October 2002 What is identity theft? Identity theft, which is more properly known as identity fraud, is the improper or unauthorized taking of another's (the victim) identity for the purpose of: (1) obtaining credit or credit cards from banks or retailers; (2) stealing money from the victim's existing accounts; (3) applying for loans; (4) renting a house or apartment or leasing personal property (automobiles, boats, equipment, etc.); (5) filing bankruptcy; (6) establishing accounts with utility companies; (7) obtaining a job; or (8) committing a crime. How extensive is it? Authorities on the subject as well as most law enforcement agencies regard the current level of identity theft as being of "epidemic" proportions affecting 500,000 new victims per year. It is estimated that 25% of all credit card fraud is the result of identity theft. In 2001, thieves even attempted to steal the identities of celebrities like Oprah Winfrey and Tiger Woods. Why is it so pervasive? Low risk and high reward are the key factors in the explosive growth of identity theft. Credit card companies and retailers often decline to prosecute identity thieves simply because it is not cost efficient in most cases. Thus, an identity thief often eludes not only detection and capture but even prosecution if he or she is caught. The Internet has also become a source of identifying data including passwords, banking information, social security and credit card numbers. Careless responses to unsolicited e-mails ("spam") can often provide identity thieves with a bonanza of sensitive personal information. There has also been a great increase in situations where unscrupulous employees, who handle sensitive personal information, at hospitals, banks, airports, retail stores, hotels, car rental companies, and restaurants, have been implicated in thefts of vital personal information that has then been sold to identity thieves. How does identity theft occur? In addition to exploiting the Internet and paying off dishonest employees, there are many other ways thieves obtain enough personal information to steal a person's identity such as: 1."Shoulder surfing" - Involves watching the victim as he or she punches in telephone numbers, access codes and pin numbers, and credit card numbers. 2."Dumpster diving" - Occurs when thieves rummage through trash bins, garbage pails, and waste paper baskets at or outside of private homes, apartments and office buildings, retail stores, restaurants, schools, hospitals, doctors', dentists' and lawyers' offices, insurance companies and other establishments where receipts, cancelled checks, applications, forms, billing information, or other personal information can be found. 3.Stealing the victims' mail when they are away on vacation in order to obtain bank account numbers, credit information and new credit card applications. 4.Eavesdropping on telephone conversations in order to listen for credit card numbers and the like. 5.Obtaining "public" information at courthouses and other municipal offices. 6.Fraudulently obtaining the victim's credit report. 7.Stealing the victim's wallet or purse. 8.Stealing the victim's laptop computer or P.D.A. or accessing information contained in them. How can you avoid becoming a victim? There are a number of ways in which you can help prevent yourself from becoming a victim of identity theft. These include the following: 1.Keep your Social Security number confidential and only give it out when absolutely necessary. 2.Always keep your credit card receipts in a safe and secure place. If you don't want them, shred them. 3.Always check your monthly credit card statements for unauthorized purchases or suspicious charges. 4.Check your credit report regularly and report any suspicious activity. 5.When making a purchase, never let your credit card out of your sight if possible. 6.Make a photocopy of every document that you keep in your wallet. 7.Don't carry around sensitive documents unnecessarily. There is rarely any reason for you to carry your passport, Social Security card, or an excessive number of credit cards. 8.Be very careful when operating an ATM machine or making any telephone call in which credit card numbers, access or pin codes, your Social Security Number, or other personal information may be punched in or spoken. Be sure to look around you to see that no one is lurking about. 9.Keep a list of all bank accounts, credit card numbers, expiration dates, credit line amounts, customer service numbers, and other sensitive personal information in a safe place where it can be quickly accessed in the event of a problem. 10.Keep all unnecessary documents, and credit cards in a safe place. 11.Become more difficult to prey upon. Use an unlisted telephone number if possible, omit your address on checks, shred all documents or mail that contains any personal information. 12.Be careful with unsolicited offers for credit cards. If you do not use them, destroy or shred them. 13.Do not open or respond to unsolicited e-mails. 14.Pick good passwords that are not obvious and yet are easy for you to remember. 15.Immediately call any credit card company or retail store credit office if you do not receive a bill that you are expecting. (Some thieves will go so far as to change the billing address on your account(s) in order to keep you from seeing the unauthorized activity on your account 16.Do not give away personal information over the telephone. 17.Do not fall for bogus telephone calls that claim you have won a valuable prize or offer you a new major credit card. The caller will seek to obtain important personal information from you which will then be used to steal your identity. As the caller to mail you the offer or application. If they refuse or make some excuse why they can't, hang-up. If they do send you an application or other forms, read them carefully and only send them back and filled out if you are sure that they are from an established or reputable company or bank. 18.Your mail. If you are away from home, be sure to have someone pick up. What to do (and not do) if you become a victim of identity theft. Once you find out (from whatever source) that you have become a victim of identity theft, you should take action immediately. Here are the things you can do to minimize the impact on your life: 1.File a report with your local police. 2.Don't change your Social Security Number. (It will probably cause more problems than it will solve.) 3.Don't cancel your credit cards. It may be very difficult for you to get new ones. You are better off reporting the fraud and getting new security codes, putting a fraud alert on the account and making sure that the issuer does not change your address without your personal instruction to do so. 4.Contact the Federal Trade Commission to report the situation. The telephone number is 1-877-ID THEFT (877-438-4338). The address is Consumer Response Center, FTC, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. 5.Contact the Social Security Administration at 1-800-269-0271. 6.Contact the I.R.S. at 1-800-829-0433. 7.Call the fraud units of the three major credit reporting companies. Equifax - 1-800-525-6285 - P.O. Box 740250, Atlanta, GA 30374-0250. Experian (formerly TRW) - 1-888-EXPERIAN or fax to 1-800-301-7196 - P.O. Box 1017, Fullerton, CA 92634. 8.Contact creditors you believe are affected. 9.Contact your bank(s). Place stop payment orders on any outstanding checks. You may have to close your accounts and open new ones. 10.Contact the major check verification companies if necessary. CheckRite 1-800-766-2748. ChexSystems 1-800-428-9623. CrossChek 1-800-552-1900. Equifax 1-800-437-5120. SCAN 1-800-262-7771. National Processing Co. (NPC) 1-800-526-5380. 11.Obtain an Identity Theft Survival Kit that has everything you need to know about identity fraud and the best ways to deal with it. www.identitytheft.org/id_theft_kit.htm. 12.Consult other sources for information and assistance: www.idtheftcenter.org/ U.S. Postal Service - 1-800-275-8777 - www.usps.gov/websites/depart/inspect U.S. Secret Service - www.treas.gov/usss U.S. Social Security Administration - 1-800-269-0271 - www.ssa.gov - CALPIRG Consumer organization - 1-310-397-3404 - www.pirg.org/calpirg or USPIRG - 202-546-9707 - www.pirg.org - VOIT (Victims of Identity Theft Support Group - www.pirg.org/calpirg - U.S. Dept. of Justice - www.usdoj.gov/criminal/fraud/idtheft.html While we hope that none of our subscribers ever becomes a victim of identity theft, we also hope that the above information will be of assistance to anyone who does. For further information regarding the rights you or your loved one may have with respect to this matter contact PARKER & WAICHMAN immediately by calling 1-800-LAW-INFO or visit the firm