Is identity theft as big of a problem as the
media are currently making it seem? The
answer is “yes.” Identity theft is the most up-and-coming type of fraud, growing leaps
and bounds over the past five years, according to Jennifer Herman, fraud analyst for corporate security with FirstMerit Bank.
For the thief, identity theft is a quick and
sometimes even easy way to make a buck. As
a thief, if you are a good talker, you can get
the smallest piece of personal information
from a person. With that piece of personal
identification, a thief can manipulate that
information to get more personal details and
access to accounts and personal assets.
This type of theft is not likely to disappear
any time soon. People need to educate themselves on ways to protect personal information and be diligent about personal finances,
says Herman. There are many safeguards in
place that people need to utilize instead of
viewing them as nuisances, and if your identity is stolen, you’ll quickly realize how valuable they are for your assets. Often, it is common sense and diligence that can protect you
and minimize your risk of becoming a victim.
Smart Business spoke with Herman about
protecting your identity and how to reclaim it
if it is stolen.
Are there different types of identity theft?
Personal information can be literally stolen
from an individual out of the mail or from
personal belongings, such as a wallet.
Information can also be stolen by phishing.
Phishing occurs when an e-mail is sent from
what looks to be your credit card company
or your financial company. These e-mails
often resemble official e-mails but are actually sent by thieves looking for personal information. These e-mails will ask you to reply
immediately with your account number
and/or PIN or your account will be frozen.
One should be on the lookout for such e-mails and never reply. If you reply with such
information, a thief has everything he or she
needs to start making debts in your name.
How can we keep tabs on our identities?
People should be aware and diligent when
it comes to their personal information and
finances. Many times people realize their identity has been stolen when they do not
receive a credit statement in the mail. If a person is suspicious that his or her identity has
been stolen, he or she should review his or
her credit report. Everyone is entitled to one
free review of his or her credit report. A
review does show up as an inquiry but is not
detrimental to one’s credit score. A fraud
alert can also be placed on accounts if you
are suspicious or have been a victim in the
past. These alerts require you to be notified
each time credit is requested. While this may
seem burdensome, it is designed to protect
you as the consumer.
What should someone do when he or she
finds his or her identity has been stolen?
There are four steps people should take
when they know their identity has been
stolen. Diligent documentation can help
them through each step.
- Place fraud alerts — Place alerts on all
accounts open because a thief may try and
rob more than one account. You should also
notify the credit bureau at this time. Only one
major creditor needs to be notified, as it will
notify the others. - File a police report — Identity theft
should be reported as soon as possible to the
authorities so they can start a formal investigation. - Close out accounts that have been compromised — Call and send written notification to the companies of which you have
been a victim and ask for all accounts to be
closed immediately to prevent future debts.
Include a copy of the police report for the
companies. - File a claim with the Federal Trade
Commission — It can be reached at (877) ID-THEFT.
Are people held responsible for debits
accrued when an identity is stolen?
Most debts are forgiven with the proper
documentation and persistence on the part
of the consumer. It takes time and personal
energy to recover such losses. Not all debts
are forgiven. Some identify theft victims deal
with credit issues throughout their life.
Prevention is key so identity theft is never
experienced.
How can identity theft be prevented?
Do not place bills or letters with personal
and/or account information in your personal
mail receptacle outside of your home. As
soon as the flag goes up to tell the mail carrier there is mail inside, a thief also knows he
or she can obtain information. Do not leave
personal mail by the front door or out in plain
view. If your home is broken into, a thief may
swipe such statements. These often go unnoticed, but if a thief obtains such documents,
he or she can have access to your assets even
after he or she leaves your home. Do not
carry personal identification, such as a Social
Security card in your wallet. Do not put your
Social Security number on your driver’s
license. Password protect all personal and
bank accounts. Do not use simple passwords
or include personal information in passwords. Finally, utilize safeguards put in place
by companies.
JENNIFER HERMAN is a fraud analyst for corporate security for
FirstMerit Bank. Reach her at [email protected] or
(888) 554-4362.