WORKING TO PROTECT CONSUMERS—Arizona PIRG’s federal Consumer Advocate Ed Mierzwinski calls for passage of meaningful identity theft reform laws.

Identity theft is the crime of stealing an individual’s personal and fi nancial information for the purpose of committing fraud or theft. As banks, credit card companies and other businesses continue to swap, buy and sell our personal data, more Americans are left vulnerable. According to a Federal Trade Commission (FTC) survey, the most common types of identity theft are credit card fraud, utility fraud, bank fraud, employment-related fraud, government document or benefi t fraud and loan fraud.

Living in the state with the highest rate of identity theft, Arizonans are all too familiar with the headlines— another security breech at a major data collector, more inadequately protected information stolen—yet identity theft continues to be one of the nation’s fastest growing crimes. According to the FTC, in 2004 approximately 8,200 Arizonans were victims (142 victims per 100,000 people).

Costs to Consumers
Fraud costs consumers almost half a billion dollars annually. According to a report by PIRG and the Privacy Rights Clearinghouse, the average consumer spends 175 hours and $808 “out-of-pocket” to remedy identity theft. In total, the crime drains the economy of over $50 billion annually, and some of that cost is borne directly by consumers. Even if the theft is discovered, consumers may continue to experience negative effects, such as increased insurance or credit card fees, higher interest rates, and persistent collection agencies that refuse to clear false records.

Tips for Consumers
Check Up On The Credit Bureaus. Get Your Free Credit Report.
Go directly to www.annualcreditreport.com to get a free credit report. Check your credit card for fraudulent accounts and inaccurate information.

Protect Your Social Security Number And Your Personal Information.
Limit exposure of your Social Security number by giving it only when it is absolutely necessary. The FTC advises consumers not to give personal information, like bank account numbers and Social Security numbers, over the phone, through the mail, or on the Internet to individuals or businesses, unless the consumer has initiated the contact or is certain that the business is trustworthy.

Be Careful Online.
Do not download or open files from strangers; opening a fi le could expose your computer system to a virus that allows strangers to access your personal information. Use a “firewall” for high-speed Internet connections, and use a secure browser that encrypts information you send over the Internet. If you are making purchases online, use a credit card, not a debit card. Credit cards provide more consumer protection and less liability in the event of theft.

Beware Of Phishing.
Beware of a new type of scam known as “phishing.” In these scenarios, thieves set up look-alike Web sites of legitimate businesses and trick consumers into entering their personal information by sending them e-mail messages that warn them that their account is about to expire. Never “click-through” an e-mail link in a message purporting to be from your bank. Enter your bank or other financial institution’s Web address yourself and visit their security department to verify your account.

Keep Track of Your Credit Cards.
Limit the number of credit cards you carry every day. Keep a list of your credit card and bank accounts in a secure place that can be easily accessed in case you are a victim of theft. Include account numbers, expiration dates and telephone numbers of customer service and fraud departments. Do not carry this list in your wallet, and if you store it on a handheld computer, make sure the information is encrypted.