Standard Bank Identity Theft

Cases of identity fraud are dramatically on the rise. Consumers are usually alerted to an identity fraud when a merchant - or their collection agency - contacts the consumer seeking payment for a bill that the consumer knew nothing of.
Or, worse yet, the consumer may be declined for a loan due to a credit report that recorded defaults on loans that were previously unknown to the consumer.

In cases of identity fraud, criminals assume the identity of the consumer/victim for the purpose of taking over the victim's accounts and/or obtaining and using credit in the name of the victim, usually with the goal of fraudulently obtaining financial gain.

The occurrence of identity fraud against U.S. consumers has increased dramatically in recent years. In 1998, credit-reporting agency Trans Union received 554,450 calls with questions or complaints about identity theft. Today, the FTC states that 9.9 million people were victims in the last 12 months. That is almost an 18 fold increase in less than five years.

Further, the Federal Trade Commission reported that last year's identity theft losses to businesses and financial institutions totaled nearly $48 Billion.

In such cases, banks and other credit grantors - not the consumer - absorb most of the losses. However, while generally not responsible for funds that criminals fraudulently obtain, victims of identity fraud are often left with ruined credit histories that can require hundreds of hours and sometimes significant expenditures to clear and restore.

In response to this increase in frequency, new federal laws passed in 1998 (The Identity Theft and Assumption Deterrence Act of 1998) allow victims to seek restitution from the criminal perpetrator for identifiable losses which includes expenses related to clearing their name and credit rating, such as attorney's fees.
However, actually obtaining such restitution from the criminal is far from certain as the victim can be in a long line of parties (e.g., creditors) seeking restitution from a criminal that has committed identity fraud.

How Can You Reduce Your Exposure?
Can Identity Theft Be Prevented?

Consider taking these simple precautions to reduce your exposure to identity fraud:

• Annually order your credit report from each of the three credit reporting bureaus and review it for accuracy. Report and question any inaccuracies.

• Guard your social security number (SSN). Never put your SSN on checks, do not use your SSN or any part of it as a password at work or anywhere else, and only give it out when you believe it to be of absolute necessity.

• Create passwords and PINs that are difficult to guess for all accounts and change them periodically.

• Consider buying a shredder to adequately destroy personal financial documents that you are throwing out. So-called "dumpster diving" in your trash is a way for criminals to obtain information about you.

• Never give out any confidential information (account numbers, passwords) over the phone to an unsolicited caller who is stating that they represent your financial institution or similar creditor. This person could be anyone! Get their name, location and telephone number, and reason that they are calling. Call them back at the phone number printed on your billing statements.

• Review all bills and statements closely. Report and challenge any questionable charge regardless of dollar amount. A small charge could be a first warning sign of a larger problem.

• Go through your wallet or purse. If it were lost or stolen, how much information would a thief obtain? Do not carry your Social Security card, birth certificate or passport with you unless absolutely necessary. Do not carry extra credit cards either.

• Never put outgoing checks, bill payments or tax documents in your mailbox in front of your home, as they are easy to steal. Drop all such items in a postal service mailbox or directly at the post office.

• If you are denied credit or employment, find out why. It could be due to errors on your credit report that you are unaware of.

• Be alert to red flags. If you ever receive a call from a merchant, creditor or collection agency in what seems to be a case of mistaken identity, be on alert. Find out exactly who they are and details of why they are calling you. This may be your first and only warning that you are a victim of identity fraud.

• Delete without replying to any suspicious email requests.

• Reduce the number of pre-approved credit card offers you receive by calling 1-888-5OPT OUT (your social security number is required).

• Watch for people who may try to eavesdrop and overhear the information you give out orally.

• Keep a watch out for people standing near you at retail stores, restaurants, grocery stores, etc., that have a cell phone in hand. With the new camera cell phones, they can take a picture of your credit card, which gives them your name, number, and expiration date. E-mail filtering firms offer these tips for consumers to fight the 'phishing' scam:

• Don't trust e-mail headers, which can be forged easily.

• Avoid filling out forms in e-mail messages. You can't know with certainty where the data will be sent and the information can make several stops on the way to the recipient.

• Try not to click on links in an e-mail message from a company. Too many scam artists are making forgeries of company's sites that look like the real thing.

• If you go to a link offered in an unsolicited e-mail, check to see if there is an 's' after the http in the address and a lock at the bottom of the screen. Both are indicators that the site is secure.

• If you want to do business online, don't click on an e-mail link. Go to the company's Web site yourself and fill out information there.

What to Do if It Happens to You
A Joint Publication of the Privacy Rights Clearinghouse and CALPIRG

This guide provides victims of identity theft with the major resources to contact. Unfortunately, at this time victims themselves are burdened with resolving the problem. You must act quickly and assertively to minimize the damage.

In dealing with the authorities and financial institutions, keep a log of all conversations, including dates, names, and phone numbers. Note time spent and expenses incurred in case you are able to seek restitution in a later judgment or conviction against the thief. Confirm conversations in writing. Send correspondence by certified mail, return receipt requested. Keep copies of all letters and documents.

1. Credit bureaus. Immediately call the fraud units of the three credit reporting companies --
Experian (formerly TRW), Equifax and TransUnion.
Report that your identifying information is being used by another person to obtain credit fraudulently in your name.
Ask that your file be flagged with a fraud alert. Add a victim's statement to your report. ("My ID has been used to apply for credit fraudulently. Contact me at [your phone number] to verify all applications.")

Each credit bureau will mail you a free credit report once you have called them to flag your file with a fraud alert. Fraud alerts are usually placed for 90-180 days.
You will want to extend the time period to seven years. Do so in writing following the directions sent in the credit report you receive. You may cancel fraud alerts at any time.
In all communications with the credit bureaus, you will want to refer to the unique number assigned to your credit report and use certified, return receipt mail.
Be sure to save all credit reports as part of your fraud documentation.
Ask the credit bureaus for names and phone numbers of credit grantors with whom fraudulent accounts have been opened if this information is not included on the credit report.
Ask the credit bureaus in writing to remove inquiries that have been generated due to the fraudulent access. You may also ask the credit bureaus to notify those who have received your credit report in the last six months in order to alert them to the disputed and erroneous information (two years for employers).

Be aware that these measures will not entirely stop new fraudulent accounts from being opened by the imposter. Credit issuers are not required by law to observe fraud alerts.
Request a free copy of your credit report every few months so you can monitor for fraud.
You may be charged after the first report. Still it is important to check your credit report about every three months during the active phase of the crime.
If your identity thief is particularly aggressive and gives no indication of ceasing to use your identity to obtain credit you should consider using the security freeze to curtail access to your credit file. The security freeze is free to victims of identity theft. This essentially prevents anyone from accessing your credit file for any reason, until and unless you instruct the credit bureaus to unfreeze your report.
Non-victims who wish to use the security freeze for prevention purposes must pay a fee to activate the freeze.

2. Creditors. Contact all creditors immediately with whom your name has been used fraudulently, by phone and in writing. You will see evidence of these accounts on your credit reports. Creditors will likely ask you to fill out fraud affidavits. The Federal Trade Commission provides a uniform affidavit form that most creditors accept. (Web: www.ftc.gov/bcp/conline/pubs/credit/affidavit.pdf). No law requires affidavits to be notarized at your own expense. You may choose to substitute witness signatures for notarization if creditors require verification of your signature.
Ask the credit grantors to furnish you and your investigating law enforcement agency copies of the documentation, such as the application and transaction records, showing the fraudulent transactions.
If your existing credit accounts have been used fraudulently, get replacement cards with new account numbers. Ask that old accounts be processed as "account closed at consumer's request" (better than "card lost or stolen" because it can be interpreted as blaming you.) Monitor your mail and bills for evidence of new fraudulent activity. Report it immediately to creditor grantors. Add passwords to all accounts. This should not be your mother’s maiden name or a word that is easily guessed.

3. Debt collectors. If debt collectors attempt to require you to pay the unpaid bills on fraudulent credit accounts, ask for the name of the company, the name of the person contacting you, phone number, and address). Tell the collector that you are a victim of fraud and are not responsible for the account.
Ask the collector for the name and contact information for the referring credit issuer, the amount of the debt, account number, and dates of the charges. Ask if they need you to complete their fraud affidavit form or if you can use the Federal Trade Commission form.
Follow up in writing to the debt collector explaining your situation.
Ask that they confirm in writing that you do not owe the debt and that the account has been closed. (For additional information on dealing with debt collectors, read Fact Sheet No. 116 of the Identity Theft Resource Center, http://www.idtheftcenter.org/ under "Victim Resources.")

4. Law enforcement. Report the crime to your local police or sheriff’s department. You might also need to report it to police departments where the crime occurred. Give them as much documented evidence as possible. Make sure the police report lists the fraud accounts. Get a copy of the report. Keep the phone number of your investigator handy and give it to creditors and others who require verification of your case. Credit card companies and banks may require you to show the report in order to verify the crime. It is a violation of federal law (18 USC 1028) and the laws of many states to assume someone’s identity for fraudulent purposes. Some police departments don’t write reports on such crimes, so be persistent! Also report to the Federal Trade Commission (see end).

5. Stolen checks. If you have had checks stolen or bank accounts set up fraudulently, report it to the appropriate check verification companies (see end).
Put stop payments on any outstanding checks that you are unsure of.
Cancel your checking and savings accounts and obtain new account numbers.
Give the bank a secret password for your account (not mother's maiden name).
If your own checks are rejected at stores where you shop, contact the check verification company that the merchant uses.

6. ATM cards. If your ATM or debit card has been stolen or compromised, report it immediately. Get a new card, account number, and password. Do not use your old password.
When creating a password, don't use common numbers like the last four digits of your SSN or your birthdate.
Monitor your account statement. You may be liable if fraud is not reported quickly. Be sure to read the debit card contract for liability. Some cards are better protected in cases of fraud than others.

7. Fraudulent change of address. Notify the local Postal Inspector if you suspect an identity thief has filed a change of your address with the post office or has used the mail to commit fraud. (Call the U.S. Post Office to obtain the phone number, (800) 275-8777.) Find out where fraudulent credit cards were sent. Notify the local Postmaster for that address to forward all mail in your name to your own address. You may also need to talk with the mail carrier. (Web: www.usps.gov/websites/depart/inspect)

8. Secret Service jurisdiction. The Secret Service has jurisdiction over financial fraud. But, based on U.S. Attorney guidelines, it usually does not investigate individual cases unless the dollar amount is high or you are one of many victims of a fraud ring. To interest the Secret Service in your case, you may want to ask the fraud department of the credit card companies and/or banks, as well as the police investigator, to notify the Secret Service agent they work with. (Web: www.treas.gov/usss)

9. Social Security Number (SSN) misuse. Contact the Social Security Administration to report fraudulent use of your SSN such as welfare or Social Security benefit fraud. They do not handle cases of financial or criminal identity theft. (See contact information at the end of this page.)
As a last resort, you might try to change your number, although we don’t recommend it except for very serious cases. The SSA will only change the number if you fit their fraud victim criteria. See Fact Sheet 113 ("Victim Resources") at http://www.idtheftcenter.org/ for more information on this topic. Also order a copy of your Personal Earnings and Benefits Statement and check it for accuracy. The thief might be using your SSN for employment purposes. (Web: http://www.ssa.gov/)

10. Passports. Whether you have a passport or not, write the passport office to alert them to anyone ordering a passport fraudulently. (Web: www.travel.state.gov/passport_services.html)

11. Phone service. Provide a password which must be used any time your local, cell, and long distance accounts are changed.
If your calling card has been stolen or there are fraudulent charges, cancel it and open a new account.

12. Driver’s license number misuse. You may need to change your driver's license number if someone is using yours as ID on bad checks or for other types of fraud.
Call the state office of the Department of Motor Vehicles (DMV) to see if another license was issued in your name. Put a fraud alert on your license.
Go to your local DMV to request a new number. Fill out the DMV's complaint form to begin the investigation process. Send supporting documents with the completed form to the nearest DMV investigation office. State Listings: www.aamva.org/links/mnu_linkJurisdictions.asp.

13. Victim statements. If the imposter is apprehended by law enforcement and stands trial, write a victim impact letter to the judge handling the case.
Contact the victim-witness assistance program in your area for further information on how to make your voice heard in the legal proceedings. (Read Fact Sheet 111 on victim impact statements at http://www.idtheftcenter.org/ under "Victim Resources.")

14. False civil and criminal judgments. Sometimes victims of identity theft are wrongfully accused of crimes committed by the imposter. If a civil judgment is entered in your name for your imposter’s actions, contact the court where the judgment was entered and report that you are a victim of identity theft. If you are wrongfully arrested or prosecuted for criminal charges, contact the police department and the court in the jurisdiction of the arrest. Also contact the state Department of Justice and the FBI. Ask how to clear your name. See PRC Fact Sheet 17g, www.privacyrights.org/fs/fs17g-CrimIdTheft.htm.

15. Legal help. You may want to consult an attorney to determine legal action to take against creditors and/or credit bureaus if they are not cooperative in removing fraudulent entries from your credit report or if negligence is a factor. Call the local Bar Association, Better Business Bureau, or Legal Aid office to find an attorney who specializes in consumer law, the Fair Credit Reporting Act and the Fair Credit Billing Act. If you are a senior citizen or take care of a dependent adult, be sure to look under Elder Law or Aging and Independent Services for referral centers.

16. Dealing with emotional stress. Psychological counseling may help you deal with the stress and anxiety commonly experienced by victims. Know that you are not alone. Contact the Identity Theft Resource Center for information on how to network with other victims and deal with the impact of this crime. Web: http://www.idtheftcenter.org/ (Fact Sheet 108, "Victim Resources")

17. Making change. Write to your state and federal legislators. Demand stronger privacy protection and prevention efforts by creditors and credit bureaus.

18. Don’t give in. Do not pay any bill or portion of a bill that is a result of fraud. Do not cover any checks that were written or cashed fraudulently. Do not file for bankruptcy. Your credit rating should not be permanently affected. No legal action should be taken against you. If any merchant, financial company or collection agency suggests otherwise, restate your willingness to cooperate, but don't allow yourself to be coerced into paying fraudulent bills. Report such attempts to government regulators immediately.