Spot ID Fraud and Stop It
By: Source: AARP.org Date Posted: 2006-02-17 14:30:36
Sherwood and Shirley Koebnick first discovered that their credit card had been stolen when they got a call from their credit card company's security department, just as they were returning from a doctor appointment.
"They asked me if I had been to Bloomingdale's in the last few hours," said Sherwood. "I laughed - because that sounded like more fun than the doctor."
The Koebnicks were amazed to learn that someone had stolen their credit card, gone on a huge shopping spree, and had charged $17,000 within 5 hours. And they hadn't even realized that their credit card was gone.
Like many other victims of identity theft, the Koebnicks were powerless against the speed at which their private information was spread by the hands of criminals. Identity theft can quickly wreak financial havoc on consumers, creating a chaotic mess that takes time and money to clean up.
Unfortunately, the number of criminals who prey on older Minnesotans by stealing their identities is growing. Last year nearly 10 million Americans were victims of identity theft, and many call it the fastest-growing crime in the country.
Identity theft happens when someone pretends to be you and uses your personal financial information when applying for loans or credit cards. It's a costly crime, both in terms of time and money. According to the Federal Trade Commission, victims spent almost 300 million hours resolving problems related to this crime. It costs businesses $50 billion per year, and consumers $5 billion per year.
By arming Minnesotans with good information about how to fight fraud, AARP is empowering consumers to protect themselves from identity theft. Tips like regularly checking your credit report for inaccuracies and shredding documents that contain personal information can help individuals avoid trouble. But information and prevention is not enough to stop the criminals, says AARP State President Hubert H. "Skip" Humphrey.
"We need explicit protection from identity thieves in the law," said Humphrey. "Consumers should be given more tools to protect themselves."
That's why AARP is sponsoring state legislation called the Clean Credit and Identity Theft Protection Act, bipartisan legislation to protect consumers from identity theft. One of the key provisions in this legislation allows consumers to place a security freeze on their credit report so that their private financial information would only be given out with their consent. It also restricts the use of Social Security numbers and requires more businesses to notify consumers when personal information has been compromised and may end up in the hands of thieves. Victims would be given the chance to file a police report locally, and would be able to file a declaration of innocence, clearly stating to future creditors that they were not at fault.
This legislation will be considered during the short 2006 Legislative Session, which is in session from March until May 22. Your help is needed to get it passed. Contact your legislator now and urge them to support and pass the Clean Credit and Identity Theft Protection Act.
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