Identity Theft

What is identity theft?

Identity theft occurs when someone uses your personally identifying information like your name, Social Security number, or credit card number, without your permission to commit fraud or other crimes.

The Federal Trade Commission (FTC) estimates that as many as 9 million Americans have their identities stolen each year. In fact, you or someone you know may have experienced some form of identity theft.

The crime takes many forms. Identity thieves may rent an apartment, obtain a credit card, or establish a telephone account in your name. You may not find out about the theft until you review your credit report or a credit card statement and notice charges you didn’t make—or until you’re contacted by a debt collector.

Identity theft is serious. While some identity theft victims can resolve their problems quickly, other spend hundreds of dollars and many days repairing damage to their good name and credit record. Some consumers victimized by identity theft may lose out on job opportunities, or be denied loans for education, housing or cars because of negative information on their credit reports. In rare cases, they may even be arrested for crimes they did not commit.

How do thieves steal an identity?

Identity theft starts with the misuse of your personally identifying information such as your name and Social Security number, credit card numbers, or other financial account information. For identity thieves, this information is as good as gold.

Skilled identity thieves may use a variety of methods to get hold of your information, including:

1. Dumpster Diving. They rummage through trash looking for bills or other paper with your personal information on it.
2. Skimming. They steal credit/debit card numbers by using a special storage device when processing your card.
3. Phishing. They pretend to be financial institutions or companies and send spam or pop-up messages to get you to reveal your personal information.
4. Changing Your Address. They divert your billing statements to another location by completing a change of address form.
5. Old-Fashioned Stealing. They steal wallets and purses; mail, including bank and credit card statements; pre-approved credit offers; and new checks or tax information. They steal personnel records, or bribe employees who have access.
6. Pretexting. They use false pretenses to obtain your personal information from financial institutions, telephone companies, and other sources.

What do thieves do with a stolen identity?

Once they have your personal information, identity thieves use it in a variety of ways.

                Credit card fraud:

-          They may open new credit card accounts in your name. When they use the credit cards and don’t pay the bills, the delinquent accounts appear on your credit report.

-          They may change the billing address on your credit card so that you no longer receive bills, and then run up charges on your account. Because your bills are now sent to a different address, it may be some time before you realize there’s a problem.

Phone or utilities fraud:

-          They may open a new phone or wireless account in your name, or run up charges on your existing account.

-          They may use your name to get utility services like electricity, heating, or cable TV.
Bank / finance fraud:

-          They may create counterfeit checks using your name or account number.

-          They may open a bank account in your name and write bad checks.

-          They may clone your ATM or debit card and make electronic withdrawals, draining your accounts.

-          They may take out a loan in your name.

Government documents fraud:

-          They may get a driver’s license or official ID card issued in your name but with their picture.

-          They may use your name and Social Security number to get government benefits.

-          They may file a fraudulent tax return using your information.

Other fraud:

-          They may get a job using your Social Security number.

-          They may rent a house or get medical services using your name.

-          They may give your personal information to police during an arrest. If they don’t show up for their court date, a warrant for arrest is issued in your name.

How can you find out if your identity was stolen?

The best way to find out is to monitor your accounts and bank statements each month, and check your credit report on a regular basis. If you check your credit report regularly, you may be able to limit the damage caused by identity theft. Unfortunately, many consumers learn that their identity has been stolen after some damage has been done.

-          You may find out when bill collection agencies contact you for overdue debts you never incurred.

-          You may find out when you apply for a mortgage or car loan and learn that problems with your credit history are holding up the loan.

-          You may find out when you apply for a mortgage or car loan and learn that problems with your credit history are holding up the loan.

-          You may find out when you get something in the mail about an apartment you never rented, a house you never bought, or a job you never held.

What should you do if your identity is stolen?

Filing a police report, checking your credit reports, notifying creditors, and disputing any unauthorized transactions are some of the steps you must take immediately to restore your good name. To file a complaint visit: http://www.ftc.gov/bcp/edu/microsities/idtheft/consumers/filing-a-report.html

How long can the effects of identity theft last?

It’s difficult to predict how long the effects of identity theft may linger. That’s because it depends on many factors including the type of theft, whether the thief sold or passed your information on to other thieves, whether the thief is caught, and problems related to correcting your credit report.

Victims of identity theft should monitor financial records for several months after they discover the crime. Victims should review their credit reports once every three months in the first year of the theft, and once a year thereafter. Stay alert for other signs of identity theft.

Don’t delay in correcting your records and contacting all companies that opened fraudulent accounts. Make the initial contact by phone, even though you will normally need to follow up in writing. The longer the inaccurate information goes uncorrected, the longer it will take to resolve the problem.

Should you file a police report if your identity is stolen?

A police report that provides specific details of the identity theft is considered an Identity Theft Report, which entitles you to certain legal rights when it is provided to the three major credit reporting agencies or to companies where the thief misused your information. An Identity Theft Report can be used to permanently block fraudulent information that results from identity theft, such as accounts or addresses, from appearing on your credit report. It will also make sure these debts do not reappear on your credit reports. Identity Theft Reports can prevent a company from continuing to collect debts that result from identity theft, or selling them to others for collection. An Identity Theft Report is also needed to place an extended fraud alert on your credit report.

You may not need an Identity Theft Report if the thief made charges on an existing account and you have been able to work with the company to resolve the dispute. Where an identity thief has opened new accounts in your name, or where fraudulent charges have been reported to the consumer reporting agencies, you should obtain an Identity Theft Report so that you can take advantage of the protections you are entitled to.

How is a “Credit Score” Calculated?

In calculating your credit score five basic factors are considered in varying degrees, approximately as follows: Payment History 35%
• Have you made timely payments on your bills?
• Have there been late payments? • Just how late?
• How often have payments been late?
• Have accounts been turned over to collection agencies?
• How many?
• Are there repossessions on your credit report?
• Have you ever been in bankruptcy?

Current Level of Debt 30% What is the total level of all your current debts? Length of Credit History 15% How many years have you carried debt? Lenders like to see a long history (of accounts paid on time) and not a short one Types of Credit 10% Most accounts are either “revolving” or “installment” accounts. Mortgage and car loans are of the installment kinds. You pay a predetermined amount at regular intervals. Credit card accounts are revolving accounts. You have flexibility as to how much you pay each time, but they often do require a minimum payment. It’s best to have a “healthy mixture” of both kinds.. Pursuit of New Credit 10% Have there been lots of recent “inquiries” (potential lenders buying your credit report)? Lenders would rather not see too many recent inquiries. It could mean that the consumer is in danger of “getting in over his head”.

What is identity theft?

Identity theft is a crime of fraud and another potential item that can drive your credit score down. A criminal will take your idenity information and commit crimes of fraud. There are many ways to commit identity theft being it by using your Social Security Number, your credit card or your name in general. They will pose as you and purchase items on your behalf.

Identity theft is becoming more and more common. It is even possible that you or someone you know may be a victim of it. So it is important to review your credit because you may not even know that you have been a victim of the crime. Identity theft can be very damaging to your credit and credit score so it is important to try and prevent it at all cost. But if you do fall victim to the crime then it is up to you to fix it. Because if these purchases are not disputed you may be denied of future loans, housing or cars.

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Credit Programs

Credit Analysis Program  Just because you have a few negative items on your credit report does not mean you need Credit Repair.  Maybe your case is simple enough to handle yourself, or maybe credit repair will not be beneficial to your specific needs.  Let the experts at RCRSI conduct a software analysis of your credit report, and determine what the best course of action is for you.  For just $99, our Credit Analysis Program includes a copy of your credit report from all three credit agencies, a computer analysis print out of specific recommendations on how to improve your credit scores, and an opportunity to sit down with one of our credit experts who will go over your credit report in detail and give you advice on what the best options are for your specific needs.  After our analysis, if you decide to sign up for our Credit Repair Program, your $99 will be applied towards the cost of the Credit Repair Program. Credit Repair Program This is our full service credit repair program, where you have unlimited access to our credit consultants for one year.    First, you will speak to one of our credit specialist to discuss your specific credit situation and determine what your objectives are.  Then you will be assigned to a specialist who will work diligently to dispute your credit with the three major credit bureaus.  Your specialist will continue to monitor your report and submit follow up disputes as needed.  The Fair Credit Reporting Act grants you the right to have the credit bureaus remove inaccurate, outdated, and unverifiable information from your credit report.  You will be informed of any corrections made to your credit file within 30 days of the dispute.  At RCRSI, we work hard to fix your credit so you don’t have to be burdened by it.  Account Negotiations Program  This program focuses on saving you money on your Collections or Charge Off accounts.  The experts at RCRSI will help you negotiate with the collection agencies to settle your debt, and save you money in the process, or even convince them to delete the collection entirely.  We understand how collection agencies operate, and are more effective at communicating with them.