The Complete Idiot's Guide to Recovering from Identity Theft

Introduction

Identity theft is the fastest-growing crime in our nation. Estimates from the Federal Trade Commission and other reputable research institutes indicate there are anywhere from 9 to 15 million new victims every year.

Identity thieves can obtain credit cards and loans in your name, get mortgages or apartments using your good credit, substitute their medical histories for yours while committing medical identity theft, get work using your Social Security number, drain your bank accounts, impersonate you on social networking websites, bring the wrath of the IRS down on you, or get you arrested for their criminal deeds. Savvy impostors set up entire businesses as though they are you, and when they take off with customers’ monies without fulfilling orders, you are left to answer to furious customers. Even your children and your deceased loved ones are vulnerable to the activities of identity vultures.

Companies and even government agencies have been terribly ineffective at doing the basic identity checks that would stop most fraud in its tracks. For example, thieves can apply for credit cards online with your personal information and never have to present proof of identity. Systems are lax, employees untrained or careless in identity security, and many organizations have decided that it is more profitable to issue credit to criminals and write off the fraud as bad debt than to prevent the problem proactively. When victims contact the entities that fell for the hoaxes, the fraud department investigators are often insensitive and very suspicious of the victims. Unfortunately, inside investigators are often rewarded for denying a fraud claim in order to collect on the account, so they cause increased anguish and re-victimize the victims by forcing them to experience great frustration to overcome enormous obstacles to regain their good name.

There is so much identifying information available about all of us in myriad commercial and governmental databases that criminals find it easy to get the facts necessary to impersonate us. Within the workplace, where a majority of identities are stolen, careless employees lose unencrypted laptops or backup tapes; unscrupulous tempted employees easily sneak out confidential electronic files on minute electronic devices; and hackers break into computer systems to access and sell sensitive data to identity thieves. It’s also simple for potential impostors to legally go through unshredded commercial trash bins; or rifle through the local garbage dump searching for valuable data; or, for a small fee, purchase vast profiles about you and your family from commercial information brokers. Consider all the commercial and governmental entities that collect every detail of your life online and offline and store the information in unprotected computer files.

Although recovery won’t necessarily be as quick and effortless as you might wish, the good news is that I will be your guide and show you how to be successful in dealing with the toughest of situations. Fortunately, since 1996 when I was victimized myself, we have passed many new laws and have seen major improvements in victim recovery.

Unfortunately, the number of victims has increased each year, and the types of identity theft have expanded. Although new legislation has been passed, the crime has morphed and the laws have not always kept up with the ingenious criminal creativity. The challenge for most consumers, and even businesses as well, is understanding victim legal rights and obligations and the requirements to emerge victoriously from identity theft. And it’s even trickier for victims to deal with those instances where current law doesn’t suffice to help them remedy certain types of identity theft like cyber identity theft and medical identity theft.

How to Use This Book

My hope is that you will use this book as your coach to lead you effectively through your trials and tribulations to recover completely from this crime. I will provide you with the tools and know-how to deal with virtually any type of identity theft.

You’ll learn how to create an effective, logical, step-by-step process to successfully clear your name. I’ll show you how to get organized and help you save time. You’ll understand the types of information that you need to overcome the arguments and objections of companies and agencies; you’ll learn techniques to get the best help from law enforcement; you’ll find out how to investigate facts to get entities to understand your needs; you’ll be able to challenge the inaccurate information on your consumer and credit reports; you’ll be able to assertively deal with intimidating government organizations; and you’ll also learn how to access additional resources when you need them most. I’ve also included a glossary of terms and valuable resources that will help you.

Using this book is similar to reading a travel book, because you might want to pick the chapters and prioritize by what fits your needs. Identity-theft recovery can be like a jigsaw puzzle: you get one piece of evidence, and then find out new facts that affect the next actions to take. To make your learning process easier, I have separated information in individual chapters clarifying what you need to do as you gather new information. For example, you may learn some information from one company that leads you to details that prove fraud for another company or governmental entity. I’ll show you how to move easily from one type of identity theft in one chapter to other corresponding types of fraud in other chapters so that you can link the details together and save time and energy resolving the problems with several entities at the same time. Here’s how I’ve divided this guide book into several parts:

Part 1, First Steps, tells you what every identity-theft victim needs to do.

Part 2, Restore Your Finances, offers techniques to clear your name with creditors, lenders, banks, insurance companies, and other credit issuers.

Part 3, The Innocent and Betrayals, tells you how to handle identity theft when children or the deceased are victims, or when friends or relatives take your identity.

Part 4, Square Away the Bureaucracies, helps you deal with government agencies, your employer, or medical providers.

Part 5, Where the Going Gets Tough, is for those who find themselves the subject of criminal investigation, a lawsuit, or impersonation online. There is also a chapter on what to do when the process doesn’t work smoothly and what else you should do to protect yourself after the recovery process is well underway.

To be most efficient, start your identity recovery by carefully going through the first part of the book in order. This gives you the basics for your ongoing efforts. Next, go to Chapter 4, which teaches you how to obtain, understand, and challenge your credit and consumer reports. You should also check out Chapter 12, to be sure that your Social Security number is secure.

What you read next depends on your particular case. Because almost 80 percent of identity theft is some aspect of financial fraud, chances are you’ll need other chapters in Part 2. But you may find yourself skipping to Chapter 14 for medical identity theft or maybe Chapter 13 if someone is trying to do business using your name and credentials.

Hopefully you won’t run into too many roadblocks when trying to clear yourself, but if you do, Chapter 18 has many tips on how to get people to listen and when to bring in professional help. And do check Chapter 19, which helps you know how to handle court issues if the identity thief is actually captured and prosecuted. Finally, you’ll need to take precautions to keep your identity from being stolen again.

Appendix A has a list of specific terms, and Appendix B has a list of resources that can help you in your efforts, including non-profit, commercial, and federal websites with worthwhile information.

Throughout the book, you’ll find special sidebars with additional information. There are four types.

Information = Power

These are useful bits of information that will make the recovery process go more smoothly.

Identity Crisis

These let you know what to look out for in terms of potential problems so you can head them off before they happen.

Legal Lingo

These explain key terms, which also appear in Appendix A, the glossary.

Hidden Agenda

These are important pieces of information about identity theft and recovery.

My purpose in writing this book was to give you the know-how and confidence to regain your credit, your finances, your overall identity, and your good reputation. Although I am a licensed attorney, this book is not legal advice. I have given you legal and consumer information that will empower you to take the necessary steps to recover your identity. But please know that, because I can’t address all the possible factual situations that you may experience, and laws are changing all the time, you may need legal assistance. I suggest that you consult with a lawyer in your state for legal advice about your specific circumstances. To find the right professional, call your local county bar association to help you find a specialist who handles identity-theft issues.

By the time you finish reading this book, I hope you’ll feel relieved to know that you have moved past your current crises. You’ll look back at your accomplishments and feel gratified that you’ve become wiser and stronger and have overcome many challenging situations. But best of all, you’ll regain your good name, recover your identity, and return peace and order to your life.

Acknowledgments

The gift of gratitude is a blessing in life, especially for the one giving thanks. I am delighted to thank the wonderful people who have helped to get this book into your hands. First, I must acknowledge my appreciation for my fabulous literary agent, Marilyn Allen, from Allen-O’Shea Literary Agency. When I received the call from Marilyn asking me to write this book, I was honored and thrilled—until I learned of the short timeline to get it written. But with her encouragement, support, and great sense of humor, she motivated me to persevere through the project. I cannot speak highly enough of the Allen-O’Shea literary agency for its expertise, professionalism, and wonderful encouragement.

Marilyn introduced me to Erik Sherman, a prize-winning independent journalist and author who had worked on several other Complete Idiot’s Guides. He led me through the process as an editor, and kicked me in the butt to finish each chapter in a timely manner. I am grateful to Erik for his great organization, journalistic prowess, and editing skills. He became my confidant and mentor. I’m sure Erik learned more about identity theft than he ever wanted to!

There are so many terrific folks at Alpha that worked up front and behind the scenes, and I am very grateful to them all for their terrific efforts. First, I thank Karyn Gerhard, my wonderful acquisitions editor, who believed enough in the project to push forward and help me understand what was needed to make this book possible. I especially want to thank Katherine McKim, who spent many hours getting the contract issues straightened out. I know it is never easy to negotiate a contract when you have an attorney on the other side, but she collaborated with me until we made it work for all of us. My gratitude also goes to our development editor, Phil Kitchel, who spent hours helping us to make this book clear, concise, and easy to read. Thank you as well to Marie Butler-Knight, our publisher, who had the vision to put forth this work, and the many other helpful Complete Idiot’s Guides. I want to thank all those who worked so diligently at Alpha.

I send a very special thank you to Joanne McNabb, Chief of the California Office of Privacy Protection, who was so wonderful to write the foreword to this book. She has not only been a leader in privacy in California, but she is an expert on privacy protection at the federal level as a member of the Homeland Security Privacy Committee. She has been a guiding light for California and the nation with regard to information privacy ethics. I am grateful to her for her fabulous work, her continual collaboration, and her enduring friendship.

My appreciation goes out to my friends Beth Givens, the Director of the Privacy Rights Clearinghouse, and Linda and Jay Foley, the co-founders and co-directors of the Identity Theft Resource Center, who have been wonderful colleagues in the quest for privacy protection and advocacy for identity-theft victims. We have collaborated together for many years, and I honor them for all the work they do for consumer victims of identity theft. I especially want to thank Linda Foley, who gave her time and energy to review this book before it was published to give me valuable feedback and suggestions. I value her insights and our long-term friendship.

A very special note of appreciation goes to Amanda Thatcher, my brilliant executive assistant and paralegal, who serves as my right arm. She is not only a great organizer and PR person, but she’s a wise woman and a trusted friend. She kept me in line on this project.

I’m so grateful to my terrific daughter, Alyssa Frank, who aside from her busy schedule as a University of California student, works for me in my law office, and has spent many hours helping me edit, revise, and laugh. To my son, Bryan, my brilliant MBA executive, who calls me between his travels from New York to Chicago; I send a hug for his encouragement. I give special cuddles and a pat on the head to my gorgeous Golden Retriever, Raido, who sat under my feet at my desk and reminded me to take ear-scratching and walking breaks away from the computer. And of course, I am indebted to my loving husband, Lloyd Boshaw Jr., who many a night brought me dinner as I burned the midnight oil and pounded away at my keyboard. I also send my gratitude to my wonderful clients as well as the many victims who have called me to share their hearts, souls, and stories with me. It was gratifying to watch them recover, gain wisdom, and be empowered by the tools I gave them to regain their identities.

Last, but not least, I thank you, for taking the time to read this book and giving me the gift of helping you to overcome your identity-theft challenges.

Trademarks

All terms mentioned in this book that are known to be or are suspected of being trademarks or service marks have been appropriately capitalized. Alpha Books and Penguin Group (USA) Inc. cannot attest to the accuracy of this information. Use of a term in this book should not be regarded as affecting the validity of any trademark or service mark.

Part 1

First Steps

The first steps are critical in effectively challenging the fraudulent information currently attached to your name. You will learn the signs of identity theft and your legal rights. Organization and effective communication will empower you to recover your identity quickly and smoothly. Once you get the important documentation, you will need to demonstrate your innocence. But don’t worry—you will learn how to identify telltale signs of identity theft once you understand the scope of your problem and acquire the know-how to show that you have been victimized. You’ll learn how to obtain the all-important law-enforcement report, fill out an identity-theft affidavit, and then create your successful plan of attack.

Chapter 1

You Think You’re a Victim

In This Chapter

♦ Identity theft is common and easy

♦ How identity theft works

♦ Confirming the identity theft

♦ Your rights can help you fight the fraud

Perhaps bills came in with purchases you didn’t recognize. A credit-card company called, claiming you owe $20,000—but you didn’t have an account with the company. Your bank statement showed checks cashed out of your account, but when you reviewed the checks themselves, the name and address on the checks were not yours. Maybe you’re a licensed contractor who’s been receiving letters from lawyers demanding that you make good on work you don’t remember doing. Or maybe you were stopped for speeding, only to be arrested for an outstanding warrant for a crime you never committed.

You’re not in the middle of a secret reality show or a bad made-for-television movie. No, the problem—and maybe the reason you are reading this book—is that someone stole your identity. And this book is going to help you set everything right and reclaim your good name.

What Is Identity Theft?

If this has already happened to you, you’ve got a lot of company. Identity theft has become an enormous problem in the United States. According to law-enforcement agencies, it’s the fastest-growing type of crime in this country. The Federal Trade Commission estimates that over 9 million people each year fall victim to various types of identity theft.

Legal Lingo

Identity theft is the unauthorized use of your personal identifiers for an illegal purpose. Usually the impostor steals your identity for a profit, a benefit, or possibly revenge.

Many different crimes may take place under the umbrella of identity theft. Here are just a few examples:

♦ Falsely charging purchases to someone else’s credit or stealing money by debit card or check.

♦ Opening utilities in another’s name.

♦ Posing as someone else to receive medical treatment at no cost.

♦ Getting an apartment or mortgage in someone else’s name without his or her knowledge.

Information = Power

Individuals are not the sole victims of identity theft. Some thieves pretend to be businesses, leaving the real owners and entities with costs, reputation ruin, and angry customers and suppliers.

Chances are that you’ll never learn who did this, nor how. All it took was an unscrupulous fraudster getting some of your personal information, probably through exploiting the good and trusting nature of people, businesses, and even government agencies.

Some crooks will buy the information from other criminals. Others might go into dumpsters and trash bins—nicknamed dumpster-diving by law-enforcement—looking for account statements that have credit numbers or Social Security numbers on them. There are fraudsters who work at a business and will steal credit-card numbers, expiration dates, and sensitive, personal data, racking up purchases in their off hours. Here are some examples of personal information that are often easy to steal or find and that can help a criminal take on your identity:

♦ Name

♦ Driver’s license number

♦ Social Security number

♦ Bank account number, checking account number, investment/ retirement account numbers

♦ Credit/debit card numbers

♦ Home address

♦ Place of employment

♦ Mother’s maiden name

♦ Description of physical appearance

♦ Passport number

♦ Health/dental insurance number

♦ Professional license number

Hidden Agenda

An identity thief may not need more than one or two pieces of your personal information to cause trouble. In a criminal practice called synthetic identity theft, the fraudster might take your Social Security number, another person’s name, an address to receive credit cards, and put them together to create a fake identity. Because this country uses Social Security numbers as a de facto national ID, eventually creditors and sometimes law enforcement go after the person whose Social Security number was used.

Even though committing identity theft can be easy, cleaning up the mess is a challenge.

What Happens When Your Identity Is Stolen

Fraudsters who steal your identity aren’t doing so for the pleasure of pretending to be you. They usually are doing it for financial gain, avoiding arrest or prosecution, or for revenge. An identity thief uses your personal information as a way to prove to some company or institution that he or she is actually you to obtain financial benefits, hurt your reputation, or protect themselves.

The whole fraud scheme is facilitated by companies and entities that do not verify or authenticate you before providing benefits or services, or before accusing you for your impostor’s actions. Many organizations assume that anyone providing what they consider sufficient data about an individual must be that person!

Information = Power

As an experiment, try calling your bank or utility company to ask a question about your account. Say that you don’t have your account number handy and see how much information you need to provide before the company is satisfied that you are who you say you are. Or think about how easy it is for you to place a merchandise order by phone or online and have the product sent to another address.

From the view of the organization, the crook is actually you, and they’re now ready to do business with your clone. That could mean opening a revolving charge account at a department store, opening a bank account, renting an apartment, or even getting the Post Office to forward your mail—including bills, credit card statements, and other key financial information—to another address, where the fraudster can open it and get even more personal information.

Of course, thieves aren’t going to all this length to honorably undertake obligations. Instead, they will incur bills that can easily run into the tens of thousands of dollars, and far more, never pay a dime. They may pay bills for a while using convenience