January 1, 2004


With all that holiday spending, keep a sharp eye out for identity theft and credit card fraud

By Kymberli W. Brady
Staff Writer

The holidays have a tendency to speed up life a bit this time of year, with shopping, wrapping, shipping, traveling—all the extra things that tend to add another page or two to credit card bills or bank statements. Because the increased activity is expected, many fail to pay close attention to each and every charge. It is a mistake that could cost dearly.

Identity theft is one of the fastest growing crimes in the country. Technology has made it easier for thieves to access personal information and max out a credit card or wipe out a checking account in a matter of hours. To add fuel to the fire, penalties if caught, rival those of misdemeanors, making it the new crime of choice among former drug dealers and hardened criminals.

These days, thieves gain access to personal information in a number of ways. “They” could be anyone, a gypsy rummaging through your trash or the trash of businesses for account numbers and signatures in a process commonly known as “dumpster diving,” or the waiter at the restaurant you ate at the other night who took an extra swipe on your card while you finished your latte, or a store employee who got your information from a credit card receipt in the register drawer and sold that information to an anxious buyer. We are supposed to trust most of these people, but fraud is simply becoming too profitable—and too easy.

Identity theft and credit card fraud finds card companies and consumers holding the bag for roughly 1.5 billion dollars a year. Last year alone, more than 2,000 cases were reported in San Jose, and the number continues to climb.

You may still have your card in your wallet, but that doesn’t mean someone else doesn’t have it as well. Counterfeit and altered credit cards are illegally manufactured using only your account number and expiration date. Altered cards are genuine cards that have had their properties changed either mechanically or electronically. Embossed numbers are flattened allowing for reprinting and magnetic strips are re-encoded to match the new number on the front.

Unauthorized use or no card present fraud is probably the easiest type of credit card fraud to commit. These telephone order crimes allow for the ordering of merchandise in which the merchant only gets a credit card number and never verifies the validity of the card or looks at a signature.

Obtaining the information is easier than you might think. The most obvious is through stealing wallets and purses containing bank and credit cards. But they can also steal your mail, including financial statements, pre-approved credit offers, telephone calling cards and tax information before you know it is gone. They may access your business or personnel records at work, find personal information in your home or use information you share about yourself on the Internet. They also buy personal information from "inside" sources such as store employees or fraudulently obtain your credit report by posing as a landlord, employer or government agency, and then fill out change of address forms to divert your mail and allow for more time to commit the fraud.

The best defense is to simply be more aware of the people and situations around you. Pay more attention to your cards and never let them out of your site. Monitor your mail. Shred anything that has your name, address or other personal information on it before throwing it away. This may all take a little extra time out of your day, but it’s better than spending months apologizing for bounced checks and waiting for your money to be returned.

Although identity theft and credit card fraud cannot be prevented entirely, you can minimize your risk by managing personal information wisely. Keep the following in mind:

· Keep all your personal information in a safe place. Be cautious about where you leave personal information in your home, especially if you have roommates, employ outside help or are having work done in your home.

· Shred everything that contains personal information such as charge receipts, credit offers, insurance forms, physician statements, bank checks, and other statements that you are discarding. Shredders are not expensive and could save you thousands in the long run. This is the single most proactive thing you can do to prevent fraud.

· Pay close attention to your billing cycles and call your creditors if the bills don't arrive on time. An identity thief may have changed your billing address to divert attention from your credit card accounts.

· Remove your mail as soon as possible after it has been delivered to discourage mail thieves. If you're planning to be away from home for an extended period of time, request a vacation hold at the post office, and then pick it up when you return.

· Be watchful of credit card transactions at all times. By allowing a card to leave your sight, your number and expiration date may be copied unlawfully. Void all incorrect receipts and destroy all carbons. Save all receipts and compare them to your statements on a monthly basis.

· Never sign a blank credit card receipt. If there are any blank spaces above the total, draw a line through them.

· Put passwords on your credit card, bank and telephone accounts to prevent identity thieves from changing your billing address. Avoid using information such as your mother’s maiden name, your birth date, social security number or phone number and change them periodically for added safety.

· Do not give out personal information aver the phone, through the mail or over the Internet unless you initiated the call or know who you're dealing with. Identity thieves are known for posing as bank representatives, Internet service providers and even government agencies to get you to reveal your social security number, mother's maiden name, financial account numbers and other information that may seem perfectly legitimate. If you are unsure, write down the name, phone number and extension of the person you are speaking with and ask to call them back.

· Find out who has access to your personal information at work and verify that your records are kept in a secure location.

· Never carry your social security card with you and give the number out only when absolutely necessary.

· In the event you suspect fraud, file a police report immediately. Then contact your bank and call the three major credit bureaus immediately to put a fraud alert on your reports. They are: Experion, (888) 397-3742, Equifax, (800) 525-6285 and Trans Union, (800) 680-7289. The alert will remain on your report for seven years and will protect you from further fraud. Creditors will be forced to call you before opening any new accounts or changing existing ones.