Identity Theft tops Consumer Complaint Categories for 2004

For the fifth year in a row, identity theft topped the list of fraud-related complaints the Federal Trade Commission received from consumers in 2004. ID theft accounted for 39% of the 635,173 consumer fraud complaints filed with the agency last year and Consumers reported Fraud Losses Of Over $547 Million.

Of identity theft complaints:

· 28% involve credit card theft, either by opening new accounts or using existing ones, · 19% involve phone or utilities charges, and · 18% involve bank fraud (usually through a current account).

Advance fee loans and credit protection scams also made the top ten list. Across all types of fraud, 57% of consumers reported initial contact from the fraudulent company was initiated by email or through a Web site.

Identity theft is the fraudulent collection and use of your personal information. Your name, date of birth, address, credit card, Social Security Number and other personal identification numbers can be used to open credit card and bank accounts, redirect mail, establish cellular phone service and other utility service, rent vehicles or accommodation, and even secure employment.

People who commit identity theft can obtain your information in a number of ways. These include:

"Dumpster diving" Going through the trash at home or at a business and using the information found there

Getting information from businesses Either by stealing information stored at businesses by hacking into their computer systems, stealing it the conventional way or bribing employees to provide them with the information

Obtain credit reports Again either by abusing their employers authorized access to credit reports, or by posing as someone legally entitled to access a credit report, such as a landlord

Steal your mail Either directly from your mail-box, or by having your mail illegally re-directed

Steal your purse, wallet or credit receipts Either from your home, work or car

Scams Dupe you into willingly revealing your personal information to them by contacting you by telephone or the internet and posing as a government official or other legitimate person

Once they have your information, they can do a number of things, ranging from going on a spending spree with your credit cards or bank accounts, to opening new accounts including utility and telephone services, leasing a car, gaining employment or even giving your name during an arrest. If they don't show up to court, an arrest warrant could be issued in your name. And of course, when the fraudulent accounts are not paid, they show up on your credit report- ruining your credit score and good name.

How do you know if you are a victim of identity theft?

Some things to look for include:

- Being denied credit for no apparent reason

- Receiving calls from debt collectors or companies about merchandize you didn't order

- Failing to receive bills or other mail- this should alert you to the fact that your mail may have been fraudulently re-directed

- New accounts showing up on your credit report that you know nothing about

What to do if you believe you are the victim of Identity Theft:

It's important that you take control of the situation as quickly as possible, to help reduce feelings of helplessness that often accompany being victimized. Steps you can take include:

- Identity theft is a crime. Report it to the Police. Keep a copy of the police report as you may need it to give to creditors as proof a crime has been committed. If your mail was stolen, report that to your local Postal Inspector also

- Place a fraud alert on your credit report. Call any one of the three main credit reporting agencies. Once a fraud alert is accepted on one account, it will automatically be placed on the other two. Ask for copies of your credit report. You have to be provided with a free copy if you believe that it is inaccurate due to fraud. However, subsequent copies to monitor your report are not free of charge

Equifax — To report fraud, call: 1-800-525-6285, and write: P.O. Box 740241, Atlanta, GA 30374-0241

Experian — To report fraud, call: 1-888-EXPERIAN (397-3742), and write: P.O. Box 9532, Allen, TX 75013

TransUnion — To report fraud, call: 1-800-680-7289, and write: Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92834-6790

- Contact creditors and close accounts that have been tampered with or opened fraudulently. Ask for a password to be placed on new accounts before any inquiries or changes can be made to the account in future.

- File a complaint with the FTC. To file a complaint or to learn more about the FTC’s Privacy Policy, visit www.consumer.gov/idtheft. If you don’t have access to the Internet, you can call the FTC’s Identity Theft Hotline: toll-free 1-877-IDTHEFT (438-4338); TDD: 202-326-2502; or write: Identity Theft Clearinghouse, Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580.

Millions of Americans are reported to be the victims of Identity Theft annually. Unfortunately, they can spend months or even years and many thousands of dollars trying to repair the mess made of their credit report and good name. Prevention is always better than cure.

Prevention Strategies for Identity Theft