Identity Fraud
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by Barry Thompson
One of the biggest problems facing Security Officers today involves procedures to handle Identity Fraud. Recently, the Federal Trade Commission developed guidelines to assist consumers who have been victimized in this manner.
The following is a suggested sample procedure for Financial Institutions. Make any changes necessary to provide your institution with the best action plan for identity theft.
Notification by Customer
Your customer notifies you that they have experienced identity theft. They are worried that their bank accounts have either been compromised or may be in the future.
New Passwords and PINs
The customer should be educated not to use easily available information for the new account access devices. They should avoid mother's maiden name, birth date, the last four digits of the SSN, their telephone number or series of consecutive numbers. They should also avoid using the same information and numbers when they create new PINs.
Police Report
Advise your customer to file a report with your local police or in the jurisdiction of the law enforcement agency where the incident took place. Ask for a copy of this report for your security files after the customer has reported the incident. The police report will be necessary for the customer to prove to others that they have been victimized by this crime.
Checks Stolen
If checks have been stolen or misused, stop payment. Many retailers use major check verification companies so either contact them or have your customer contact them. Be sure to contact the check verification service your financial institution uses.
CrossCheck: (707) 586-0551
Equifax Check Systems: (800) 437-5120
International Check Services: (800) 526-5380
National Check Fraud Service: (843) 571-2143
Scan: (800) 262-7771
TeleCheck: (800) 710-9898
Contact the Credit Reporting Agencies
The customer should contact the fraud departments at each of the three major credit reporting bureaus. They should request that a "Fraud Alert" be placed in their file. They may also request the credit bureaus to notify them before opening any new accounts or changing their existing accounts. The credit bureaus are obligated to send the customer a free report to review for problems. The customer should examine the reports carefully and contact any listing that shows changes or inquiries they didn't make.
The customer should also notify the credit bureau to request that inquiries they didn't make be removed. In a few months, the customer should follow up with another review of their credit report.
Credit Bureaus Contacts
Equifax - www.equifax.com
To order your report, call (800) 685-1111 or write:
PO Box 740241
Atlanta, GA 30374-0241
To report fraud, call (800) 525-6285 and write:
PO Box 740241
Atlanta, GA 30374-0241
Experian - www.experian.com
To order your report, call (888) EXPERIAN or write
PO Box 949
Allen TX 75013-0949
To report fraud, call (888) EXPERIAN and write:
PO Box 949
Allen TX 75013- 0949
Trans Union - www.tuc.com
To order your report, call (800) 916-8800 or write:
PO Box 1000
Chester, PA 19022.
To report fraud, call (800) 680-7289 and write:
Fraud Victim Assistance Division
PO Box 6790
Fullerton, CA 92634
Contacting Creditors Who Have Altered or Fraudulent Account Records
The customer should be informed that anytime they find altered or fraudulent accounts they should notify that business immediately. They should direct their calls to the security or fraud departments to resolve the situation.
The Customer Suspects Mail Theft
They should contact the local post office and report the theft to the nearest postal inspector. The Postal Service Website is located at www.usps.gov/
Criminal Records or Arrests by Law Enforcement
Sometimes the criminal who assumes the victim's identity is arrested. During that time period the felon may use the victims identify to flee. This could result in further problems for the customer and the need to retain legal counsel.
Last But Not Least
Have the customer contact the Federal Trade Commissions, Identity Theft Hotline toll-free at (877) 438-4338. The FTC puts their information into a consumer fraud database and shares it with law enforcement. You may get more information on identity theft by contacting the FTC at: www.consumer.gov/idtheft
FTC Publications
- Avoiding Credit and Charge Card Fraud
- Credit and ATM Cards: What to Do IF They're Lost or Stolen
- Credit Card Loss Protection Offers: They're The Real Steal
- Electronic Banking
- Getting Purse-onal: What To Do If Your Wallet or Purse Is Stolen
- Identity Crisis?What to Do If Your Identity Is Stolen
- Identity Thieves Can Ruin Your Good Name: Tips for Avoiding Identity Theft
FDIC Publications
- Pretext Calling and Identity Theft
- Your Wallet: A Loser's Manual
Barry Thompson is a Security Practitioner and Compliance Professional with over twenty years experience as a Bank Security Officer. He is Managing Partner of the Thompson Consulting Group, a training and consulting firm located in Oswego, New York. He can be reached at (315) 342-5931 or at www.Tgrouponline.com
Copyright © 2001 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 11, No. 3, 3/01