Identity Fraud Reaches Epidemic Proportions

Hispanic Times Magazine, Dec, 1998 by Jane M. Rifkin

A new law which has been approved by the Clinton Administration promises to crack down on the growing crime of identity fraud. The Identity Theft and Assumption Deterrence Act of 1998 will aid hundreds of thousands of people who find that somebody else has stolen their identity. It gives them the right to recover their damages, and stiffens prison sentences for imposters.

Identity theft has become an epidemic, and can go for years before being detected. Fraud inquiries regarding theft of social security numbers have soared from less than 12,000 in the year 1992 to more than 500,000 today.

Credit card theft is rampant. Until the new act was signed into law, companies - not individuals - were considered the victims of ID theft. That's because individuals were not held personally liable for the massive bills imposters rang up. Federal law states the consumers are liable for no more than $50 in fraudulent credit card charges if the fraud is reported promptly. In many cases, credit card companies absorb even the $50.

Individuals whose identities are stolen suffer in several ways - the least of which is their ruined credit ratings. Some have lost their jobs and been passed over for promotions; some spend considerable time and money attempting to erase fraudulent charges, and some innocent people have actually incurred criminal charges created by their imposters. Jail time has even been the fate of some.

It is hoped the new law will help victims through the maze of negotiating to restore their credit, but caution is advised to protect oneself from these fraudulent actions. Since an individual's personal information can be transmitted over the Internet in a matter of seconds, hackers will steal ID numbers. It is a matter of lack of control over our own identity; but following the guidelines for protecting one's privacy is still essential for personal identity protection.

STEPS TO TAKE TO PROTECT YOURSELF

* Shred or burn any papers with financial information and identifiers, such as account numbers or your Social Security number. Never simply throw these documents in the trash.

* Use passwords other than maiden names on accounts.

* Don't put your Social Security number on any document unless it is legally required.

* Check your credit report once or twice a year -- making sure you recognize all the entries.

* Have your name removed from promotional lists operated by credit agencies.

* If you find you have been victimized, immediately call all the credit bureaus and put a fraud watch on your account.

* File a police report. This will be needed when you are disputing charges with various creditors.

* Write letters to have erroneous and fraudulent items removed from your credit report.

* Internet-based tips to privacy rights can be accessed at http://www.privacyrights.org