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IDENTITY THEFT TOOLKIT
How to Recover From and Avoid Identity Theft
John Lenardon
Self-Counsel Press
(a division of)
International Self-Counsel Press Ltd.
USA Canada
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CONTENTS
1
WHAT IS IDENTITY THEFT?
What Does Personal Information Include?
Identity Theft and Technology
How Do Identity Thieves Steal Information?
What Happens to Your Personal Information?
Detecting Identity Theft
How Safe Is Your Identity?
How This Book Can Help You
10
PREVENTING IDENTITY THEFT
13
When You Give Your Information Away
13
How good is a companys privacy policy?
16
Opting out
19
Threats at Work
20
What your employer can do to protect your
information
21
What you can do to protect your information
22
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Shopping Securely
23
Check Washing
25
Computer Protection
26
Guard your laptop
26
Secure your wireless connections
28
Keep safe on the Internet
28
Watch for phishing scams
32
Protect yourself during online transactions
35
Hackers
36
PDAs (Personal digital assistants)
37
Discard your computer with care
38
What Your Children Need to Know
Childrens friends
39
Children and the Internet
39
Protecting Your Home
38
40
Mail
40
Trash
41
Telephone
41
Credit and Debit Cards
42
Car Risks
43
The Threat You Carry
44
On Vacation and Still at Risk
44
The Danger Card (SSN/SIN)
46
Canadian Firearms License
48
Identity Theft Insurance
49
Say No to Identity Theft
49
WHAT TO DO IF YOU BECOME A VICTIM
51
Document Everything
52
Track Your Investigation
53
Get the Help You Need
54
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Whom You Should Contact
55
Financial institutions
55
Police
56
Personal service providers
57
Government departments
57
Be Sure to Follow Up
58
Summary
59
REPORTING AN IDENTITY THEFT
61
Law Enforcement
61
Financial Reporting
62
Financial institutions
62
Credit card companies
62
Debit cards
63
Check cashing
63
Student loan fraud
64
Bankruptcy fraud
65
Department store accounts
65
Investment fraud
66
Government Agencies
68
Tax fraud
68
Drivers license
69
SSN or SIN fraud
69
Passport fraud
71
Old Age Pension fraud
72
Criminal Records
74
United States
74
Canada
75
Canadian Firearms License
75
Personal Reporting
76
Phone fraud
76
Calling cards
78
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Utility fraud
78
Mail theft
78
Internet fraud
78
Help Track Identity Theft
United States Federal Trade Commission
80
PhoneBusters Canada
80
YOUR CREDIT REPORT
81
Credit Report Suspicions
83
United States Credit Bureaus
84
Fraud alert
84
Your rights
85
Free credit reports
87
Free active duty alerts for military personnel
88
Credit report fees
88
TransUnion
89
Equifax
97
Experian
99
Canadian Credit Bureaus
80
102
Fraud alerts
103
TransUnion Canada
103
Equifax Canada
111
FORMS FOR DEALING WITH IDENTITY THEFT
115
ID Theft Victim Information Form
118
Contact Checklist
123
Law Enforcement Contact Form
125
Main Financial Institutions Contact Form
126
Additional Financial Contacts Form
127
Credit Card Companies Contact Form
128
Department Stores Contact Form
129
Drivers License Contact Form
130
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SSN or SIN Information Contact Form
131
Passport Contact Form
132
Telephone Companies Contact Form
133
Utility Companies Contact Form
134
Other Services Contact Form
135
Post Office Contact Form
136
Medical Information Contact Form
137
Equifax United States Contact Form
138
TransUnion United States Contact Form
139
Experian United States Contact Form
140
Equifax Canada Contact Form
141
TransUnion Canada Contact Form
142
Sample Letter to a Credit Reporting Agency
143
Sample Letter to Existing Creditors
144
Sample Confirmation Letter
145
Quick List of US Contacts
146
Quick List of Canadian Contacts
147
CHECKLISTS
Your Identity Risk Test
Identification Document Checklist
9
45
SAMPLES
Sample Phishing E-mail
32
Sample Credit Report from TransUnion (US)
92
Sample Credit File Request Form from TransUnion
105
Sample Credit Report from TransUnion (Canada)
107
TABLES
Identity Risk Test Results
10
Examples of Breach of Privacy
18
Current Rates for a Personal Credit Report
89
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WHAT IS IDENTITY THEFT?
Identity theft is the fastest-growing nonviolent crime in North
America today. When someone steals personal information from
you such as your drivers license number, social security number,
or social insurance number, or other identifying information to
use for illegal purposes, you have become a victim of identity theft.
The thief could use your personal information to apply for
credit cards in your name or open a checking account and write
bad checks in your name. Your credit rating and your reputation
could be severely damaged.
Victims of identity theft often suffer substantial economic
and emotional harm. A victim will spend significant amounts of
time fighting problems such as bounced checks, loan denials,
credit card application rejections, and debt-collection harassment. Many victims also report feeling personally violated.
Thieves have stolen identities of teens and changed the birth
dates. In some cases, teenagers applying for college loans have
been told their credit rating was destroyed years ago.
There have even been cases in which an identity thief used
the victims name when caught during a criminal act. Some ID
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theft victims face criminal investigation, arrest, or conviction
because of the thieves activities. For example, one victim was
the subject of an arrest warrant based on speeding tickets issued
to an ID thief. Some victims have also been denied employment
or lost their jobs as a result of their identities having been stolen
and used in illegal activities.
On April 13, 2005, Chris Swecker, the assistant
director of the Criminal Investigative Division,
Federal Bureau of Investigation, appeared
before the Senate Judiciary Committee.
He stated, Identity theft has emerged as
one of the dominant white-collar crime problems of the 21st century. Estimates vary regarding the true
impact of the problem, but agreement exists that it is pervasive
and growing. In addition to the significant harm caused to the
monetary victims of the frauds, often providers of financial,
governmental or other services, or the individual victim of the
identity theft may experience a severe loss in their ability to
utilize their credit and their financial identity.
A report to the Attorney General of the United States and
the Minister of Public Safety and Emergency Preparedness
Canada indicated that identity theft was growing rapidly, due
in part to the Internet and modern technology.
During a one-year period, total losses to individuals and
businesses related to identity theft in the United States were
estimated at approximately US $53 billion. In Canada, the
losses for the same period were estimated at approximately
CDN $2.5 billion.
A US Federal Trade Commission identity theft survey
found that victims had spent a total of 300 million hours in the
preceding year to resolve problems created by the theft of
their identities.
All the current data show that identity theft will continue
to grow substantially over the next decade and pose a threat to
tens of millions of people and businesses in Canada and the
United States.
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WHAT DOES PERSONAL INFORMATION INCLUDE?
Any information that describes or identifies you is considered
personal information.
This information could exist in any number of forms. For
example, you may have had an ID-badge picture taken at work,
paid a parking ticket, applied for credit cards or a mortgage, or
bought a car. In each case, you have released some personal
information.
Some of this information is harmless and is useless to identity thieves. However, some of it is dangerous and needs to be
controlled and protected.
Some examples of personal information that you should protect are your
birth date,
city of birth,
drivers license number,
passport number,
home address,
social security number or social insurance number,
phone numbers,
e-mail addresses, and
family members names and birth dates.
More than ever before, companies and governments are asking for your personal data. Every time you apply for credit, get a
new job, make travel arrangements, or even make a purchase at
a store, someone is demanding your information. Unfortunately,
every time you release this information, the risk that it will be
stolen increases. You could spend months or years trying to clear
your name.
No computer system is guaranteed secure. Some of the
largest companies in the world have had client records stolen. So
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have government agencies and employers. No organization can
fully protect your data from the constant attacks they face.
Identity theft has become big business for criminals. The
amount of money involved is enormous and increases each year.
As the criminal profits grow, so will the attacks.
Its up to you to learn how to protect your personal information and do everything you can to ensure it never is used to steal
your identity.
IDENTITY THEFT AND TECHNOLOGY
Today, our personal data is more vulnerable than ever. It isnt
something you can replace. It cant be insured nor can it be
locked up in a safe. Once it is stolen, it is out there forever, and
you can never be certain it will be safe again.
We live in an age of technology in which everything seems
possible. We can store millions of records on a device that can fit
in your pocket, and a single laptop computer can store hundreds
of thousands of client records. In addition, almost every computer in the world is connected to public communication lines.
Unfortunately, there is one very weak link in all this technology. We cant completely protect the data. The tighter we make
security, the less efficient the systems become. We could go to
the extreme and lock up the data so that no one can access it, but
such a step is neither economical nor sensible. Therefore, we
must always compromise. In most cases, the need for easy access
to the data outweighs the danger of it being stolen.
Some organizations demand access to our personal information, and others ask for it, but the result for us is the same.
Whenever we give them any of our personal information, it
becomes easier to steal.
Personal information has been stolen from all kinds of
organizations including government departments and credit
reporting agencies. The very people who publish long, detailed
policies on how they will protect our data are incapable of doing
so, and it is unlikely this situation will change.
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HOW DO IDENTITY THIEVES STEAL INFORMATION?
Although technology can make it difficult for you to protect your
information, it is only part of the problem. Identity thieves often
use surprisingly low-tech methods to obtain your personal information. For instance, they steal your wallet or purse, or they
steal mail from your mailbox.
Or a thief will break into your car or house. In many of these
cases, the real reason behind the break-in is not to steal your personal property; it is to steal your personal information.
What follows here is a list of some of the most common
methods used by ID thieves to steal your information. Just a
quick glance is enough for you to see the scope of the problem:
Skimming your credit cards at restaurants or stores
Shoulder surfing your PIN at an ATM
Picking up a bank deposit slip you used as scrap paper and
threw away
Hacking into your computer at home or at work
Stealing your laptop or personal computer
Sending you fake e-mails that trick you into releasing personal information
Going through your garbage at home or at work
Stealing your information from companies where you
have accounts
Stealing information while staying as a guest in your
house
WHAT HAPPENS TO YOUR PERSONAL INFORMATION?
Personal information is a highly prized and very versatile commodity. Once a thief has your personal information, he or she
can put it to all kinds of illegal uses all of which can be
extremely costly to you. Consider the following favorite activities
of ID thieves:
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They get checks or debit cards made in your name and use
them to empty your bank accounts.
They take out loans or second mortgages in your name.
They open new credit card accounts in your name. (Sometimes they use a mailing address other than yours, so it
may take you weeks or months to realize that you have a
problem.)
They open a bank account in your name and write bad
checks on the account.
They establish Internet services in your name.
They establish telephone or utility services in your name.
They obtain automobile loans in your name.
They use your stolen identity if they are arrested for a
crime. When they do not appear for the court date, you
could be arrested.
They go on spending sprees using your credit and debit
cards to buy big ticket items, such as computers, that
they can easily sell.
They file for bankruptcy under your name to avoid paying
debts they have incurred using your identity.
They use your identity in a marriage ceremony and use
the marriage license to get immigration status in the
country.
They open accounts at a brokerage house and leave you
liable for any losses.
They use your social security number or social insurance
number to get a job, leaving you liable for taxes due on
that income.
They could use your social security number or social
insurance number to file a tax return and receive your
refund.
No matter which one or combination of these crimes is
committed against you, you will be left with the problem of
clearing your name and rebuilding your credit rating, and you
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could also be left with a large debt load or a criminal record.
Restoring your credit rating or removing incorrect criminal
records can take months of letter writing, phone calls, and personal expense. Unfortunately, years later, the data could resurface, and you could become a victim again.
On November 30, 2005, the Internet Crime
Complaint Center (IC3) issued the following
warning:
ATTENTION E-MAIL DISGUISED
AS THE INTERNAL REVENUE SERVICE
(IRS) PHISHING FOR PERSONAL
INFORMATION
The FBI has become aware of a spam e-mail
claiming the recipient is eligible to receive a tax
refund for $571.94. The e-mail purports to be from
[email protected] with the subject line of IRS Tax
Refund. A link is provided in the e-mail to access a
form required to be completed in order to receive
the refund. The link appears to connect to the true
IRS website. However, the recipient is redirected to
http://www.porterfam.org/2005/, where personal
data, including credit card information, is captured.
THIS E-MAIL IS A HOAX. DO NOT FOLLOW THE
PROVIDED LINK.
DETECTING IDENTITY THEFT
How would you know if your identity was stolen? In some cases,
you may not discover it for months. However, there are early
warning signs you should watch for:
Your credit card statement or bank statement does not
arrive in the mail as expected. (An identity thief may have
submitted a change of address notice to your financial
agency so you do not detect the charges he or she placed
on your cards.)
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Your bank or credit card statement contains transactions
that you did not authorize. (If this happens to you, check
with your financial institution or lender immediately.
Sometimes a thief will make a purchase for a few dollars
to test your card. If the transaction is approved, he or she
will immediately go on a large spending spree.)
Your mail stops arriving. (The ID thief may have placed a
change of address at the post office.)
You receive credit card bills for unknown accounts. (The
thief may have already applied for credit in your name.)
You get a call from a collection agency for a debt you did
not incur.
You apply for credit from a lender and are unexpectedly
denied it.
You order your credit report and find accounts or debts
listed that do not belong to you.
A lender contacts you to discuss a credit application you
did not submit.
You receive a call or letter stating that you have been
approved for or denied a loan by unknown creditors.
You receive unknown utility or telephone statements in
your name and address.
These are all indications of potential identity theft. If you
notice any of them, you must immediately investigate the situation and take steps to correct it. By responding quickly, you stand
a chance of controlling the damage.
HOW SAFE IS YOUR IDENTITY?
Protecting your personal information takes effort on your part.
To understand how great your personal risk is, try taking the
Identity Risk Test in Checklist 1. Each statement represents a
possible risk factor. Read each statement carefully, and if you
agree with it, check the box beside it. When you are finished the
test, count up all the check marks and compare that number to
the results shown in Table 1.
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What is identity theft? 9
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HOW THIS BOOK CAN HELP YOU
By now, youve probably realized that you must begin to think
about and treat your personal information in an entirely different way than you have done until now. You have to protect it like
you would a child. You have to keep it safe and establish control
over who has access to it and how it can be used.
No longer will you gladly answer questions when credit
grantors ask or automatically give personal data to retailers simply because they say they need to know. Now you must ask them
why they need to know. You will only release what is necessary
and no more. And you will demand they protect it from
thieves, both inside and outside their companies, and make
them explain their security precautions to your satisfaction.
This book will look at the ways you can protect your information so you never become a victim of identity theft. And if it
is too late for you and your identity has already been stolen, this
book will show you how to restore your reputation and your
credit rating. It includes all the necessary contact numbers and
forms to help you deal with the problems you will face.
Keep this book as a reference if you are not a victim and as a
repair manual if you are.
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In one notorious case of identity theft, the
criminal, a convicted felon, not only incurred
more than $100,000 of credit card debt,
obtained a federal home loan, and bought
homes, motorcycles, and handguns in the victims name, but also called his victim to taunt
him, saying that he could continue to pose as
the victim for as long as he wanted because identity theft was
not a federal crime at that time. The thief then filed for bankruptcy, also in the victims name.
In this case, the victim reported he spent more than four
years restoring his credit. It cost him more than $15,000.
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