Identity theft is one of the fastest growing consumer scams in America.
| Top 20 Identity Theft Sites per capita for 2008 |
| Arizona California Florida Texas Nevada New York Georgia Illinois New Mexico Colorado Maryland New Jersey Alabama Washington Delaware Louisiana Connecticut Pennsylvania Michigan Massachusetts
Source: FTC Annual Fraud and Identity Theft Report |
It's difficult to know exactly how many victims exist, but the numbers are staggering. On the plus side, they also appear to be dropping.
A nationwide survey by Javelin Research found that found identity theft declined in 2007. Javelin estimates that 8.1 million Americans were victims of identity fraud in 2007, down from 8.4 million in 2006 and 10.1 million in 2003.
The Federal Trade Commission published a
survey in 2007 showing that 8.3 million American adults, or 3.7 percent of us, were victims of identity theft in 2005. Most of those cases involved misuse of existing credit card or other accounts, while 1.8 million found that new accounts were opened or other frauds were committed using their personal identifying information.
Identity theft topped the FTC's
list of consumer complaints again in 2008, accounting for 313,982 complaints -- 26 percent of the more than 1.2 million received between January 1 and December 31, 2008. Credit card fraud was the most common form of reported identity theft.
The problem is especially serious in Washington, where residents filed 5,855 complaints with the Federal Trade Commission in 2008. The good news is that Washington slipped down the ranks to 14th in the nation for identity theft complaints per capita last year. We placed 13th among the states in 2007, 9th in 2006 and 7th in 2005.
An Arizona business called Identity Theft 911 issued a
report in December 2007 that suggests 1 in 5 Washington residents became an ID theft victim in the previous five years. The company estimates 254,095 Washington residents became victims of identity theft in 2006.
The Federal Trade Commission (FTC) defines identity theft as "someone appropriating your personal information without your knowledge to commit fraud or theft." Typically, an identity thief steals your Social Security number or other personal identification, and uses it to obtain a credit card in your name or to commit some other crime.
Many victims report spending countless hours convincing creditors, credit agencies, government agencies and others that transactions are fraudulent and should be purged from their files. This damage to victims' credit history and reputation can result in denial of credit for things such as auto and home loans. Consumers aren't the only ones hurt. Today, more and more businesses are seeing their bottom lines affected by identity theft.
A popular technique used by identity thieves is called “phishing,” which involves trying to trick consumers out of personal information by sending them e-mails that appear to come from companies they have accounts with.
Another popular and increasingly troubling technique is “
Dumpster diving,” where identity thieves scour carelessly discarded mail and other documents in search of personal information that can be used to commit identity theft.
In 2001 the Washington Legislature passed the nation's toughest identity theft law, giving Washingtonians a variety of powerful new tools to help free themselves from the maze created by identity theft.
The Attorney General's Office also prepared brochures (to the left) to help you deal with the problem of identity theft.
Finally, you may want to visit the FTC's Identity Theft Web Site, which provides a wealth of statistical information, background on the problem, and a complaint form for reporting identity theft to the FTC.
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Step 1: Call the toll-free fraud number of any one of the three major credit bureaus to place a fraud alert on your credit report.
This can help prevent an identity thief from opening additional accounts in your name. As soon as the credit bureau confirms your fraud alert, the other two credit bureaus will automatically be notified to place fraud alerts, and all three credit reports will be sent to you free of charge.
Step 2: Report the ID theft to your bank and other creditors.
Ask to speak to someone in the security or fraud department. They may advise you to close your accounts and start over with new ones. Also, ask your financial institution what procedures they require of victims whose credit cards or checks have been stolen or forged.
Step 3: Report the ID theft to the police or sheriff in the area where you live.
ID theft is a felony, and charges may be filed against the thief in the county where you live. Ask the police to make a police report and give you a copy. You will need this to help correct your credit rating.
Step 4: Consider requesting a credit report security freeze.
A security freeze means that your credit file cannot be shared with potential creditors. A security freeze can help prevent identity theft since most businesses will not open credit accounts without checking a consumer's credit history first.
You, too, will not be able to open new credit while a freeze is in place. Individuals can request that a freeze be temporarily lifted for the purpose of obtaining new credit.
Step 5: Send a copy of the police report to the three major consumer-reporting agencies.
The credit bureaus are required to block information victims identify as resulting from identify theft. Once the three consumer-reporting agencies receive the police report and a request from you, they are required to block any adverse credit reports resulting from the crime.
Step 6: Ask businesses to provide you with information about transactions made in your name.
Under the Identity Theft law, businesses must give you this information, but may, if they choose, require proof of your identity—including a copy of the police report and your fingerprints. If you need to obtain your fingerprints for this purpose, the Washington State Patrol provides this service. You will pay a fee and will have to wait for processing before you receive a letter notifying you that the fingerprints are on file. Businesses refusing to provide information to you may be subject to actual damages, plus a $1,000 penalty for willful violations. You may present this letter to businesses and creditors as proof of your identity.
Step 7: Be prepared for contacts from creditors who may want you to pay the debts of ID thieves who used stolen or fake checks to make purchases or pay bills in your name.
Explain to them that you have been the victim of identity theft. Provide them with the police report and, if you have one, an Order Correcting Records. Once the collection agency has been notified that the debt is a result of an identity theft, under the law the collection agency may not continue to call you. This prevents victims from being inundated with calls for every misused check if they have had a box or book of checks stolen or forged.
Although calls might stop, you may still be subject to legal action by credit agencies. However, there are limits on what a collection agency can do to try to collect a debt from you. The Attorney General’s Consumer Protection web site provides more information about debt collection, or you can call the AG's consumer line at 1-800-551-4636.
Step 8: Contact the Federal Trade Commission’s Identity Theft Hotline, 1-877-IDTHEFT or visit the FTC’s ID Theft web site.
Among other things, the FTC site provides a uniform ID Theft Affidavit that is accepted and endorsed by many businesses.
Step 9: Tell the prosecuting attorney that if the person who stole your identity is found guilty, you'd like the court to issue you an Order Correcting Public Records.
This is a Court Order you can use to correct public records damaged by identity theft. Show the Order Correcting Records to your bank and send a copy to your creditors so they can correct your records.
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Washington's identity theft law is one of the toughest in the nation. The law:
Establishes jurisdiction for identity theft either in the county where the victim resides or in the county where any part of the offense takes place. The bill creates a loss threshold of $1,500. Any loss at or above that amount constitutes a Class B felony. If the loss is less than $1,500, identity theft is a Class C felony. This strengthens current law to deter would-be thieves and allows local prosecutors to seek stiffer sentences. Upon conviction of an identity thief, the law allows courts to issue an order a victim can use to correct public records tainted by identity theft. This gives victims a legal document to help correct public records.
Allows a consumer to block any fraudulent information resulting from identity theft by filing a police report with the consumer reporting agency. The block may be removed in certain circumstances under a good faith and reasonable judgment standard.
Requires businesses to provide victims with information about fraudulent transactions made in their names. Businesses may require proof of identity. Businesses that refuse to provide information may be required to pay damages and a $1,000 penalty for willful violations.
Prohibits collection agencies from calling identity theft victims multiple times once they have been notified that a series of checks have been stolen or misappropriated.
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