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| I recently heard a news report regarding identity theft. What is identity theft? |
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| Identity theft, also know as identity fraud, is the misappropriation of another person's information in order to fraudulently derive financial gain. The perpetrator, using the victim's personal information, receives financial gain in the form of credit from banks and retailers, gains access to the victim's existing accounts, is able to establish new accounts with banks and retailers, can apply for automobile and other loans, can apply for a job, and even file bankruptcy under the stolen identity. It is quite possible the impersonator can steal thousands of dollars in the victim's name over several months before the victim learns of the problem. When the thief moves onto another person, the victim is left with the unwelcome task of trying to untangle the financial and credit mess, and regain his/her reputation and identity.
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| How does the thief steal someone's identity? |
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| The thief only needs your Social Security Number, your birth date, and other identifying information such as your address and phone number. Once armed with this information, the thief can easily obtain a false driver's license with his/her picture. Through the use of the false driver's license, the thief will often submit a change of address for your bank statements, credit card bills, and other important financial-related correspondence.
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| Where does the thief obtain personal information? |
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| Identity thieves employ both low-tech and high-tech means to acquire information. Lost/stolen wallets, carelessly discarded bills, bank statements, and other financial information in the trash and theft from mailboxes provides an abundance of information, and provides the thief with all the information he/she needs to begin the process of stealing your identity. Although identity theft is not a recent problem, usage of the Internet has accelerated the problem.
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| What can I do to protect my identity from being stolen? |
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Although it is nearly impossible to completely close access to your personal and credit information, you can dramatically decrease the risk of identity theft through prudent management of your information and changes to your daily habits. The following are protective measures you can utilize:
- Change passwords and PINs regularly, and do not use obvious codes such as birth dates, telephone numbers, or the name of a child or pet
- Review credit card and bank statements promptly and correct any inaccurate information immediately
- Request and review your credit report at least twice a year
- Always take your credit card receipts with you and shred them
- Protect your wallet/pocketbook and identification
- Carry a minimum number of credit cards
- Have a secure mailbox with a lock that is accessible only by your mail carrier and yourself
- Tear up offers for pre-approved credit cards you do not intend to use, and from companies you do not recognize
- Practice safe habits at home. Do not leave personal information in a conspicuous place, especially if you have roommates, hire outside help (such as a cleaning service), or are having work done.
- Do not divulge personal information over the phone unless you initiated the phone call and are certain that you are speaking with an authorized representative
- Beware of anyone asking for your Social Security Number
- Do not put personal information on a computer home page or personal computer
- If you discover your personal information posted anywhere on the Internet, demand that it be removed
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| What should I do if I become a victim of identity theft? |
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The following is a short list of actions you should take immediately:
- Contact the 3 major credit reporting agencies by telephone to request a fraud alert be placed on your credit profile. Follow this call confirming this request in writing.
- Request a copy of your credit report from all three agencies
- Contact your bank and other creditors
- File a police report
Unfortunately, despite these actions, you may not stop the fraud immediately.
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| What if the police won't take a report? |
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| Many police departments are reluctant to take a report on this type of crime claiming that you are not the victim, but rather the credit grantor is the victim. They may want the request to come from the creditor, who often will not cooperate because it is not cost-effective to spend their time and energy to assist the police. Even if the creditor won't prosecute, you must insist that the police take the report so that you can demonstrate good faith in attempting to clean up the credit mess.
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| If I become a victim of identity theft, should I cancel my credit cards? |
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| Since your credit worthiness may be on shaky ground, it may be best not to close your existing accounts as new credit may not be extended to you. Instead, you should not only notify those accounts that have been affected, but also those accounts that may not have been affected and request a fraud alert be placed on the accounts. You should also inform these creditors that they are not to change your address without written notification from you from your present address. You should also revise the information these creditors have on file to identify you. For example, if they currently have your mother's maiden name on file, change that identifying key to your favorite color or vacation spot.
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| Should I apply for a new Social Security Number? |
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Here's how it works:
This is easier said than done and, in most cases, not a good idea. Your Social Security Number is an integral part of your identity, and is nearly permanently attached to your credit report and government documents. Furthermore, the Social Security Administration is reluctant to issue new Social Security Numbers. Your credit report will continue to reflect your old number, and this may appear suspicious to new creditors or potential employers and cause you further problems.
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| Will I be held responsible for the theft? |
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| Yes and no. From a monetary standpoint, if a thief uses your credit card in a credit card scam, you are responsible for only $50.00 or possibly nothing. However, you may spend months or even years dealing with collection agencies, financial institutions, bill collectors, and police departments in an effort to clear your name. Almost certainly you will have to take time off from work to make calls, collect evidence, and demand action. Victims of identity theft often find agencies are often dismissive, abusive or disbelieving. Psychological stress can be severe by causing sleep disturbances, difficulty with friends and family, and even paranoia.
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| Are there any laws against identity theft? |
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| Yes. In 1988, Congress passed the Identity Theft and Assumption Deterrence Act that makes the use of another person's identification with the intent to commit fraud a felony. Many states also have laws protecting consumers.
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| Does identity theft only affect individuals? I heard of a case where thieves had "pirated" a bank's logo and set up a dummy Internet site? |
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| Yes, there have been a couple of cases where scam artists have pirated a financial institution's logo and set up a bogus Website.
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| What is the purpose of setting up these bogus sites? |
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| The purpose of setting up these sites is to obtain personal information from consumers, such as their social security numbers, account numbers, ATM card numbers, PINs and other information in order to illegally access their funds on deposit, apply for credit, and other illegal activity. Once the thief has this information, he/she begins the process of stealing the victim's identity.
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| Can you explain a typical email fraud? |
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| Yes, the typical email fraud includes a copy of a legitimate business's logo (in Sovereign's case it would be a copy of our Lantern) and asks you to click on an embedded hyperlink and enter your personal information. financial institutions, and Sovereign in particular, would never send you an email requesting your User ID, password, debit card number, or other sensitive information.
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| How can I know if an email is legitimate or not? |
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Although there are not many signs that will alert you that the email is not legitimate, below are a few:
- The email may contain spelling and grammatical errors
- The hyperlink contained in the body of the email takes you to a site other than the "sender's" site
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| Do you have any suggestions of how I can protect myself from Internet fraud? |
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Yes, here are some things you can do to protect yourself:
- Never give out your Social Security Number by email
- Never divulge your driver's license number or address
- Never give out your personal identification number (PIN) for your debit or ATM card by email or telephone
- Be suspicious of anyone who calls or emails you seeking personal information
- When you need to provide a Social Security Number or other confidential information (for opening a bank account, for example), always know who you are providing this information to and why it is being requested. Be sure you are dealing with legitimate companies and their employees.
- Open and read only emails from a recognized source/sender
- Do not reply to any email that requests your personal data
- Leave suspicious sites. If you suspect that a site is not what it purports to be, leave the site immediately. Do not follow its instructions.
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| What is Sovereign doing to protect itself and its customers? |
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| As your Bank, it is our responsibility to protect your financial assets and safeguard the confidentiality of your personal information. The best defense against safeguarding our customers and ourselves is through educating our employees and our account holders. Our Sovereign site is secured by SSL technology. In the lower right corner of the page, you will see a padlock icon. You can click on the padlock to display the details of the security certificate and confirm its validity. Sovereign has also hired a Web Protection Service that ensures our official site is not "cloned."
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Equal Housing Lender - Member FDIC
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