(Image: Thinkstock)

For weeks, maybe even months, you’ve been systematically job searching.  But now your savings have dwindled down to mere dollars, you have no promising leads, and your rent is due in less than two weeks. Desperation and panic start to set in, so you apply for anything—waiter, dog walker, personal assistant—and quickly get an e-mail response. However, the company doesn’t provide a contact person, the pay seems too high for the position, and you’re asked to provide your bank information so you can immediately be put on payroll.

Suspicious?  You should be.  These are all signs pointing to a job scam.

As millions of job seekers scour the Internet in search of work, identity theft through online job scams and overexposure of personal information has become more prevalent.  As of July, 13.9 million people in the U.S. were unemployed, with blacks leading with an unemployment rate of more than 16%, compared with Hispanics (11.3%) and whites (8%). According to the Society for Human Resource Management’s survey for August 2011, job growth will decrease in the manufacturing and service sectors and hiring will also decline. In this bleak job market people try to give themselves a competitive edge by appearing everywhere online and divulging personal information to potential employers, but this can lead to identity theft.

Identity thieves use creative tactics to lure victims, like posting ads that offer little information about the company or opportunity, but inquire heavily about one’s personal information, including driver’s license and Social Security numbers. To protect yourself, here are five tips for decreasing your risk of identity theft as a job seeker:

Never include vital identity and financial information on your resume and cover letter, in e-mail correspondences or with job site accounts: Social Security number, date of birth, driver’s license, bank account information, credit card information.

Research the company. Check the website using a new window.  Make sure it has a physical address.  Find out how long it’s been in business, if it’s licensed, and if it’s linked to any applicant or customer complaints.

Set up a separate e-mail account for job search use only. Be sure to use a different username and password from those used for your personal email account.

Keep track of where you post your resumes, including job boards and recruitment agencies. It’s also important to remember what positions you apply for and for what companies, which not only helps keep your job seeking process less stressful and more organized, but ensures you know what information is out there and where.

Don’t sign up for third party offers when you register for employment sites or create accounts on a business’s site when applying for a position. This increases your online visibility, making you more susceptible to identity theft.

Be careful what you wish (or type) for (Image: Thinkstock)

Valentine’s Day has come and gone. If Cupid hasn’t been returning your texts, it might be tempting to take the reins and go online to look for love. This can be a good way to meet new people, but without the proper precautions, you may not only be putting yourself in physical harm but also financial harm. What does the FBI call financial scams related to online dating? “Romance fraud.”

“Be careful who you trust,” says Ed Goodman, chief privacy officer for Identity Theft 911. “ID thieves target dating sites because people have their guard down. It’s easier to take advantage of someone when they’re vulnerable.” Here are tips from Goodman on staying safe online.

Don’t rely on a photo. Don’t let a photo fool you into making you feel that you’ve developed a deeper connection than you really have. Goodman notes that scammers often post photos of other people and claim that it’s them. Romancescams.org, a Website that educates consumers on romance fraud, has a database of photos that many scammers use.

Don’t share too much too soon. Don’t give your real name or any other identifying information too soon in the online dating process. Specifically, don’t put your address, phone number, or date of birth on your profile. Beware of anyone who asks you for information such as your mother’s maiden name or your pet’s name, as these answers are often used for security questions for online banking and other financial accounts.

Don’t give money. Many scams begin with a love interest in another country claiming that they want to come and visit you. Next, the scammer will ask for money so that he or she can make the trip. Then, they’ll claim that they got into a horrible accident or that they were mugged and need more money. These lies are told so the scammer can get their hands in your pocket.

Don’t accept money. Another financial scam involves your love interest sending a counterfeit check. He or she will then ask you to deposit the check and wire the money via Money Gram or Western Union overseas. According to FraudAid, a nonprofit fraud victim advocacy site, many overseas scammers use this tactic to engage in money laundering.

File a complaint. If you were the victim of romance fraud, you can file a complaint with the Internet Crime Complaint Center, also known as IC3.  This organization is a partnership between the National White Collar Crime Center, the Bureau of Justice Assistance, and the Federal Bureau of Investigation.

Sheiresa Ngo is the multimedia content producer for consumer affairs at Black Enterprise.

For more on this topic, also read:

Protect Your Privacy

Electronic Pickpocketing: How Safe is Your Identity?

Illustration by Ray Alma

Imagine if when you were a child, one of your parents opened a few credit cards and acquired a few utilities in your name—unbeknownst to you. Years later, it comes back to haunt you when you’re denied financing from a used car dealership. The salesman explains that your credit is poor because of unpaid bills—bills that your parent racked up in your name and never paid. As a result, lawyers, bill collectors, and a warrant may be in store for you as well as the daunting task of repairing your credit and getting your identity back.

Identity theft isn’t always committed by some unknown thief. It’s sometimes committed by a trusted brother, sister, mom, or dad—someone who has easy access to your Social Security number and personal information. Often, the children don’t find out about the offense until years later. But what can you do? Below is a step-by-step guide on how to handle this situation.

1. File a police report.
The first thing you need to do is file a police report and fill out affidavits to help prove to creditors that you did not rack up the charges, says Sonya Smith-Valentine, a lawyer who specializes in identity theft and credit fraud. Proving your innocence is a case-by-case basis. “If you were in school and the charges were made in a different state, show it. Provide your class schedule and other information to prove that you were out of state attending school,” says Smith-Valentine.

When you file a police report and identity theft affidavit, understand what it means. “You’re going to have to say you’re willing to assist in the prosecution of the family member,” says Smith-Valentine. This can often be a tough decision, but it’s important to put emotions aside and ignore excuses that are often offered by the identity thief.

2. Close the account.
Cut off the line of credit immediately. Often, when this type of offense is committed by a family member, we allow them to placate us with “I’m going to pay you back,” or “Don’t worry about it, it’s going to be paid off.” But you must be proactive and salvage what you can of your credit before it gets any further out of hand. It would also be a good idea to place a fraud alert on your credit report.

3. Call—and write—the creditors.
The next thing you need to do is contact the creditors “you” owe, says Smith-Valentine, who represented a client who went through a similar situation as the example above. He was able to show the companies his birth certificate, proving that he was a minor when the transactions occurred, showing that he could not have possibly made the purchases.

It is important to write the creditors and not just call, says founder and president of Identity Theft Resource Center, Linda Foley. If you know a family member made the purchases, you will need a police report to be taken seriously. Send the police report, the list of fraudulent purchases, and a copy of your birth certificate to verify that you were a minor when these took place (and could not have even opened the account). You should also send a copy of the letter to each of the three major credit reporting agencies—Experian, Equifax, and TransUnion. Also keep copies of all the letters you send, and ask them to block the fraudulent information per Fair Credit Reporting Act Section 605b. All mail should be sent registered, certified mail with a return receipt requested. Make sure you also keep a record of all calls.

4. Go to the top.
If the initial letter and phone call to customer service yield no results, go to the top. “Spend a little time doing a quick Google search to find the office of the president,” says Smith-Valentine. Send another letter via certified mail, and include a copy of the initial letter you sent to customer service. If you can, include even more information about the problem you are trying to resolve.

5. Contact the appropriate regulator.
You need to determine which federal agency regulates the financial institution or creditor that is holding you responsible for repayment. If it’s a bank, chances are it is regulated by the Office of the Comptroller of the Currency (www.occ.treas.gov ) or the Federal Deposit Insurance Corp. (www.fdic.gov). You can file a complaint on the agency’s Website. To figure out the agency you need to turn to, go to www.helpwithmybank.gov.

6. If all else fails, call a lawyer.
If you’ve written the creditor, called their customer service department, and contacted the company’s headquarters and little to nothing has been done, it may be time for you to seek legal counsel. Smith-Valentine says that if it comes to this point, you’re usually suing the creditors and not your relative. “The way the laws are set up, they’re geared toward the company that was sending the wrong information,” explains Smith-Valentine. “If you notified the credit card company that you did not make the purchases and they remove the fraudulent charges from your account, the company has a right to go after the person that was making the purchases, according to the Fair Credit Reporting Act. The claim against the thief to recoup the money do es not belong to you. If the creditor reports the fraudulent charges on your credit report and you dispute the reporting without success, this gives a lawyer grounds to sue the creditors on your behalf.”

Additional reporting by Sheiresa Ngo.

This article originally appeared in the May 2010 issue of Black Enterprise magazine.

When I pay for an item with a credit card, sometimes I’m asked to show ID. Are store merchants allowed to request this? Can I refuse?

—G. Graham
Brooklyn, NY

It’s understandable that you might be reluctant to show a stranger your identification. Your personal security could be compromised by revealing sensitive information on your driver’s license, such as your birth date and home address. The short answer is you can refuse to provide identification, though the merchant can then refuse to complete the transaction if you’re paying with a card other than MasterCard or Visa. Under the merchant agreements with those credit cards, a merchant is allowed to ask for ID, but you’re not required to show it, and the merchant cannot refuse the transaction. These rules are listed in MasterCard’s Merchant Rules Manual and Visa’s Rules for Visa Merchants. Be aware, however, that if you’re purchasing alcohol, tobacco, or certain medications, ID is required by law regardless of the credit card you’re using. The Privacy Rights Clearinghouse, a nonprofit consumer organization that provides consumer information and advocacy, offers a list of types of personal information and under what circumstances consumers should give merchants their personal information (www.privacyrights.org/fs/fs15-mt.htm).

This article originally appeared in the April 2010 issue of Black Enterprise magazine.

Carmen Belcher vows to protect her identity. (Photo by Gerard H. Gaskin)

In September 2008, Carmen Belcher, 25, checked her Bank of America debit card account statement online. Expecting nothing unusual, she was stunned to see two transactions from a clothing store and a cell phone provider she didn’t subscribe to. Belcher contacted the retailer and learned the name and address of the person who attempted the transaction. Though she didn’t recognize the exact address, she did recognize the last name; it was that of a friend she met while enrolled at Hampton University and with whom she frequently spent time.

“I was shocked she would steal from me because she had the same material things I had, so I thought there was no competition,” says Belcher, an aspiring entertainer and assistant to a music industry representative. “As I understood it, she didn’t work because her parents paid her graduate school tuition.”

Belcher’s former friend charged approximately $300 to pay a cell phone bill. (The clothing store purchase, which was attempted online, failed to go through. Belcher was told it was because the shipping address did not match the billing address.) But Belcher, who says she rarely checked her bank statements,  was unable to get her money back. She missed the 60-day period that Bank of America requires for reporting fraudulent activity. Her former friend had also moved out of the country by the time Belcher discovered the charges.

Unfortunately, Belcher is not alone. In 2008, almost 10 million people in the United States discovered they were victims of identity fraud, according to Javelin Strategy & Research, a provider of quantitative research on financial services. Identity theft might be the last thing on the minds of college students. This makes them an attractive target for thieves, who wait for them to unknowingly leave behind a trail of personal information, either online or within physical reach.

“People don’t realize or think about how much information they give away,” says Linda Foley, the founder and chairman of the Identity Theft Resource Center (www.idtheftcenter.org), a San Diego-based nonprofit organization that educates consumers and supports victims of identity theft nationwide. “Identity theft can affect a student’s ability to get a college loan, credit, or a job.”

It doesn’t help that there is no standard profile for an identity thief. In fact, victims aged 18 to 24 years old are more likely to know those who’ve defrauded them; sometimes the thief may even be someone close. Belcher’s friend knew her shopping habits and was one of the few people Belcher invited to stay over at her apartment.

Javelin Strategy & Research states in its 2009 Identity Fraud Survey Report that of the 35% of victims who know how their information was taken, 43% of the crimes were committed through physical contact, such as the stealing of a wallet, checkbook, or credit card. “Dumpster diving” and “shoulder surfing”––using direct observation techniques, such as looking over someone’s shoulder or even using vision-enhancing devices––are also common methods used to steal personal and financial information.

According to Foley, you can’t prevent identity theft, but you can take precautions. Belcher now shreds documents and doesn’t carry all her credit cards with her. When she has overnight guests she now removes important documents from a filing cabinet located in her easily accessible home office. “It’s hard because you don’t expect people to steal from you, but the only way to really protect yourself is to always be on top of everything,” she says.Here are four ways to decrease your risk of being a victim of identity theft:

1. Monitor your accounts. Review your bank and credit card statements closely, so if you notice something strange, you can take immediate action. “It will give you an early warning should there be an issue,” says Adam Levin, chairman and co-founder of Identity Theft 911 L.L.C. (www.identitytheft911.com), which focuses on identity theft resolution and providing fraud solutions and consumer education. “If you see a transaction you don’t recall, call the bank and ask them to look into it.”

Check your credit report by going to www.annualcreditreport.com. While you should check your report at least once a year, here’s a tip: You can obtain one free credit check per year from each of the three major credit bureaus (Experian, Equifax, and TransUnion), so you can keep regular tabs on your accounts by checking a different one every four months. According to Levin, depending on your state of residence, you may have the option of checking your report more than once a year. Contact your state’s Department of Consumer Affairs or Office of the Attorney General for more information.

2. Sign up for fraud alerts. Most financial institutions offer fraud alerts, which help detect and identify fraud quickly. Customers can receive timely notification about important or suspicious activity on their accounts via e-mail alerts or telephone calls. You can also add a victim’s statement to your credit report so that you’re contacted to verify future credit applications. Fraud alerts can be placed directly on your files with Experian, Equifax, and TransUnion.

3. Don’t give it all away online. “Students need to understand that  in a transparent Internet world, they must be aware of the characteristics of their identity,” explains Gary Gordon, executive director of the Center for Applied Identity Management Research, a nonprofit corporation co-hosted by Indiana University and the University of Texas at Austin that identifies key identity management challenges. “Name, birthday, address, Social Security numbers—even where you live, your dog’s name—all of that is important.” If there’s something you feel inclined to share, like your birthday, you can give the day you were born, but not the year, or vice versa. “You don’t have to put much information out there to utilize the full benefits of social networking,” says Gordon.

4. Remember the basics. Avoid carrying your Social Security card. Shred personal and financial documents. Don’t forget to install a firewall and regularly update the anti-virus and anti-spyware software on your computer. Invest in an inexpensive safety box to lock up your financial documents, passport, and Social Security number.

Remember that you might not discover that you’ve been the victim of identity theft until years later, so protect yourself now. The process of clearing your name and restoring your credit can take months and sometimes years depending on the severity of the case.

Fast Facts: What to Do After Your Identity Has Been Stolen

Immediately file a police report. Your local police department can play a key role in the recovery process. Furthermore, credit card companies and financial institutions may require this type of documentation to prove that your identity and/or accounts have in fact been compromised, so be sure to get a hard copy of your police report.

If you are having difficulty getting a company to reimburse you or to take responsibility for their role in the incident, you can file a complaint with the Federal Trade Commission (www.ftc.gov) or the Better Business Bureau (www.bbb.org/us).

Contact the Social Security Administration (www.ssa.gov) and provide proof that your identity has been stolen.

Additional reporting by Siobhan Dixon

This article originally appeared in the December 2009 issue of Black Enterprise.

Carmen Belcher vows to protect her identity. (Photo by Gerard H. Gaskin)

In September 2008, Carmen Belcher, 25, checked her Bank of America debit card account statement online. Expecting nothing unusual, she was stunned to see two transactions from a clothing store and a cell phone provider she didn’t subscribe to. Belcher contacted the retailer and learned the name and address of the person who attempted the transaction. Though she didn’t recognize the exact address, she did recognize the last name; it was that of a friend she met while enrolled at Hampton University and with whom she frequently spent time.

“I was shocked she would steal from me because she had the same material things I had, so I thought there was no competition,” says Belcher, an aspiring entertainer and assistant to a music industry representative. “As I understood it, she didn’t work because her parents paid her graduate school tuition.”

Belcher’s former friend charged approximately $300 to pay a cell phone bill. (The clothing store purchase, which was attempted online, failed to go through. Belcher was told it was because the shipping address did not match the billing address.) But Belcher, who says she rarely checked her bank statements, was unable to get her money back. She missed the 60-day period that Bank of America requires for reporting fraudulent activity. Her former friend had also moved out of the country by the time Belcher discovered the charges.

Unfortunately, Belcher is not alone. In 2008, almost 10 million people in the United States discovered they were victims of identity fraud, according to Javelin Strategy & Research, a provider of quantitative research on financial services. Identity theft might be the last thing on the minds of college students. This makes them an attractive target for thieves, who wait for them to unknowingly leave behind a trail of personal information, either online or within physical reach.

“People don’t realize or think about how much information they give away,” says Linda Foley, the founder and chairman of the Identity Theft Resource Center (www.idtheftcenter.org), a San Diego-based nonprofit organization that educates consumers and supports victims of identity theft nationwide. “Identity theft can affect a student’s ability to get a college loan, credit, or a job.”

It doesn’t help that there is no standard profile for an identity thief. In fact, victims aged 18 to 24 years old are more likely to know those who’ve defrauded them; sometimes the thief may even be someone close. Belcher’s friend knew her shopping habits and was one of the few people Belcher invited to stay over at her apartment.

Javelin Strategy & Research states in its 2009 Identity Fraud Survey Report that of the 35% of victims who know how their information was taken, 43% of the crimes were committed through physical contact, such as the stealing of a wallet, checkbook, or credit card. “Dumpster diving” and “shoulder surfing”––using direct observation techniques, such as looking over someone’s shoulder or even using vision-enhancing devices––are also common methods used to steal personal and financial information.

According to Foley, you can’t prevent identity theft, but you can take precautions. Belcher now shreds documents and doesn’t carry all her credit cards with her. When she has overnight guests she now removes important documents from a filing cabinet located in her easily accessible home office. “It’s hard because you don’t expect people to steal from you, but the only way to really protect yourself is to always be on top of everything,” she says.Here are four ways to decrease your risk of being a victim of identity theft:

1. Monitor your accounts. Review your bank and credit card statements closely, so if you notice something strange, you can take immediate action. “It will give you an early warning should there be an issue,” says Adam Levin, chairman and co-founder of Identity Theft 911 L.L.C. (www.identitytheft911.com), which focuses on identity theft resolution and providing fraud solutions and consumer education. “If you see a transaction you don’t recall, call the bank and ask them to look into it.”

Check your credit report by going to www.annualcreditreport.com. While you should check your report at least once a year, here’s a tip: You can obtain one free credit check per year from each of the three major credit bureaus (Experian, Equifax, and TransUnion), so you can keep regular tabs on your accounts by checking a different one every four months. According to Levin, depending on your state of residence, you may have the option of checking your report more than once a year. Contact your state’s Department of Consumer Affairs or Office of the Attorney General for more information.

2. Sign up for fraud alerts. Most financial institutions offer fraud alerts, which help detect and identify fraud quickly. Customers can receive timely notification about important or suspicious activity on their accounts via e-mail alerts or telephone calls. You can also add a victim’s statement to your credit report so that you’re contacted to verify future credit applications. Fraud alerts can be placed directly on your files with Experian, Equifax, and TransUnion.

3. Don’t give it all away online. “Students need to understand that in a transparent Internet world, they must be aware of the characteristics of their identity,” explains Gary Gordon, executive director of the Center for Applied Identity Management Research, a nonprofit corporation co-hosted by Indiana University and the University of Texas at Austin that identifies key identity management challenges. “Name, birthday, address, Social Security numbers—even where you live, your dog’s name—all of that is important.” If there’s something you feel inclined to share, like your birthday, you can give the day you were born, but not the year, or vice versa. “You don’t have to put much information out there to utilize the full benefits of social networking,” says Gordon.

4. Remember the basics. Avoid carrying your Social Security card. Shred personal and financial documents. Don’t forget to install a firewall and regularly update the anti-virus and anti-spyware software on your computer. Invest in an inexpensive safety box to lock up your financial documents, passport, and Social Security number.

Remember that you might not discover that you’ve been the victim of identity theft until years later, so protect yourself now. The process of clearing your name and restoring your credit can take months and sometimes years depending on the severity of the case.

Fast Facts: What to Do After Your Identity Has Been Stolen

Immediately file a police report. Your local police department can play a key role in the recovery process. Furthermore, credit card companies and financial institutions may require this type of documentation to prove that your identity and/or accounts have in fact been compromised, so be sure to get a hard copy of your police report.

If you are having difficulty getting a company to reimburse you or to take responsibility for their role in the incident, you can file a complaint with the Federal Trade Commission (www.ftc.gov) or the Better Business Bureau (www.bbb.org/us).

Contact the Social Security Administration (www.ssa.gov) and provide proof that your identity has been stolen.

Additonal reporting by Siobhan Dixon

This article originally appeared in the December 2009 issue of Black Enterprise.

“The problem with protecting your identity is chances are, you’ve likely [already] given private information to hundreds of agencies,” says Jayfoley Mud, executive director at the Identity Theft Resource Center (IRITC).

To save you time and money, many identity protection services offer 24-hour assistance in helping you straighten compromised information. While IRITC does not endorse any of these products, Mud provided feedback on how some of the most popular programs stack up.

ID FREEZE

Created by Trusted ID, ID Freeze provides name and address scanning of Websites and online databases, as well as public records. The program also provides bank account and credit card scanning of “the black market Internet where identity thieves buy and sell credit card numbers,” Mud says.

Pros
–Public database scan monitors hundreds of public records online that contain information about everything from your marital status and address, to court and business applications.

–Users’ medical benefit statements are reviewed to ensure that you and your family are the only ones being treated with your insurance.

–Users can opt for family protection which extends the services of your spouse or children.

Cons
–Free annual credit reports are listed as a feature but consumers can access this information themselves by going to AnnualCreditReport.com.

–While the credit card and bank account scanning isn’t necessarily a con, any purchase made on your credit card will show up on your monthly statement– the same for your bank account– so consumers are paying for something that can be self-monitored.

–Since anyone can quickly place a fraud alert on their credit report, using this service is yet another way consumers are paying for a service they can do themselves. What you’re paying for is the convenience of having someone else do it.

Price
Family plan: $15.83 per month for 12 months
Family plan: $19.99 for one month
Individual plan: $8.25 per month for 12 months
Individual plan: $10 for one month

LIFELOCK

If you’ve seen the television commercial that shows the owner’s social security number scrawled along an 18-wheeler, you’re likely familiar with LifeLock. Mud is skeptical of any company whose owner displays such vital information so publically. “What’s stopping someone from using his social security number to claim unemployment benefits,” he says. Protection against this kind of identity theft is outside the realms of what any of these products can offer, Mud says. But LifeLock does have some advantages.

Pros
–The identity alert feature notifies subscribers when personal information is being used to apply for credit cards, wireless services, retail credit, utilities and several other forms of credit.

–The program scans address databases nationwide and notifies subscribers of any address changes associated with their name.

–If your wallet goes missing, the company will help you cancel and replace lost credit/debit cards, social security, and insurance cards, and other content.

Cons
–This program charges to send subscribers a copy of their free credit reports. A service that can be accessed through the government’s Website FreeAnnualCreditReport.com without cost.

–There is no protection against medical identity theft, so there is no way to tell if your personal information was used at an emergency room across the country. “You won’t find out about this happening until someone tries to collect from you,” Mud says.

–The program does not scan public records which could show yield findings of criminal identity theft.

Price
$110 annually
$10 for one month

SHOP SHIELD

Online security company Kemesa provides a more focused program for those who make frequent purchases on the Internet. Shop Shield aims to prevent unnecessary distribution of sensitive personal and financial information when shopping online. It replaces your personal information needed for the transaction with anonymous data that becomes useless after the purchase is complete and therefore cannot be traced back to the user. This way, the store no longer has your information in their databases, so they can’t lose it, Mud says. It can replace the user’s name, e-mail address, username, password, billing address, billing phone number, and credit card numbers. Kemesa manages users’ information by fragmenting all information instead of storing it in a centralized database.

Price
$99 annually
$9.99 for one month
–Users can purchase components of the program a la cart starting at 49 cents.

RESOURCES

Federal Trade Commission on Identity Theft
Identity Theft Resource Center
Financial Expert Learns Hard, Valuable Lesson After ID Theft
Combating Identity Theft

WEALTH FOR LIFE PRINCIPLES

1. I Will Live Within My Means

2. I Will Maximize My Income Potential Through Education and Training

3. I Will Effectively Manage My Budget, Credit, Debt, and Tax Obligations

4. I Will Save At Least 10% of My Income

5. I Will Use Homeownership as a Foundation For Building Wealth

6. I Will Devise An Investment Plan For My Retirement Needs And Childrens’ Education

7. I Will Ensure That My Entire Family Adheres To Sensible Money Management Principles

8. I Will Support the Creation and Growth of Minority-Owned Businesses

9. I Will Guarantee My Wealth Is Passed On To Future Generations Through Proper Insurance And Estate Planning

10. I Will Strengthen My Community Through Philanthropy

Freeman

“I felt violated and victimized,” Harrine Freeman says of the day her purse was stolen from the passenger seat of her locked car at a Hyattsville, Maryland gas station in late July. No one at the busy corner station offered much information after the thief smashed a window and sped off with her house keys, checkbook, driver’s license, car insurance, vehicle registration, nearly $100 in cash, as well as her credit, ATM, and health insurance cards. “People were just looking at my car, but no one was saying anything,” Freeman says. “Later, the gas station clerk told me that the same thing happened to another woman the week before.”

The car break-in led to a long battle against ID theft for Freeman. The Identity Theft Resource Center reports that nearly 10 million Americans were victims of identity theft in 2008, a number expected to grow due to the shrinking economy. On average, victims lose between $851 and $1,378 out of pocket due to expenses related to identity theft and spend an average of 116 hours repairing the damage. In total, Freeman estimates she spent $2,000 and 100 hours on damage control so far. Here, Freeman, author of How to Get Out of Debt (Adept Publishing; $19.95) and CEO and owner of H.E. Freeman Enterprises, a personal finance service, shares the frustrations and lessons learned during her still unsolved case of identity theft and offers tips to use should you find yourself a victim of identity fraud.

“Luckily I still had my cell phone and was able to call the police and cancel everything but my checking account, which I had to close in-person the next day though I was able to flag the account for suspicious activity,” Freeman says. She filed an identity theft complaint with the Federal Trade Commission and placed fraud alerts with the credit reporting agencies, along with TeleCheck.

“I later filed complaints against my bank with the Better Business Bureau, the North Carolina Department of Justice Consumer Protection Agency as well as State of North Carolina Office of Commissioner of Banks where the bank is headquartered after I found out the thief was able to withdraw $3,000 from my new account even though you had to swipe a debit card and enter a secret code for every transaction,” she adds.  “I’d already reported the potential for identity theft to the bank and found out a transaction for $1,200 was under investigation, but even knowing my situation, the bank still charged me $207 in insufficient funds fees.”

And on top of that, Freeman had just paid my mortgage and all my bills, so she had checks bouncing and couldn’t access her money because the bank froze her account.

“I called the bank and the investigator for weeks trying to figure out how this could’ve happened, who was going to reimburse me and when. Out of frustration, I left a message for the president of the bank and someone called me back saying they’d take care of everything,” she says. “Ultimately, I got my $3,000 and the fees were reimbursed, but it shouldn’t have taken so long and I shouldn’t have been charged any fees since the bank knew my situation. The only reason I got as far as I did was because I started getting upset, something I wish I’d done sooner.”

Despite the experience, Freeman learned a valuable lesson about safeguarding her belongings.

“I’ve helped other people through identity theft before, so I wasn’t impacted as much as the average person. I still feel like I could never go back to feeling as secure about my personal information as I did before this happened, but I know for sure that I won’t be leaving my purse on the passenger seat of my car anymore.”

Stop Thief!—Strategies for thwarting potential damage from identity theft

React quickly. Freeman believes that reporting your identity theft and canceling your accounts right away can help prevent thieves from draining your accounts and damaging your credit score.

File the right reports. Start with an in-person police report, followed by an online Federal Trade Commission Identity Theft Complaint Form (www.ftc.gov), which the FTC shares with other law enforcement agencies. If local law enforcement refuses to take a report of your I.D. theft, ask for a miscellaneous incident report instead.

Take preventative measures. Place a free 90-day fraud alert on credit reports with the three major credit-reporting agencies. Once expired, use your police report to request seven-year extended fraud alert, and check your credit reports often for unauthorized activity.

Resources

Identity Theft Resource Center
Federal Trade Commission

Credit Reporting Agencies
TransUnion: 1-800-680-7289; Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92834-6790
Equifax: 1-800-525-6285; P.O. Box 740241, Atlanta, GA 30374-0241
Experian: 1-888-EXPERIAN (397-3742); P.O. Box 9532, Allen, TX 75013
Innovis: 1-800-540-2505; Consumer Assistance, P.O. Box 1358, Columbus, OH 43216
Chex Systems: 1-800-428-9623; Consumer Relations, 7805 Hudson Road, Suite 100, Woodbury, MN 55125

Check Processing Systems
Telecheck: 1-800-710-9898; Fraud, Identity Theft and Forgery Division, 5251 Westheimer Road, Houston, Texas 77056

BlackEnterprise.com’s Credit Card Predatory Practice Prevention Checklist