Published: August 23, 2008 11:55 pm         

Identity theft: Education is key to avoid falling prey to fastest-growing crime in U.S.

It’s the fast growing crime in the United States, and one of the best ways to protect against it is educate yourself and become more aware.

Identity theft is a broader categorization for crimes involving fraud, theft or embezzlement, or a mixture of all.

“This problem of identity theft, it might just be a two-word problem, but it’s got arms that reach out across the country,” said Mike Prusinski, vice president of public affairs for LifeLock, a company that helps protect against identity theft.

“The one that you see the most often is the ID theft,” Prusinski said. “It’s more fraud. It’s the use of the credit cards or identities to establish a false line of credit and running up the accounts.”

Enid Police Department detective Mark Pettus said the department receives the most reports concerning two types of fraud.

“The majority of reports we’re getting now is counterfeit checks and people finding out someone is using their account in another city, or state even,” he said.

A popular scam involving counterfeit checks or money orders targets those who have advertised something for sale online or in the newspaper. The amount sent as payment is much more than the price of the item, and the remainder is asked to be returned.

Other reports involve those who have discovered their accounts have been used without their knowledge or their information has been used to establish new accounts or lines of credit.

Prusinski said LifeLock has seen an increase in using the stolen identities of children to establish lines of credit or for the purpose of employment.

“Children have been the one segment we’ve seen a huge increase in,” he said. “Criminals now see children as a fresh source of credit. They get a hold of it and use it for years.”

He said these crimes often are not discovered until a child turns 18 and begins seeking credit or applies for loans.



Banking scams



When text messages and e-mails were sent to thousands in Enid during the first of the month claiming their Central National Bank accounts had been suspended for security purposes, the police department received hundreds of calls.

Pettus said only a few people, fewer than 10, gave out their personal information during the three attempts this month. Bank scams are difficult for police to investigate because they are rarely based in the EPD’s jurisdiction.

“We very seldom get a banking scam in Enid. They may target Enid, but they are very seldom based in Enid,” Pettus said. “Normally, we try to find out where it happened and forward the information to the jurisdiction where it happened.”

He said victims of a banking scam should contact their financial institution.

“First thing to do is call the police to and a get a report made,” Pettus said. “Then call a credit reporting agency and put a fraud report on your account.”



Once it happens ...



A fraud alert is a flag placed in your credit report warning potential creditors they must verify your identity before they issue credit in your name. Fraud alerts may be effective at stopping someone from opening new credit accounts in your name, but they won’t stop thieves from accessing your current accounts if your information lands in their hands.

You request a fraud alert by contacting one of the three major credit bureaus. The bureau you call is required to contact the other two. There are two types of fraud alerts: initial and extended. An initial fraud alert is good only for 90 days. After that, you must re-contact a credit bureau and reactivate the alert. If you have been a victim of identity theft, you may ask for an extended alert. Each credit bureau has its own criteria you must meet, which may include filing a police report.

A credit freeze is different from a fraud alert in a number of ways, but it also will prevent further abuse by those who have obtained your information.

A freeze generally stops all access to your credit report, while a fraud alert permits creditors to get your report as long as they take steps to verify your identity.

A credit freeze is free to identity theft victims who have a police report to prove it. For individuals who are not victims of an identity theft, the cost is $10 per credit bureau or $30 for all three bureaus to freeze your credit.

To place a freeze on your credit file, you must write to the three credit bureaus, providing your identifying information and your payment. Freezing an account will prevent you from opening a new account yourself, applying for a job, renting an apartment or buying insurance, if your credit report needs to be accessed by a creditor.

Credit freezes can’t block thieves from accessing your current credit cards or bank accounts.



Preventing identity theft



Pettus said a key to preventing identity theft is to keep personal information safeguarded.

“The first thing is to not leave your valuables in your car, like credit cards and checkbooks,” he said.

Avoid giving out financial information to anyone unless the contact was initiated by you. Credit card companies and banks already have personal and financial information on record from when the accounts were opened and should not need to call to verify or ask for resubmission of information.

When receiving “special offers” or “one-time chances” online, Pettus said one piece of advice holds true: “If it seems too good to be true, it probably is.”

Pettus also said to check personal credit reports for any activity or new lines of credit established under your name.



Who’s a target?



According to Federal trade Commission’s Identity Theft Web site, the most common age group of victims of identity theft are those 18 to 29 years old, three percentage points more than the national average.

Those 65 and older account for 6 percent of identity theft victims in Oklahoma, which matches the percentage nationwide. Those under the age of 18 account for 4 percent of victims in Oklahoma, which again matches the national average. The percentage of victims in an age group decreases with age, the data shows.

However, Prusinski said anyone is a potential victim for identity theft.



Eyeing your credit history …



One of the best ways to detect credit fraud or identity theft is to check your credit report. Free reports can be obtained once a year from each of the three national credit bureaus: Equifax, Experian and Trans Union.

Reports can be ordered by phone at (877) 322-8228 or online at http://www.annualcreditreport.com.

Requests for free credit reports can be made via mail using an order from Federal Trade Commission’s Web site.

Federal Trade Commission’s Web site — http://www.ftc.gov/idtheft — also has information for someone who already has become a victim of identity theft.