Identity theft has reached epidemic numbers. According to Federal Trade Commission (FTC) statistics, in the U.S. alone there’s a new identity theft victim every four seconds. It may therefore be more a matter of when and not if it happens to someone.
Becoming a victim of identity theft or some other type of credit fraud can be an extremely stressful and costly experience if not handled swiftly and correctly. Although the victim may be protected financially, correcting the problem will still likely require a significant amount of time on their part.
It’s estimated that victims of identity theft must make a time investment of between 175 and 600 hours or more to recover their good names and clear the incident from their records.
So, how can someone determine if their identity has been stolen? There are a number of telltale warning signs that they should watch for, such as:
- Their credit reports list new credit cards issued in their name that they never applied for or received.
- Their credit reports list information about accounts that they didn’t open and know nothing about.
- They might notice charges on their monthly credit card- or bank statements that they didn’t authorize.
- They might stop receiving monthly credit card statements or important bills altogether.
- They might receive bills from companies with whom they’ve never done business.
- They might receive phone calls from creditors or collection agencies concerning accounts that they know nothing about.
It is important to take immediate action as soon as one becomes aware of identity theft or some other type of credit-related fraud. They should contact their creditors and bank immediately to inform them of their suspicions. If they’ve had a credit card lost or stolen (or they notice potentially fraudulent charges on their statement), they should report it immediately to the card issuer. Also, file a report with the local police department and obtain a copy of it. Collect and safeguard all documents, such as the credit reports, monthly statements, or other written information that relate to any suspicion. And if they believe someone is fraudulently using their Social Security number, notify the Social Security Administration.
Business identity fraud and Personal identity Fraud
The difference between Business Identity Theft and the personal, is just simply that the negative effect is on the corporate level rather in the personal level, this results can included; ruined business, fraudulent purchases, doing business made in your company’s name, damage credit ratings, obtaining fraudulent loans, and so on. This phenomenon that impacts all levels of business, specially small business where there is bigger damage, since most of the times lack of resources.
Fraud victims should change the passwords, PINs and account numbers of all the ATM/debit and credit cards and their bank accounts. Contact the Fraud Victim Assistance department at each of the major credit reporting agencies and request that a “Fraud Alert” be placed in their credit file. Once this is done, creditors will be instructed to take additional steps to verify the identity before granting them (or someone impersonating them) any more credit.
Regardless of the statistics, remain vigilant. One of the best ways to prevent identity theft is to subscribe to a credit monitoring service, as it notifies within twenty-four hours whenever any type of change is made to the credit report. Thus, if someone uses a person’s identity to apply for a credit card or any type of loan or credit account, the person will find out about it almost immediately and be able to take appropriate action before it’s too late.
For tips to protect your business and your identity, read our Commercial Collection Blog for more information.
Technorati Tags business identity theft, identity theft
The Fair and Accurate Credit Transaction Act, also known as FACTA, is a piece of legislation that aims, in part, at protecting businesses and consumers from thieves that try to steal identity information. FACTA applies to all businesses that maintain, or in some way possess, consumer information for a business purpose. Failing to properly secure and maintain such consumer information can result in substantial fines and class-action litigation, with no statutory limitation, which can hold a company financially responsible for the actual losses to individuals involved. As part of our company philosophy we offer an integral solution we provide information like Business Identity Thief, our Commercial Collection Agency is committed to your business
Technorati Tags business integrity, Commercial Collection, identity theft
New ‘Red Flag’ Requirements Will Help Fight Identity Theft
Identity thieves use people’s personally identifying information to open new accounts and misuse existing accounts, creating havoc for consumers and businesses. Financial institutions and creditors soon will be required to implement a program to detect, prevent, and mitigate instances of identity theft.
The Federal Trade Commission (FTC), the federal bank regulatory agencies, and the National Credit Union Administration (NCUA) have issued regulations (the Red Flags Rules) requiring financial institutions and creditors to develop and implement written identity theft prevention programs, as part of the Fair and Accurate Credit Transactions (FACT) Act of 2003. The programs must be in place by November 1, 2008, and must provide for the identification, detection, and response to patterns, practices, or specific activities – known as “red flags” – that could indicate identity theft.
Who must comply with the Red Flags Rules?
The Red Flags Rules apply to “financial institutions” and “creditors” with “covered accounts.”
Under the Rules, a financial institution is defined as a state or national bank, a state or federal savings and loan association, a mutual savings bank, a state or federal credit union, or any other entity that holds a “transaction account” belonging to a consumer. Most of these institutions are regulated by the Federal bank regulatory agencies and the NCUA. Financial institutions under the FTC’s jurisdiction include state-chartered credit unions and certain other entities that hold consumer transaction accounts.
A transaction account is a deposit or other account from which the owner makes payments or transfers. Transaction accounts include checking accounts, negotiable order of withdrawal accounts, savings deposits subject to automatic transfers, and share draft accounts.
A creditor is any entity that regularly extends, renews, or continues credit; any entity that regularly arranges for the extension, renewal, or continuation of credit; or any assignee of an original creditor who is involved in the decision to extend, renew, or continue credit. Accepting credit cards as a form of payment does not in and of itself make an entity a creditor. Creditors include finance companies, automobile dealers, mortgage brokers, utility companies, and telecommunications companies. Where non-profit and government entities defer payment for goods or services, they, too, are to be considered creditors. Most creditors, except for those regulated by the Federal bank regulatory agencies and the NCUA, come under the jurisdiction of the FTC.
A covered account is an account used mostly for personal, family, or household purposes, and that involves multiple payments or transactions. Covered accounts include credit card accounts, mortgage loans, automobile loans, margin accounts, cell phone accounts, utility accounts, checking accounts, and savings accounts. A covered account is also an account for which there is a foreseeable risk of identity theft – for example, small business or sole proprietorship accounts.
Complying with the Red Flags Rules
Under the Red Flags Rules, financial institutions and creditors must develop a written program that identifies and detects the relevant warning signs – or “red flags” – of identity theft. These may include, for example, unusual account activity, fraud alerts on a consumer report, or attempted use of suspicious account application documents. The program must also describe appropriate responses that would prevent and mitigate the crime and detail a plan to update the program. The program must be managed by the Board of Directors or senior employees of the financial institution or creditor, include appropriate staff training, and provide for oversight of any service providers.
How flexible are the Red Flags Rules?
The Red Flags Rules provide all financial institutions and creditors the opportunity to design and implement a program that is appropriate to their size and complexity, as well as the nature of their operations. Guidelines issued by the FTC, the federal banking agencies, and the NCUA should be helpful in assisting covered entities in designing their programs. A supplement to the Guidelines identifies 26 possible red flags. These red flags are not a checklist, but rather, are examples that financial institutions and creditors may want to use as a starting point. They fall into five categories:
alerts, notifications, or warnings from a consumer reporting agency;
suspicious documents;
suspicious personally identifying information, such as a suspicious address;
unusual use of – or suspicious activity relating to – a covered account; and
notices from customers, victims of identity theft, law enforcement authorities, or other businesses about possible identity theft in connection with covered accounts.
More detailed compliance guidance on the Red Flags Rules will be forthcoming. For questions about compliance with the Rules, you may contact Burt and Associates, collection agency, for more information.
Technorati Tags identity theft, red flag rule
