ID theft on the rise

August 6, 2001 Posted: 1800 GMT

By Humberto Cruz

CHICAGO (KRT) -- The problem of identity theft – somebody pretending to be you and running up large bills – has gotten worse in the electronic age. The Internet and other forms of electronic commerce make it easier for sophisticated crooks to access Social Security numbers and other personal information.

"Like any other crime or risk, identity theft is not totally preventable," said Vincent Filippini, a fraud investigator with the Federal Deposit Insurance Corporation. "But there are some things a consumer can do to help prevent ID theft or make it difficult."

Here are some common-sense tips published in the FDIC Consumer News, the agency's quarterly newsletter: Protect your Social Security number, credit card numbers, account passwords and other personal information. Never give out these numbers unless you initiate the contact with a person you know and trust.

In particular, be very careful with your Social Security number; it can be the key for identity thieves to get credit cards, apply for federal benefit payments, or open other doors to your money.

Minimize the damage in case your wallet gets lost or stolen. Don't carry around more checks, credit cards or other bank items than you expect to need. Don't carry your Social Security number in your wallet or have it printed on your checks.

Protect your mail. Promptly remove mail from your mailbox after delivery; it may contain valuable information about your accounts. Deposit outgoing mail containing checks or personal financial information in a Postal Service collection box, hand it to your mail carrier, or take it to the post office.

Check your bank account statements and credit card bills the day they arrive and contact your financial institution immediately if you notice something suspicious or a charge you don't recognize.

Review your credit report once a year. Here are the toll-free numbers for three major reporting agencies: Equifax (800-685-1111); Experian (888-397-3742); and Trans Union (800-888-4213). For additional information on preventing and reporting identity theft, contact the Federal Trade Commission's ID theft toll-free hotline at 877-438-4338.

So-called "credit doctors" and "credit repair" companies don't do anything you could not do on your own – except charge outrageous fees. By the same token, nobody can "fix" your credit report if by that you mean removing information that is damaging but accurate, and that is required to stay in your credit file.

"There is no such thing as 'credit repair' because credit files can only be corrected and not 'fixed,'" said Paul Richard, executive director of the not-for-profit Institute of Consumer Financial Education in San Diego. Thanks to amendments to the Fair Credit Reporting Reform Act, which became effective in October 1997, the burden of proof in disputes has shifted from consumers to the credit bureaus. Disputed information must be verified within 30 days or removed, and consumers can sue a creditor that fails to correct an obvious error.

"The law set it up so consumers could do this 'credit correcting' on their own," said Richard, author of the "Do-It-Yourself Credit File Correction Guide" published by the Institute. And yet, every day "credit repair" companies promise to "clean up" credit reports. "Consumers pay hundreds or thousands of dollars in up-front fees and these companies do nothing to improve credit reports, and many outfits simply vanish with consumers' money," Richard said.

A much better solution is to order a copy of the Institute's guide, which includes more than a dozen sample letters to use when communicating with credit reporting agencies about mistakes and problems. The clearly written guide explains how to obtain credit reports, how to read them and how to make changes and corrections. It also includes a section on establishing or re-establishing credit.

One subject you might want to discuss is identity theft and how one should periodically contact the various credit reporting companies to check on unusual activity. You would do a great service by providing the names and phone numbers.

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