Congressman Bachus encourages all Alabamians to become educated on identity theft, and to take the necessary steps to protect themselves. Congressman Bachus is a principal author of the Fair and Accurate Credit Transactions (FACT) Act. This legislation, signed into law by President Bush, contains the strongest identity theft protections ever enacted into federal law and entitles consumers to a free copy of their credit reports.
Identity Theft-What is it?
With the proliferation of electronic commerce, a new variety of thief has emerged. The identity thief obtains your sensitive information and uses it without your knowledge to commit fraud or theft. Everyday transactions reveal bits of your personal information: bank and credit card account numbers; income information; Social Security numbers; or name, address, and phone numbers.
Identity theft is one the fastest growing white collar crimes in the U.S., according to the Federal Trade Commission. Individuals often spend months or years cleaning up the mess the theives have made of their good name and credit record. Some victims have lost job opportunities and been refused loans for education, housing, and cars. Victims have even been arrested for crimes they did not commit!
Thieves may use stolen credit and debit card acoount numbers to buy "big-ticket" items like computers that they can easily fence. Often, they will open a new credit card account in the name of the victim. Identity thieves can take out loans, establish bank accounts, file for bankruptcy, and establish phone and wireless service under the names of their victims. They will even give the false name to police during an arrest.
How Does Identity Theft Occur, and what can I do to protect myself?
Identity thieves are highly skilled and use a variety of methods to gain access to personal information.
The old-fashioned way is by rummaging through your garbage for receipts and financial statements, picking up lost credit cards, and stealing wallets and purses. Protect yourself by shredding sensitive documents and securing your personal belongings. Promptly report a lost credit card to the company.
Identity thieves can obtain credit reports by abusing their employer's authorized access to credit reports, by posing as a landlord, or employer, or someone else who has a legal right to the information. They also send out bogus e-mails under the name of a legitimate institution seeking personal information. Don't fall for this common Internet scam.
It is possible for credit card and debit card numbers to be stolen through an information storage device known as "skimming." You can protect yourself against this by monitoring your statements closely for unusual charges.
Bank and credit card statements, pre-approved credit offers, new checks, and tax information can be stolen from mailboxes. Deposit outgoing mail in post office collection boxes or at your local post office instead of an unsecured mailbox. Remove mail from your mailbox promptly. If you're planning to be away from home and can't pick up your mail, call the US Postal Service at 1-800-275-8777 to ask for a vacation hold.
Identity thieves can complete a change of address form to divert your mail to another location with the intention of running up your credit card bills beofre you notice the charges. Pay attention to billing cycles. Follow up with creditors if your bills don't arrive on time.
Finally, identity thieves can procure information from you by posing as a legitimate business person or government official. Don't give out personal information on the phone, through the mail, or over the Internet unless you've initiated the contact or are sure you know who you've been dealing with. Before you divulge any personal information, confirm you're dealing with a legitimate representative of a reputable organization.
I'm a Victim...What do I do?
Contact the fraud departments of your credit card company and each of three major credit bureaus and report that your identity has been stolen. Ask that a "fraud alert" be placed on your file and that no new credit be granted without your approval.
For any accounts that have been fraudulently accessed or opened, contact the security departments of the appropriate creditors or financial institution. Close those accounts. Put secure passwords on any new accounts you open.
File a report with your local police where the identity theft took place. Get a copy of the report in case the bank, credit card company, or others need proof of the crime later on.
There's Help Out There
The Federal Trade Commission (FTC) is the federal clearinghouse for complaints by victims of identity theft. Although the FTC does not have the authority to bring criminal cases, the Commission assists victims of identity theft by providing them with information to help them resolve the financial and other problems that can result from identity theft. The FTC also may refer victim complaints to other appropriate government agencies and private organizations for further action.
If you've been a victim of ID theft, you can file a complaint with the FTC by contacting the FTC's Identity Theft Hotline toll-free at 1-877-ID-THEFT (438-4338), TDD 202-326-2602 or by mail at:
Identity Theft Clearinghouse, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington DC 20580.
The FTC publishes free brochures on many consumer issues. For a complete list of publications, write for Best Sellers, Consumer Response Center, Federal Trade Commission, 600 Pennsylvania Ave, NW, Washington, D.C. 20580; or call toll free (877) FTC-HELP (382-4357), TDD (202) 326-2502.
As a result of the FACT Act, you have the right to receive a free copy of your credit report from each of the three major national credit bureaus nationally. There is only one authorized site offering these reports under the terms of the legislation, www.annualcreditreport.com. While other sites advertise free credit reports, they may also charge fees for other products.