Identity Theft
Basically, there are two forms of "identity theft". The first,
and most common is someone co-opts your credit card information.
This can be done in a number of ways, and while there is some
trepidation about giving out this information online, if it is on
a "secure" site, there is little chance of it happening there.
More commonly, it is a lost or stolen credit card, or careless
handling by an employee of a company where you used the credit
card to make a purchase. Always be sure you get the carbon paper
if they use a machine to imprint the information from your card.
If you do get an incorrect charge from a vendor that you did
business with, this is not identity theft. This is usually a
mistake, and usually, can be easily corrected directly with the
vendor. If the vendor does not cooperate, file a "disputed
charge" form with the credit card company
The second, and more insidious form of identity theft, is when
someone assumes your identity, and opens up credit card accounts,
or cell phone accounts in your name. They can also use your
social security number when applying for a job (a favorite trick
of illegal aliens), or your drivers license to get a duplicate
copy.
Communications tools available on the Internet are allowing
criminals to engage in new schemes and strategies, and identity
theft can be carried out easily over the Internet.
All scam artists need do, is pay a fee to an information broker
to get an individual's Social Security number. Online databases
also contain address information, while an individual's mother's
maiden name can be found in obituaries or other public documents.
Typically, they also have the bills sent to a different address
so you won't even get the bills and be alerted.
Recently, two Memphis men used the Internet to engineer an
identity-theft scam that allowed them to use the credit cards of
half a dozen top business executives. They ordered more than
$700,000 worth of expensive watches and jewelry. The people who
had their identity
stolen, didn't find out about it until after
they had credit problems.
If you open a credit account, ask that a password be used before
any inquiries or changes can be made on the account. Avoid using
easily available information like your mother's maiden name, your
birth date, the last four digits of your SSN or your phone
number - the same holds true for pin numbers.
While there is not a whole lot you can do to prevent this, there
are things you can do, to protect your credit if it does happen.
Contact the fraud departments of each of the three major credit
bureaus. (Equifax - www.equifax.com - Experian - www.experian.com
and Trans Union - www.tuc.com) All of them offer advice on what
to do if there has been fraud committed. Tell them to flag your
file with a fraud alert, including a statement that creditors
should get your permission before opening any new accounts in
your name.
If you discover that an identity thief has changed the billing
address on an existing credit card account, immediately close the
account, and request the credit bureaus for copies of your credit
reports. Credit bureaus must give you a free copy of your report
if it is inaccurate because of fraud.
Regardless of how the thieves got, or used the information,
report it to the police department. That way, if there is a
question down the line, there will be an official report
available.
Identity theft is a serious problem. If you feel that this has
happened, immediately take the steps outlined above. When someone
appropriates your personal information without your knowledge,
it's a crime, pure and simple.
While it may cause you problems when trying to straighten out the
mess, hopefully it will cause the perpetrators even bigger
problems. Those two Memphis men face millions of dollars
in fines and several decades worth of prison time.
About the Author
Bob publishes the free weekly "Your Business" Newsletter
Visit his Web Site at - http://adv-marketing.com - to
subscribe.
|