Identity Theft

A few simple steps may keep your identity safe in a world of Dumpster divers, shoulder surfers and skimmers. Also: What to do if identity theft happens to you, and how to stop the spam.

"Personal privacy" may be the biggest oxymoron of the 21st century. From annoying streams of email spam to the more insidious and costly crime of identity theft, Americans are facing an attack on their personal privacy unlike that seen by any prior generation.

Shielding your privacy with no risk of a breakdown may be impossible these days. But it’s critical to understand how your privacy can be compromised and the consequences of such a breach - and take a few simple steps to, if nothing else, better the odds in your favor.

Identity Theft Booming

This rather broad topic takes in any number of privacy crimes, including theft of a Social Security number, a credit or debit card, or even pilfering of phone calling cards. The numbers associated with identity theft are beginning to add up fast. A recent General Accounting Office report estimates that as many as 750,000 americans are victims of identity theft every year. And that number may be low, as many people choose not to report the crime or, for that matter, even know they’ve been victimized.

More evidence of the extent of the problem:

• In November 1999, the Federal Trade Commission’s Identity Theft Data Clearinghouse was fielding about 455 calls a week. Two years later, that number had jumped to more than 3,000.
• MasterCard and Visa estimate that more than $114 million in credit-card related identity theft occurred in 2000 (not as stinging as it might seem, as those numbers represent less than one-tenth of 1% of annual sales volume). The government, which has a broader definition of identity theft, puts the number closer to $1 billion now.
• In one study by two California identity theft groups, victims spent an average of 175 hours per incident trying to unravel the problems caused by identity theft.

If Something Goes Wrong

Again, protecting yourself from security fraud is no sure thing. But there is plenty you can do if you uncover some wrongdoing.

First, contact the fraud departments of each of the three major credit bureaus. Tell them that you’re an identity theft victim. Request that a "fraud alert" be placed in your file, along with a victim’s statement asking that creditors call you before opening any new accounts or changing your existing accounts.