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How to prevent identity theft

Elisabeth Philippe, UNFCU

Identity theft is the use or transfer of key identifying information such as a person’s name, address, financial/account data, and if one is a US citizen, his Social Security Number. One thousand people daily fall victim to identity theft in the United States and according to Barry Thompson, who has handled over 900 security cases and currently advises financial institutions worldwide, many countries in the developed world are not far behind in rising rates of ID crimes.

For those who suffer the loss of their personal data, the inability to make major financial purchases like a car or a house because of identity theft can be crippling. Despite apparent resolution, some security fraud cases can resume years later. One may then be denied employment, be unable to renew their drivers license or in an extreme case – one’s tax return check may be taken to pay child support for a child born to an imposter.

By increasing the amount of information available on its website: www.unfcu.org, developing a seminar and brochures for its branches and overseas Liaison Offices, UNFCU is taking a leadership role in raising members’ awareness about identity theft prevention.

“Our members sought counsel on this growing international trend and we are committed to safeguarding them against identity theft,” said Pamela Agnone, senior vice president of Retail Services at UNFCU. “One needs to be vigilant and educating our members, as well as our staff is vital in combating this issue,” said Joseph Gonzales, Fraud Investigator at UNFCU.

There were 380 new email scams in March alone in the U.S., up 40% from February, according to consumer groups. The rise, experts say, is attributed to highly sophisticated tactics, such as baiting victims over the Internet, a practice called “phishing.” Identity thieves literally fish for information among thousands of potential victims using phony yet well-designed “spoofed” web- sites and e-mails, disguised as communiqués from financial institutions or government agencies, to trick recipients into volunteering personal and financial data.

“Financial institutions, including UNFCU, do not notify customers via email to ask for personal information,” said Gonzales, who added, “Avoid providing information, namely birth date, Social Security number and mother’s maiden name when filling out forms. Financial and medical institutions, as well as government agencies are the exceptions.”

Whether its email appeal letters from abroad or online applications, in-store solicitations or surveys requesting copious personal information, security specialists agree. Ask questions and write to companies, such as wireless phone providers, asking them how your Social Security number, a primary means of identification, will be used. “Forget about how many times you simply just gave out these numbers and start asking why they need it, how the data is being stored and what will happen if information is not provided,” said Thompson.

Warning Signs

Unscrupulous employees at stores, health clubs and even volunteers at the dog pound can easily get their hands on unsecured records and begin taking on your identity – opening up new lines of credit, illicitly purchasing goods and services around the world or a series of car loans over the Internet.

Most individuals, tote a wealth of personal information best kept at home, including financial documents with account numbers, medical ID cards, which contain Social Security Numbers and ATM/Bancomat Personal Identification Numbers (PINs) and account passwords. Carelessness, leaving financial information behind on a copy or facsimile machine, can also provide thieves with a crime of opportunity.

Friend or Social Engineer?

Other scams involve the ease with which social engineers, people at coffee shops and airport waiting areas, can strike up conversations, called “confidence games” on seemingly innocuous subjects, such as your hometown, your children’s names and current address and employment. Mail thieves and Dumpster Divers can quickly gather items such as preapproved credit card promotional material, membership cards, pay stubs and old receipts. Posing as a friend or a relative they then ask neighbors more about you. Other wily thieves simply give a pretext for telephoning then proceed to ask personal questions as your employer, loan officer or landlord.

“As a rule be friendly, but never give up real information about yourself or your family,” said Thompson. Remember, ID theft strikes all phases of life. Thieves frequently compromise children’s identity as they have no credit history and will not discover the theft for years.

Conclusion

The advent of new policies at financial institutions, which verify individuals’ identity using biometrics (fingerprints or eye scans), instead of Social Security numbers, and ID cards with computer chips containing biometric information are providing preventative measures.

Yet, according to Thompson, “There are over 400 ways the Internet can be used to obtain information. Make careful decisions about providing businesses with your personal data. Be attentive and do not allow yourself to become a victim.”

Following are top strategies to avoid losing your identity:

Protection Against ID Theft

• Carry only the most essential items you will need that day in a wallet or purse.
• Keep money in a separate wallet from your credit card and drivers license.
• When using ATMs at non-financial institutions, check to see if there is a false front, “barnacle” with a card reader unit attached. Be aware of individuals who are standing too close to you, called shoulder surfers, at the ATM.
• Never supply sensitive information (such as user ID and passwords) via email
  
  Be wary of emails from unknown sources, especially those requesting updates of financial information.
• When shopping online ensure that you look for the “lock” icon on the browser’s status bar as well as the “https” in the website address.
• Purchase a shredder. (Pieces need to be small enough to avoid their being glued together.) Secure financial records in a safety deposit box.
• Select unique Personal Identification Numbers (PINs) that differ from your date of birth, telephone number or the last 10 digits of your Social Security Number.
• Do not hit Opt Out or answer email solicitations, stating that you have just won US/euros $1 million, a common confidence game. Purchase an Internet spaming software to prevent unwanted emails.
• Do not post a personal Web page, which includes your genealogy (mother’s maiden name) or any personal identifying information.
• Screen requests from stores for birth dates other personal information to be used in special promotions. Decide whether it is worth the risk to provide this data.
• If you reside in the U.S., monitor your credit history, by requesting a copy of your credit report annually. Major US Credit Bureaus and their web- sites include: Equifax, www.equifax.com, Experian, www.experian.com and Trans Union, www.transunion.com.
• Check your credit union/bank and credit card statements closely to see if there are charges that you do not recognize.
• Have your name removed from mailing lists via direct marketing name removal sites: Direct Marketing Email (for emails) at www.e-mps.org and Direct Marketing (for regular mail delivery for national marketing campaigns) at www.the-dma.org
• Beware the least suspected, such as roommates, teenagers and outside help and service providers.
• Remove incoming mail from your mailbox as quickly as possible. If you live in the US and plan to be away for a while, call the US Postal Service at 1-800-275-877 and request a “vacation hold.” If you happen to relocate, provide UNFCU with your home address information in advance, or immediately after relocating.
• Use one credit card for Internet purchases.
• When you view your financial information online, do not leave your computer unattended and be certain to log off when you are finished.

What to Do If You Have Become a Victim

• Alert UNFCU, as well as other creditors and financial institutions, by telephone and in writing about the situation and discuss next steps concerning your membership. Close all accounts you believe have been tampered. 
• Report the crime to the police. Ask the police to issue a police report to submit to your creditors and others that may require proof of the crime.
• Keep copies of correspondence and documents related to the theft. 
• If you have a U.S. Social Security Number, contact the fraud departments of one of the three major credit bureaus (Equifax (1-800-685-111), Experian (1-888-EXPERIAN (397-3742) and Trans Union (1-800- 888-4213). Request to have a “Fraud Alert/Victim Impact” statement placed in your credit file asking for creditors to call you before opening any new accounts. As soon as the credit bureau confirms your fraud alert, the other two credit bureaus will be automatically notified to place fraud alerts, and all three credit reports will be send to you free of charge.
• Contact the Federal Trade Commission at www.FTC.gov or telephone 1-877-IDTHEFT (1-877-438-4338) to file a complaint.

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