Identity Theft The Fastest Growing Crime Today
Identity theft occurs when a thief uses the personal information of another to fraudulently obtain, credit, money, or property. The personal information usually includes a social insurance number, Date of birth, and possibly information on the victims relatives.
Some quick stats on Identity theft:
- 27.3 Million Americans have been victimized by an identity thief within the past 5 years
- The total cost of this crime is 33 billion of which consumers pay $5 billion
- the incidence of identity theft hit 42% of all complaints to the FTC in 2003.
- Every 79 seconds there is an identity theft.
In 25% of all cases the victim knows the thief and 35% of those thieves are relatives - Almost Half of all identity theft victims are unaware that there identity has been stolen
The Average out of Pocket expense to individuals is $500
Identity theft falls under two main categories:
Financial:
Credit card fraud
Tax and Mail Fraud
Passing bad checks
etc….
Criminal:
Terrorism
Organized crime
etc…
The most common and vulnerable pieces of information that Identity thieves look for are:
- Social Security Number (SSN)
- Date of Birth (DOB)
- Mother’s Maiden Name
- Personal Identification Numbers (PINs)
- Passwords
- Driver’s License Number
Where they Find it:
The Mail:
- Telephone and utility bills usually have your phone number, address and account number
- Driver’s license renewal – has your name, Date of Birth (DOB) and Driver’s license number
- Monthly Credit Card Statement – Name address, card number, credit limit, and expiration date
- Bank Statements – Your name, address, banking institution, account number, checks and transactions.
- Pre-Approved credit card offers
- Pay stubs from direct deposit – Your name and address, your employer’s name, address, income, and sometimes your Social Security Number
- Retirement funds – Your name, address, account balance, name of holding company, contact information, and possibly you Social Security Number
- Annual Social Security account statement – Your Name, address, SSN, DOB, and account balance
- W-2s, 1099, tax returns, and other tax information – Your address, Social Security Number, and spouse’s and dependent’s Social security Numbers
How long should I Keep my Documents?
- Bank Statements – If online keep on encrypted CD. 6 months for Checking account, and 1 year for savings
- Canceled personal checks – Keep for 5 years if relating to taxes
- Credit card statements – 2 months or more.
- Investment accounts – as long as you have the account open or until you file you taxes
- Mortgage documentation – Keep for as long as you have the mortgage and interest paid for tax purposes.
- Deeds to property – For as long as you own the property
- Vehicle purchase loan or lease agreement – until its paid completely
- Insurance policies – as long as you own the policy
- Vehicle pink slips – as long as you own the vehicle.
The Best way to stop Identity theft is prevention. By Safeguarding your personal information you lower your chances of being victimized by an Identity thief dramatically. A secure lock fire safe could be the wisest investment you ever make if it prevents you the hassle and financial burden of restoring your credit. More importantly though is a secure mailbox and mailing routine.
How to “Opt Out”
If you wish to opt out of pre approved credit card offers you can do this by calling 1 (888) 567-8688. One call will remove you from the lists at all 3 major credit bureaus, Equifax, Experian, and Trans Union. You will still need to opt out of your own financial institution’s mailing list separately.
If you wish to “Opt Out” of a mailing list, you may wish to contact the Direct Marketing Association (DMA) at:
1120 Avenue of the Americas
New York, NY 10036-6700
Telephone: 212.768.7277
Fax: 212.302.6714
To opt out of Telephone solicitation you can contact: the National Do Not Call Registry online at www.donotcall.gov or via phone at 1-888-382-1222
The next thing you want to do is contact the following list brokers:
Database America
Compilation Department
470 Chestnut Ridge Road
Woodcliff, NJ 07677
Metromail Corporation
List Maintenance
901 West Bond
Lincoln, NE 68521
R.L Polk & Co. – Name Deletion File
List Compilation Development
26955 Northwestern Highway
Southfield, MI 48034-4716
Dun & Bradstreet
Customer Service
899 Eaton Ave
Bethlehem, PA 18025
Call 800-234-3867 and ask to removed as a “Marketable Business.”
Note: Dun and Bradstreet only keep a listing of business, not individuals
Identity Theft: Mail Protection Tips
- Use a locked mailbox to prevent easy access
- Do not put outgoing mail in a curbside mailbox
- Don’t leave your mail in the mailbox overnight
- Send your new checks to your bank for pickup rather than having them mailed to your home.
- Notify your local postal office of any changes in address immediately, and have them hold your mail while you are away for extended periods.
- Report all missing mail to the post office
Try to mail your bills at the post office directly to prevent your checks from being stolen or erased.
Following these simple steps may save you thousands of hours of grief, but if you have already become a victim of identity theft see our previous article titled: “What do I do if my identity has been stolen?”