireless connections to send personal identifying information
  • Never use the "Save User ID and Password" settings, especially on public computers
  • Properly dispose of old computers to ensure all sensitive information is removed from the hard drive
  • Trust your instincts - if an email or email attachment seems suspicious, don't open it

Mail Theft

Since this most often happens without your knowledge, your best defense is simply to monitor your credit report and watch your mail.

  • Don't leave mail for pickup in an unlocked mailbox
  • Review all account statements for discrepancies
  • Watch for unauthorized transfers or withdrawals from your bank accounts
  • Watch for unauthorized charges on your checking account or credit card statements
  • Watch for missing bills or statements that don't arrive when they are supposed to
  • Watch for accounts appearing on your credit report that you did not open
  • Watch for calls from other financial institutions regarding accounts you have not opened
  • Watch for calls from collection agencies claiming you have not paid your bill
  • Stop the mail or have someone collect it for you if you will be away from home

Dumpster Diving

The following tips are your best defense against this threat.

  • Use a crosscut shredder to shred any documents with account numbers or other personal identifying information
  • Use a crosscut shredder to shred unwanted, pre-approved credit card offers

Card Skimming

The following tip is your best defense against this threat.

  • If the machinery/equipment looks odd or different and the transaction doesn't go through, you should be suspicious and report it to the place of business

"Shoulder Surfing" and Eavesdropping

The following tip is your best defense against this threat

  • Be aware of your surroundings whenever you disclose personal identifying information or input a PIN or password

I'm a victim. What do I do now?

People whose identities have been stolen can spend months or years, and their hard-earned money, cleaning up the mess thieves have made of their good name and credit record. In the meantime, victims may lose job opportunities, be refused loans, education, housing or cars, or even get arrested for crimes they didn't commit.

If you ever know or suspect that you are a victim of identity theft or any sort of fraud, there are several things you should do.

Steps To Take to Report Identity Theft

  • Contact one of the three major credit reporting agencies to report the fraud and request that they place a "fraud alert" on your account
  • Review your credit reports for other fraud that you may not have found yet
  • Contact the police to report the crime and request a copy of the report
  • Contact the Federal Trade Commission at www.consumer.gov/idtheft to make a report
  • Contact your bank and let them know
  • Contact any business likely to be affected and let them know
  • Keep good records of everything you do, when you do it, and whom you speak with
  • Visit this page on the FTC website: Recovering From Identity Theft
  • Visit this website: www.identitytheft.gov