 Amy Dolinsky, a 21-year-old college student, noticed several unauthorized transactions from her checking account. She found two $50 charges from Google Answers and a charge from SaksFifthAvenue.com for over $600. When she contacted the bank, it informed her there were other transactions for thousands of dollars that did not post to her account because of insufficient funds. However, the other charges still put Dolinsky's account in the red.
Dolinsky believes this happened because of a phishing scam email she received from what she believed to be PayPal. The email asked her to verify her debit card number, which made sense because she had just received a new card the week prior. She followed the directions in the email and entered her new number. Unbeknownst to her, she gave a thief personal information.
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The FTC enables consumers to request their free report from the major credit bureaus through www.annualcreditreport.com. This map from www.annualcreditreport.com shows when free reports are available.
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After filing paperwork with her bank, the Federal Trade Commission, and merchants, Dolinsky was only out a $5 fee Saks Fifth Avenue assessed. "I paid five bucks to have my identity stolen," she said. | 
Many companies offer a security resource center. PayPal's Security Center shows users what fraudulent emails often look like.
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 Because she regularly evaluates her account information online, she was able to promptly spot the problem and contact the appropriate institutions, thereby minimizing her financial loss. According to an FTC survey, more than 27 million Americans have become victims of identity theft, a crime in which a thief uses the victim's name and other sensitive information to fraudulently open bank accounts, use credit cards, and initiate financial pandemonium. Most cases involve dumpster divers and dishonest store clerks, not online hackers.
As technology changes, thieves find new means to steal information. Phishers send emails asking recipients to "verify" personal data. Their emails and Web sites display corporate logos and mimic nomenclature derived from the company they are pretending to represent. Phishing scams often target financial institutions and popular online services such as eBay.   Avoid Identity Theft
There are a number of measures that you can take to secure personal information from reaching the hands of thieves. Many may seem superfluous, but they are vital to keeping private data just that.
Protect your Social Security number. Many organizations use Social Security numbers to identify employees, customers, patients, and members: Ask if you can substitute another number. Many businesses use phone numbers or other unique ways to identify people in databases.
Don't keep your Social Security card on you. It should be kept in a secure place inside your home. The same is true for any documents that have the number printed on them. Don't respond to email scams. Phishers send requests for personal information via email to unsuspecting consumers. It's hard to identify these bogus emails because they often look like those companies might send—instead, the messages are intended to lure individuals into divulging private information to supposedly verify an account. These companies never ask users to verify personal data via email once their account is created. Most financial companies have an antiphishing security group you can forward the message to to determine a message's authenticity. | 
The FTC established the ID Theft site (www.consumer.gov/idtheft) to educate consumers about the forms of identity theft and how to thwart it.
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Secure your credit card number. When ordering items over the phone, be sure no one is eavesdropping. It may seem like second nature to rattle off your credit card number, but people in other rooms or offices can sometimes hear conversations. Cordless phones often interfere with each other. Be sure to use a corded phone on a landline instead of a cordless or cell phone when reciting your personal data.
Shred sensitive information. Don't toss those unsolicited preapproved credit offers. Dumpster divers use these to apply for credit cards in your name and have the statements sent to their address, making it difficult to catch in a timely manner. Buy a shredder to destroy those credit offers and other personal documents. If you keep a file of your financial statements, be sure it is in a secure location. The same goes for sensitive information on your computer. Most financial software lets the user set a password.
Stop getting preapproved offers. Opt out of receiving unsolicited credit offers through postal mail. Visit www.optoutprescreen.com to tell creditors not to send you anymore offers. It may take some time before they stop coming because many institutions already have your information on file, but when they update and you aren't on the new list, the offers should stop.
Reclaim Your Identity
If you suspect that someone is wreaking havoc with your name, there are a number of steps you can take to get things back on track.
Alert financial institutions. One of the first steps to take is to inform your bank and close any accounts the thief tampered with or fraudulently opened. Place a fraud alert on your credit report. Contact the three major credit bureaus: Experian (www.experian.com), Equifax (www.equifax.com), and TransUnion (www.transunion.com). The fraud alert tells creditors they must contact you before authorizing any changes to accounts associated with your name. The bureaus may keep the alert on a report for up to seven years. | 
The Identity Theft Resource Center (www.id
theftcenter.org) gives victims tools to minimize financial loss and get started rebuilding
their lives.
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Obtain a police report. Many credit organizations require proof of identity theft in the form of a police report. Without this, creditors might think that you are simply irresponsible with your finances and looking for an easy way out. Contact the authorities in the community where the crook actually took fraudulent actions. This is often hard to tell with online fraud, so contacting your local law enforcement can be a good starting point.
Notarize an ID Theft Affidavit. The FTC offers a form that that creditors widely accept as proof of innocence in an identity theft case. Download the form and get other support materials from www.consumer.gov/idtheft.
When communicating with so many organizations about accounts, remembering every conversation can become difficult. Keep a log of each phone call with the date and time, person's name, phone number, company, department, and resolution or synopsis of the call. Keeping a record of communication is helpful in keeping a checklist of what institutions you need to contact.
Obtain a free copy of your credit report. The FTC recently mandated that each credit bureau provide consumers with a free report each year. The bureaus don't offer the free report directly to the consumer; you must order your report via the FTC's page at www.annualcreditreport.com. The beginning availability of these reports varies by geographical location. All U.S. residents will have access by Sept. 1, 2005. Go to www.annualcreditreport.com to see when your region will be eligible. When you get your report, scrutinize every entry to make sure you were the initiator. If there are any discrepancies, report them to the credit bureau from which you received the report and the institution claiming to have an account with you.
Regularly review your credit report. With three bureaus, it's sensible to space your reports out and order one from a different bureau every four months.
Safety First
Take extra precautions, including reviewing financial statements and securing private data, to ensure you don't become a victim. 
by Brian Weed |
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Amy Dolinsky, a 21-year-old college student, noticed several unauthorized transactions from her checking account. She found two $50 charges from Google Answers and a charge from SaksFifthAvenue.com for over $600. When she contacted the bank, it informed her there were other transactions for thousands of dollars that did not post to her account because of insufficient funds. However, the other charges still put Dolinsky's account in the red. 
