Preventing and Responding to Identity Theft
Identity theft, or identity fraud, is a crime that can have
substantial financial and emotional consequences. Take precautions
with personal information; and if you become a victim, act immediately
to minimize the damage.
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Is identity theft just a problem for people who submit information
online?
You can be a victim of identity theft even if you never use a
computer. Malicious people may be able to obtain personal information
(such as credit card numbers, phone numbers, account numbers, and
addresses) by stealing your wallet, overhearing a phone conversation,
rummaging through your trash (a practice known as dumpster diving), or
picking up a receipt at a restaurant that has your account number on
it. If a thief has enough information, he or she may be able to
impersonate you to purchase items, open new accounts, or apply for
loans.
The internet has made it easier for thieves to obtain personal and
financial data. Most companies and other institutions store
information about their clients in databases; if a thief can access
that database, he or she can obtain information about many people at
once rather than focus on one person at a time. The internet has also
made it easier for thieves to sell or trade the information, making it
more difficult for law enforcement to identify and apprehend the
criminals.
How are victims of online identity theft chosen?
Identity theft is usually a crime of opportunity, so you may be
victimized simply because your information is available. Thieves may
target customers of certain companies for a variety of reasons: a
company database is easily accessible, the demographics of the
customers are appealing, there is a market for specific information,
etc. If your information is stored in a database that is compromised,
you may become a victim of identity theft.
Are there ways to avoid being a victim?
Unfortunately, there is no way to guarantee that you will not be a
victim of online identity theft. However, there are ways to minimize
your risk:
- Do business with reputable companies - Before providing any
personal or financial information, make sure that you are interacting
with a reputable, established company. Some attackers may try to trick
you by creating malicious web sites that appear to be legitimate, so
you should verify the legitimacy before supplying any information (see
Avoiding
Social Engineering and Phishing Attacks and Understanding Web
Site Certificates for more information).
- Take advantage of security features - Passwords and
other security features add layers of protection if used appropriately
(see Choosing
and Protecting Passwords and Supplementing
Passwords for more information).
- Check privacy policies - Take precautions when providing
information, and make sure to check published privacy policies to see
how a company will use or distribute your information (see Protecting Your
Privacy and How Anonymous Are
You? for more information). Many companies allow customers to
request that their information not be shared with other companies; you
should be able to locate the details in your account literature or by
contacting the company directly.
- Be careful what information you publicize - Attackers
may be able to piece together information from a variety of
sources. Avoid posting personal data in public forums (see Guidelines for
Publishing Information Online for more information).
- Use and maintain anti-virus software and a firewall -
Protect yourself against viruses and Trojan horses that may steal or
modify the data on your own computer and leave you vulnerable by using
anti-virus software and a firewall (see Understanding
Anti-Virus Software and Understanding
Firewalls for more information). Make sure to keep your virus
definitions up to date.
- Be aware of your account activity - Pay attention to
your statements, and check your credit report yearly. You are entitled
to a free copy of your credit report from each of the main credit
reporting companies once every twelve months (see AnnualCreditReport.com
for more information).
How do you know if your identity has been stolen?
Companies have different policies for notifying customers when they
discover that someone has accessed a customer database. However, you
should be aware of changes in your normal account activity. The
following are examples of changes that could indicate that someone has
accessed your information:
- unusual or unexplainable charges on your bills
- phone calls or bills for accounts, products, or services that you
do not have
- failure to receive regular bills or mail
- new, strange accounts appearing on your credit report
- unexpected denial of your credit card
What can you do if you think, or know, that your identity has been
stolen?
Recovering from identity theft can be a long, stressful, and
potentially costly process. Many credit card companies have adopted
policies that try to minimize the amount of money you are liable for,
but the implications can extend beyond your existing accounts. To
minimize the extent of the damage, take action as soon as possible:
- Contact companies, including banks, where you have accounts
- Inform the companies where you have accounts that someone may be
using your identity, and find out if there have been any unauthorized
transactions. Close accounts so that future charges are denied. In
addition to calling the company, send a letter so there is a record of
the problem.
- Contact the main credit reporting companies (Equifax,
Experian, TransUnion) - Check your credit report to see if there
has been unexpected or unauthorized activity. Have a fraud alerts
placed on your credit reports to prevent new accounts being opened
without verification.
- File a report - File a report with the local police so
there is an official record of the incident. You can also file a
complaint with the Federal Trade Commission.
- Consider other information that may be at risk -
Depending what information was stolen, you may need to contact other
agencies; for example, if a thief has access to your Social Security
number, contact the Social Security Administration. You should also
contact the Department of Motor Vehicles if your driver's license or
car registration have been stolen.
The following sites offer additional information and guidance for
recovering from identity theft:
Author: Mindi McDowell
Produced 2005 by US-CERT, a government organization. Terms of use