The bad guys have always been able to steal your wallet, your car, or your money. Now they’ve gone one better and gotten access to something even more lucrative: yourself.

How can someone steal “you?” By stealing your identity. This new face of fraud befalls some 500,000 victims each year, according to the General Accounting Office and the Secret Service.

What Is Identity Theft?
   Identity theft occurs when someone steals your personal information, such as a name, Social Security number or date of birth without your knowledge and uses it to commit fraud or theft. Armed with this information, thieves now have the tools to control your bank accounts, compromise your retirement accounts and credit cards, and establish new bank accounts and debt in your name. The really unfortunate part is that these fraudulent accounts are not usually discovered until the account becomes delinquent and the victim is notified through collection efforts. By then, of course, the thieves have moved on to their next victim, leaving you to pick up the pieces.

Identity thieves can even pretend to be the victim by diverting your mail to their own address, and assume control of your bank account or credit cards. In fact, the problem is often not identified until the account becomes delinquent or an overdraft occurs. Some particularly clever (and daring) ID thieves have even added themselves to an account as an “authorized user” or signer.

But there’s more to the ID thief’s bag of tricks. Some have started establishing cellular phone service and public utilities in the victim’s name. This helps the thief authenticate the information provided on a credit or deposit application.

The key to all of their trickery is to get your personal information. They do this in relatively simple ways, such as finding or stealing a receipt. Sometimes they use an inside accomplice who has access to proprietary data. Telemarketing schemes are sometimes used to trick unsuspecting victims into revealing personal and account information. Some even resort to going through a person’s garbage looking for discarded credit card offers or other information.

Thankfully, both the government and the banking industry have taken notice of this alarming and increasing trend, and have taken action. In 1999, Congress made identity theft a federal crime and directed the Federal Trade Commission to establish a clearinghouse for identity-theft complaints and assistance. The clearinghouse’s Web site (www.consumer.gov/idtheft) and the counselors who staff its toll-free hot line (877-438-4338) will provide advice on appropriate action, such as having fraud alerts placed in credit reports.

The banking industry has taken a number of steps as well to ensure customer privacy and alert customers to a few simple things they can do to protect themselves. KeyBank in particular is proactively addressing identity theft by using various forms of screening for potential fraud, maintaining a fraud database and notifying victims if their personal information has been compromised. In addition, Key offers educational fraud awareness and prevention training to its employees every year, and has teamed with local law enforcement agencies to present Identity Theft Prevention Workshops periodically in the local community.

For the past two years, Key has also sponsored a series of Fraud Prevention Seminars presented by Frank W. Abagnale, internationally recognized authority on check fraud, embezzlement and secure documents and the subject of the recent film “Catch Me If You Can,” starring Leonardo DiCaprio. Key is among the more than 14,000 financial institutions, corporations and law enforcement agencies that have used Abagnale’s fraud prevention programs, and KeyBank clients have turned out for these seminars by the hundreds to learn what they can do to protect themselves and their businesses from this prevalent crime.

How to Protect Yourself
   Fraud prevention experts recommend a few simple things you can do to help guard against becoming an identity-theft victim.

• Read your bank statements carefully for any unauthorized charges.
• Destroy all financial solicitations such as those for credit cards and home equity loans.
• Guard your Social Security numbers carefully. Everything from student and military ID cards to health insurance and college identification cards often display a Social Security number.
• Don’t carry all your credit cards at once, or at least make copies of the front of your cards and store them safely.
• Don’t carry your checkbook — just take the checks you think you’ll need.
• Never write down your ATM password or store it in your wallet.
• After making a purchase, don’t put receipts in the same bag with the merchandise. If the bag is stolen, at least you’ll still have proof of purchase and the thief won’t have a receipt with your name and account number on it.
• Periodically review personal credit reports for accuracy.
• Never reveal personal information over the phone, through the mail or over the Internet unless providing the information initiates the request for goods or services.

What to Do if You’re Already a Victim
   One of the most effective weapons victims have to protect themselves against additional fraud is a “fraud alert,” which credit bureaus will put in consumer credit files. This notifies anyone who pulls the report that the subject is a victim of identity theft and that he or she should be contacted to verify the legitimacy of the credit application.

While it is unfortunate that we have to protect ourselves against this new face of fraud, it is infinitely easier than trying to repair the damage after your identity has been stolen.

(Editor’s Note: Todd Gowin is a Sales Manager for KeyBank in Poulsbo and may be reached at 360-394-6017 or at Todd_Gowin@keybank.com.).