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Arizona residents have the dubious honor of leading the United States in identity theft victimization. Identity theft can be a very easy crimes to commit and is one of the most difficult crimes to prevent.  In the spring of 2005, Phoenix’s ABC Channel 15, “The Investigators”, produced an in-depth report on identity theft.  Included in this report was a survey that was conducted involving inmates in the Arizona Department of Corrections who have been convicted of Identity Theft. The results were as follows:

• 66% of the inmates said they chose their victims at random; a purse left in the vehicle, mail left in an unlocked mailbox and carelessly discarded cast register tapes.

• 33% used the internet to get personal information

• 31% stole information from mailboxes

• 38% got their information from garbage – residential trash cans, dumpsters

• On the average inmates said that they could steal up to 36 identities in one day and had more than 60 identities at one time.  One inmate admitted to having up to 500 identities.

• Street value of personal information: Credit Card Checks - $150, Canceled Checks - $50, Utility Bill - $425, Credit Card receipts - $100, Document containing SSN - $1500, Document with date of birth - $1500, Completed Cell phone Applications - $50.

• 91% of the inmates interviewed said they were not afraid of getting caught.

Every single day we interact with others, giving out information that could be used to make us a victim of identity theft or fraud. Here are some of the ways personal information finds its way into the hands of someone looking to take over some unsuspecting victim’s identity:

• Theft of a wallet or purse: Fifty percent of the time an identity theft starts with a simple theft of a wallet or purse containing credit cards, identification cards, and bank account numbers.  Wallets left in vehicles, purses left in vehicles or shopping carts are prime opportunities for identity theft. 

• Theft of mail: From either home mailboxes or trash, including bank statements and bank checks, credit card statements or pre-screened credit card offers, and medical or financial information.  Dumpster divers like to hang out in neighborhoods where the residents indiscriminately toss unwanted mail (especially those pesky credit card offers) into their trash.  Other mail thieves may follow behind the mail truck as they deliver mail to the boxes that are located at the street. Some identity thieves even complete a change of address form diverting mail to another location. 

• Theft of personal information: Birth certificates, vehicle registrations, social security records, etc., as the result of a residential or vehicle burglary.

• Theft of commercial records: Files that have been improperly disposed of by businesses, educational facility, health care providers, etc., where the victim may have been a customer, patient, student or employee, can lead to identity theft. Employee theft of information also can lead to identity theft.

• Skimming: The theft of credit card numbers when the card is processed through a portable card reader, usually by employees of service providers, i.e.: restaurants, retail stores, etc. 

• Spying: Information stolen by the use of telephone cameras or other hidden devices which record the PIN numbers or credit card information during transactions when credit cards are present.

• Family and friends: Sadly, those closest to you might take advantage of access to your personal information, credit cards, PIN numbers, etc.

The internet has provided many identity thieves with the means to steal personal information, often from multiple victims at a time.  

• Phishing: is the sending of fraudulent emails that request personal information.

• Spoofing: is the sending of a virus or worm in an email. Once infected, your computer then automatically relays your personal information to the sender.

• Pharming: in this scam, the identity thief uses software which deceives your internet server into sending your information to websites other than the ones you are attempting to access.

• War Driving: is the ability to locate wireless systems and using a laptop with special software to “capture” passwords and keystrokes from wireless computers not protected by adequate encryption or security programs.

Being aware of these schemes can help you defend against them. However, there is no way to keep your personal information completely safe. If you suspect you may be a victim of identity theft or fraud take the following steps:

• File a report with your local law enforcement agency.  Get the report number, and if possible, a copy of the police report.  You will need this number when contacting creditors or credit bureaus to validate your claim of being a victim.  When making the report include information such as: How the identity theft was discovered (credit card statement, credit bureau report, SSN benefits canceled, etc.). If the information was compromised as the result of on-line transactions, know the site(s) on which the information was placed (i.e.: job applications, loan applications, etc.).

• Place a fraud alert on your credit with all three of the major credit bureaus.  Call the toll-free fraud number of any one of the three major credit bureaus to place a fraud alert on your credit report.  As soon as the credit bureau confirms your fraud alert, the other two credit bureaus will be notified to place fraud alerts on your account.  There will be no charge for this service.  Placing a fraud alert on your account will prevent an identity thief from opening additional accounts in your name.

Equifax – to report fraud, call:

1-800-525-6285, and write: P.O. Box 740241, Atlanta, GA  30374-0241

Experian – To report fraud, call:

1-888-Experian (397-3742), and write:  P.O. Box 9532, Allen, TX  75013

Trans Union – To report fraud, call:

1-800-680-7289, and write: Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA  92834-6790

Review your credit reports carefully.  Look for inquiries not initiated by you, accounts that you did not open, and any unexplained outstanding balances on your current accounts.  Also, check that your personal information such as your SSN, address(es), name or initial, and employers are correct.  Inaccuracies may simply be due to typographical errors.  However, whether due to error or fraud, you should notify the credit bureau as soon as possible by both telephone and in writing.  Annual checks of your accounts should be made to make sure no new fraudulent activity has occurred.  Once the initial fraud alerts expire, you can renew them by contacting each bureau separately.

• Close any accounts that have been tampered with or opened fraudulently.  Credit accounts include all accounts with banks, credit card companies or other lenders, telephone companies, utilities, ISP’s and other service providers.  If you have found new unauthorized accounts call and ask them for their fraud dispute forms.  If you find unauthorized charges or debits on an existing account call and ask them for their fraud dispute forms.  For the theft or loss of all ATM cards and credit cards and for any replacement accounts always use new Personal Identification Numbers (PINs) and passwords.

If checks have been stolen or misused, contact your bank immediately.  While there is no federal law limiting your losses due to forgery or fraud, many states have laws that may limit your liability if you contact them within a timely manner.  Contact your bank for further instructions.

• File a complaint with the FTC.  Call 1-877-IDTHEFT (438-4338), or write: Identity Theft Clearinghouse, Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC  20580; or visit: www.consumer.gov/idtheft.

Organize your Case

Accurate and complete records will help resolve your identity theft case more quickly.  Having a plan of action in place before you start contacting anyone will make sure you get all of the information or help you need.

• Prepare an action log: Record who you talked to and when.  This will help you keep your contacts in one place in case of questions later.
• Copies: Make copies of all statements checks and all correspondence, either received or sent, connected with your identity theft.  A paper trail is essential when tracking unauthorized access to your identity and your actions to rectify the situation. Provide copies of all documentation received to date when you make your initial police reports.  The more information you can provide at the beginning, the better the chance of finding the identity thief.
• Follow up: Follow up in writing with all contacts you have made on the phone or in person.  Use certified mail, return receipt requested to document what was sent and when.
• Maintain records: Keep original copies of supporting documents, such as police reports and letters to and from creditors, send copies only. Set up a filing system for easy access to your paperwork. Keep old files even if you believe the case has been closed.  Problems can still crop up later.
• Constant vigilance: Challenge all inaccurate information on your credit report.  Be sure to keep copies of the corrected reports.  Have letters available to be included with new credit applications for all information that was not resolved favorably.

All about Credit Reports

The credit bureau is the most common type of Consumer Reporting Agency (CRA). CRAs compile accumulated data into a credit report that is used to determine the credit worthiness of potential customers.  The information contained in a credit report will remain for varying lengths of time.  A bankruptcy, an unpaid line of credit or closed accounts will remain on the credit report for 10 years, while credit inquiries, adverse information, judgments, foreclosures and collection accounts will only stay on the credit report for 7 years.

When asked, the credit bureau must give the requestor all information contained in his/her file, including medical information and the sources of the information.  Additionally the credit bureau must provide a list of anyone who requested the credit report within the past year (two years for employment related requests).

Another function of the credit bureau is to translate the information contained in the individual credit reports into a three digit number, between 300 and 900, called a credit score.  This credit score is the thumbnail sketch of a person’s level of risk as a borrower and, in many cases, the determining factor if someone is given credit or not. Rapid credit score fluctuations often indicate that a person has become a victim of identity theft.

In the event of a dispute over information contained in a credit report, the credit bureau and the organization providing the information to them ( bank, credit card company, etc.) have legal requirements for correcting inaccurate or incomplete information. Inaccurate information should be challenged and resolved as soon as the discrepancy is found. 

• Contact both the credit bureau and the creditor, in writing, explaining to them each item in the report that is believed to be inaccurate.  Include copies (not originals) of any documents that support the claim, state the facts, why the items are being disputed and request for a deletion or correction.  A copy of the credit report with the information in question circled would help.  Send the letter by certified mail, return receipt requested.  Document what was sent and when it was received by the credit bureaus.  Keep all copies of any letters and enclosures. 

The credit bureau will investigate the items in question, usually, within 30 days.  They must also forward all relevant data that was provided about the dispute to the information provider, who must also investigate the claim and report back to the credit bureau.  If the information provider finds the disputed information inaccurate, it must notify all nationwide CRAs so they may correct all files. Disputed information that cannot be verified must be deleted from a file.

• If the report contains inaccurate information, the CRA must correct it.
• If the item is incomplete, the CRA must complete it.
• If the files show an account that belongs strictly to another person, the CRA must delete it.

When the reinvestigation is complete the credit bureau will respond in writing with the results along with a free copy of the credit report if the reinvestigation results in any charges. If requested, the credit bureau must send notices to anyone who received a copy of the report within the last six months showing the changes. If a creditor or information provider continues to report the disputed information, it must include a notice that the item has been disputed.

"Building a Better Credit Report," (FTC)

Resolving Specific Problems

Fraudulent bank account withdrawals: State laws protect a victim from fraud committed by a thief using paper documents (stolen or counterfeit checks) and federal laws protect a victim when a thief uses an electronic transfer.

If an ATM or debit card is lost or stolen, it must be reported immediately because the amount a victim can be held responsible for depends on how quickly the loss is reported.

• Losses are limited to $50 if the loss or theft is reported within two business days of discovery.

• Losses can be up to $500 if the loss or theft is reported after two business days, but within 60 days after the unauthorized electronic fund transfer appears on a statement.

• If the report is made after 60 days all of the money that was taken from the account after the 60 days may be lost.

Note: Many card issuers limit or waive consumers’ liability for any unauthorized use of their debit cards, no matter how much time has elapsed since the discovery of the loss or theft of the card.  Contact your card issuer for further information.

After receiving the notification of error or fraudulent withdrawal on a statement, the institution generally has 10 days to investigate.  Notification of the results of the investigation must occur within 3 days after completion and must correct the error within one day after determining it had occurred.  If may take up to 45 days to complete the investigation only if they return the disputed money to the account.  If no error is found the money will be withdrawn.

Fraudulent checks and other “paper” transactions: Most states hold the bank responsible for losses from forged signatures or other such transactions, unless the victim fails to notify the bank in a timely manner that a check was lost or stolen.

A victim can contact major check verification companies directly for the following services:

• To find out if an identity thief has been passing bad checks in the name of a victim, call: SCAN: 1-800-262-7771.

• To request that they notify retailers who use their data bases not to accept the victim’s checks, call:

TeleCheck: 1-800-710-9898 or 1-800-927-0188

Certegy, Inc.: 1-800-437-5120

Fraudulently created bank accounts: If the identity thief has been opening accounts contact the banks where the accounts were opened.  Also contact: Chex Systems, Inc.: 1-800-428-9623; www.Chexhelp.com

Credit cards: The Fair Credit Billing Act has established procedures for resolving billing errors, including fraudulent charges, on credit card accounts.  The law limits liability to $50 of unauthorized charges with conditions:

Write to creditor at the address given for “billing inquiries”, not the address for sending payments.  Include name, address, account number, and a description of the billing error, including amount and date.

The letter must reach the creditor within 60 days after the first bill containing the error was mailed to the card holder.  If an identity thief changed the address on the account and the card holder did not receive the bill, the dispute letter still must reach the creditor within 60 days of when the creditor would have mailed the billing statement.  This is one reason why a card holder must keep track of billing statements and quickly follow-up if bills do not arrive on time.

The letter should be sent by certified mail, return receipt requested, as proof of the date the creditor received the letter.  Keep a copy of the dispute letter.  The creditor must acknowledge the complaint in writing within 30 days after receiving it, unless the problem has been resolved.  The creditor must resolve the dispute within two billing cycles (but not more than 90 days) after receiving the letter.

"Take Charge: Fighting Back Against Identity Theft," (FTC)