Identity Theft – Yes It’s Real And It Can Happen To You!

It’s 8:00 a.m. Monday morning. The office phone rings and it’s your executive assistant’s husband calling. “Hi! I’m sorry, but Sally won’t be in today, she was just arrested for check forgery, and she’s on the way to the police station. It wasn’t her, and she kept saying “but it’s not me”. I’m on my way to bail her out. I don’t know what we’re going to do!” After months of investigation, time spent in jail, disruption to your office and Sally’s life, the prosecutor’s office finally decides to drop the case. Not because they believe that Sally is innocent, but because they don’t enough evidence against her. Sally was the victim of identity theft. A scary hypothetical? Yes. A growing possibility of being real? Absolutely.

• “I don’t shop online”
• “I don’t use credit cards”
• “I use a shredder”
• “I had some charges on my bank statement for jewelry that weren’t mine,
  but the bank took care of it”

 The most dangerous reactions of all are:

• "Who would want my identity? I have bad credit, let them take it!
• “It can’t happen to me”.  

But Identity Theft Isn't A Crime!

• Name, Social Security Number, Date Of Birth, officially issued Driver's
  License Numbers or identification numbers
• Unique Biometric data
• Unique electronic identification number, address, or routing code
• Telecommunication identifying information or access device.

What Is Identity Theft Really?

Theft of Character – This is where a person steals someone’s social security number, driver’s license number or commits a crime in a victim’s name. Some of the things that can happen include receiving a DUI, traffic tickets, filing false tax returns, opening new bank accounts, or gaining employment in a victim’s name.

Theft of Medical Benefits – Occurs when a victim’s health insurance identification or social security number is used to get health care. This form of identity theft can have life threatening ramifications if misinformation is included in a victim’s health records.  Think about a comatose auto accident victim arriving at the local ER. Computer records say that the victim is a diabetic but has no documented drug allergies. But the victim is really not a diabetic but has an allergy to penicillin.

Theft of Financial Information/Identity Fraud - This is probably the most recognized form of the crime. This theft occurs when a thief uses a victim’s information for illicit gain. Thieves obtain credit cards, loans, purchase merchandise, vehicles, and even homes posing as someone else. This type of misuse of information is termed identity fraud.

Synthetic Identity Theft – This happens when different pieces of personally identifiable information, typically a real person’s social security number are joined with a different name to create a new person. This crime can be financial in nature, but also can impact a victim in other ways. For example, a friend of mine couldn’t figure out why every time he went to apply for a job he was being turned down. He ultimately found out he had “a record” with several criminal convictions. His social security number was used each time the other person was arrested.

Business/Commercial Identity Theft – Criminals can establish new credit cards or accounts with a business' name or even make fraudulent purchases in the name of the business. Businesses normally don’t become aware of the activity until they are billed on these accounts. Business owners and executives, employees of the business, and business clients can all be victims or suffer losses, directly or indirectly. Another form this takes is misue of corporate brand identity, such as logos asnd false websites.

For a small business, this can be devastating to both the business and the owner. Small businesses can be especially vulnerable to this form of crime because the business’ credit and the business owner’s credit are very often one and the same. The business owner may personally guarantee a business loan or line of credit, or may use his or her own personal credit accounts directly to finance the business.

I'm Careful, So I Must Be Safe!

The Federal Trade Commission

 As a result of the implementation of many data privacy, security, and identity theft laws, people and businesses have become more aware of identity theft in general. But people don’t fully realize the damage it can cause a victim and their family, or how it devastates a business if it suffers a loss of data, or if its employees become victims. In addition to potential fines, lawsuits, and even worse, permanent reputation damage, there is also the possible responsibility on the consumer’s and/or business’s part for fraudulent losses to employees and other victims. The physical and emotional toll it can take on the victim is outlined in this Wall Street Journal article at http://online.wsj.com/article/SB121807447764219305.html

So How Do I Prevent It?

While there is no way to "prevent" identity theft, there are many simple steps a consumer can take to minimize the risk to the information in their possession such as:

• Remove social security number from driver’s License and card from your wallet
• Don’t leave your car unlocked in a driveway or parking lot (there’s a lot of information about you in the glove compartment)
• Don’t put mail in a basket on the office receptionist’s front desk or a home mailbox, take it to the Post Office or an official postal box.
• Don’t share a computer. If you do, have separate logons and passwords. 

The Hidden Threat

• The tired employee that decides that “just one time” it won’t matter to throw some outdated information in the dumpster out back. Scavengers find names, social security numbers, and birth dates of customers in the discarded files.
• The insurance agent who just finished a group enrollment for a large client decides to grab a quick hamburger at a local fast food restaurant. The agent gets out of the car, locks the door but leaves the briefcase containing the forms inside. What he doesn’t realize is that the parking lot has had a rash of break-ins. During the seven minutes to get lunch, the agent returns to smashed windows, a missing briefcase and responsibility for a data breach.
• The employee, who had a clean record when hired, suddenly suffers financial difficulties. Her cousin says, “You have access to all those credit card and social security numbers at work, just take a few and I’ll show you how you can make some money selling them.”

Consumer Products

Even though the Internet receives a bulk of the blame, and crime through this mechanism is indeed growing, it is not the only area of activity. It happens in businesses, in your own home, at your kid’s college campus, over the telephone during a simple “survey”. Does this mean we should stop the use of the Internet, social media, cell phones and wireless devices? No. But it does mean that every consumer needs to be responsible for things like online activity, not ignoring privacy policies, Tweeting and posting on Facebook properly, and appropriately forwarding and responding to emails.

So, Now What?

• Take the issue seriously.
• Put appropriate company privacy, security and breach preparedness plans in place.
• Offer an identity theft program (and awareness training) as part of your employee benefits package.
• Encourage people to implement simple personal safety measures.

Julie Davis Friend - CITRMS, CIPA