Identity Theft Prevention and Protection

5 areas of Identity Theft:

Driver's license identity

Social security identity

Medical identity

Character or criminal identity

Financial identity

Driver's license identity theft is when someone steals your driver's license identity. They can commit a driving offense or a DUI or DWI in your name. This information will appear on your driver's license record- leaving you to deal with the consequences. Fines and court proceedings would continue to build up on your record since you are unaware of the offense.

Social security identity is when your social security number is being used by others for a variety of reasons whether it be to earn money and not pay taxes or falsely claim benefits checks from your social security identity. It could affect your future social security benefits or ability to receive a refund from the IRS.

Your medical identity can also be compromised. They can steal your insurance benefits or run up huge medical bills receiving services under your social security number. Considering insurance, some insurance carriers have lifetime caps for costs, someone could potentially run up your total resulting in your coverage being affected. Their diagnosis' could end up on your medical record which could impact your health care treatment due to inaccuracies in information.

Character or criminal identity theft is where someone assumes your name and/or social security number and commits a crime in your name. Again, leaving you to deal with the legal and financial consequences.

Your financial identity can be compromised and debts could incur if the take out a loan or open a bank account in your name. The financial identity theft is becoming a very big issue for people as some banks begin to enforce what they call Regulation E- requiring you to pay the debt even though you did not create it, did not sign a single document and did not get the benefit or money.

The Federal Trade Commission estimates that as many as 9 million Americans have their identities stolen each year. There are five areas of identity theft: driver's license, social security, medical, character or criminal identity and financial identity. Most people shred their mail and think they are protected from identity theft however, there are a variety of ways theives can get steal your identity. Their tactics are becoming more expansive. However, here are a few:

1. Dumpster Diving- They rummage through trash looking for bills or other paper with your personal information on it.

2. Skimming- They steal credit/debit card numbers by using a special storage device when processing your card.

3. Phishing- They pretend to be financial institutions or companies and send spam or pop-up messages to get you to reveal your personal information.

4. Changing of Address- They divert your billing statements to another location by completing a change of address form.

5. Theft- They steal wallets and purses; mail, including bank and credit card statements; pre-approved credit offers; and new checks or tax information. They steal personnel records, or bribe employees who have access.

6. Pretexting- They use false pretenses to obtain your personal information from financial institutions, telephone companies, and other sources.

I couldn't believe when I heard stories from people, I decided to do some research myself. I found that there so many ways in which identity theft can enter and complicate your life.

Someone could...

...open credit cards in your name and ruin your credit

...change your address and run up your current credit accounts

...open a new phone or wireless account in your name, or run up charges on your existing account

...use your name to get utility services like electricity, heating, or cable TV

...create counterfeit checks using your name or account number

...open a bank account in your name and write bad checks

...clone your ATM or debit card and make electronic withdrawals your name, draining your accounts

...take out a loan in your name

...get a driver's license or official ID card issued in your name but with their picture

...use your name and Social Security number to get government benefits

...file a fraudulent tax return using your information

...get a job using your Social Security number

...get medical services using your name running up medical bills

...get testing and treatment under your name which could potentially affect your insurance benefits and coverage and your medical records history

...get a traffic offense including DUI and give your information

...commit a crime and give your information

...give your personal information to police during an arrest, when they don't show up for their court date, a warrant for arrest is issued in your name

The Federal Trade Commission website has a lot of great information for consumers. Their website features the words- "Identity theft: Deter, Detect and Defend". I was lucky enough to have found Identity Shield- a reasonably priced plan that will allow me to follow their "3 D's". It provides you a current credit report, continuous monitoring with e-mail notification of changes or derogatory information that may show up on your credit report. They will also send you notification monthly, even if nothing changes. The last part is true restoration should your identity be stolen. They will assist you in dealing with a very complicated process of fixing your identity to it's original state. One things I have learned through my professional and personal life, it's always better to be proactive rather than reactive to situations and Identity Shield allows consumers to empower themselves against identity theives.

Study the two pictures below- do you notice anything?

In reviewing both pictures, you may have noticed the area where the ATM card is swiped looks different. The second picture shows what a skimmer looks like. I must say had I walked up to picture #2 with my ATM card, I wouldn't have known. It's easy to see when comparing a before and after picture to see it. They may not all look the same as the one shown.

Another thing you may have noticed- in picture #2 there is a metal strip affixed across the ATM right above skimmer that has a small camera in it. So in this instance, they would have secured your ATM card information and your pin in one ATM transaction.

Time Involved in Being a Victim

Victims spend from 3 to 5,840 hours repairing damage done by identity theft. This difference is due to the severity of the crime - for example a lost credit card versus the use of your social security number to become your "evil twin." The average number of hours victims spend repairing the damage caused by identity theft is 330 hours.
26-32% of victims spend a period of 4 to 6 months dealing with their case and 11-23% report dealing with their case for 7 months to a year.

Monetary Costs of Identity Theft

40% of business costs for individual cases of identity theft exceed $15,000. The Aberdeen Group has estimated that $221 billion a year is lost by businesses worldwide due to identity theft
Victims lose an average of $1,820 to $14, 340 in wages dealing with their cases
Victims spend an average of $851 to $1378 in expenses related to their case

Practical and EmotionaEmotional Costs of Identity Theft

47% of victims have trouble getting credit or a loan as a result of identity theft
19% of victims have higher credit rates and 16% have higher insurance rates because of identity theft
11% of victims say identity theft has a negative impact on their abilities to get jobs
70% of victims have trouble getting rid of (or never get rid of) negative information in their records
40% of victims experience stress in their family lives as a result of displaced anger and frustration over the identity theft
45% of victims feel denial or disbelief
85% of victims anger and rage
45% of victims feel defiled by the identity thief
42% of victims feel an inability to trust people because of the identity theft
60% of victims feel unprotected by the police