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The Identity Theft and Assumption Deterrence Act makes it a federal crime when someone “knowingly transfers or uses, without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of federal law, or that constitutes a felony under any applicable state or local law.”

An identity thief acquires some piece of your personal information and appropriates it without your knowledge and uses your personal information to open a credit card account in your name.
Identity thieves get your personal information by:

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•  They steal wallets and purses containing your identification and credit cards.

•  They steal your mail, including your bank and credit card statements, pre-approved credit offers, telephone calling cards and tax information.

•  They complete a "change of address form" to divert your mail to another location.

•  They rummage through your trash, or the trash of businesses, for personal data in a practice known as "dumpster diving."

•  They fraudulently obtain your credit report by posing as a landlord, employer or someone else who may have a legitimate need for and a legal right to the information.

•  They get your business or personnel records at work.

•  They use personal information you share on the Internet.

•  They buy your personal information from "inside" sources. For example, an identity thief may pay a store employee for information about you that appears on an application for goods, services or credit.

Identity thieves then use your personal information to:

•  Call your credit card issuer and, pretending to be you, ask to change the mailing address on your credit card account. The imposter then runs up charges on your account. Because your bills are being sent to the new address, it may take months before you realize there's a problem.

•  They open a new credit card account, using your name, date of birth and Social Security Number. When they use the credit card and don't pay the bills, the delinquent account is reported on your credit report.

•  They establish phone or wireless service in your name.

•  They open a bank account in your name and write bad checks on that account.

•  They file for bankruptcy under your name to avoid paying debts they've incurred under your name, or to avoid eviction.

•  They counterfeit checks or debit cards, and drain your bank account.

•  They buy cars by taking out auto loans in your name.

By managing your personal information wisely, you can help guard against identity theft. You should also:

•  Order a copy of your credit report from each of the three major credit-reporting agencies every year. Make sure they are accurate and include only those activities you've authorized. By checking your report on a regular basis you can catch mistakes and fraud before they cause disaster to your personal finances.

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•  Place passwords on your credit card, bank and phone accounts. Avoid using easily available information like your mother's maiden name, your birth date, the last four digits of your Social Security Number or your phone number, or a series of consecutive numbers. When opening new accounts, you may find that many businesses still have a line on their applications for your mother's maiden name. Use a password instead.

•  Safeguard personal information in your home, especially if you have roommates, employ outside help or are having service work done in your home.

•  Ask about information security procedures in your workplace. Find out who has access to your personal information and verify that records are kept in a secure location. Ask about the disposal procedures for those records as well.

•  Don't give out personal information on the phone, through the mail or over the Internet unless you've initiated the contact or are sure you know whom you're dealing with. Identity thieves may pose as representatives of banks, Internet service providers (ISPs) and even government agencies to get you to reveal your Social Security Number, mother's maiden name, account numbers and other identifying information. Before you share any personal information, confirm that you are dealing with a legitimate organization. You can check the organization's website as many companies post scam alerts when their name is used improperly, or you can call customer service using the number listed on your account statement.

•  Deposit outgoing mail in post office collection boxes or at your local post office. Promptly remove mail from your mailbox. If you're planning to be away from home, call the Post Office to request a vacation hold. The Postal Service will hold your mail at your local post office until you can pick it up or are home to receive it

•  To thwart an identity thief who may pick through your trash or recycling bins to capture your personal information, tear or shred your charge receipts, copies of credit applications, insurance forms, physician statements, checks and bank statements, expired charge cards that you're discarding, and credit offers you get in the mail.

•  Before revealing any personal identifying information, find out how it will be used and secured, and whether it will be shared with others.

•  Don't carry your Social Security Number card; leave it in a secure place.

•  Give your Social Security Number only when absolutely necessary. If your state uses your Social Security Number Social Security Number as your driver's license number, ask to substitute another number.

•  Carry only the identification and credit and debit cards that you'll actually need.

•  Pay attention to your billing cycles. Follow up with creditors if your bills don't arrive on time. A missing credit card bill could mean an identity thief has taken over your account and changed your billing address to cover his tracks.

•  Be wary of promotional scams as identity thieves use phony offers to get you to give them your personal information.

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•  Keep your purse or wallet in a safe place at work.

We recommend the following to help you keep your computer and your personal information safe:

•  Shred all pre-screened credit card offers received in the mail.

•  Update your virus protection software regularly, or when a new virus alert is announced. Computer viruses can have a variety of damaging effects, including introducing program code that causes your computer to send out files or other stored information. Be on the alert for security repairs and patches that you can download from your operating system's website.

•  Do not download files sent to you by 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 takeover your modem.

•  Use a firewall program, especially if you use a high-speed Internet connection like cable, DSL or T-1, which leaves your computer connected to the Internet 24 hours a day. The firewall program will allow you to stop criminals from accessing your computer. Without it, hackers can take over your computer and access your personal information stored on it or use it to commit other crimes.

•  Use a secure browser (software that encrypts or scrambles information you send over the Internet) to guard the security of your online transactions. Be sure your browser has the most up-to-date encryption capabilities by using the latest version available from the manufacturer. When submitting information, look for the “lock” icon on the browser's status bar to be sure your information is secure during transmission.

•  Try not to store financial information on your laptop unless absolutely necessary. If you do, use a strong password (a combination of letters (upper and lowers case), numbers and symbols). Don't use an automatic login feature, which saves your user name and password so you don't have to enter them each time you login or enter a site. And always log off when you're finished. That way, if your laptop gets stolen, it's harder for the thief to access your personal information.

•  Before you dispose of a computer, delete personal information. Deleting files using the keyboard or mouse commands may not be enough because the files may stay on the computer's hard drive, where they may be easily retrieved. Use a “wipe” utility program to overwrite the entire hard drive and make the files unrecoverable. 

•  Look for website privacy policies. They answer questions about maintaining accuracy, access, security, and control of personal information collected by the site, as well as how information will be used, and whether it will be provided to third parties.

If you suspect that your personal information has been misappropriated to commit fraud, take action immediately, and keep a record of your conversations and correspondence. You should take the following steps:

First, contact the fraud departments of each of the three major credit bureaus. Tell them that you're an identity theft victim. Request that a "fraud alert" be placed in your file, as well as a victim's statement asking that creditors call you before opening any new accounts or changing your existing accounts. This can help prevent an identity thief from opening additional accounts in your name. Order copies of your credit reports from the credit bureaus. Credit bureaus must give you a free copy of your report if your report is inaccurate because of fraud, and you request it in writing. Review your reports carefully to make sure no additional fraudulent accounts have been opened in your name or unauthorized changes made to your existing accounts. Also, check the section of your report that lists "inquiries." Where "inquiries" appear from the company's that opened the fraudulent account(s), request that these "inquiries" be removed from your report.

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Second, close the accounts that you know or believe have been tampered with or opened fraudulently. If you are closing your existing accounts, use new Personal Identification Numbers (PINs) and passwords when you open new accounts. Avoid using easily available information like your mothers maiden name, your birth date, the last four digits of your Social Security Number or your phone number, or a series of consecutive numbers. 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. If your checks have been stolen or misused, stop payment and ask your bank to notify the check verification service with which it does business.

Third, file a report with your local police or the police in the community where the identity theft took place. Get a copy of the police report in case the bank, credit card company or others need proof of the crime. Having a copy of the police report can help you when dealing with creditors. When filing your police report:

•  Furnish as much documentation as you can to prove your case. Debt collection letters, credit reports, your notarized ID Theft Affidavit, and other evidence of fraudulent activity can help the police file a complete report.

•  Local authorities may tell you that they can't take a report so remind them that under their voluntary “Police Report Initiative,” credit bureaus will automatically block the fraudulent accounts and bad debts from appearing on your credit report, but only if you can give them a copy of the police report. If you're told that identity theft is not a crime under your state law, ask to file a Miscellaneous Incident Report instead.

Accurate and complete records will greatly improve your chances of resolving your identity theft case.

•  Follow up in writing with all contacts you've made on the phone or in person. Use certified mail, return receipt requested.

•  Keep copies of all correspondence or forms you send.

•  Write down the name of anyone you talk to, what he or she told you, and the date the conversation occurred. Keep the originals of supporting documentation, like police reports, and letters to and from creditors; send copies only.

•  Set up a filing system for easy access to your paperwork.

Keep old files even if you believe your case is closed as errors can reappear on your credit reports or your information can be re-circulated.

In most cases, the Truth in Lending Act limits your liability for unauthorized credit card charges to $50 per card. The Fair Credit Billing Act (FCBA) establishes procedures for resolving billing errors on your credit card accounts. This includes fraudulent charges on your accounts.

To take advantage of the law's consumer protections, you must:

Write to the creditor at the address given for "billing inquiries," not the address for sending your payments. Include your name, address, account number and a description of the billing error, including the amount and date of the error.

Send your letter so that it reaches the creditor within 60 days after the first bill containing the error was mailed to you. If an identity thief changed the address on your account and you never received the bill, your dispute letter still must reach the creditor within 60 days of when the creditor would have mailed the bill. This is why it's so important to keep track of your billing statements and immediately follow up when your bills don't arrive on time.

Send your letter by certified mail, and request a return receipt. This will be your proof of the date the creditor received the letter. Include copies (NOT originals) of sales slips or other documents that support your position and keep a copy of your dispute letter.

The creditor must acknowledge your complaint in writing within 30 days after receiving it, unless the problem has been resolved. The creditor must resolve the dispute within two billing cycles (but not more than 90 days) after receiving your letter.

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