Announcing plans for a new consumer education program aimed at preventing identity fraud, are: (from left) Division of Banks Commissioner Thomas Curry, Massachusetts Bankers Association Executive Vice President Kevin F. Kiley, Attorney General Thomas Reilly, Rep. John Quinn and Sen. Andrea Nuciforo.
Criminals who steal identities are portrayed by Hollywood as lonely geniuses. But in reality, it’s quite easy and most of the time and unwary consumers make it even easier.
The Federal Bureau of Investigation recently reported that identity fraud is one of the fastest-growing crimes in the United States. Sorting out the mess that results consists of some very un-Hollywood-like deeds such as repeatedly calling credit bureaus and sorting through mounds of paperwork. Even when a person has sorted out the initial wrongdoing, the problem can pursue them for years.
Take what happened to Virginia Keenan of Woburn who, in 1998, applied for a mortgage with Medford Savings Bank. She found that two years prior to that, two Exxon credit cards had been taken out in her name and were delinquent.
The bank was very helpful in helping me clear this up, said Keenan.
But that wasn’t the end of it. Although she had informed the credit bureaus of a fictitious address that had been used in the credit card scheme, the problem re-occurred in 1999. A company sent out a live check in the amount of $1,800 to a fictitious address. It was subsequently cashed. By the time she found out, the bill had risen to $2,500. Keenan said that although she took all the necessary steps to protect herself from the crime, including never giving out her Social Security number and shredding all her documents, she nevertheless became a victim.
When it happened to me, I had no idea where to go. I think education is important, but this crime is on the rise because so many people have access to your account, said Keenan.
Last week, a new consumer education program aimed at preventing identity fraud was launched jointly by the Massachusetts Bankers Association, Attorney General Thomas Reilly and the Office of Consumer Affairs, which was represented by Division of Banks Commissioner Thomas Curry.
The results [of identity fraud] can absolutely wreak havoc on your lives and be a disaster, said Reilly in addressing a group of reporters at a press conference.
Re-establishing good credit can take years, he said.
Just recently we had a case where two teachers had their wallets stolen … The results were absolutely devastating to those individuals. A lifetime of building good credit has been ruined, he said.
The best way to deal with identity-related crime, besides ongoing aggressive prosecution, a strategy that Reilly promised to pursue, is to prevent it.
More and more, we are seeing cases of people whose personal information was stolen and used to run up charges, open phony accounts or obtain loans, said Reilly.
According to the June Suspicion Activity Report Review published by the Bank Secrecy Act Advisory Group, SAR filings increased in 2000 to 156,931 from 120,506 in 1999. Filings range from reports of check, mortgage-loan and credit-card fraud to check kiting. Massachusetts ranked 18th on the list of states where the number of such incidents is growing. In 2000, there were 2,713 incidents reported in the Bay State. As for identity theft, the numbers also are on the rise. The Federal Trade Commission currently logs approximately 1,700 complaints and inquiries a week connected with all types of identity theft, according to the report.
‘Simple Advice’
The education campaign centers on a consumer brochure. Kevin F. Kiley, executive vice president and chief operating officer of the MBA, said that 500,000 of the brochures will be distributed to the MBA’s 230 member banks, state agencies, local police departments and numerous Council on Aging offices.
The brochure itself is a quick read and contains much information that may seem like common sense, but is often overlooked by consumers. Tips include reviewing monthly financial statements and changing your driver’s license number to a random number. It also contains information about what to do should you find yourself a victim.
We want to applaud the participants in this program. Just a few simple safeguards can save a lot of aggravation and a lot of loss, said Curry.
Although it has gained more attention in the media, many people continually put themselves at risk. Reilly said more identity fraud cases are coming to him and he expects the number to rise as advances in technology make it easier to perpetrate the crime.
It’s simple advice. Not giving out personal information – it’s basic stuff, but it really goes a long way in preventing the criminal element from taking advantage, said Curry.
Currently, Reilly’s office is prosecuting a man who allegedly stole multiple identities to make hundreds of thousands of dollars in purchases and five members of a pickpocket ring that stole more than $100,000 last year from the accounts of elderly Boston-area residents. The FBI estimates that 400,000 people in the United States are victims of identity fraud each year.
Reilly urged people who are victims of identity fraud to contact local police authorities.
