Picture this scenario. You finish paying for dinner, give the waiter your credit card and he takes it in the back to be scanned. In the three minutes that your card was out of your hands, how do you know your precious card wasn’t run through a second scanner and your personal information stolen? Or, the restaurant’s system wasn’t hacked into?
Identity theft is on the rise. The latest numbers released by Javelin Strategy and Research found that in 2009, 11.2 million people were victims of ID theft.
“You have to keep in mind, not everyone resolves their case in one week. Most do not. You have that 11 million but you also have some left over from the year before that are still working on resolving their case,” said Linda Foley, founder and research director of the Identity Theft Resource Center (ITRC).
Foley said consumers are being less proactive when it comes to protecting their identity, despite growing educational efforts nationwide to enhance consumers’ knowledge of this issue. Consumers also understand that many times, identity theft is a situation they cannot control.
For example, information can be stolen from a business, a Social Security number is put in the wrong place or someone randomly selects an address and phone number out of a telephone book and uses them to commit check fraud.
The ITRC conducted a victim aftermath study and found that opening new lines of credit continues to be the most frequently occurring use for stealing a victim’s identity (55 percent). Ranking second are charges put on stolen credit cards and debit cards at 34 percent. Check fraud continued to reflect an increase in 2009, either by synthesizing or theft of checks.
Victims reported spending between 68 hours and 141 hours repairing damage from the fraud that has affected them, and an average of $527 dollars in out-of-pocket expenses for the damage done to their accounts. Nearly one-third of the respondents were unable to remove negative items from their financial records.
“With the downturn in the economy, criminals have become relentless in their efforts to steal the identities of consumers and fraudulently open lines of credit,” said Indiana Attorney General Greg Zoeller.
Even the most meticulous person can become a victim of identity theft, but Foley says the apathy to protect yourself should stop. Instead of waiting for the other shoe to drop, there are simple ways to safeguard your identity such as checking credit reports annually, shredding important documents and being cautious about giving out your Social Security number.
“Always ask, ‘Why do you need my Social Security number?’ If they don’t have a legitimate reason that satisfies you, then ask ‘is there something else I can provide to prove my identity?’ What they are trying to do is prove you are you but may not understand the best ways to do it,” said Foley.
Other ways to prevent identity theft are to be aware of your environment, take care of important business in private, make sure you have the correct hardware and software on your computer, investigate suspicious emails or text messages and keep important documents in your home in a secure place.
Foley also suggested educating children on the importance of information privacy when they are social networking.
Zoeller said consumers should take further measures and consider placing a security freeze on their credit, opt-out of pre-screened credit offers, sign up for the state’s Do Not Call list, opt out of major online tracking companies and minimize the amount of personal information they carry.
“Consumers can go to our Web site, sign up and prevent anyone from fraudulently obtaining credit in their name. The security freeze is tied to all three major credit-reporting bureaus. And, if the consumer wants to apply for a new line of credit, they can go back to the site, lift the freeze temporarily, and then seal the lid of protection again,” Zoeller said.
The Indiana House of Representatives enrolled Act 1121, which took effect last July, boosts protections for consumers and creates new rights for victims, while giving local and state authorities more powerful tools to crack down on identity thieves.
“People always think identity theft happens to someone else, but it can most certainly happen to you,” said Foley.
For more information, call the Identity Theft Resource Center at (858) 693-7935 or visit www.idtheftcenter.org; the Office of the Indiana Attorney General’s ID Theft Unit at (800) 382-5516 or visit www.in.gov/attorneygeneral.
