Series: Spending Money

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Identity Thieves Want Your Number Terms of Use:

When someone steals your credit card, they use that card to buy things. But it’s much worse when someone steals your identity.  In that case, a thief uses your personal information and pretends to be you.

The ID thief takes your name, Social Security Number, mother’s maiden name and other identifiers to open up credit card and checking accounts, take out loans for houses and cars, rent an apartment, open up accounts for telephone, cell phone, electric, cable TV and other services, take all the money out of your savings accounts, get a driver's license, and even pretend to be you if he or she is arrested.

Because the bills for all the things the ID thief is charging to your name get sent to an address different than yours, you might not know what’s going on for a long time. Many people find out someone has stolen their identity only after they themselves apply for a car loan or mortgage loan.

The victims of identity theft discover that their credit rating is completely ruined and no one will loan them money anymore.

Other people find out when they apply for a job and are suddenly told they have a police record – because the ID thief used their name when he or she got arrested.

Cost estimates of the average ID theft case say that business and banks incur over $10,000, and victims spend $1,200 or more and about 60 hours of work in repairing their credit rating.

Identity theft is a relatively new crime, but more and more people are doing it. In 2003, it was estimated there were nearly 10 million Americans who were victimized by identity theft.  It’s estimated to have cost businesses about $32 billion in 2002.

Even though the federal government and most states have passed laws against ID theft, the problem keeps getting worse.

Punishment for fraud and recovery of stolen funds is rare, so prevention is key.

What can you do to protect yourself against identity theft?

1.  Look over your credit report at least once a year, and check your credit card statements each month. That way you’ll find out early if an ID thief is doing damage.

2.  Never keep your Social Security card in your wallet or purse, and never put your Social Security number on your driver’s license or checks.

Series: Spending Money

Page 2 of 2

Identity Thieves Want Your Number Terms of Use:

3. Put passwords on credit card, bank and phone accounts (but don’t use your date of birth as a password).

4. Put passwords and a firewall protection program on your computers at home and at work.

5. Don’t open computer files from people you don’t know.

6. Unless you’re absolutely sure you’re working with a real store or credit card company, don’t give out identifiers over the phone or Internet.

7. Shred all old account statements and offers for new credit cards, especially those containing "convenience checks" – an ID thief will go through trashcans to get them.

8. Mail letters containing credit card information or checks in a U.S. Post Office collection box – don’t leave them in your home mailbox.

9. Remove your name from the marketing lists of the 3 credit reporting bureaus (Equifax, Experian, and TransUnion) to reduce the number of pre-approved credit card offers you receive.

10. Request to have your name removed from the Direct Marketing Association Mail Preference Service to receive less advertising mail.

11. Don’t carry extra credit cards in your purse or wallet except when needed. 

12.  Subscribe to a credit report monitoring service that will let you know if someone applies for credit in your name.

13. You can also buy insurance against ID theft.

You can take a Risk Assessment Quiz online from Rutgers University which will indicate how you're doing in reducing your chances of having your identity stolen.

The U.S. Postal Inspection Service has information on how to guard against ID theft, mail fraud and more.

If you believe that someone has stolen your identity, call the police. Then phone the Federal Trade Commission at their toll-free number 877-438-4338 or go to the FTC website for assistance. If your Social Security number has been used, notify the Social Security Administration's Office of Inspector General. 

See what you learned.