ABC Sample Credit Union

In recent years, identity theft has become a huge problem in the U.S. and abroad. It is imperative to understand what identity theft is, how it happens, and how to prevent it in our own lives.

There are four main types of identity theft which may happen together or separately:

Financial Identity Theft – Personal information (name and Social Security Number) is used to apply for services like home utilities, apartment leases, car loans, or to buy merchandise on credit.

Identity Cloning – In crimes of identity cloning, an individual uses your information to start a new life for themselves. They pose as you in their daily lives.

Criminal Identity Theft – In this case, your information is substituted for the criminal’s own information with a false ID when that criminal is arrested. If a warrant is issued, it would be done in your own name.

Business or Commercial Identity Theft – Many major companies have made news in recent months from breaches in security. When this happens, credit card or checking account numbers are accessed, giving criminals the opportunity to use these numbers to steal from their victims.

For individuals, schemes such as phishing and pretexting have become common. In these scenarios, you may be asked in an email or over the phone to confirm your personal and financial account information. ABC Sample Credit Union will never solicit personal information in these ways. Always verify the legitimacy of these contacts, and only give information when you have initiated the contact yourself. Other forms of identity theft occur when information is collected from the trash, stolen from your person (such as from your wallet), or by filing a change of address in order to intercept your mail.

In the case of any of these crimes, it is critical to take immediate action. According to the Federal Trade Commission, there are 4 steps to take right away:

1. Close any affected accounts at once. You may use the ID Theft Affidavit available at http://www.ftc.gov/bcp/conline/pubs/credit/affidavit.pdf.

2. File a police report, and make sure to get a copy to send to the credit bureaus and creditors who might ask for it.

3. File your complaint with the FTC. The Federal Trade Commission is the agency responsible for fighting identity theft.

4. Place a fraud alert on your credit file. This is done by contacting one of the three major credit bureaus: Equifax, Experian and Trans Union. A fraud alert requires all creditors to contact you before opening any new accounts.

Contact the Credit Union or visit the FTC website for more information: http://www.consumer.gov/idtheft.