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Identity theft: the latest trend in crime
by Peter Cvelich, Wake Weekly Summer Intern
Purse-snatchers, pickpockets and house-burglars used to be the only threat to one's daily security and peace of mind.
But these days a new brand of thief is lurking -- one that, if undetected, wreaks havoc on your finances and credit indefinitely. The identity thief. As Det. David Richards of the Wake Forest Police Department explained, identity theft is someone stealing your identification information, like a name, Social Security number, date of birth or bank account number. Identity fraud is the use of that stolen information for personal gain. Some identity thieves steal debit or credit cards to make a quick buck by making purchases with the card, then returning it later for a cash refund, Richards said. Others "try to immerse themselves in the victim's identity," possibly to escape debt or cover up a criminal history, he added. According to a Federal Trade Commission (FTC) report in February, U.S. consumers reported more than $547 million in fraud complaints for 2004. The median loss was $259 per consumer, the report said. Richards has seen thieves come to Wake Forest and use a stolen identity from out of town to make a purchase. He has also encountered identity thieves that steal a Wake Forest resident's identity and use it elsewhere, in which case, the crime is mostly out of the police department's jurisdiction. "It is something that is on a lot of people's minds right now, especially elderly people," said Beverly Torain, Youngsville postmaster, speaking before the Wake Forest Civitan Club on May 12. "Things people don't think about -- the thief will thrive on those things," she added. Remember to tell the post office to hold your mail while you are away from home for an extended time, Torain said. Although consumers should be wary of Internet scams, mail fraud and stolen purses and wallets are still the biggest means of identity theft, said Richards. Out of the mail thieves can nab checks and wipe off the name of the recipient or scavenge pre-approved credit offers and paid bills for vital information, he said. "People normally committing violent crimes like armed robbery and home invasions are delving more into identity theft," Richards said. For example, the criminal might watch a parking lot to see people get out of their cars and leave their purses or wallets in plain view. Then they quickly try the door handle or smash the window and take the purse or wallet, rather than the stereo or CDs. "When you live in a small town like Wake Forest, people are naive about these issues," said Kathy Divens after the Civitan Club meeting. "I don't think people think about it enough until it happens, like home security," she added. "You don't get a security system installed until you get robbed." Unfortunately, there is a surprising number of cases in which the thief is one of the family, Richards said. Torain knows a coworker who lost $40,000 after a family member stole their identity. Even though the thieves' methods are understood, it can still be hard for victims to protect themselves against the crime. Late payments Charlotte Thomas of Franklinton received a telephone call from DISH Network two months ago asking for $500 in delinquent bill payments since the fall. The satellite TV account was in her name but addressed to a residence in Charlotte. Someone had stolen her name and Social Security number, unbeknownst to her, she said. "I was shocked that somebody would do that to me," Thomas said. She finally received her credit agency's fraud packet last week, which required her to provide 27 pages in documentation, including utility bills, tax forms and a report from the Franklin County Sheriff's Department. "If I don't clear it, it will ruin my credit," she said with frustration. Most angering for Thomas was the fact that she had to prove her innocence to the credit agencies. After being diligent about securing her financial and identification information before the theft, she now feels much more vulnerable. "Maybe I wasn't doing enough," Thomas said. Cell phone scam When Joshua Brown of Rolesville was refinancing his mortgage in January, he discovered that two cell phone accounts had been opened in his name but addressed to a New York City residence. He researched the address on the Internet and found 72 other names listed for the location as well. It seemed to him someone was ripping off a lot of people. For Brown, the process of contacting his credit agencies to clear up the fraud was difficult. "They made me jump through all sorts of hoops," he recalled. "They're just trained to collect money" and didn't want anything to do with his problem, Brown said. The whole situation caught him off-guard. "Before, I thought, what could someone do with my nine-digit number (Social Security number)?" he admitted. "Now I do know." Although it is hard to know what not to do next time, Brown said, "I wouldn't mind going through more steps on credit applications to prove who I am. That would make me feel more secure." Fraud thwarted Fortunately for Joel Elder, also of Rolesville, the thief that stole his name, date of birth and Social Security number had tried and failed four times to buy a computer with his identity. One computer company was very helpful and alerted Elder when a computer shipment to Chicago, Ill., was ordered in his name. After reviewing his credit report, Elder saw that a financial services company with a branch in Wood Dale, Ill., had checked his credit on May 8, days before his identity was compromised. The revelation led Elder to suspect someone at the company had leaked his financial data to the thief. "They're probably selling out information to others," he said. "It's really scary that people can do that." Despite being a fairly recent occurrence, Elder isn't hopeful that police will catch the perpetrator. "People get away with it because nobody pursues it," he said. In Elder's case, the crime is beyond the Rolesville police's jurisdiction, and they can only pass along information to the Chicago authorities. A 2003 report by the Identity Theft Resource Center, a nonprofit organization, showed that less than 5 percent of all reported cases result in an arrest. As identity theft becomes more common, the government is searching for and creating ways to protect citizens and provide avenues for them to guard themselves against such thievery. With the passage of the Fair and Accurate Credit Transactions Act in December 2003, consumers will receive more protection from identity theft and greater assistance in cleaning up credit discrepancies if a theft occurs. Of particular importance is the provision that gives consumers access to one free credit report every 12 months from each of the three credit agencies. This statute is being phased in across the country, starting with the West region December 2004. North Carolina residents, as part of the Eastern region, will get access in September. Editor's note: For more information on identity theft, can visit www.annualcreditreport.com and www.consumer.gov/idtheft.
Last Updated On: May 26, 2005
Copyright 2005 The Wake Weekly