Simple Facts You Should Know About Identity Theft By Dr. Jannie Carter, Extension Assistant Director

Being a responsible consumer does not come with age or maturity. It is a learned behavior usually accompanied by a good knowledge of consumer rights. For many, getting financial goals and priorities in order can pose a challenge. Consumers in the United States hold over $1 trillion of consumer credit debt. Why so high? Families depend upon credit to support their lifestyles and to make long-term purchases more accessible. But the misuse of credit is not a good thing.

Credit options are numerous in Alabama and across the nation. However, many families do not have a financial plan to guide their spending and sometimes credit can get out of control. Additionally, the abuse of technology designed to facilitate easy access to consumer resources and credit has put some consumers at risk.

Identity theft (ID) is perhaps one of the most serious fraud issues facing consumers today. ID theft occurs when someone steals and uses another person's information in a way that involves fraud or deception for personal gain. This fraud issue is evolving rapidly. In fact, ID theft headed the Federal Trade Commission's list of top 10 consumer fraud complaints for the past four years. In 2003 for example, ID theft accounted for 42 percent of the half a million complaints entered into the FTC's Consumer Sentinel database. While victims are usually not held responsible for paying debts accrued by ID theft, it could take consumers months or even years to regain a good financial status.

Identity thieves use sophisticated means to obtain personal identity information from unsuspecting victims such as:

• Fraudulently accessing credit reports
• Retrieving improperly discarded credit cards and numbers from trash bins
• Obtaining names and numbers from personnel files
• "Shoulder surfing" to get numbers at ATM machines and phone booths
• Accessing information on the Internet and at public records sites
• Taking personal mail from mailboxes
• Obtaining personal information during hotel stays

Some simple steps consumers can take to protect against identity theft are:

• Don't carry notes or reminders of account numbers, PIN numbers, or calling cards.
• Carry only those essential credit cards and other forms of personal identification.
• Always read your bank and credit card statements to be sure no unauthorized charges are listed or unauthorized accounts have been opened.
• Keep your Social Security card in a safe place and never share personal numbers and other identifying information over the phone or with an unsolicited caller.
• Don't use obvious computer passwords such as birthdates, abbreviations of your name, or initials, etc.
• Always retrieve your receipts from ATM machines or other machines accessed as credit card purchases.

Remember identity theft is a serious crime. If you should become a victim, some important steps to follow are:

• File a police report and keep a copy on file as documentation or proof of the crime.
• Report the theft or fraud to the Federal Trade Commission.
• Contact the fraud departments of any of the three major credit bureaus: 1) Equifax, 800-525-6285; 2) Experian, 888-397-3742; or Trans Union, 800-680-7289.
• If you suspect that mail services have been fraudulently used, contact your local office of the Postal Inspection Service.
• Call the Social Security Administration for fraudulent use of Social Security numbers.
• If your bank account has been fraudulently accessed, notify the bank immediately; put a stop order on missing checks, and close the accounts that have been tampered with or falsely created.

Agencies such as the Alabama Securities Commission have identified educators across the state that have been vocal in carrying the messages against fraud and scams that prey on unsuspecting consumers. Partnerships, resources, and support from this agency and with other advocacy groups will help the Urban Affairs unit of the Alabama Cooperative Extension System to expand the reach of consumer information and training to citizens of all ages. For more information on Extension programs in consumer education contact Dr. Bernice Wilson, Extension Resource Management Specialist (256) 372-4969.

Department of Justice. (June 5, 2000). Identity theft and fraud. Retrieved March 5, 2004.

Federal Trade Commission. (January 22, 2004). FTC releases top 10 consumer complaint categories in 2003. Retrieved April 2, 2004.

Federal Trade Commission. Welcome to the Federal Trade Commission: Your national resource for identity theft. ID Theft Home. Retrieved March 5, 2004.

Privacy Rights Clearinghouse. (February 2003). Reducing the risk of identity theft. Utility Consumers' Action Network, Fact Sheet No. 17.

Smith, Frances. (November 2000). Get your finances in order for the New Year. Commonsense Consumer Column, Volume 4, Issue 11. Retrieved February 10, 2004.

Smith, Frances (March 2000). Identity theft: What's at stake? Consumers' Research Magazine. Retrieved February 10, 2004.

Smith, Frances. (September 2001). Taking control of your credit. Commonsense Consumer Column, Volume 5, Issue 6. Retrieved March 29, 2004.