Identity Theft Toolkit - Self-Counsel Press · preceding year to resolve problems created by the theft of their identities. All the current data show that identity theft will continue

IDENTITY THEFT TOOLKITHow to Recover From and Avoid Identity Theft

John Lenardon

Self-Counsel Press(a division of)

International Self-Counsel Press Ltd.USA Canada

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1 WHAT IS IDENTITY THEFT? 1

What Does Personal Information Include? 3

Identity Theft and Technology 4

How Do Identity Thieves Steal Information? 5

What Happens to Your Personal Information? 5

Detecting Identity Theft 7

How Safe Is Your Identity? 8

How This Book Can Help You 10

2 PREVENTING IDENTITY THEFT 13

When You Give Your Information Away 13

How good is a company’s privacy policy? 16

Opting out 19

Threats at Work 20

What your employer can do to protect your information 21

What you can do to protect your information 22

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CONTENTS

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Shopping Securely 23

Check Washing 25

Computer Protection 26

Guard your laptop 26

Secure your wireless connections 28

Keep safe on the Internet 28

Watch for phishing scams 32

Protect yourself during online transactions 35

Hackers 36

PDAs (Personal digital assistants) 37

Discard your computer with care 38

What Your Children Need to Know 38

Children’s friends 39

Children and the Internet 39

Protecting Your Home 40

Mail 40

Trash 41

Telephone 41

Credit and Debit Cards 42

Car Risks 43

The Threat You Carry 44

On Vacation and Still at Risk 44

The Danger Card (SSN/SIN) 46

Canadian Firearms License 48

Identity Theft Insurance 49

“Say No” to Identity Theft 49

3 WHAT TO DO IF YOU BECOME A VICTIM 51

Document Everything 52

Track Your Investigation 53

Get the Help You Need 54

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Whom You Should Contact 55

Financial institutions 55

Police 56

Personal service providers 57

Government departments 57

Be Sure to Follow Up 58

Summary 59

4 REPORTING AN IDENTITY THEFT 61

Law Enforcement 61

Financial Reporting 62

Financial institutions 62

Credit card companies 62

Debit cards 63

Check cashing 63

Student loan fraud 64

Bankruptcy fraud 65

Department store accounts 65

Investment fraud 66

Government Agencies 68

Tax fraud 68

Driver’s license 69

SSN or SIN fraud 69

Passport fraud 71

Old Age Pension fraud 72

Criminal Records 74

United States 74

Canada 75

Canadian Firearms License 75

Personal Reporting 76

Phone fraud 76

Calling cards 78

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Utility fraud 78

Mail theft 78

Internet fraud 78

Help Track Identity Theft 80

United States Federal Trade Commission 80

PhoneBusters Canada 80

5 YOUR CREDIT REPORT 81

Credit Report Suspicions 83

United States Credit Bureaus 84

Fraud alert 84

Your rights 85

Free credit reports 87

Free active duty alerts for military personnel 88

Credit report fees 88

TransUnion 89

Equifax 97

Experian 99

Canadian Credit Bureaus 102

Fraud alerts 103

TransUnion Canada 103

Equifax Canada 111

6 FORMS FOR DEALING WITH IDENTITY THEFT 115

ID Theft Victim Information Form 118

Contact Checklist 123

Law Enforcement Contact Form 125

Main Financial Institutions Contact Form 126

Additional Financial Contacts Form 127

Credit Card Companies Contact Form 128

Department Stores Contact Form 129

Driver’s License Contact Form 130

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SSN or SIN Information Contact Form 131

Passport Contact Form 132

Telephone Companies Contact Form 133

Utility Companies Contact Form 134

Other Services Contact Form 135

Post Office Contact Form 136

Medical Information Contact Form 137

Equifax United States Contact Form 138

TransUnion United States Contact Form 139

Experian United States Contact Form 140

Equifax Canada Contact Form 141

TransUnion Canada Contact Form 142

Sample Letter to a Credit Reporting Agency 143

Sample Letter to Existing Creditors 144

Sample Confirmation Letter 145

Quick List of US Contacts 146

Quick List of Canadian Contacts 147

CHECKLISTS

Your Identity Risk Test 9

Identification Document Checklist 45

SAMPLES

Sample Phishing E-mail 32

Sample Credit Report from TransUnion (US) 92

Sample Credit File Request Form from TransUnion 105

Sample Credit Report from TransUnion (Canada) 107

TABLES

Identity Risk Test Results 10

Examples of Breach of Privacy 18

Current Rates for a Personal Credit Report 89

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Identity theft is the fastest-growing nonviolent crime in NorthAmerica today. When someone steals personal information fromyou such as your driver’s license number, social security number,or social insurance number, or other identifying information touse for illegal purposes, you have become a victim of identity theft.

The thief could use your personal information to apply forcredit cards in your name or open a checking account and writebad checks in your name. Your credit rating and your reputationcould be severely damaged.

Victims of identity theft often suffer substantial economicand emotional harm. A victim will spend significant amounts oftime fighting problems such as bounced checks, loan denials,credit card application rejections, and debt-collection harass-ment. Many victims also report feeling personally violated.

Thieves have stolen identities of teens and changed the birthdates. In some cases, teenagers applying for college loans havebeen told their credit rating was destroyed years ago.

There have even been cases in which an identity thief usedthe victim’s name when caught during a criminal act. Some ID

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WHAT IS IDENTITY THEFT?

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theft victims face criminal investigation, arrest, or convictionbecause of the thieves’ activities. For example, one victim wasthe subject of an arrest warrant based on speeding tickets issuedto an ID thief. Some victims have also been denied employmentor lost their jobs as a result of their identities having been stolenand used in illegal activities.

On April 13, 2005, Chris Swecker, the assistantdirector of the Criminal Investigative Division,Federal Bureau of Investigation, appearedbefore the Senate Judiciary Committee.

He stated, “Identity theft has emerged asone of the dominant white-collar crime prob-

lems of the 21st century. Estimates vary regarding the trueimpact of the problem, but agreement exists that it is pervasiveand growing. In addition to the significant harm caused to themonetary victims of the frauds, often providers of financial, governmental or other services, or the individual victim of theidentity theft may experience a severe loss in their ability to utilize their credit and their financial identity.”

A report to the Attorney General of the United States andthe Minister of Public Safety and Emergency PreparednessCanada indicated that identity theft was growing rapidly, due in part to the Internet and modern technology.

During a one-year period, total losses to individuals andbusinesses related to identity theft in the United States wereestimated at approximately US $53 billion. In Canada, the losses for the same period were estimated at approximatelyCDN $2.5 billion.

A US Federal Trade Commission identity theft survey found that victims had spent a total of 300 million hours in thepreceding year to resolve problems created by the theft oftheir identities.

All the current data show that identity theft will continue to grow substantially over the next decade and pose a threat totens of millions of people and businesses in Canada and theUnited States.

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WHAT DOES PERSONAL INFORMATION INCLUDE?Any information that describes or identifies you is consideredpersonal information.

This information could exist in any number of forms. Forexample, you may have had an ID-badge picture taken at work,paid a parking ticket, applied for credit cards or a mortgage, orbought a car. In each case, you have released some personalinformation.

Some of this information is harmless and is useless to iden-tity thieves. However, some of it is dangerous and needs to becontrolled and protected.

Some examples of personal information that you should pro-tect are your —

• birth date,

• city of birth,

• driver’s license number,

• passport number,

• home address,

• social security number or social insurance number,

• phone numbers,

• e-mail addresses, and

• family members’ names and birth dates.

More than ever before, companies and governments are ask-ing for your personal data. Every time you apply for credit, get anew job, make travel arrangements, or even make a purchase ata store, someone is demanding your information. Unfortunately,every time you release this information, the risk that it will bestolen increases. You could spend months or years trying to clearyour name.

No computer system is guaranteed secure. Some of thelargest companies in the world have had client records stolen. So

What is identity theft? 3

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have government agencies and employers. No organization canfully protect your data from the constant attacks they face.

Identity theft has become big business for criminals. Theamount of money involved is enormous and increases each year.As the criminal profits grow, so will the attacks.

It’s up to you to learn how to protect your personal informa-tion and do everything you can to ensure it never is used to stealyour identity.

IDENTITY THEFT AND TECHNOLOGYToday, our personal data is more vulnerable than ever. It isn’tsomething you can replace. It can’t be insured nor can it belocked up in a safe. Once it is stolen, it is “out there” forever, andyou can never be certain it will be safe again.

We live in an age of technology in which everything seemspossible. We can store millions of records on a device that can fitin your pocket, and a single laptop computer can store hundredsof thousands of client records. In addition, almost every com-puter in the world is connected to public communication lines.

Unfortunately, there is one very weak link in all this technol-ogy. We can’t completely protect the data. The tighter we makesecurity, the less efficient the systems become. We could go tothe extreme and lock up the data so that no one can access it, butsuch a step is neither economical nor sensible. Therefore, wemust always compromise. In most cases, the need for easy accessto the data outweighs the danger of it being stolen.

Some organizations demand access to our personal informa-tion, and others ask for it, but the result for us is the same.Whenever we give them any of our personal information, itbecomes easier to steal.

Personal information has been stolen from all kinds oforganizations including government departments and creditreporting agencies. The very people who publish long, detailedpolicies on how they will protect our data are incapable of doingso, and it is unlikely this situation will change.


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HOW DO IDENTITY THIEVES STEAL INFORMATION?Although technology can make it difficult for you to protect yourinformation, it is only part of the problem. Identity thieves oftenuse surprisingly low-tech methods to obtain your personal infor-mation. For instance, they steal your wallet or purse, or theysteal mail from your mailbox.

Or a thief will break into your car or house. In many of thesecases, the real reason behind the break-in is not to steal your per-sonal property; it is to steal your personal information.

What follows here is a list of some of the most commonmethods used by ID thieves to steal your information. Just aquick glance is enough for you to see the scope of the problem:

• “Skimming” your credit cards at restaurants or stores

• Shoulder surfing your PIN at an ATM

• Picking up a bank deposit slip you used as scrap paper andthrew away

• Hacking into your computer at home or at work

• Stealing your laptop or personal computer

• Sending you fake e-mails that trick you into releasing per-sonal information

• Going through your garbage at home or at work

• Stealing your information from companies where youhave accounts

• Stealing information while staying as a guest in yourhouse

WHAT HAPPENS TO YOUR PERSONAL INFORMATION?Personal information is a highly prized and very versatile com-modity. Once a thief has your personal information, he or shecan put it to all kinds of illegal uses — all of which can beextremely costly to you. Consider the following favorite activitiesof ID thieves:


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• They get checks or debit cards made in your name and usethem to empty your bank accounts.

• They take out loans or second mortgages in your name.

• They open new credit card accounts in your name. (Some-times they use a mailing address other than yours, so itmay take you weeks or months to realize that you have aproblem.)

• They open a bank account in your name and write badchecks on the account.

• They establish Internet services in your name.

• They establish telephone or utility services in your name.

• They obtain automobile loans in your name.

• They use your stolen identity if they are arrested for acrime. When they do not appear for the court date, youcould be arrested.

• They go on spending sprees using your credit and debitcards to buy “big ticket” items, such as computers, thatthey can easily sell.

• They file for bankruptcy under your name to avoid payingdebts they have incurred using your identity.

• They use your identity in a marriage ceremony and usethe marriage license to get immigration status in thecountry.

• They open accounts at a brokerage house and leave youliable for any losses.

• They use your social security number or social insurancenumber to get a job, leaving you liable for taxes due onthat income.

• They could use your social security number or socialinsurance number to file a tax return and receive yourrefund.

No matter which one — or combination — of these crimes iscommitted against you, you will be left with the problem ofclearing your name and rebuilding your credit rating, and you


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could also be left with a large debt load or a criminal record.Restoring your credit rating or removing incorrect criminalrecords can take months of letter writing, phone calls, and per-sonal expense. Unfortunately, years later, the data could resur-face, and you could become a victim again.

On November 30, 2005, the Internet CrimeComplaint Center (IC3) issued the followingwarning:

ATTENTION — E-MAIL DISGUISEDAS THE INTERNAL REVENUE SERVICE(IRS) PHISHING FOR PERSONALINFORMATION

The FBI has become aware of a spam e-mail claiming the recipient is eligible to receive a taxrefund for $571.94. The e-mail purports to be [email protected] with the subject line of “IRS TaxRefund.” A link is provided in the e-mail to access aform required to be completed in order to receivethe refund. The link appears to connect to the trueIRS website. However, the recipient is redirected tohttp://www.porterfam.org/2005/, where personaldata, including credit card information, is captured.

THIS E-MAIL IS A HOAX. DO NOT FOLLOW THEPROVIDED LINK.

DETECTING IDENTITY THEFTHow would you know if your identity was stolen? In some cases,you may not discover it for months. However, there are earlywarning signs you should watch for:

• Your credit card statement or bank statement does notarrive in the mail as expected. (An identity thief may havesubmitted a change of address notice to your financialagency so you do not detect the charges he or she placedon your cards.)


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• Your bank or credit card statement contains transactionsthat you did not authorize. (If this happens to you, checkwith your financial institution or lender immediately.Sometimes a thief will make a purchase for a few dollarsto test your card. If the transaction is approved, he or shewill immediately go on a large spending spree.)

• Your mail stops arriving. (The ID thief may have placed achange of address at the post office.)

• You receive credit card bills for unknown accounts. (Thethief may have already applied for credit in your name.)

• You get a call from a collection agency for a debt you didnot incur.

• You apply for credit from a lender and are unexpectedlydenied it.

• You order your credit report and find accounts or debtslisted that do not belong to you.

• A lender contacts you to discuss a credit application youdid not submit.

• You receive a call or letter stating that you have beenapproved for or denied a loan by unknown creditors.

• You receive unknown utility or telephone statements inyour name and address.

These are all indications of potential identity theft. If younotice any of them, you must immediately investigate the situa-tion and take steps to correct it. By responding quickly, you standa chance of controlling the damage.

HOW SAFE IS YOUR IDENTITY?Protecting your personal information takes effort on your part.To understand how great your personal risk is, try taking theIdentity Risk Test in Checklist 1. Each statement represents apossible risk factor. Read each statement carefully, and if youagree with it, check the box beside it. When you are finished thetest, count up all the check marks and compare that number tothe results shown in Table 1.


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HOW THIS BOOK CAN HELP YOUBy now, you’ve probably realized that you must begin to thinkabout and treat your personal information in an entirely differ-ent way than you have done until now. You have to protect it likeyou would a child. You have to keep it safe and establish controlover who has access to it and how it can be used.

No longer will you gladly answer questions when creditgrantors ask or automatically give personal data to retailers sim-ply because they say they need to know. Now you must ask themwhy they need to know. You will only release what is necessary— and no more. And you will demand they protect it fromthieves, both inside and outside their companies, and makethem explain their security precautions to your satisfaction.

This book will look at the ways you can protect your infor-mation so you never become a victim of identity theft. And if itis too late for you and your identity has already been stolen, thisbook will show you how to restore your reputation and yourcredit rating. It includes all the necessary contact numbers andforms to help you deal with the problems you will face.

Keep this book as a reference if you are not a victim and as arepair manual if you are.

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In one notorious case of identity theft, thecriminal, a convicted felon, not only incurredmore than $100,000 of credit card debt,obtained a federal home loan, and boughthomes, motorcycles, and handguns in the vic-tim’s name, but also called his victim to taunthim, saying that he could continue to pose as

the victim for as long as he wanted because identity theft wasnot a federal crime at that time. The thief then filed for bank-ruptcy, also in the victim’s name.

In this case, the victim reported he spent more than fouryears restoring his credit. It cost him more than $15,000.


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Identity Theft Toolkit - Self-Counsel Press · preceding year to resolve problems created by the theft of their identities. All the current data show that identity theft will continue

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