Identity Theft

Identity Theft

What Happens?

Some estimates indicate that more than 900,000 people have their identity stolen every year. There are a number of ways someone can “steal” your identity to commit fraud or theft.

The thief can:

• Open a new credit card account, using your personal information including your name, date of birth and Social Security Number. They then use the card, but don’t pay the bills. The delinquency is reported on your credit report.
• On an existing credit card, they call up the creditor pretending to be you and change the address on your account. Then, they run up charges against your card, but because the bills are being sent to a new address, it will take some time before you realize there’s a problem.
• They can establish cellular phone service in your name.
• They can open a bank account in your name and write bad checks on that account.

What you can do.

Although theft identity can’t be prevented, there are things you can do to minimize your risk.

• Carefully guard your personal information: name, address, phone number, driver’s license number, social security number, credit card numbers, birth date and mother’s maiden name.
• Carry as few credit cards and forms of ID as possible. There’s no reason to carry your Social Security card in your wallet.
• Shred documents with your personal information before throwing away.
• Don’t print your drivers’ license or Social Security Number on your checks.
• Check your credit record regularly from each of the three major credit bureaus — Equifax, Experian, and Trans Union — each year and make sure the information is correct.
  
  Equifax — 800.525.6285
  Experian — 888.397.3742
  Trans Union — 800.680.7289

Blue Print, January 2002, Page 3, CBC Federal Credit Union

Social Security Numbers Abbreviated on Annual Statements

When your employees get their next annual Social Security Statement listing their earnings record and estimates of future benefits, they'll find some thing missing. The first five digits of the employee's Social Security number will have been dropped to help protect your employees from identity theft.

Identity theft has become one of the most frequent crimes in this country and a thief's main tools are your employee's Social Security number and date of birth. Armed with those tools, an identity thief can obtain credit cards, open bank accounts and sign up for cell phones, all in your employee's name. The damage could run into enormous amounts of money and it could take your employee years to get his/her identity restored.

Your employee's Social Security Statement will still contain his/her date of birth. That information will not help the identity thief. Without their full Social Security number, stealing their identity is extremely difficult, if not impossible.

Remember, your employee's Social Security Statement is a valuable tool to help them plan for their financial future. Remind your employees to read it carefully. They should make sure their earnings and date of birth are correctly reported. Then they should keep their Statement in a safe place along with their Social Security card. If there are errors, they should call Social Security as soon as possible at 800-772-1213.

Social Security Administration/Internal Revenue Service Reporter, Winter 2001, A Newsletter for Employers, Social Security Numbers Abbreviated on Annual Statements, Page 5