Protect Your Identity

By Caryn Tolpa
Staples Editor

Identity theft has exploded over the last several years. It's the fastest–growing white–collar crime in the United States — with more than 9 million people getting their identities stolen in 2005 at a cost of $56.6 billion.

Multiple types of theft

For the sixth straight year, identity theft is the number–one consumer issue reported to the Federal Trade Commission (FTC). The FTC received more than 255,000 identity theft complaints in 2005. Child identity theft has become a growing problem. In 2005, close to 12,000 children had their identities stolen — nearly double the number of two years ago.

Identity thieves are often "dumpster divers" who take personal information from wherever it is discarded, such as the trash or a recycling bin. In many cases, victims don't realize that their identities have been used for fraud until they see unusual charges on their credit card statement or a collection agency contacts them about defaulting on an account that they didn't open. Often, the thievery takes time to discover. According to the FTC, "Over 35 percent of victims noticed the identity theft within one month of its occurrence. However, some victims were unaware of the theft for as long as five years."

Serious consequences

Some thieves wipe out all the money in a victim's bank account or damage a consumer's credit so severely that they're unable to borrow money. Combating the fraud — filing out paperwork and reports, alerting credit agencies, explaining the situation to law enforcement — can also be extremely time–consuming and stressful.

What to do if you're a victim of identity theft

If you are a victim of identity theft, take the following steps as soon as possible, and keep a record with the details of your conversations and copies of all correspondence.¹:

1. Place a fraud alert on your credit reports, and review your credit reports.
   
   Fraud alerts can help prevent an identity thief from opening any more accounts in your name. Contact the toll–free fraud number of any of the three consumer reporting companies below (Equifax, Experian and TransUnion) to place a fraud alert on your credit report. You only need to contact one of the three companies to place an alert. The company you call is required to contact the other two, which will place an alert on their versions of your report, too.
   
   Once you place the fraud alert in your file, you're entitled to order free copies of your credit reports, and, if you ask, only the last four digits of your SSN will appear on your credit reports.
   
   Review your credit reports carefully and look for inquiries from companies you haven't contacted, accounts you didn't open, and debts on your accounts that you can't explain. Check that information, like your SSN, address, name or initials, and employers are correct. If you find fraudulent or inaccurate information, get it removed.
   
   Continue to check your credit reports periodically, especially for the first year after you discover the identity theft, to make sure no new fraudulent activity has occurred.
   
   
2. • Equifax: 1–800–525–6285; www.equifax.com; P.O. Box 740241, Atlanta, GA 30374– 0241
   • Experian: 1–888–EXPERIAN (397–3742); www.experian.com; P.O. Box 9532, Allen, TX 75013
   • TransUnion: 1–800–680–7289; www.transunion.com; Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92834–6790
3. Close the accounts that have been tampered with or opened fraudulently.
   
   Call and speak with someone in the security or fraud department of each company. Follow up in writing, and include copies (NOT originals) of supporting documents. It's important to notify credit card companies and banks in writing. Send your letters by certified mail, return receipt requested, so you can document what the company received and when. Keep a file of your correspondence and enclosures.
   
   When you open new accounts, use new Personal Identification Numbers (PINs) and passwords. Avoid using easily available information like your mother's maiden name, your birth date, the last four digits of your SSN or your phone number, or a series of consecutive numbers.
   
   If illicit charges or debits have been made to your accounts, or on fraudulently opened accounts, ask the company for the forms to dispute those transactions.
   
   
4. File a police report.
   
   File a report with your local police or the police in the community where the identity theft took place. Then, get a copy of the police report or at the very least, the number of the report. It can help you deal with creditors who need proof of the crime.
   
   If the police are reluctant to take your report, ask to file a "Miscellaneous Incidents" report, or try another jurisdiction, like your state police. You also can check with your state Attorney General's office to find out if state law requires the police to take reports for identity theft. Check the Blue Pages of your telephone directory for the phone number or check www.naag.org for a list of state Attorneys General.
5. File a complaint with the Federal Trade Commission.
   
   By sharing your identity theft complaint with the FTC, you will provide important information that can help law enforcement officials across the nation track down identity thieves and stop them. The FTC can also refer the complaint to other government agencies.
   
   
   • Phone: 1–877–IDTHEFT (438–4338)
   • Web: www.consumer.gov/idtheft
   • Address: Identity Theft Clearinghouse, Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580.

Safeguard yourself

One of the easiest ways to protect against identity theft is to run every piece of paper containing your personal information through a shredder before throwing it in the recycling bin or the trash. Shredders — a common office machine — consist of intermeshing cutting blades, a paper comber, and a motor. Paper is hand–fed into the paper slot at the top of the machine, is cut into strips as it runs through the machine's rotating cutters, and comes out the bottom of the machine in tiny, illegible pieces.

Types

Cross-cut shredders

Shredders are classified in two ways: straight–cut and cross–cut. Straight–cut models are economical machines that cut paper lengthwise into long strips that are a quarter of an inch wide or less. The narrower the strip, the better the security. Straight–cut shredders are generally low–maintenance machines.

Cross–cut units shred documents lengthwise and widthwise, creating between 500 and 800 paper particles per sheet inserted, and therefore offering higher security than straight–cut types. Because a cross–cut model's output is more compact, you won't have to empty the shredder basket as frequently as you will when using a straight–cut machine. Be prepared to pay more for a cross–cut shredder, and realize that more maintenance, such as routine oiling of the cutting blades will be required.

Input volume

The number of pages that can be shredded at one time depends on the model, but most units can destroy at least five pages at once. The manufacturer will indicate how much a shredder can accept per shredding pass, and how many passes the machine can handle per day. A general rule of thumb is to purchase a shredder that will accept 25% more volume than you need. That way, you won't run the risk of jamming the shredder by putting through more than its recommended capacity and your machine will last longer.

Consider buying a shredder that will accept 25% more volume than you need — that way, you'll avoid jams and clogs.

Other features

• Attached bin: Some shredders are made to sit on top of a wastebasket, but others come with a basket to catch the paper confetti that's created. The bin capacity is usually measured in gallons. On certain models, when the shredder is removed from the basket, the safety interlock element kicks in and shuts off the motor.
• Auto reverse: This feature will allow you to clear jams easily, without having to pull the clogged paper out by hand.
• Accepts non–paper products: Higher–end shredders can accept plastic products, such as credit cards. Some units even can destroy audio and video cassettes, computer disks, and CDs. Be sure to read the manufacturer's package to determine the capacity and types of materials that can be shredded.
• Easy to recycle: Don't forget that confetti output from your shredder can be recycled, as long as it's all paper. Because shredders compact what you feed through them, your paper recyclables should be more manageable.

Safety first

Be careful when clearing a jam in your shredder. Make sure that the unit is unplugged before attempting to fix or maintain your machine. Also, find out what materials your shredder can accept — while most shredders can handle staples and windowed envelopes, it's always better to check first before sending a non–paper item through your machine and clogging it.

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¹Federal Trade Commission, "Take Charge: Fighting Back Against Identity Theft" (http://www.ftc.gov/bcp/conline/pubs/credit/idtheft.htm)

The information contained in this article is only an overview of the subject matter made for general guidance to the reader, and is subject in all cases to limitations and disclaimers set forth in Staples' Legal Terms and Conditions.