Be on guard against identity theft, credit fraud

By Barbara Brown
No one is really safe from the potential of having his or her identity stolen.
Losing a wallet or pocketbook can be devastating simply because the amount of information usually kept in those items can be used against the owner quickly.
One North Branch couple recently was the victim of a credit card fraud scheme that may turn out to be an inside job.
The couple, who asked not to be identified to protect their privacy, received a mysterious phone call one day in June from Capital One, a credit card company the couple used.
The customer service agent asked the couple if they were sure they wanted to change their billing address to Texas.
The wife told the agent the information was not correct and that they did not want the addressed changed.
The couple thought nothing more of the incident and even went on a weekís vacation.
When they returned, they found a letter in the mail that confirmed the $9,500 cash transfer to a third credit card had been approved.
The husband believed the letter may have been yet another junk mailer like so many they had received in the past. However, the wife was suspicious and called for more information.
What the couple found out about their credit cards was astounding.
It turned out that the couple had closed one First USA Bank credit account in May to open a new one so their children could use the credit cards if they needed them.
Fully expecting the switch to occur, the couple thought no more about it.
But late in June they discovered the first account had never been closed and someone had racked up more than $35,000 in charges for computers, cameras, a trip to Ireland, cash advances and other purchases within one month.
Continued from front
ìIf that account had been closed when it was supposed to be, none of this would have happened,î the husband said.
The thieves not only stole the husbandís social security number and name, but his motherís maiden name as well.
ìThatís why we think this was an inside job somehow,î he said.
The husband explained that he and his wife believe someone inside the credit card company stole his information and either used it themselves or sold it to someone else.
All told, the thieves charged about $55,000 worth of goods and cash advances to the credit card.
The couple called the police, the three major credit reporting bureaus, closed several older accounts, put passwords and fraud alerts on their remaining credit cards and contacted their banks.
Now the couple spends spare time each week calling credit card companies to get updates on the status.
Just a couple weeks ago, however, the wife was surprised when she called First USA Bank to discuss the situation and the person on the other end of the line began to discuss the account without asking for a password.
She also found out the fraud alerts had been removed from the account.
ìI think one of the worst parts about this is that we donít know how long this will go on,î the husband said.
ìYou just donít expect it,î he said. ìYou donít expect that someone could charge that much. You donít think it will happen to you.î

Close to home
North Branch Police chief Jules Zimmer said the area is not immune to identity theft and fraud.
Just last week, two more cases of possible identity theft were reported.
Zimmer said even he was a victim of fraud.
He said he noticed a charge for more than $100 for compact discs on his credit card statement.
ìI hadnít the foggiest what that was about,î he said.
He said he immediately called the credit card company who suggested calling the number listed under the charge on the statement.
Zimmer said he found out the compact discs had been shipped to a foreign country.
ìThey credited my account because they obviously werenít bought by me,î he said.

Not just a local problem
Last year, 886 cases of identity theft in Minnesota were reported to the Federal Trade Commission.
The commission released a report that showed most of those cases, 363, were credit card frauds and that 26 percent of those cases resulted from someone opening a new credit card account.
Bank fraud cases totaled 189 in Minnesotaís section of the report while 181 cases were for phone or utility fraud.
California has the highest numbers of identity fraud victims, totalling more than 15, 000 in 2001. Minnesota ranked 23 in the commissionís report.
Anyone who suspects they have been a victim of identity theft should immediately call his or her credit card companies, Zimmer said.
He said local police departments may not be able to help depending on where the pocketbook or wallet was stolen or lost.
Jurisdiction rules dictate which police department would handle a case, Zimmer said.
He said even if a wallet is stolen or lost in North Branch, the police may not be able to help if fraud takes place because the thief could have used credit cards outside the area.
Identity thieves may rummage through trash searching for discarded account statements, pre-approved credit card offers or credit receipts; search public records for your address, and even rob your mailbox.
One way to protect yourself at home is to get a paper shredder, making it nearly impossible for account information printed on paper to be used.
Last weekís North Branch Chamber of Commerce meeting focused on protection from identity theft.
First National Bank of Hudsonís North Branch office gave members who attended the lunch meeting a quick reference guide that could keep them safe from identity thieves.
Identity theft does not necessarily have to involved the take over of someone elseís entire life.
One identity theft crime is using stolen or fraudulently acquired cards to buy material goods.
Thieves can steal mail and change addresses, steal account numbers, take bank statements and change passwords and personal identification numbers if they have access to the originals.

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