Identity theft - one of the most overhyped fears of our time

A leading identity theft expert used the credit industry?s annual conference to show that the government has massively over-hyped public fear of the extent of identity fraud to sell its Identity Cards Bill.

He also urged the credit industry not to join the bandwagon by selling over-priced prevention products to over-anxious consumers, and to help combat the crime by supporting victims more readily.

Barry Stamp, Joint Managing Director of
checkmyfile.com, presented to leading credit industry figures at the Institute of Credit Management?s National Conference.

He showed how the government?s estimated figure of ?1.72bn worth of losses to the UK economy, caused by identity fraud, has been massively over-inflated. In particular, these include the costs of security checks for routine government functions and losses that reasonably cannot be included within the general understanding of identity fraud.

This has whipped up public fear and in doing so is likely to obtain wider public support for the introduction of identity cards.

?The largest single component of the government?s ?1.72bn estimate is ?504.8m worth of losses relating to plastic card fraud, taken from the figures reported in April 2005 by APACS. Closer examination of the APACS figures show that losses from identity fraud account for just over 7% of overall card fraud, so the true losses are only ?36.9m. This example is one of many that clearly illustrates how the government has used a creative approach to the definition of what is and is not included within identity theft losses,? said Stamp.

?Going on to include the ?62.8m cost of the measures to counter identity fraud when processing passport applications, and another ?34.8m for things like unpaid fines where the offender doesn?t turn up at court are further examples of how the definition has been stretched?.

?In reality, identity fraud is a fast growing crime, but losses in the UK are probably running closer to ?150m at the moment?.

Stamp warned: ?While the risk is real, and consumers need to increase their awareness, there really is no excuse for the government to strike fear of falling victim to identity theft into consumers for political advantage. If the credit industry exploits that fear to promote over-priced identity theft protection products to replace waning income streams from payment protection insurance, then that would be totally unacceptable.?

?If the problem is as large as it is claimed to be, then I would very much like to know why Police resources have not been strengthened to combat the crime. Of the many hundreds of cases of identity theft that checkmyfile.com has reported to the Police, not one has been pursued to court action.?

?Any consideration of the effectiveness of identity cards should also bear in mind the state of some of our existing national databases.? says Stamp. ?In the UK, our government just isn?t very good at collecting personal data or maintaining it, so what reasonable person might assume that the National Identity Register might be any different? In the UK we don?t even have a central point of reference to check whether cards or any other identification documents are lost or stolen, as exists in other countries, nor have I seen any plans to build one.?

Stamp, author of ?Identity Theft, Prevention and Victim Assistance?, and whose company checkmyfile.com provides consumers with access to a wide range of databases, and supplies identity restoration services to a leading insurance company, urged credit managers who attended the ICM National Conference to follow the lead of some lenders who offer free identity theft prevention advice and to work together to combat the crime.

Philip King, the newly appointed Director General of the ICM, fully supports such an industry initiative. He said: ?Credit managers working together have shown in the past that losses from criminal actions, such as mortgage fraud, can be prevented by sharing intelligence. Identity theft presents a very similar challenge to our industry and we now need to focus on addressing the issue professionally?.

Identity Theft - Straightening Out Your Credit In The Aftermath

FBI statistics reveal that identity theft is one of the fastest-growing crimes in the United States, with about 1 in 5 families in the U.S. being a victim of identity theft. Identity theft is obtaining another person's personal information (e.g., name, social security number, credit card number, passport) without that person's knowledge and using that information fraudulently. For someone who discovers they are a victim of identity theft, it is important to act fast. Here are some immediate steps to take in order to stop further misuse and to restore your good credit:

1. Contact the fraud departments of any one of the 3 credit reporting companies to place a fraud alert on your credit report. When a fraud alert is placed on your credit reports, creditors will contact you before opening any new accounts or making any changes to your existing accounts. You only need to contact one of the three companies to place an alert, and they are required to contact the other two, which will place an alert on their versions of your report, too. Once you place the fraud alert in your file, you're entitled to order free copies of your credit reports. When you receive them, check them over carefully for any new accounts that may have been opened without your authorization. Also be aware of any new inquiries by banks, lenders and credit card companies that you were not familiar with.

2. Report the crime to your local police or sheriff's department and request a police report.

3. Contact your creditors, banks, phone companies, and utility companies and have them freeze your accounts. Banks, credit card companies and other creditors may require a copy of your police report. You may be liable for a small sum of the fraudulent charges; check with each of your card issuers for their policies. Most creditors promptly issue replacement cards with new account numbers.

4. File a complaint with the Federal Trade Commission.

5. Monitor all bank and credit card statements and other bills carefully to ensure there are no fraudulent charges. If you find fraudulent checks or withdrawals on your bank account, notify the fraud department of your bank in writing immediately.

Stop payment on any missing checks and/or close your existing account. You can also notify the check verification companies not to accept further checks under the account number that was stolen. To find out if the identity thief has been passing bad checks in your name, contact SCAN @ 1800-262-7771.

If unauthorized credit card charges appear, notify your credit card company in writing without delay.

6. If you believe the theft involved your social security number, contact the Social Security Administration. They may re-issue a lost or stolen social security card or may, under some circumstances, give you a new social security number.

As you know, your credit rating is all important. Every precaution should be taken to protect your credit rating. Once you have your identity straightened out, you might consider registering with Equifax Credit Watch?. Equifax Credit Watch? makes monitoring your report easy by automatically alerting you within 24 hours of key changes in your Equifax Credit Report? - like when someone tries to get credit in your name or there are sudden changes in your credit card balances. - so you can act before serious damage is done.

Below are important phone numbers you will need for reporting your identity theft:

Credit Reporting Agencies:
Equifax 1800-525-6285
Experian 1888-397-3742
TransUnion 1800-680-7209

Federal Trade Commission Hotline:
FTC Hotline 1877-438-4338

Check Verification Companies:
Telecheck 1800-710-9898
Certegy 1800-437-5120

To find out if the identity thief has been passing bad checks in your name:
SCAN 1800-262-7771

Debbie Pettitt who is the webmaster for Understanding Identity Theft, providing essential information on identity theft, it's prevention and what to do if you're a victim. If you've been a victim of identity theft, this page may be helpful: http://understandingidentitytheft.com/identitytheftreporting/

Identity Theft: Safeguarding Can't Hurt

Will we ever get a break? Not right now .In San Diego, police arrested a postal worker for stealing mail and trading it to identity thieves to support his drug habit.

Another arrest involved the hacking of wireless carrier T-MobileUSA's network. According to Fox News, the attacker gained access to a database of 16 million customers including the personel information of the Secret Service agent investigating the break in.

Then there's Choicepoint. When last we left the information giant, criminals broke into their 19 billion records database. Choicepoint now acknowledges previous attacks that date back to the year 2000.

The number of identity theft victims as well as the methods of getting personal information continue to increase sharply. Yet while no 100% guarantees exist online or off, safeguarding can't hurt and one of the best ways for fighting identity theft exist in your own home.

Check your trash.

Going thru your garbage has turned into an exact science and a major goldmine for the identity thieves. The Department of Justice refers to this as "dumpster diving" Check everything you throw away then check it again.

Mark any information including financial statements, driver's license, address and especially your social security # "Sensitive" then shred it. I recommend a crosscut shredder. Throw it away in different garbage cans on different days.

Shred junk mail credit card offers and get taken off the major credit agencies' marketing lists.

If you're not doing it already, get into the habit of taking your mail particulary any bill payments directly to the Post Office. Identity thieves also target mailboxes. They frequently stake out the area and wait for the optimum time. Getting a locked mailbox doesn't hurt either.

Use anti spyware, a firewall and antivirus programs on your computer system. If performing a transaction online make sure the company provides a secure server. They should tell you but if not look for the yellow lock at the bottom of your screen.

Guard your plastic. Examine your credit card statements and request a copy of your credit report. Agencies will send you one free copy per year. If you request more than one, you get charged a fee anywhere from 9 to 20 dollars depending on the credit bureau.

Handle this with care. Eventhough you're doing the right thing in trying to protect yourself, too many inquiries are frowned upon by these agencies and could impact your credit negatively. Joining a credit monitoring company can remove that obstacle.

One caveat.You should exercise vigilance in protecting your credit cards but it's not the total solution that some experts claim. The Federal Trade Commission estimates that 60% of all identity theft cases do NOT involve any existing accounts. Guard your plastic but make guarding your Social security number the top priority.

These methods of protection take on a special significance due to the identity of the criminals. According to the Better Business Bureau's 2005 Fraud Survey Report, family freinds and neighbors account for half of all identity thieves. You don't want to turn someone you know and love over to the authorities so do your best to eliminate the temptation.

Again, no 100% guarantees exists. You make transactions at the restaurant, corner store, gas station and a host of other places. We all need to deal in this world so there's always a risk factor. Stay vigilant on the things you control and the chances of identity theft can decrease.

Because at all costs you want to avoid what many victims rank as the worst part of identity theft. The nightmare of recovery.

Daryl Campbell is a writer and home business owner.Banks say you should check your credit once a year. No problem right? Except it leaves identity thieves the other 364 days to steal it. Get the professionals on your side to watch your back 24/7. How? Go now to => http://digbig.com/4dwsx

Linneker@comcast.net