Terry Everett, January 27, 2003

Each year, the Federal Trade Commission tracks the number of Americans who fall victim to identity theft, and unfortunately, that number continues to rise. Last week, the FTC released a list of the top ten consumer fraud complaints for 2002 and identity theft led the list for the third year running. The public is not defenseless against this unseen criminal assault. A little common sense can go a long way.

For several years now, I have written about the threat of identity theft and the Federal government's efforts to follow-up on and hopefully prevent such attacks against unsuspecting citizens. With the use of computers and other forms of electronic communication on the rise, it is essential that everyone employ good judgment to protect their most valuable possession - their good name.

What is identity theft and how does it occur? Most simply, identity theft is when a criminal takes your personal identifying information such as a Social Security number, credit card number, or bank account number to assume your identity and usually rob you of your credit and personal funds.

During 2002, the FTC logged 380,000 reports of consumer fraud totaling more than $343 million. A hefty 43 percent of this activity was attributed directly to identity theft. The second largest fraud area was Internet auctions at 13 percent. Breaking down the method of identity theft, most common was credit card fraud, then phone or utilities fraud, bank fraud and employment-related fraud, government documents or benefits fraud, and loan fraud.

To help protect yourself against all forms of identity theft, the FTC recommends never revealing your personal information unless you know exactly with whom you are dealing and how the information will be used. Pay attention to your billing cycles and call creditors if bills do not arrive on time.

Notify creditors immediately if your ID or credit cards are lost or stolen and call the credit bureaus to have a "fraud alert" placed in your file. Furthermore, take steps to destroy all forms and applications for unwanted credit card offers and loans that you might receive in the mail.

In the last year, the FTC issued specific warnings to Internet subscribers about fraudulent on-line attempts to obtain credit card information by persons posing as their Internet Service Providers seeking to "verify" the subscribers' billing information. Persons getting such solicitations should contact their ISP's directly.

Furthermore, seniors were also recently targeted by scams seeking to give them Social Security funds they are supposedly owed due to a "fix" in the law. The scammers would then obtain their Social Security numbers and other personal information for illegal use.

In Alabama, 1,276 persons reported themselves as victims of identity theft in 2002. However, authorities believe the actual number is much higher both in-state and nationally. Unfortunately, many who fall prey to such criminal activity do not report it. The FTC is a partner in an extensive network of government agencies and consumer groups who've joined together to monitor consumer fraud and assist law enforcement agencies.

For more information on ways to protect yourself, call the FTC's toll-free hotline at 1-877-382-4357 (1-877-ID-HELP) or visit the FTC web site at http://www.consumer.gov/idtheft/. To file an ID theft complaint, call the FTC at 1-877-438-4338 (1-877-438-ID-THEFT).

Congressman Terry Everett represents the 2nd Congressional District of Alabama in the U.S. House of Representatives.