Identity fraud is one of the fastest-growing crimes in the nation, with one study claiming there’s a victim every 79 seconds. Experts say one out of eight Americans has been a victim in the past five years.
“It’s bad, bad, bad,” said Ed Mierzwinski, consumer program director for U.S. Public Interest Research Group, a consumer advocacy organization in Washington, D.C.
Those stung by an identity thief usually get tangled up in trying to clear their name. Individual victims can spend up to 60 hours trying to undo the damage, according to Your Credit Card Companies, an ad hoc group of some of the largest credit card issuers.
Experts warn against crying foul over slip-ups. An errant credit card or banking account charge is not always identity theft. Identity theft occurs when someone poses as you by using your name, address, Social Security number and other personal information to obtain items such as credit cards, loans, driver’s license and cell phone service.
Just how did roughly 3.23 million Americans become identity theft victims last year?
“It’s not rocket science,” Mierzwinski said. “It can be done with sophisticated gangs, and it can be done by a high school dropout.”
Thieves can get their hands on your personal information through advanced methods that include hacking into computer databases or by simply digging through your trash or stealing your wallet for personal information.
Anti-fraud law gets mixed reviews
Federal lawmakers are hoping the latest version of the Fair Credit Reporting Act provides a better shield for consumers in the war on identity theft.
Supporters of the law said it provides consumers better protection against identity theft and offers greater assistance to victims of fraud. Detractors claim the legislation prevents individual states from passing even tougher regulations.
Some of the provisions in the new law:
– Businesses are not allowed to publish full credit card numbers on receipts.
– Consumers can request a free credit report every year and have access to their credit scores.
– A fraud-alert tag must be prominently placed on all credit reports of individuals who have been victims of identity theft.
– Credit-rating agencies will be prevented from including fraudulent transactions when selling your credit report to other entities.
– Medical information will be coded on credit reports and cannot be used for credit decisions.
– Consumers will have only one number to call when reporting fraud or fraudulent activity instead of having to call all three major credit reporting bureaus.
– – –
Guard against ID theft
– Protect your personal information such as credit card numbers and your Social Security number. Don’t carry your Social Security card with you, and keep the number off of your checks and driver’s license.
– Review your credit reports at least once a year and check monthly financial statements for suspicious activity.
– When paying your credit card bill, put only the last four digits of your account on your check.
– Halt pre-approved credit card offers by calling 888-567-8688 (5OPT-OUT). The process should eliminate some mailings, but it won’t catch them all.
GET THE FACTS
Copies of your credit report are available by calling Equifax at 800-685-1111, Experian at 888-397-3742 and Trans-Union at 800-916-8800.
———-
What’s PAYDAY?
Your regular Money page takes a new twist on Fridays, with the start of Payday. Watch this space each week for personal finance stories from the Tribune’s Your Money team. Then pick up the Business section Sunday for expanded Your Money coverage in the Chicago Tribune.
———-
Edited by Lara Weber (lweber@tribune.com) and Patrick Olsen (polsen@tribune.com)
