Identity theft rampant with credit card, Internet use

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Phantom thieves leave elusive trails.

By Michelle Logsdon/Special to The Malibu Times

It’s happened to Oprah Winfrey, David Geffen and most recently to Edison International’s CEO John E. Bryson; and it could happen to you. Identity theft-the stealing of personal information to make purchases, get loans or commit crimes-is the latest white-collar crime, and everyone is vulnerable due to the country’s growing dependence on credit cards and the Internet.

According to 2002 Federal Trade Commission statistics, California ranks second in the nation in identity theft victims.

“We see about two or three cases per week,” said Detective Mark Borges of the Lost Hills/ Malibu Sheriff’s Station. “They usually steal pieces of mail with lots of personal information like credit card statements or bills.”

Once armed with this information the criminal impersonates the victim, spending as much money as possible as quickly as possible. They then move on to the next victim, leaving no trail.

The editor of The Malibu Times was recently a victim of fraudulent use of her ATM card. Editor Laura Tate had logged on to her checking account online to check her balance and noticed when she was home in the Valley, a withdrawal of $300 had been made from her account at an ATM machine in Hollywood-a half hour earlier. Scrolling through her account, she found that almost $2,000 had been withdrawn from her account during the past four days. She quickly called her bank and had the card cancelled. Tate said she always uses her ATM card to purchase gas and groceries, which fraud detectives advise not to do.

An agent with the FBI, which also investigates certain types of fraud, said a common way criminals obtain credit information is to place a camera above an area where a card would be used, such as a gas station pump. Not only is the card number recorded, but also the personal identification number (PIN) number entered by the victim.

In the case of Bryson, a 29-year-old Canadian national named Christopher Kaizer downloaded Bryson’s photo directly off of the Edison international Web site and pasted it onto his own passport. With passport in hand, Kaizer easily purchased a $93,000 Mercedes-Benz.

Kaizer was eventually caught when he tried to sell more than $20 million of Bryson’s Edison stock. He faces up to 20 years in prison but that’s a rare outcome. Currently, in California, possession of someone else’s identification is only a misdemeanor.

Borges said most ID thieves are involved in drugs as well, and use ID theft as a way to pay drug dealers.

“Sometimes we pull them over and find what looks like ID theft documents in their car but they plea that out and get prosecuted for the bigger crime.”

According to an agent (who wished to remain anonymous) at ATI Investigations, a Thousand Oaks private investigation company, victims of identity theft have little recourse.

“Sometimes the police will think the victim is the number one suspect, like they planned it all along,” said the agent from ATI Investigations. “These criminals know how to hide their trail. It can take years for a victim to clean up his financial record.”

The sad fact, said the agent, is Americans choose to give out personal information much too readily.

“Consumers use credit cards so much, their personal information is easy to get. Every time you use a credit card you put yourself at risk.”

The ultimate way to protect yourself from this crime, according to the agent, is to base your financial dealings on cash, not credit cards, and stop giving away your personal information like your Social Security Number (SSN).

Your SSN is the prime target of these criminals. You are not required to give out this number to businesses, so ask them to use another number to identify you. The SSN is necessary for tax forms, employment records, bank accounts, investments and property transactions but not for anything else.

Other ways to protect yourself from identity theft include:

  • Call the three credit reporting agencies (Equifax 1.800.525.6285; Experian, formerly called TRW, 1.888.397.3742; and Trans Union 1.800.680.7289) and ask them to take your name off their marketing lists. You will receive fewer preapproved credit card offers in the mail that thieves can steal from your mailbox. Also, shred any offers you throw away.
  • Do not carry your credit cards, Social Security card, birth certificate or passport unless absolutely necessary. Never write down your personal identification number (PIN) or passwords in your wallet-memorize them.
  • Remove your phone number and address from the phone book and other directories.
  • When you order new checks, pick them up at the bank instead of having them mailed to your home. Mail your bills in a United States Postal Service mailbox or hand them to the mail carrier. Thieves can steal checks from your mailbox and alter them for their own use.
  • Photocopy your cards and make note of your credit card account numbers, expiration dates and customer service phone numbers. Along with that information, record the contact numbers of the three credit reporting agencies listed earlier and the Social Security Administration fraud hotline (1.800.269.0271). Also include your banking information on this sheet and place it in a safe place other than your wallet or purse. That way if your cards are stolen, or if you discover fraudulent activity in your financial statements, you can contact your creditors and the necessary agencies immediately.
  • Handle your financial and personal information responsibly. Do not throw away credit card receipts or statements without shredding them first. Order your credit report once a year and check it for inaccuracies. Review your bills and statements before writing a check and inadvertently paying for fraudulent charges. Protect your personal space while using an ATM machine or phone card so thieves can’t see the numbers you are pressing.

These are just a few ways to prevent identity theft and fraud. For more information visit www.privacyrights.org.