Identity Theft Restoration

Identity Theft – The American Epidemic

  The 1990’s spawned a new variety of crooks called identity thieves. Their stock in trade? Your everyday transactions, which usually reveal bits of your personal information: your bank and credit card account numbers; your income; your Social Security number (SSN); or your name, address, and phone numbers. An identity thief obtains some piece of your sensitive information and uses it without your knowledge to commit fraud or theft.

  According to the Federal Trade Commission “Identity Theft” is the fastest growing white-collar crime in America. 27.3 million victims in the last 5 years and over 53 billion lost of which financial institutions and major business lost 48 billion.

 People whose identities have been stolen can spend months or years — and their hard-earned money — cleaning up the mess the thieves have made of their good name and credit record. Some victims have lost job opportunities, been refused loans for education, housing or cars, or even been arrested for crimes they didn’t commit.

  Today there are a number of companies that offer assistance to protect the American public from identity theft. In the beginning, the big three credit reporting agencies, as well as some independents, started by offering consumers an opportunity to check their credit reports periodically instead of only when they are having their credit reports pulled to open lines of credit or lease property.

  While this is a good first line of defense it is not the only solution because not all identity theft will show up on a credit report.

  More recently identity theft products have added insurance and victim assistance in the event that someone’s identity is jeopardized but the claims that companies are making with their victim assistance programs is just as misleading and exploiting what real identity theft restoration is.

Restoration vs. Resolution

  If the average consumer was to look at the words “Restoration” and “Resolution” they would think they are one in the same…not true. Resolution is the solution that an identity theft product offers and every solution varies. Solutions can come in the form of a kit that is sent out with instructions on how to restore your identity or it could be victim assistance, where the victim calls into a call center and speaks directly to an assistance advisor.

  The assistance advisor’s have some very clever names, like a crises coach, guidance investigator, or a personal advocate working on the victims behalf. The truth is that the victim is still required to do most of the work and the FTC reports that it takes on average 175 hours or more to restore a victim’s identity.

  A company that provides “Restoration” means that they do the work on behalf of the victim by signing a limited-power of attorney. A limited power-power of attorney (limited to only interacting on the victims behalf with the credit reporting agency’s, DMV, etc.) allows a restoration company to do most (about 85%) of the work on a victim’s behalf so that the victim can get on with their lives.

  The restoration company’s also have the ability to restore the identity for the victim much faster because of the training and relationships they have with the credit reporting agency’s, DMV, Social Security Administration and Post Office which all are contacted and notified that identity theft has taken place.

 As a credit union, you are obligated to offer the best protection for your members because if a product is purchased through your credit union and it does not live up to its claims then that would possibly jeopardize your member relationship and not to mention that they are covered for something they are not.

  Currently Identity Theft Shield with Kroll Worldwide offers “Real Identity Theft Restoration” to the credit union membership. Identity Theft Shield also offers the other services such as credit reports, credit scoring, monitoring and restoration insurance with the restoration.

  If you would like to learn more about Identity Theft Shield and many of the other identity theft products that can assist credit unions on a business level please

Recovering From Identity Theft

  Unbiased financial information provided by Financial Finesse

  The aftermath of identity theft can be as simple as a few calls to the credit bureaus or it can become a complicated nightmare that takes years to end. You can follow all the rules for reporting the crime and contacting creditors, but sometimes the problems just won't go away.

...the average amount of time spent by victims to regain their financial health was 600 hours.The costs of identity theft can include spending hundreds of dollars and hours of your time trying to clean up your credit history. A 2005 Identity Theft Center survey showed that the average amount of time and money spent by victims to regain their financial health was 175 hours and $1,500.

  Victims of identity theft may get little help from authorities, who don't always have the resources to investigate these cases. With millions of cases reported each year, police and other agencies rarely get involved unless your case amounts to an exceptionally large theft.

Your first move towards recovery should be to arm yourself with the following documentation:

  The police report filed when you learned of the identity theft.
An Identity Theft Affidavit to report the crime to your creditors.
Copies of your credit report.
Documentation from creditors, such as copies of the credit application filled out by the thief.

...be sure to place a fraud alert with each of the three major credit bureaus.Another smart step is to file a report with the FTC's Identity Theft Hotline by calling 1-877-IDTHEFT (1-877-438-4338). Also, be sure to place a fraud alert with each of the three major credit bureaus (TransUnion, Equifax and Experian). While this is designed to alert lenders to contact you before issuing new credit in your name, it doesn't always work. Some lenders ignore the alert, and new accounts may continue to be opened by the criminal.

  Finally, request that all of your existing creditors code your accounts so that a password you select is required before changing the address, increasing your credit limit, etc. Make sure to keep a log of all your efforts - write down the date and time, with whom you spoke and what was discussed.

  Some victims must also deal with abusive collection agencies that refuse to believe that someone else incurred the debt. Instead of getting assistance with the problem, they may be threatened with lawsuits and garnished wages. To combat this problem if it happens to you, send a copy of the police report.

  If one is not available, demand that they send you proof of the debt (which is required under The Fair Debt Collections Act). Once you receive this, you'll be able to demonstrate that the signature, address, etc. are not yours, and that therefore you are not responsible for the debt.

There are certain things you should definitely not do when trying to resolve your identity theft crisis:

   Do not be intimidated into paying any debt that you did not incur.Do not pay any bill or debt that is a result of fraud.
  Do not cover any checks that were written or cashed fraudulently.
  Do not file for bankruptcy without consulting with a professional.
  Do not change your Social Security number (unless advised to do so by Social Security - a rare occurrence).
  Do not be intimidated into paying any debt that you did not incur.

  Going through identity theft recovery is emotionally draining. Many victims suffer symptoms similar to those of survivors of assault or other serious crimes. You may feel both helplessness and rage at your situation, as well as loss of financial security.

  Seek counseling if necessary to help you cope with these feelings and try to find local support groups so you can talk to others that have been through the same experience.