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| ID theft top consumer issue |
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| ASHLEY TOMPKINS |
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10/27/2008 - For most American consumers, it’s not a question of if they will fall victim to identity theft, but when.
With the No. 1 consumer problem on the rise, the average person will be victim of identity theft once every five years, says Dan Parsons, president of the Better Business Bureau of Metropolitan Houston, Inc.
Parsons was on hand Wednesday to offer insight on how consumers can protect themselves when it comes to identity theft.
“It’s not a question of if it’s going to happen, but when. It’s not how to defeat it, it’s how to fight it,” he told local business owners at the Sealy Chamber of Commerce luncheon. “You have to put obstacles in the way to make it more difficult.”
Identity theft victims may not necessarily know their information has been stolen.
“It doesn’t mean the thief is going to wreak havoc with your savings account. It means someone has accessed your personal information and got in where they shouldn’t have,” he explained.
Consumers will face cases with actual damage once every 10 years, he noted.
Identity theft occurs when someone gains access to personally identifying information, like a name, Social Security number, or credit card number, without the owner’s permission, to commit fraud and other crimes.
It takes just two pieces of identifying information to set the stage for a theft to take place, Parsons said.
An estimated nine million Americans have their identities stolen each year.
Initially called forgery, identity theft made it to the Houston area in the late 1980s.
For years, businesses left with the bill and no compensation were considered the only victims when it came to identity theft. Those who had had their identities stolen had no protection and options when it came to clearing their name.
However, laws today work to protect consumers and businesses.
Parsons, who has worked closely with undercover investigations and talked with identity thieves, said those who engage in the crime are addicts.
“They are addicted to money. They are usually not violent,” Parson explained. “They don’t think that they’re hurting you. They would never steal money out of your purse or wallet, just your bank account. There’s a word that applies to these people - entitlement. Entitlement is a real bad thing. They think they’re hurting corporate America.”
Identity thieves, Parsons said, use an application of duress when talking to their victims, often acting as a helper and protector.
“They’re not going to call and say, ‘Hi. I’m a crook. Give my your number,” he said.
Sixty percent of identity theft is electronic, with only 40 percent being manual.
Parsons said he questioned Don DeGabrielle, U.S. Attorney for the Southern District of Texas, why more is not being done to fight the top consumer problem in America.
Parsons was told orders came from the attorney general office in Washington, D.C. and that 73.6 percent of the local office’s caseload dealt with terrorism.
“He said, ‘We don’t have the resources or the people to do all these individual cases’,” Parsons said of his conversation with DeGabrielle.
Parsons warned consumers cannot stop the ever-growing problem, but they can put steps in place to stop it once it starts. He urged victims to file a police report.
“Now, they may not do much with it, but at least you’ve got on record you filed,” he said.
“What it says to the creditor world is, you’re for real. The people who engage in theft don’t walk around and file police reports,” he added.
Parsons urged purchasing a shredder to destroy information that contains personal identifying information and checking credit reports once a year, and more often if large purchases will be made.
“Telltale signs of identity theft include receiving calls at home or the office from someone looking for you for something you didn’t do, collection calls, mail addressed slightly askew from your name,” Parsons said.
Checking credit reports from all three credit bureaus - Equifax, Experian, and TransUnion - will allow consumers to stay on top of what is being placed on their credit reports.
The government allows for one free check each year. Bureaus act as large databases pooling a wealth of information.
“They make mistakes. These are large databases. There could be something on your account that shouldn’t be there,” Parsons said.
Identity theft doesn’t happen immediately, he said.
Instead, thieves may wait up to two years before striking their target.
“Identity theft is simple to do because we make it simple,” Parsons added. “We have to put up these obstacles and pay attention to fight it.”
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