Protecting Yourself Against Identity Fraud

by Debra G. Speyer, Esquire

Member, SeniorLAW Center Board of Directors

Ann’s Stolen Identity

I met Ann when she came to my office advising me that she was having serious financial problems.  She showed me thousands and thousands of dollars worth of credit card bills as well as letters sent from stores because of bounced checks.   She was puzzled because she did not have accounts with these credit card companies.  She also did not have a bank account at the bank which issued all the bounced checks.  It was apparent to me that someone had stolen her identity.  The thief had, in effect, become Ann.  After I told her what had transpired, Ann felt as if someone had broken into her home and taken her most precious possessions.

We contacted the credit card companies involved, the bank, and credit reporting agencies and notified them of the fraud.  Ann signed affidavits that she did not make these purchases and had not applied for these credit cards.  Ann also signed affidavits with the various stores verifying that she did not have a checking account with the bank in question. Later, she was told by the credit card companies that the thief had obtained the credit cards by providing them with a drivers license.   Interestingly, Ann did not possess a drivers license, nor had she ever applied for a drivers license.  In fact, she did not know how to drive. We notified the Department of Transportation and verified that a valid drivers license was not issued to the thief, as this could have serious ramifications for Ann.  Luckily the identity thief had obtained a counterfeit drivers license.

As is standard procedure, we contacted the police and filed a report with them regarding this fraud.  Deep down, Ann feared that the thief would commit a crime in her name and leave her with a criminal record.

Although Ann did everything she could, she had difficulty obtaining credit for many years.  It was hard for her to qualify for loans, credit cards and other financing because the agencies were afraid that she was not the person she claimed to be.  The identity thief had ruined Ann’s credit even after she had notified all the appropriate people and organizations and had done everything she could do to rectify the situation.

How a Thief Steals Identity

       Once armed with a name and address, or social security number, the identity thief can obtain a fake driver’s license which he can use to obtain credit cards and open a bank account with checking and ATM privileges. Furthermore, he can access confidential credit and financial history as well as motor vehicle, health, employment or other personal records.  Much of this can be obtained for free but he will also be able to obtain a surprising array of information from specialized bureaus that profit from selling consumer data. The more information he has, the easier it is for him to extend his crime.
     

Scams

       There are many common scams that identity thieves use for their own gain. One recent scam is known as the account takeover.  Here, the thief calls a bank in the victim’s name and requests a change of address. The thief asks the bank to mail the victim’s monthly bank statement to a new address and to forward a new ATM card there as well.  As a result, the bank account can be entirely taken over by the thief. If timed right, generally after the monthly statements have been mailed, a victim will not become aware of the change of address for at least a month. By that time, the victim’s checking and saving account can be depleted. Although the bank will reimburse the monies that were stolen, the victim must wait until the bank finishes its investigation. Furthermore, a victim can be liable for up to a $500 loss if an ATM card is not reported stolen within two business days. Worse still, a victim may be liable for all check fraud losses if the loss is deemed to have been caused solely by his own negligence. Under certain situations, consumers are liable for the first $50 loss resulting from credit card fraud. Even if the thief does not actually use a real bank, he can buy blank checks at a local office supply store. Using the name of a bogus company, the thief will make fake payroll checks out in your name, and cash them at a local supermarket store. A supermarket cashier clerk will readily cash the payroll check without having the precise means of verifying the thief's identity.

Preventive Measures Recommended By The Experts

There are several preventive measures which different experts suggest. E. R. Sanchez of Theftbusters.com recommends the following:

1. Keep close guard over all your cards.

• Do not carry a social security card in public places.

• Carry a minimum number of credit cards on your person.

• Obtain credit cards that have your picture on them. 

• Keep your driver’s license safe.  A drivers license is easily used by a thief to steal a victim’s identity.

2. Keep personal information personal.

• Destroy or shred all invoices, bank or credit card statements, and other financial or personal information before discarding them. This is a very cost effective preventive measure.

• Obtain an unlisted telephone number.  If you must list your telephone number, list it under your last name and first initial only. Never use your full name in the telephone directory. Do not supply anyone with your social security number over the telephone. By law, one only has to furnish a social security number when seeking employment or government services. 

3. Unlist. Remove your name from national mailing, and telephone marketing lists. This helps decrease the amount of your personal information being sold publicly.

4. Review your credit report at least twice a year. This helps you monitor both activity and inquiries regarding your existing credit by companies and individuals.

5. Use Common Sense. Do not let people peek over your shoulder while withdrawing cash at  ATM machines or using telephone calling cards at public telephones.

6. Do not write your social security number or telephone number on your personal checks because they may be viewed by many people.

7. If you must have a personal web page, remember that this is the perfect place for thieves to locate personal information about you.

Remember, identity crime is increasing every day, so keep your guard up.

            Elders can discuss a legal problem or get information by calling SeniorLAW Center’s telephone intake line 215-988-1242 Mondays through Fridays, 9 a.m. – 1 p.m., or coming to our center city offices, Mondays through Wednesdays, 9 a.m. – 4 p.m.  Most issues can be addressed initially over the phone.  For general information, please call us at 215-988-1244.     

Debra G. Speyer is an attorney practicing law in Center City, Philadelphia and a Member of SeniorLAW Center’s Board of Directors.  Debra concentrates her practice in the areas of investment and other frauds, estate planning and administration, and elder law.  She can be reached at (215) 238-1980.