What is Identity Theft?

In general, identity theft happens when somebody steals another person's credit card numbers, driver's license number, social security number, date of birth and other personal identification, and then uses the information to illegally open accounts or make purchases. It is a very serious crime, and the fastest growing one in the United States. Approximately 11.8 million Americans were victims in 2003. The Federal Trade Commission reports that:

Identity theft can affect anyone, regardless of age, gender, race or economic status
It costs the U.S. economy more than $50 billion per year
It can ruin the victim's credit, causing them to lose loans for education, housing or cars
Victims spend between 60 to 175 hours resolving the problem, and complete resolution usually takes up to two years
On average, victims spend $1,000 out-of-pocket to clear their name

Types of Identity Theft

The two most common types of identity theft are account takeover and true identity theft. Account takeover occurs when a thief obtains a person's existing credit account information and then uses it to make fraudulent purchases. In true identity theft, the perpetrator uses another person's social security number and other identifying information to apply for loans or credit cards, establish utility services, open bogus bank accounts, and even file for bankruptcy under the victim's name.

Other types of identity theft occur as well. For example, an illegal immigrant could use a person's social security number and birth date to obtain employment, or an arrested criminal could give an assumed name, birth date and social security number to police, leaving the innocent victim with a criminal record.

How Thieves Obtain Information

They steal records from their employer or hack into a computer system;
They steal purses or wallets;
They steal bank or credit card statements from the mail, or divert them with change-of-address forms;
They rummage through the trash, also known as dumpster diving, to obtain personal information from tax forms, pay stubs, and financial statements;
They hack into websites;
They use electronic tactics like Phishing, in which a spam email or pop-up message appears to trick the reader into providing credit card numbers, account information, passwords or other personal information. The messages usually claim that files need to be updated or validated.

Take Steps to Protect Yourself

Regularly review your credit report to make sure there are no unknown credit inquiries or unauthorized accounts.
Balance your checkbook and cross-reference receipts against credit card statements. Challenge purchases you don't recognize or didn't make.
Cancel inactive credit cards and lines-of-credit, and limit the number of cards you have in use.
Shred preapproved credit or loan applications. A mailbox thief can easily fill them out and redirect the return address.
NEVER offer important information like your drivers license number, credit card or bank account, birth date or social security number to anyone you don't know over the phone.
Shred credit, debit or ATM receipts; bank statements; tax documents; paycheck stubs; W-2 forms; and unused checks. Dumpster divers can obtain a wealth of information from them.
Secure any personal information you may store at home. This is especially important if you have roommates or hire outside help.
Deposit outgoing mail in post office boxes or at the post office. Put a hold on mail delivery if you plan on being away from home.
Subscribe to a credit watch program. Find one that can monitor your credit report and assist with crisis resolution.

When on the Computer

Install and update a virus protection program and spyware detection software on a regular basis.
Do not open email or download files from people or businesses you don't know.
NEVER include your social security number or other identifying information in an email.
Use a firewall, especially if you have a high-speed internet connection, and a secure browser to protect your information when making online purchase (look for the “lock” icon).
If possible, register your credit card in the Verified by Visa^® or MasterCard^® SecureCode™ program to protect it during online purchases.
If you get an email or pop-up message that asks for personal information, do not reply or click on the link. Legitimate companies do not ask for this type of information via email.

What to do if You Become a Victim

Contact the fraud departments of the three major credit bureaus — Equifax, TransUnion, and Experian — to review your credit report and place a fraud alert.
Close any accounts that you do not recognize, have been tampered with, or have been opened fraudulently. Follow up in writing.
File a report with your local police department. Keep a copy of the report in case creditors need proof.
File a report with the Federal Trade Commission. This can be done online.

How Northwest Federal Credit Union Can Help You Avoid Becoming a Victim

Maintaining a member's privacy is a top priority at the credit union, and we take pride in the trust our members have placed in us. To ensure the highest level of security we:

Protect your personal information diligently, obtaining it only when necessary to service or maintain your accounts.
Issue Personal Identification Numbers (PINs) for your ATM, credit and debit cards. Only you know your PIN; not even staff has access.
Participate in the Verified by Visa^® and MasterCard^® SecureCode programs, which protect your credit cards when you shop online.
Offer free internet banking and electronic statements. Online banking allows you to check your accounts daily, and electronic statements arrive faster than paper ones and stay out of the mail system.

Identity Theft Resources

Federal Trade Commission
1-877-ID-THEFT
www.ftc.gov (to file a complaint) or www.consumer.gov/idtheft (for general information)
Provides basic information, including a downloadable Identity Theft Affidavit.

Identity Theft Resource Center
858-693-7935
www.idtheftcenter.org
Provides a wealth of information about laws, scams, consumer alerts, resources and more.

Equifax
1-800-685-1111
www.equifax.com
Website includes “Learning” section with id theft information and more.

Experian
1-888-EXPERIAN (397-3742)
www.experian.com
Website includes “Consumer Alerts” section, which defines current scams and fraud tactics.

TransUnion
1-800-916-8800
www.transunion.com
Includes “Fraud Victim Information Center,” which features a seven-step system for restoring credit.

Social Security Office of Inspector General Fraud Hotline
800-269-0271
www.ssa.gov/pubs/idtheft.htm
Features basic ID theft information and links to other useful resources.