Section 11.2 Identify Fraud
Identity fraud refers to the act of someone pretending to be someone else. The goal is for the fraud to use your identity for some kind of gain or to cause you damage. We’ll concentrate on using your identity for gain.
Subsection 11.2.1 Information They Want
Identity thieves do not need that much information to steal your identity. Here are some pieces of you identity that thieves are often after:
- Credit card information. With just your credit card number, an identity thief can purchase a great deal of stuff online. Some businesses require identity authentication, such as the card pin or your address. Some do not. Credit card information can be extracted from a hacked website. It can also be stolen physically in which the thief sees and records your card information.
- Social Security number. With just your social security number, a thief can do a number of things. They could apply for a loan, direct your Social Security payments to them, etc.
- Personal information often used for identity confirmation. Things like your mother’s maiden name, city of birth, pets’ names, street you grew up on. This information is used to hack into your various accounts.
- Financial records. Your bank statements and other documents have a great deal of information on them that a thief could use to steal money or pretend to be you.
- Medical insurance information.
Subsection 11.2.2 How Your Information Is Stolen
Identity thieves has a number of ways to get your information.
- They can get access to your wallet/purse. Leaving anything containing your credit/debit cards lying around is dangerous. Also, there are some people who work at places that accept credit cards who will write down your information. For example, a server at a restaurant could steal your card information after you give it to them as payment.
- Identity thieves can dumpster dive for your bank or tax documents. These documents can have information like addresses, account numbers, your Social Security number, and other identifying info.
- Some identity thief is done through hacked websites. The information collected can be from personal information, account information, passwords used, etc.
- Some thieves can get access to information on your phone or computer when you connect to a public Wi–Fi. Passwords, personal information, etc. are often saved within your device.
- Many thefts happen via phishing. Through phishing, you may provide your personal information to the thief. Phishing can also attempt to get you to click on a link that will install malware on your device, giving access to the thief.
- Some thieves use “skimmers” at card scanners. If you use your card with one of these skimmers installed, all your card information becomes available to them.
- Many people put far too much information in social media. Thieves can go through your social media looking for any information you post regarding where you’ve lived, where you went to school, family member names, preferences, etc. They may even use your photo for biometric locks.
Subsection 11.2.3 How To Recognize Identity Theft
You often will not realize when your identity has been stolen for a long time. Here are some common warning signs:
- You have charges on your card or receive a bill for something you didn’t order.
- You receive a call from collections for something you did not buy.
- Your credit report shows an account open that you didn’t open.
- Mail is missing or stops coming to you.
- You cannot access an account online because the password has been changed.
Subsection 11.2.4 How to Prevent Identity Theft
There are a number of tactics to help avoid identity theft.
- Put credit freezes on your accounts with all three credit bureaus. This prevents anyone taking out a loan with your information. Keep in mind that it also prevents you from getting a loan, so you have to remember to “thaw” your freezes before applying for anything.
- Never let someone walk away with your credit card. Ask for a reader to be brought to you, or go with the person to the scanner.
- Monitor your financial accounts frequently. If anything you don’t recognize pops up, contact the business/bank immediately.
- Put daily limits on your credit/debit cards. This will maximize what can be taken out or used each day. This may not prevent identity theft, but it can reduce the effects greatly.
- Be cautious of public WiFi. Make sure it is being offered from a legitimate source before connecting.
- Do not answer calls, texts, emails, and social media messages from people/numbers you do not recognize.
- Never give out your Social Security number, birthdate, and other personal information unless it is for something you know is legitimate.
- If you are going out of town, put a hold on your mail.
- Shred all documents and card when you throw them out.
- Use unique passwords for each website. Use longer ‘pass phrases” rather than shorter ones with lots of weird symbols. Do not write down your passwords.
Subsection 11.2.5 What to Do When You’re the Victim of Identify Theft
- If someone uses your credit card, you should contact the card company and report the fraud. By law, they must reimburse you for fraudulent actions. Of course, you should request a new card with a new number.
- If something comes up on your credit report that you don’t recognize, immediately call that credit bureau and dispute the change.
- Contact your local police department. You can file a report. They can also advise you on next best steps to take
- Place freezes on all your accounts. Put freezes on your credit reports and request new cards from your credit car companies.
- Change passwords on all your sites. You should also consider opening a different email address.
Keep in mind that for some forms of identity theft, you may not be reimbursed for losses. Based on state laws, what options you have to recover lost money may be limited. It is vital that you mitigate the damage from identity theft as quickly as possible.
Subsection 11.2.6 Activity: Protecting Yourself From Identity Theft
Below are some really common scenarios. For each, determine the best course of action. Briefly justify your actions.
- You receive a call from a number you don’t recognize. You choose to ignore it. They leave a voicemail. Listening to it, the message is a man claiming he is from the IRS. He identifies you by name and your address. He says that the IRS has chosen to audit your most recent tax return and that you need to return his call immediately to address your return and to avoid fines and penalties.
- You get a text from your Aunt. However, her texts sound strange and she asks if you could lend her money.
- You have been chatting with someone on a dating app for two weeks. Their profile has only one photo, and they don’t have links to any other social media profiles. You think they are a real person, but you’re not sure.
- You receive a letter in the mail. It contains a flier for a local contractor. He says he is new to the area and is looking to build a reputation and clientele. He says he will work for 25%less than any other contractor’s bids. You have been looking for someone to replace your countertops.
