Article Excerpted from EAP Digest Summer 2006
EAPs Can Help Employees Protect Themselves From Identity Theft
The new age of information technology has had obvious
positive effects across all spectrums of life.
From the ease of Internet banking to taking college course online, or
even instant messaging your spouse to pick up the milk – technology has truly
made day-to-day life easier in many ways.
Introduction
by Erin Brown
However, the passing of all this information has made
easy ways for predators to take advantage of the unsuspecting public. Though many Internet scams are common
knowledge by now (such as e-mails from complete strangers requesting that you
transfer funds for them), it is in the best interest of employee assistance
programs (EAP) clients for their EA professionals to become familiar with other
forms of identity theft and scams.
To that
end, many EAPs across the country are starting to
include identity theft recovery under their scope of services. If EAPs don’t have
all the resources in-house to help a client gain their identity back, many are
outsourcing identity theft recovery services from other companies who
specialize in the area.
What Are the
Most Common Identity Thefts or Frauds?
Many
people do not realize how easily criminals can obtain personal data without
having to break into a home. In public
places, for example, criminals may engage in “shoulder surfing,” – watching
unsuspecting victims from a nearby location as they punch in their telephone
calling card number or credit card number into a phone pad or ATM kiosk.
Some criminals still engage in old-fashioned “dumpster
diving” – going through garbage cans, dumpsters or trash bins to obtain copies
of checks, credit card or bank statements, or other records that typically
contain names, addressed, and even telephone numbers. These types of records make it easier for
criminals to get control over accounts in someone else’s name and assume his or
her identity.
Many of your clients and coworkers may receive
applications for “pre-approved” credit cards in the mail, but discard them
without tearing up the enclosed materials.
Criminals may retrieve these forms and activate the card for their
use. (Some credit card companies, when
sending credit cards, have adopted security measures that allow a card
recipient to activate the card only from his or her home telephone number, but
this is not yet a universal practice.)
Also, if mail is delivered to a place where others have ready access to
it, criminals may simply intercept and redirect mail to another location.
In recent years, the Internet has become an appealing
place for criminals to obtain identifying data, such as passwords or even
banking information. In their haste to
explore the exciting features of the Internet, many people respond to spam that
promises them some benefit but request identifying data, without realizing
that, in many cases, the requester has no intention of keeping his
promise. In some cases, criminals have
used computer technology to obtain large amounts of personal data.
With enough identifying information about an
individual, a criminal can take over that person’s identity to conduct a wide
range of crimes: for example, false applications for loans and credit cards,
fraudulent withdrawals from bank accounts, fraudulent use of telephone calling
cards, obtaining other goods or privileges which the criminal might be denied
if he was to use his real name. If the
criminal takes steps to ensure statements showing the unauthorized withdrawals,
are sent to an address other than the victim’s, the victim may not become aware
of what is happening until the criminal has already inflicted substantial
damage on his or her assets, credit, and reputation.
Tips to
Share with Clients and Coworkers
To reduce
or minimize the risk of becoming a victim of identity theft or fraud, there are
some basic steps you and your colleagues can take. For starters, just remember the word “SCAM”:
S-Be stingy about giving out your personal
information to others unless you have a reason to trust them, regardless of
where you are:
Start by
adopting a “need to know” approach to your personal data. Your credit card company may need to know our
mother’s maiden name, so that it can verify your identity when you call to
inquire about your account. A person who
calls you and says he’s from your bank, however, doesn’t need to know that
information if it’s already on file with your bank; the only purpose of such a
call is to acquire that information for that person’s personal benefit. Also, the more information that you have
printed on your personal bank check – such as your Social Security number or
home telephone number – the more personal data you are routinely handing out to
people who may not need that information.
If
someone you don’t know calls you on the telephone and offers you the chance to
receive a “major” credit card, a prize, or other valuable item, but asks you
for personal data such as your Social Security number, credit card number or
expiration date, or mother’s maiden name – ask the person to send you a written
application form.
If the
person won’t do it, tell him or her you’re not interested and hang up. If the person will, review the application
carefully when you receive it and make sure it’s going to a company or financial
institution that’s well know and reputable.
The Better Business Bureau can give you information about businesses
that have been the subject of complaints.
If you’re
traveling, have your mail held at your local pose office, or ask someone you
know well and trust, such as another family member, a friend, or a neighbor, to
collect and hold your mail while you’re away.
If you
have to telephone someone while you’re traveling, and need to pass on personal
financial information to the person you’re calling, don’t do it at a pay phone
where passersby can listen in on what you’re saying, wait until you’re at a
less public location to call.
C-Check your financial information
regularly, and lood for what should be there and what
shouldn’t:
If
you have bank or credit card accounts, you should be receiving monthly
statements that list transactions for the most recent month or reporting
period. If you’re not receiving monthly
statements for the accounts you know you have, call the financial institution
or credit card company immediately and ask about it.
If you’re
told that your statements are being mailed to another address that you haven’t
authorized, tell the financial institution or credit card representative
immediately that you did not authorize the change of address and that someone
may be improperly using your accounts.
In that situation, you should also ask for copies of all statements and
debit or charge transactions that have occurred since the last statement you
received. Obtaining those copies will
help you to work with the financial institution or credit card company in
determining whether some or all of those debit or charge transactions were
fraudulent.
If
someone has gotten your financial data and made unauthorized debits or charges
against your financial accounts, checking your monthly statements carefully may
be the quickest way for you to find out.
Too many of us give those statements, or the enclosed checks or credit
transactions, only a quick glance, and don’t review them closely to make sure
there are no unauthorized withdrawals or charges.
If
someone has managed to get access to your mail or other personal data, and
opened any credit cards in your name or taken any funds from your bank account,
contact your financial institution or credit card company immediately to report
those transactions and to request further action.
A-Ask periodically for a copy of your
credit report.
Your
credit report should list all bank and financial accounts under your name, and
will provide other indications of whether someone has wrongfully opened or used
any accounts in your name.
M-Maintain
careful records of your banking and financial accounts.
Even though financial institutions are required to
maintain copies of your checks, debit transactions, and similar transactions
for five years, you should retain your monthly statements and checks for at
least one year, if not more. If you need
to dispute a particular check or transaction, especially if it purports to bear
your signature, your original records will be more accessible and useful to the
institutions that you have contacted.
Even if you take all of these steps, however, it’s
still possible that you can become a victim of identity theft. Records containing your personal data –
credit-card receipts or car-rental agreements, for example – may be found by or
shared with someone who decides to use your data for fraudulent purposes.
“I Think
Someone Stole My Identity – What Now?”
If
you or a colleague becomes a victim of identity theft or fraud, act immediately
to minimize the damage to personal funds and financial accounts. Here’s a list – based in part on a checklist
prepared by the California Public Interest Research Group (CalPIRG)
and the Privacy Right Clearinghouse – of some actions that you should take
right away:
Contact the
Federal Trade Commission (FTC) to report the situation, toll-free at
1-877-ID-THEFT (1-800-438-4338) or TDD at
Contact your
local office of the Postal Inspection Service if you suspect that an identity
thief has submitted a change-of-address form with the post office to redirect
your mail, or has used the mail to commit fraud involving your identity.
Contact the
Social Security Administration if you suspect that your Social Security number
is being fraudulently used (call
Contact the
Internal Revenue Service if you suspect the improper use of identification
information in connection with tax violations (call
Call the
fraud units of the three principal credit reporting companies:
Equifax:
To report fraud,
call
To order a copy
of your credit report ($8 in most states) call
To dispute
information in your report, call the phone number provided on your credit
report.
To opt out of
pre-approved offers of credit, call 1-888-567-8668.
Experian (formerly
To report fraud,
call 1-888-EXPERIAN or
To order a copy
of your credit report ($8 in most states), call 1-800-EXPERIAN.
To dispute
information in your report, call the phone number provided on your credit
report.
To opt out of
pre-approved offers of credit and marketing lines call 1-888-5OPTOUT.
TransUnion
To report fraud,
call
To order a copy
of your credit report ($8 in most states), call
To dispute
information in your report, call the phone number provided on your credit
report.
To opt out of
pre-approved offers of credit and marketing lines call 1-888-5OPTOUT.
Finally, contact all creditors with whom your name or
identifying data have been fraudulently used.
For example, you may need to contact your long-distance telephone
company if your long-distance calling card had been stolen or you find
fraudulent charges on your bill. Contact
all financial institutions where you have accounts that an identity thief has
taken over or that have been created in your name but without your
knowledge. You may nee to cancel those
accounts, place stop-payment orders on any outstanding checks that may not have
cleared, and change your automated teller machine (ATM) card, account, and
personal identification number (
Much of the information in this article is accessible
online through the United States Department of Justice at www.usdoj.gov. As the scope of EAP services continues to
grow and change, it will be in the best interest of the EA professionals, their
clients, and affiliates to become informed about fighting against identity
theft and fraud.
Reference:
http:www.usdoj.gov/criminal/fraud/idtheft.html
Article excerpted from EAP Digest Summer 2006.