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By Julie Gershon
 While identity theft is by no
means a new crime, it seems to have become all the rage, with the numbers of
victims each year increasing at a tremendous rate. How could it not? With less than a 5% arrest rate and about a
1-2% conviction rate, this translates into high profits payoff with low or
little risk to the perpetrator. And
while most people have a perception that identity theft is financial (e.g.
related to theft of a charge card), statistics have shown that this is only
about one-fourth of the problem, with the majority of thefts relating to social
security numbers, medical fraud, criminal use and driver's license fraud.
Identity theft is a crime in
which key pieces of data, including social security numbers, driver's licenses
etc. are obtained and used in a fraudulent manner. Thieves are then able to
illegally use this information to obtain credit, merchandise, insurance,
identification, employment and/or services in the guise of the person whose
information was stolen. The US Federal Trade Commission estimates that the
current 1 in 8 people who are victims can spend on average 600 hours and US$1400
in out-of-pocket expenses to start resolving the damage.
A growing problem
Your phone number, birth date,
prior place of residence... The amount of information about YOU that is available
to the public today at little or no cost has escalated to an all-time high.
Even a small piece of information can be the key to unlocking huge amounts of
data about you, and most of it for free!
The evolution of how we discard
mail is one clue as to how things have changed.
Think about it. Years ago, sorting mail into more than one pile was not
even part of our daily routine. Where we used to discard all of our mail into
the trash and later on into trash and/or recycling bins, we now have added a
third stack: The TO-BE-SHREDDED pile. Once
only found in business offices, the shredder has become a commonplace and
necessary appliance for which we have made room in our private lives.
In any case, identity thieves can
obtain personal information in numerous ways, including mail theft, ‘dumpster diving',
‘shoulder surfing' at ATM's, hiring people to steal databases of information,
raiding old computer drives, ‘phishing'/ ‘pharming' (sending false e-mails/setting
up dummy web pages), using skimmers on credit cards, running phone scams,
computer and internet fraud, burglarizing homes for personal records and taking
over old credit card accounts - just to name a few.
On today's information and
technology highway, we are constantly being assaulted by information that puts us
at higher risk of becoming a victim of identity theft - whether it is from
receiving pre-approved credit card applications or convenience checks in the
mail or due to data breaches from companies that lack sufficient security
measures.
Steps to help protect
identity
While our personal information
already exists in countless databases, and there is no way to completely
protect ourselves against identity theft, there are some things we can do. Changing simple habits, along with being more diligent, sensitive
and aware of how we handle our personal information, can help minimise our risk
of becoming a victim.
For
example:
* Do not carry your social security
number in your wallet and get a non-social security number on your license,
medical cards, etc
* Recognise and discard sensitive
mail appropriately
* Create different passwords for different
accounts using numbers, letters, and/or symbols
* Minimise the number of credit
cards you use and carry, and reduce unnecessarily high credit lines
* Know what's in your
wallet/purse! Clean it out, photocopy both sides, and put in a secure place
* Keep receipts to compare with
the statements every month and review all items
* Buy an inexpensive cross-cut shredder for
destroying sensitive papers
* Keep all personal information
in a secure place in your home and office
* Use official post office boxes
or the post office only for outgoing mail
* Do not use ATM machines that
are at Rest Areas or other non-verifiable locations
* Do not write your full account
number on checks to pay bills (use last 4 digits only)
* Read the Privacy Policies of
companies with whom you do business
* Verify that your employment
records are kept in a secure location
* Buy goods on-line only from
reputable companies and be the one to initiate contact
* Look for the yellow "lock box"
indicating that the site is secure or "https"
in the URL
* Install spyware software and fire
walls and make sure they are kept up-to-date
* Do not set up "remember me" for
log in names and passwords
* Never click
on a website from a link in an e-mail - enter the URL yourself. Avoid ‘phishing' and forward spam that looks
for your information to spam@uce.gov and the
company, bank, or organization being impersonated
* Avoid giving personal
information on the internet. E-mail is not
secure
* Remove the hard drive before
throwing out a computer as data can remain imbedded
* Educate your family members on
the risk of identity theft
* Early detection is KEY! Sign up for a credit monitoring and restoration service.
Free resources to help
Fortunately, in areas where we do
not have much control, there are numerous free resources that victims and
consumers can turn to find out more such as the Federal Trade Commission (http://www.ftc.gov) or the Identity Theft
Resource Center
(http://www.idtheftcenter.org). Both of these provide additional useful
and valuable tips whether you have become a victim and need guidance on how to
unravel the problem or you simply want to educate yourself better in
understanding the depths of this multi-faceted crime.
The Federal Trade Commission,
along with its Deter-Detect-Defend Campaign against identity theft (http://www.ftc.gov/bcp/edu/microsites/idtheft),
has also started implementing requirements for all businesses that will hold
them liable for data breaches, with civil and criminal penalties, including
fines, dismissal of management, and jail time for executives, through
legislation under FACTA, HIPAA and Gramm Leach Bliley.
Even the U.S. government has stepped up to the
plate. Recognizing the need to become more involved, President Bush designated
an Identity Theft Task Force. In April 2007, this Task Force released a 120-page
report entitled: Combating Identity Theft: A Strategic Plan (http://www.idtheft.gov/reports/StrategicPlan.pdf).
Its purpose: ‘To craft a strategic plan aiming to make the federal government's
efforts more effective and efficient in the areas of identity theft awareness,
prevention, detection and prosecution.' This extensive report explores the increasing problem
and scope of identity theft. It includes
how it occurs, what thieves do with the information and strategies to combat
the issue. It also covers assisting
victims and law enforcement's increasing role.
All of these measures have become
necessary in trying to help staunch the rising tide of identity theft. Our increasing awareness and our own personal
actions will help enhance these efforts.
By Julie Gershon
Julie Gershon is a Managing Partner of Unique Benefits
Group, LLC and an employee benefits, group security and identity theft specialist
with Pre-Paid Legal Services, Inc. (Independent Associate). Over the past ten years,
she has been offering pre-paid legal plans and identity theft monitoring and
restoration plans to individuals, families and companies nationwide as an
employee benefit. Ms. Gershon is a Phi
Beta Kappa graduate with a B.A. in Legal Studies and a Minor in Criminal
Justice Studies from the University of
Massachusetts in Amherst. She has worked in the legal industry
for over 18 years. She can be reached at +1 978-658-4235 (direct) or 800-320-3220. E-mail: gershons3j@cs.com;
Website: http://www.onlyonemeonline.com.
FUMSI articles by Julie Gershon »
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