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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.

  • Immediately close the customer's accounts and reopen them with new account numbers.
  • Insist that the customer change passwords and PINs on all access devices to your institution.
  • Then flag the old and new accounts for any unusual activity. Review the accounts for a period of time after the reported incident to be certain the accounts haven't been compromised.

    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

  • First published on 03/01/2001

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