Protecting Your Identity

by Judy Neal Hatch, Regional Risk Manager

We occasionally reprint popular articles from past issues of The Doctor’s Advocate. This article by Judy Neal Hatch originally appeared in our second quarter 2003 issue. We feel it’s worth reprinting and have followed it with an update from Judy with more tips to help you protect yourself from identity theft.—Robin Diamond, M.S.N., J.D., R.N., A.H.A. Fellow–Patient Safety Leadership, Vice President, Patient Safety

In 1999, a receptionist at a medical facility in California copied social security numbers from patients’ insurance forms and sold them. Many of these patients had no indication of this theft until they tried to apply for credit and were denied. In 2001, a retired executive in Michigan discovered that his stock options had been exercised by thieves, and his retirement fund was almost depleted.

Identity theft does not always involve actual theft of a credit card or a checkbook. The Internet has provided many new opportunities for thieves, and think of how many times you turn over your credit card to a waiter in a restaurant—a waiter who might have a hand-held pocket device that copies the account number.

Identity theft is the fastest growing crime in America today. Identity theft affects nearly one million people, according to the Federal Trade Commission (FTC). The most common types are:

• using or opening a credit card account fraudulently,
• opening a telecommunications or utility account fraudulently,
• passing bad checks or opening bank accounts in another person’s name,
• getting loans in another person’s name,
• working in another person’s name.

In 1997, fraud accounted for $11.9 billion in bad charges, and the amount has risen every year. No one is immune. You can be a victim if you have a checking account, a credit card, a driver’s license, a social security card, or a passport, or if you purchase items or book a trip online.

Safeguard Your Private Information

Here are some steps that you can take to help safeguard your private information:

• Purchase a security insert, or have mail delivered to a post office or private mailbox if you have a curbside mailbox that is not locked.
• Don’t carry credit cards with you that you don’t intend to use, or consider carrying them in an inside pocket rather than in your wallet.
• Don’t sign credit cards. Write “See I.D.” in the space for your signature.
• Use a credit card with a very low limit for online purchases.
• Carry only one or two checks with you, and leave your checkbook at home.
• Use a debit card instead of writing checks.
• Request password protection for your checking and savings accounts and your credit cards. Password protection can also be placed on your credit files so that no credit is granted without your confirmation.
• Use unique passwords, preferably combinations of letters and numbers. Avoid using the last four numbers of your social security number, date of birth, current address, or phone number.
• Don’t carry your social security card in your wallet. If your state or health insurance carrier uses your social security number on an identification card or driver’s license, request a substitute number.
• Never provide personal information to unknown agencies or unsolicited offers of credit.
• Refuse to give out your phone number or zip code if you’re asked to provide it when checking out in a store.
• Check your credit report from all three major credit bureaus at least once a year, or more often if you suspect theft. The information in your report can vary with each agency. Be sure to check the list of inquiries into your credit, and if you have any concerns, contact the companies to determine the reason for the inquiry.
• Opt out of telemarketing and junk mail by calling (888) 5 OPT OUT. Be sure to read the privacy notices that come with your bank and credit card statements, and respond appropriately to limit how your personal information can be used.
• Monitor your bank and credit card statements every month.
• Keep important papers and other documents in a secure place, preferably in a bank safe-deposit box.
• Shred or burn any piece of paper that contains personal identification information, e.g., bank statements, bills, insurance forms, and prior years’ tax returns. Putting these items in the garbage is no protection.

If You Suspect You Are a Victim of Identity Theft

Despite these precautions, theft can still occur. If you suspect you are a victim of identity theft, there are some actions that you must take immediately to help minimize the damage:

• Close any account in question, whether it is a checking account or a credit card.
• Make a police report, and get a copy of the report as soon as it is available. This report will be essential to prove that you took action as soon as you knew of the theft. Many merchants require a copy of this report in order to relieve you of liability.
• Notify the U.S. Postal Service authorities if mail was stolen from your mailbox. Check your phone book for the nearest investigations branch, or call your local branch office.
• Contact the three major credit bureau fraud departments:
  TransUnion (800) 680-7289
  Equifax (800) 525-6285
  Experian (888) 397-3742
• File a report with the Federal Trade Commission I.D. Theft Clearinghouse at (877) 438-4338. You can also use the Web site, www.consumer.gov/idtheft. The FTC has numerous publications that can help consumers who are victims of identity theft as well as links to other federal agencies.
• Notify the Social Security Administration at (800) 772-1213 if the theft involves your social security number.
• Contact your local DMV office and speak with an investigator if the theft involves your driver’s license or state identification card.
• Contact the following check clearing agencies and ask that a block be put on your closed account if the theft involves the fraudulent use of checks:
  Global (443) 394-1000
  Certegy (800) 437-5120
  International Check Services (800) 526-5380
  TeleCheck (800) 366-2425
• Tell people. Talk to the merchants where you do business on a regular basis—the supermarket, the pharmacy, the gas station.
• Send notices to all of your creditors at the time you make payment, including utility companies, phone companies, credit card companies, mortgage companies, and homeowner associations.
• Tell your employer. People seeking credit in your name have access to a great deal of information about you, and your employer must be advised not to give out any information without contacting you first.
• Access the consumer help line of a local TV station. These lines provide valuable links and information. For instance, in Northern California, KGO TV’s consumer advocate, Michael Finney, maintains an up-dated list of phone numbers and links to both public and private organizations that deal with identity theft, as well as articles and support group information.

It is important to maintain contact with the local police or district attorney who is handling your case. Advise them of additional checks that are cashed or new unauthorized charges made to your account.

Be prepared for phone calls from merchants when they are advised that your check or credit card is not valid. Many of the large stores, such as Target and Wal-Mart, require that you sign a notarized affidavit of forgery. It is essential to submit the required information and documentation in a timely manner.

Each of the credit bureaus and check clearing agencies operates by its own rules, and each has different requirements. It is advisable to keep individual files with copies of all correspondence. Be sure to send all of your responses by certified mail with a return receipt. Keep all of your postal receipts with the certified mail tracking numbers.

Health care providers have an increased awareness of the importance of protecting confidential patient information with the implementation of the HIPAA regulations. It is equally important that we place the same emphasis on safeguarding our own confidential information.

An Update on Protecting Your Identity

When I wrote this article in early 2003, it reflected the facts that were available at that time. Since then, identity theft has become the number-one crime in America. According to the Federal Trade Commission, 10 million Americans were victims of identity theft in 2003, accounting for more than $50 billion in losses. It is anticipated that in 2005, more than $60 billion will be lost in online transactions alone.

Personal information has been stolen from California Assembly members, the U.S. Congress, numerous colleges and universities, and millions of customers with Visa and MasterCard. The Bank of America has been “hacked,” check clearing companies have had customer data sold by someone within the company, and social security numbers have been stolen from loan applications by employees of data clearing houses.

To help prevent loss due to online transactions with Internet services such as eBay, Amazon.com, or Travelocity, it is recommended that you obtain a credit card with a very low limit that you use only for this purpose. If you bank online, make sure that your access is protected with both a login ID and a password. Change your password as often as the system allows.

It is generally thought that instructing one of the three credit bureaus to place a fraud alert on your file means that this instruction will be relayed to the other two. Notify each credit bureau—TransUnion, Experian, and Equifax—individually. Remember that the “flag” will stay on for only six months. If you wish to leave it on, you will need to recontact each bureau. The same holds true for an identity fraud notice on your driver’s license. In most states, the notice is removed after a year unless you renew it.

The most difficult part is trying to stay in touch with law enforcement. Investigations are frequently passed from one detective to another, and unless you are persistent, your file can get lost in the pack.

There is no foolproof way to prevent identity theft. All we can do is to try to minimize the risk.