Fraud and Identity Theft

 Another ATM Scam! | Business Fraud | ATM's Converted to Steal ID's

IDENTITY THEFT

What is Identity Theft?

Identity theft is a serious problem affecting millions of people each year.  It involves acquiring key pieces of someone’s identifying information, such as name, address, date of birth, social security number and mother’s maiden name, in order to impersonate them.  This information enables the identity thief to commit numerous forms of fraud which includes, but are not limited to, taking over the victim’s financial accounts, opening new bank accounts, purchasing automobiles, applying for loans, credit cards and social security benefits, renting apartments and establishing services with utility and phone companies.  People whose identities have been stolen can spend months or years cleaning up the mess the thieves have made of their good name and credit record.  Some victims have lost job opportunities, been refused loans for education, housing or cars, or even been arrested for crimes they didn’t commit. 

Is Identity Theft a crime? 

New Jersey is one of forty-three states, which do in fact have a statute for identity theft.  In the state of New Jersey, identity theft is covered under the wrongful impersonation statute.  Wrongful impersonation (N.J.S. 2C:21-17) escalates from a disorderly persons offense to a crime when the total monetary values for the goods or services defrauded exceeds $200.00.  Most identity crimes will be multi-jurisdictional in nature.  Frequently, you will not even realize that your identity was compromised until you receive a bill, statement, or some other notice that alerts you to the fact that you have a problem.  Many times, this is months after your identifiers were first stolen.  The subsequent fraudulent use of you identifiers may very well have occurred in a different state.   

How does Identity Theft occur? 

Offenders who commit identity theft may or may not be know to the victim.  There are many ways the offender may obtain your personal information or other information related to your personal financial accounts.  Information can be obtained from trash bins or at places where you conduct your personal business.  It can be obtained from identity thieves who work at banks, mortgage firms, social or credit agencies, city-state-federal agencies, auto dealerships, collection agencies, internet, utility services providers, telemarketers, doctor’s offices, merchants and other businesses that have access to your personal information or credit card information.  Identity thieves also contact victims via telephone and e-mail, requesting personal information.  Information can also be obtained from residential garbage cans, mailboxes and mail facilities.  The information from these sources is used to assume a false identity.  Residents should monitor the balances of their financial accounts.  Look for unexplained charges or withdrawals.  Other indications of identity theft can be: failing to receive bills or other mail signaling address change by the identity thief, receiving credit cards for which you did not apply, denial of credit for no apparent reason and receiving calls from debt collectors or companies about merchandise or services you didn’t buy.   

Preventing Identity Theft  

The Do’s and Don’ts for preventing Identity Theft. 

DO 

Order a copy of your credit report every year from all three of the major credit reporting agencies in order to check for fraudulent activity or discrepancies.  In the State of New Jersey, you can obtain one free report each year from each of the credit reporting agencies. 

Protect your mail by removing it from your mailbox as soon as possible and deposit outgoing mail in post office collection boxes or at your local post office instead of an unsecured mailbox.  If you are planning to be away from home, call the Holmdel Post Office (732-946-4710) and ask for a vacation hold.    

Shred any discarded paperwork that contains personal identifiers or financial information, including pre-approved credit card and loan applications.  If a vendor uses carbon copies for credit card bills, ask for and destroy the carbons.  

Stop pre-approved credit offers by calling the Credit Reporting Industry at 1-888-567-8688. 

Know where your personal information is kept, who has access to it, and whom you may have provided it to in the past.  Protect you wallet and purse and never leave them unattended.  Keep an eye on your credit card when using it to pay for purchases. 

Be aware of your surroundings when using ATM cards, making credit card purchases, using telephone credit card numbers and utilizing pin numbers or passwords. 

Carefully review your bills, bank statements, credit card statements and other financial accounts, to ensure that all balances and receipts match and no activity is unaccounted for. 

If you use a computer, install virus protection and firewall software to discourage hackers.  Be aware of personal information that you send over the Internet that could be viewed by others.  Don’t download files from strangers or click on hyperlinks from people you don’t know.  Opening a file could expose your system to a computer virus or a program that could hijack your modem.  Use a secure browser – software that encrypts or scrambles information that you send over the Internet to guard the safety of your online transactions.  Try not to store financial on your computer unless absolutely necessary. Read web-site privacy policies.   

Destroy computers, hard drives, zip-drives, floppy discs, compact discs, or any other electronic device which may contain personal information before disposing of them. 

Request your financial institutions to add security to your accounts, such as a special password. 

DON’T

Do not give out personal identifiers or financial identifiers in response to unsolicited offers by mail, phone, Internet and/or in person.  Identity thieves frequently pose as legitimate business people, Internet service providers, charity workers, or law enforcement to gain your trust.

Do not fill out personal information on warranty cards and sweepstakes entries; it is often sold to others as a marketing tool.

Do not provide or use you social security number unless you have to.

Do not provide personal identifiers, account numbers or other personal information unless you know the information will be secure.

FOLLOWING THESE STEPS WILL REDUCE YOUR RISK OF BECOMING A VICTIM OF AN IDENTITY THEFT.  YOUR GOAL SHOULD BE TO REDUCE OTHER PEOPLE’S ACCESS TO YOUR INFORMATION.  REMEMBER…IT IS YOUR RESPONSIBILITY TO CORRECT CREDIT ERRORS AND RESTORE YOUR IDENTITY.
 

A special word about Social Security Numbers 

Very likely, your employer and financial institution(s) will need your SSN for wage and tax reporting purposes.  Other private businesses may ask you for your SSN to do a credit check, such as when you apply for a car loan.  Sometimes, however, they simply want your SSN for general record keeping.  If someone asks for your SSN, ask the following questions:

Why do you need it?

How will it be used?

How do you protect it from being stolen?

What will happen if I don’t give it to you? 

If you don’t provide your SSN, some businesses may not provide you with the service or benefit you want.  Getting satisfactory answers to your questions will help you to decide whether you want to share your SSN with the business.  Keep your card in a safe place! 

What do I do if I become a victim of Identity Theft? 

Even if you’ve been very careful about keeping your personal information to yourself, an identity thief can strike.  If you suspect that your personal information has been used to commit fraud or theft, take the following four steps right away.  Remember to follow up all calls in writing; send your letter by certified mail, return receipt requested, so you can document what the company received and when; and keep copies for your files. 

1. Place a fraud alert on your credit reports and review your credit reports.

Call the toll-free fraud number of any one of the three major credit bureaus to place a “fraud alert/victim impact” statement on your credit report.  This can help prevent an identity thief from opening additional accounts in your name by requiring that creditors call you before granting credit.  As soon as the credit bureau confirms your fraud alert, the other two credit bureaus will automatically be notified to place fraud alerts on your credit report, and all three reports will be sent to you free of charge.

             Equifax

            PO Box 105873

            Atlanta, Ga 30348-5873

            1-800-525-6285

            www.equifax.com 

            Experian

            PO Box 949

            Allen, TX  75013-0949

            1-888397-3742

            www.experian.com 

            Trans Union

            PO Box 390

            Springfield, Pa  19064-0390

            1-800-680-7289

            www.tuc.com 

Once you receive your reports, review them carefully.  Look for inquiries you didn’t initiate, accounts you didn’t open, and unexplained debts on your true accounts.  You also should check that information such as your SSN, addresses, name or initial, and employers are correct.  Inaccuracies in this information also may be due to typographical errors.  Nevertheless, whether the inaccuracies are due to fraud or error, you should notify the credit bureau as soon as possible by telephone and in writing.  You should continue to check your reports periodically, especially in the first year after you’ve discovered the theft, to make sure no new fraudulent activity has occurred.   

2. Close any accounts that have been tampered with or opened fraudulently.

Credit Accounts

Credit accounts include all accounts with banks, credit card companies and other lenders, phone companies, utilities, ISP’s, and other service providers.  If you’re closing existing accounts and opening new ones, use personal Identification Numbers (PIN’s) and passwords.  If there are fraudulent charges or debits, ask the company about the following forms for disputing those transactions:

            -For new unauthorized accounts, ask if the company accepts the ID Theft Affidavit (available at www.ftc.gov/bcp/conline/pubs/credit/affidavit.pdf) .  If they don’t, ask the representative to send you the company’s fraud dispute forms.

            -For your existing accounts, ask the representative to send you the company’s fraud dispute forms.

            -If your ATM card has been lost, stolen or otherwise compromised, cancel the card as soon as you can.  Get a new card with a new PIN. 

Checks

If your checks have been stolen or set up fraudulently, close the account.  Set up new accounts and put stop payments on the outstanding fraudulent checks, and ask your bank to notify the appropriate check verification service.  While no federal law limits your losses if someone steals your checks and forges your signature, state laws may protect you.  Most states hold the bank responsible for losses from a forged check, but they also require you to take reasonable care of your account.  You should also contact these major check verification companies.  Ask that retailers who use their databases not to accept your checks. 

            -TeleCheck                  1-800-710-9898

            -Certegy, Inc.               1-800-437-5120

            -Intl. Check Svcs.         1-800-631-9656

            -SCAN                        1-800-262-7771

            -CheckRite                   1-800-766-2748

            -CrossCheck                1-707-586-0551

            Nat. Check Fraud Svc  1-843-571-2143

            Equifax Check Sys       1-800-437-5120 

3. File a report with the Holmdel Township Police Department or the Police Agency in the community where the identity theft took place.

A report can be filed by either coming into Police Headquarters or by calling to have an officer respond to your residence.  Ask for the case number and for a copy of the report when it is ready.  You will need it to validate your claims to creditors. 

You can assist Law Enforcement with your case by doing the following: 

Ø      Set up a folder to keep a detailed history of the crime.  Keep a log of all contacts and make copies of all documents.  Provide this information to the police and assist them with obtaining additional information.

Ø      Gather evidence and documentation of your financial loss and provide it to the police.

Ø      Obtain suspect information or descriptions and provide it to the police

Ø      Obtain possible witness information, the salesperson, apartment managers, employers and persons who accepted the fraudulent applications or documents.  Provide the information to the police.

Ø      Complete the FTC “Identity Crimes Affidavit” and provide it to the police. 

4. File a complaint with the FTC.

Contact the FTC and file a report through the FTC web-site(www.consumer.gov/idtheft)

Or by telephone at 1-877-ID-THEFT.  The FTC is the clearinghouse for complaints by victims of identity theft.  The FTC helps victims by providing information to help resolve financial and other problems that could result from Identity Theft.  The FTC also assists law enforcement officials to track down identity thieves and stop them.   

Other types of Fraud 

ATM Cards-

If your ATM card is stolen or compromised, get a new card, account number and PIN.

 Fraudulent Change of Address-

Notify the local US Postal Inspector if you suspect someone fraudulently changed your address.  Find out what your address was changed to.  Notify the local Postmaster for that address and instruct them to forward all mail addressed to you to your correct address.

The phone numbers for US Postal Inspectors and Post Offices can be obtained in the phone book under Federal Government or through their web site, www.usps.gov/postalinspectors 

Social Security Number-

If your social security number has been used fraudulently, contact the Social Security Administration at 1-800-269-0271, or through their web-site: www.ssa.gov/oig 

Drivers License Fraud-

If you suspect that your drivers license or registration was lost, stolen or fraudulently used, contact the New Jersey Department of Motor Vehicles.  You will have to appear in person at a regional office and fill out a fraud affidavit.  You must bring forms of identification and all proof to show fraudulent activity.  You can locate your regional office by calling NJ DMV at 1-609-292-6500 or visiting their web-site: www.state.nj.us/mvc 

Passport Fraud-

Protect yourself from passport fraud.  Contact the US State Department at their web-site

www.travel.state.gov and alert them that you were the victim of identity theft.  Request that they alert you if anyone attempts to use your identity to acquire a passport 

False Civil and Criminal Judgments-

Contact the Court where the judgment was entered and report that you are the victim of identity theft. 

Personal Property Security-

If you suspect that your identity was compromised by someone who had access to your residence, change the locks to your residence and vehicles if necessary. 

Utility Companies-

Contact your local utility companies to see if there is any unusual activity on your accounts. 

If you are interested in learning about Federal Laws that provide you protection from Identity Theft, you can research and review them at the U.S. Code Web Site:

http://uscode.house.gov/usc.htm                                                              

Be alert around Income Tax Time.  Information has been received of a new scam where a subject calls a homeowner and claims to be a representative of the IRS.  They want your bank routing number and your account number in order to deposit your refund. 
Never give your personal information to anyone over the phone.