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CONSUMER ALERT
MIKE COX
ATTORNEY GENERAL
The Attorney General provides Consumer Alerts to inform the public of unfair, misleading, or deceptive business practices, and to provide information and guidance on other issues of concern.
Identity Theft Information
for Michigan Consumers
2006 Update- The factors that have spelled danger in the past continue to threaten the security and privacy of consumers' sensitive, personal information.
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Internet scams and telephone frauds that lure consumers into giving out their personal information are as prevalent as ever.
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The steady stream of data losses by companies and government agencies continues.
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Law enforcement agencies are receiving complaints in record numbers from consumers about misuse of their personal information by unknown third parties.
For advice on protecting yourself against ID theft, read the information in this Consumer Alert and review other recent Consumer Alerts from the Attorney General's Office, including:
Internet scams:
Telephone rip-offs:
Protecting Your Personal Information:
This Consumer Alert on Identity Theft gives simple and effective steps consumers can take to:
Reduce their risk of becoming a victim, including obtaining
free credit reports; and
Respond quickly and effectively if their personal information has been fraudulently misused.
CONTENTS:
SPECIAL INFORMATION FOR VULNERABLE ADULTS AND CAREGIVERS
WHAT IS ID THEFT?
HOW ID THIEVES OBTAIN YOUR PERSONAL INFORMATION
HOW IDENTITY THIEVES MISUSE YOUR PERSONAL INFORMATION
ID THEFT PREVENTION - WHAT YOU CAN DO TO REDUCE YOUR RISK
FREE CREDIT REPORTS - WHAT CONSUMERS SHOULD KNOW
INFORMATION FOR VICTIMS OF ID THEFT
REFERENCE - MICHIGAN LAWS ON IDENTITY THEFT
CONTACT INFORMATION
One of the most significant recent laws gives you the right to order a free credit report each year from each of the major credit reporting agencies. Reviewing your credit reports for phony accounts and bogus debts in your name is one of the best tools consumers have to combat ID theft. The Attorney General advises all consumers to review their credit reports regularly.
The Attorney General's Health Care Fraud Division investigates and prosecutes cases involving physical or financial abuse or neglect of elderly and other vulnerable adults living in resident care facilities, including cases of ID theft. (See the Attorney General's Abuse Alert on identity theft for more information.)
Victims and caregivers of victims who live in residential care facilities, includingassisted-living facilities, should directly contact the Attorney General's 24-hour Health Care Fraud Hotline at 1-800-24-ABUSE / 1-800-242-2873.
Identity theft is the wrongful use of YOUR personal information - such as your name, social security number, or credit card number - without your permission by another person to commit fraudulent or criminal acts. ID thieves take out phony loans or ring up bogus charges in your name. Some consumers have even experienced criminal convictions in their names from the criminal acts of ID thieves.
The inability to gain access to credit and the disruption of daily life can be devastating. Victims of ID theft often have trouble getting new credit cards or loans because of the damage to their credit ratings, and the time and emotional toll consumers pay when trying to reverse the effects of ID theft can be heavy.
ID theft is a silent crime. Experienced ID thieves may use your identifying information for months or years while you remain unaware. Often, consumers do not learn that they have become victims of ID theft until they are denied credit because of negative entries on their credit reports.
There is good reason for consumers to be concerned - ID theft:
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Can strike anyone at any time;
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Can destroy a consumer's credit standing;
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Can cause adverse employment actions;
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Can result in wrongful criminal convictions;
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Creates nightmares for citizens trying to restore their good names;
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Causes heavy fraud losses to honest businesses and drives up prices to consumers.
ID thieves use your personal information to impersonate you. The information might include your credit card or bank account numbers, your social security number, your date of birth, your mother's maiden name, your driver's license or state ID number, your e-mail address, account passwords, and other items that can uniquely identify you.
ID Thieves:
- Steal wallets and purses containing your personal information, such as social security numbers, driver license numbers, credit and debit card information, and checking account numbers;
- Steal your mail - financial statements, utility bills, medical correspondence, pre-approved credit offers, social security checks, and tax documents all contain personal information useful to ID thieves;
- Submit a change-of-address form with the US Postal Service to divert your mail to another location;
- Rummage through household or business trash containers. For professional "dumpster divers," trash containers are gold mines of valuable personal information;
- Fraudulently obtain your credit report by posing as a landlord, bank, employer, or someone else who may have a legitimate need to review your report;
- Find personal information you have left in a place accessible to the public, such as a store or unlocked car;
- Get hold of the personal information you share on the Internet;
- Obtain your personal information from an insider - for example, a store or bank employee.
- Telephone spoofing - program a familiar phone number to appear on your caller identification screen to con you into releasing information over the telephone.
- They open a new credit card account, using your name, date of birth, and social security number. When they use the credit card and don't pay the bills, the delinquent account is reported on your credit report;
- They establish telephone or other utility service in your name;
- They open a bank account in your name and write bad checks on that account;
- They take out loans or obtain credit in your name;
- They counterfeit checks or debit cards, and drain your bank account;
- They file for bankruptcy under your name to avoid paying debts they've incurred under your name, or to avoid eviction.
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Don't disclose your social security number, your date of birth, your mother's maiden name, your driver's license or state ID number, your e-mail address, account numbers, credit card numbers, or other personal information unless you know who you're giving it to and for what purpose. For example:
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If a retailer asks to record your social security number or driver's license number on your check, ask why, and consider paying with cash instead of by check;
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Ask how a prospective employer will handle the personal information on your application;
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Be aware that identity thieves may call you posing as representatives of banks or governmental workers, contact you with bogus e-mail offers with links to phony Web sites, or send you sweepstakes offers in the mail - all in an effort to trick you into revealing your personal information.
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Never give out your SSN, account number, or other identifying information to someone who calls you and demands your personal information. If in doubt, find the telephone number of the government office, credit card company, or other business independently - from your monthly account statement or telephone directory - and say you'll call back. If the caller resists your request, hang up.
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Carefully - and promptly - review records, especially your credit card, bank, and mortgage statements, for unauthorized charges or fraudulent use. In addition, scrutinize your local, long distance, cellular, and other utility bills each month. Report, in writing, any unauthorized uses.
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Shred or destroy all mail and other documents containing your personal information - credit receipts, bank statements, medical documents, utility bills, pre-approved credit offers, etc. - before discarding them in order to prevent "dumpster divers" from fishing your valuable personal information out of the trash.
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Keep sensitive documents in a safe and secure place at home, especially if you have roommates, employ outside help, or are having service work done in your home.
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Cancel all credit cards that you do not use. These account numbers are listed on your credit report and may be stolen by ID thieves.
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Don't use insecure mailboxes. Never mail personal checks from an unlocked mailbox and make sure your sensitive mail is delivered to a secure mailbox or PO Box at your local post office.
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To stop receiving pre-approved credit card offers in the mail, call 1-888-5-OPTOUT
(1-888-567- 8688).
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Register with the FTC's national do-not-call program to reduce your telemarketing calls. Michigan consumers who have access to an e-mail address are able to sign up, at no cost, on the national registry online at www.donotcall.gov. The toll-free number to call for registration is 1-888-382-1222.
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Tell banks, insurers, and other financial institutions not to share your customer information. Under federal law, they are required to honor your request. However, the law does not prevent these institutions from sharing your information with sister companies, subsidiaries, or companies with whom they have a "joint marketing agreement."
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Limit the information printed on your personal checks - your middle name, phone number, SSN, and driver's license number; and if you have an established account, even your address can be left off your checks when you order new checks from your financial institution.
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Keep a secure master list or photocopies of all important identification and account numbers - driver's license, social security card, credit cards, bank and utility account numbers, expiration dates, and the phone numbers of the customer service fraud departments of your card issuers. Keep this list in a safe, accessible place, such as a safe or safe deposit box - and not your purse, wallet, or car - so that you can respond quickly in case your identification is lost or stolen. You may wish to use the Attorney General's Master List of Financial & Identification Information (available at http://www.michigan.gov/documents/Master_Info_Form_v1_78440_7.3.pdf ).
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Memorize all your passwords or keep them in a very safe location, such as a safe deposit box. Don't record them on anything you carry with you in your purse, wallet, or car. Never keep passwords or PINs near cards or documents identifying the account they belong to, unless the information is stored in a safe deposit box or other very secure place.
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Shop smartly online. The Internet puts vast information at your fingertips. Before shopping, though, make sure that you are familiar with the company or seller, including their privacy policy. Disclose only necessary personal information, and opt out of information sharing if possible.
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Order a copy of your free credit report from each of the three major credit-reporting agencies every year. Make sure it is accurate and includes only those activities you've authorized. Ongoing monitoring of your credit report is possible if you order one report from a different agency every four months.
The Attorney General's Office recommends that consumers review the detailed consumer alert "Free Annual Credit Reports-What Consumers Should Know" (available by link from the Attorney General's home page, www.michigan.gov/ag). As explained in the alert, Consumers have a right to order free copies of their credit reports from credit bureaus. The three major Consumer Credit Reporting Agencies (CRAs) - Equifax, Experian, and TransUnion - have established a single, centralized service for consumers to use when ordering free credit reports prepared by these three companies. DO NOT ATTEMPT TO ORDER YOUR FREE ANNUAL CREDIT REPORTS DIRECTLY FROM THE CREDIT REPORTING AGENCIES.
The Attorney General's Office recommends either mailing the completed
Annual Credit Report Request Form or calling, toll-free, 877-322-8228.
While the quickest method for obtaining your reports is to order them online through the Web site www.annualcreditreport.com, which is run collectively by the 3 CRAs, consumers must be cautious when ordering online. The Attorney General's consumer alert on Free Annual Credit Reports explains concerns consumers should be aware of when ordering online.
Recommendation - Victims of ID theft should immediately review the FTC's comprehensive publication "TAKE
CHARGE:
Fighting Back Against Identity Theft" (FTC contact information is set forth below). This excellent source of national information is suggested reading for all consumers concerned about ID theft.
ID theft victims should:
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Immediately contact the fraud departments of each of the three major credit bureaus to report the theft. Ask for a "fraud alert" to be placed on your file and request that no new credit be granted without your express, personal approval. Ask how long your account will be flagged. Record the expiration date of the fraud alert, and call back as this date approaches if you wish the alert to remain on your file. (Contact information is provided at the end of this alert.)
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Immediately contact the security or fraud departments of credit card issuer, bank, utility company, or any other company that maintains accounts that were opened or accessed fraudulently, and consider closing affected accounts. Ask for your account to be password protected to prevent further unauthorized activity, and use unique passwords (not your mother's maiden name or social security number) on any new accounts you open.
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Immediately call the FTC's ID Theft Clearinghouse toll-free at 1-877-ID-THEFT (1-877-438-4338) or use the FTC's ID Theft Complaint Form. Counselors will take your complaint and advise you on the basis of your situation what additional steps you should consider. Complaints to the FTC are entered on the nation's only central identity theft database, which is accessible to law enforcement agencies around the nation.
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Immediately file a report with either your local police department or the police where the identity theft occurred. Victims should keep a copy of the police report for their records. Credit card companies and financial institutions may require a victim to show a copy of the report to verify the crime.
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Complete the FTC's ID Theft Affidavit (included in the publication "TAKE
CHARGE:
Fighting Back Against Identity Theft") and keep a secure copy to provide to creditors, credit reporting agencies, or law enforcement and other government offices, if requested.
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If a company insists on pursuing a debt that is obviously the result of identify theft, the Michigan Attorney General's Consumer Protection Division may be able to help you resolve the problem. Please file a complaint with our office. (Contact information for the Consumer Protection Division is listed below.)
In December 2004, the Michigan Legislature enacted 11 new ID theft laws, effective on March 1, 2005. These laws include:
- Stronger tools for protecting victims and prosecuting ID thieves:
- Criminal charges may be filed in the jurisdiction where the victim lives;
- A victim has a right to file a police report;
- Courts may impose a $25,000 fine and a consecutive sentence of up to 5 years commencing after the sentence on an underlying fraud crime has been served;
- The statute of limitations for prosecuting criminals is extended to 6 years after the ID theft or after the identification of the ID thief.
- The Identity Theft Protection Act, MCL 445.61 et seq, protects a broad range of "personal identifying information" - information that can be used to specifically identify an individual. This act also expanded the definition of "identity theft." In Michigan, the crime of ID theft now includes the fraudulent use - or the attempted use - of personal identifying information of another person for the purpose of committing an illegal act. Personal information remains protected under this Act even after the person dies, so that criminals attempting to misuse information of a deceased person can be punished under this new law.
- While identity theft is a crime, consumers also have new civil protections. Section 11 of the Identity Theft Protection Act makes certain practices illegal in trade or commerce, and civil penalties are available in addition to criminal penalties for knowing violations. Some of these new protections are:
- Lenders must take reasonable steps to verify a consumer's identity before extending credit;
- Lenders generally may not extend unsolicited credit to consumers;
- Consumers cannot be denied credit or utility service merely because they are ID theft victims; police reports, affidavits may be submitted to establish victim status;
- Consumers can bring private actions - violations of section 11 of the Identity Theft Protection Act are violations of the Michigan Consumer Protection Act. See section 3(jj) of the Consumer Protection Act, MCL 445.903(jj).
- The Social Security Number Privacy Act , MCL 445.81 et seq, and amendments to the Consumer Protection Act introduced a variety of measures to protect the privacy and security of SSNs. Be aware that many of these provisions have exceptions or do not take immediate effect.
- The Social Security Number Privacy Act prohibits the public display of more than four sequential digits of a consumer's SSN, encourages the creation of privacy policies describing the use and disposal of SSN information, and limits the printing of SSNs on health care cards, student IDs, and other cards, badges, or licenses.
- Separately, the Michigan Consumer Protection Act has a new section, MCL 445.903 (hh), which limits a company's right to require customers to disclose their SSNs as a condition of doing business.
- The Social Security Number Privacy Act has many exceptions, and many provisions do not become effective until January 1, 2006.
- There are criminal penalties for knowing violations of laws protecting SSNs, as well as private remedies for victims.
- The Michigan Consumer Protection Act now requires truncation of credit card numbers, MCL 445.903(ii). The effective dates were:
- July 1, 2005, for electronic devices put into service after March 1, 2005; and
- July 1, 2006, for older, existing electronic devices.
For Reporting Fraud To Credit Reporting Agencies
(Do not use for ordering free annual credit reports.)
Equifax -
www.equifax.com
Call: 1-800-525-6285; and
Write: P.O. Box 740241, Atlanta, GA 30374-0241
Experian -
www.experian.com
Call: 1-888-EXPERIAN (397-3742); and
Write: P.O. Box 9532, Allen TX 75013
TransUnion -
www.transunion.com
Call: 1-800-680-7289); and
Write: Fraud Victim Assistance Division
P.O. Box 6790, Fullerton, CA 92834-6790
Consumers may visit the Attorney General's Web site for more information on ID theft and to view consumer alerts on a wide range of topics. Mail or telephone inquiries and complaints may be directed to the Attorney General's Consumer Protection Division at:
Consumer Protection Division
P.O. Box 30213
Lansing, MI 48909
Phone: 517-373-1140
Toll-free within Michigan: 1-877-765-8388
Fax: 517-241-3771
www.michigan.gov/ag (online complaint form)
An electronic version of the FTC's publication "TAKE
CHARGE: Fighting Back Against Identity Theft" and additional publications and articles on a variety of topics related to ID theft are available at the FTC's Web site:
ID Theft Home Page:
http://www.ftc.gov/bcp/edu/microsites/idtheft/
En Español: http://www.consumer.gov/idtheft/espanol.html
Consumers may also call the FTC's ID Theft Hotline at 1-877-IDTHEFT (1-877-438-4338).
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