There are literally thousands of methods idetnity theives enlist to stealing vital personal information from consumers and small business owners. "Phishing" scams sent via email, shoulder surfing at ATM machines, fraudulant telemarketing calls, public records acess through local government agancies, identity theft at the workplace: the list goes on and on. Suprisingly, it doesn't always take someone who is technologically proficient to get their hands on your social security number, credit card information or home address. The chain of theivery commonly starts with a method that existed long before the internet, email, telemarketing or ATM's: the dreaded "Junk Mail List".
Dumpster diving identity theives and computer hackers represent only a small fraction of the faceless armies constantly working to ruin your financial identity. Contrary to popular belief, junk mail, specifically credit card offers, are typically the culprit. In fact, every credit card offer you recieve is an invitation to have your identity stolen, and your credit ruined. These "mail box maruaders" are probably the most brazen identity theives, right up there with common burglar. Stealing mail directly from your mailbox is by far the riskiest method, which leaves the potential of being identitfied from eyewitnesses. Never the less, it does in fact occur and is a federal offence.
Once your financial information has been obtained, the two of the most common methods for setting up shop with your good name are "application fraud" and "account takeover".
"Application fraud", or "real name fraud" usually leaves identity victims unaware of fraudulent abuse of their personal information for long periods of time. This is due to the fact that the credit card statements are mailed directly to a forwarding address set up by the imposter. Another factor that leaves victims unaware is the time lag between the fraudulent transactions themselves and when they are reported to credit bureaus, such as Transunion, Experian and Equifax. This leaves a "time gap" for ID thieves to do as much damage as possible before it is detected, even if your regularly check your credit reports. All these criminals may need to commit application fraud is a utility bill or bank statement, authentic or counterfeit, to piece together a complete application. This is a methodical and effective form of identity theft.
Conversely, "account takeover" can happen almost intantaniously. This occurs when containing key personal information allows ID theives to actually takeover the running of your existing account. They will actually pretend to be you, making transactions and purchases as they see fit. To compound this problem further, these criminals may instruct your bank or credit card company to change you home address in the account and have cards and checks sent to another address. Once again this buys valuable time for these imposters to be detected and stopped.
So far as online purchases go, many online merchants have added an extra precaution to stave off fraudulent account activity with the CCV number. This is a three digit number on the back you credit card next to the signature box. Providing this number makes the assumption that your credit card is physically in front of you. Once again, if new cards have been ordered in your name unbeknownst to you, this safe-guard is rendered ineffective. You may only find out it has occurred when purchasing groceries or fuel for your car and having you credit or debit card declined. A rude awakening indeed.
Needless to say, the most effective way to avoid this finacial nightmare is to prevent it from happening in the first place. Though ID theft is growing problem for consumers and small businesse alike, it is not an inevitable part of modern life. Hence the old saying, "an ounce of prevention is worth a a pound of cure". And that ounce of prevention begins right at home, in your mailbox.
Over 4 million tons of paper "junk mail" are mailed in the U.S. every year, and 50% of it is never even opened. These are staggering stastistics and only grows as time goes by. Here are several tips and tricks to drastically reducing or eliminatiing bulk mail and credit card offers, thus aiding in the prevention of identity theft.
Credit Card Offers- The major credit agencies all sell credit information to the highest bidder. Direct mail and credit companies generate mailing lists based on certain demographic information including you zip code, annual income and general credit history. Stopping these types of offers are usefull in preventing identity theft for two reasons: First, it narrows down and seperates the "legitimate" offers from potentially fraudulent offers.
Second, it simply cuts down on the amount of mail you recieve, thus reducing the potential for information to be physically stolen from your mailbox.
Simply contact the three of the major cedit bureaus, Equifax, Trans Union, Experian and Innovis with your current address former address within two years, and social security number. Request to be "opted out" of these mailing lists. These requests will be granted immediately as required by law.
First Class Mail- This is a sneaky tactic used sometimes to make a credit card offer seem exclusive or more appealing. After you recieve one of the first class offers, simply cross out the address and bar code, circle the first class postage and write exactly this: refused: return to sender. Mail it in any mail box and it will be returned directly to the sender.
Bulk Mail in General- Your local post office will always dispose of bulk mail it cannot be delived, so "returning to sender" does absolutely no good. The USPS actively provides for bulk mailers to accumulate their mailing lists. As hard as it is to belive, they actually encourage it. Simply write "address correction requested" circle it, and drop it in any the mail box.
If Bulk Mailing persists, simply send a letter or postcard to the Mail Preference Service,
There address is: Direct Marketing Association, PO Box 643, Carmel, NY 15012-0643
Be sure to include your full name, current address, zip code and request to "activate the preference service". This will stop mail from all of it's member ogrganizations for up to five years.
A Secure Mail Box- Obvouisly, this is probably the simplest method protect mail from being stolen out of your mail box. Don't be afraid to buy a lock for your mail box. Get to know your neighborhood delivery schedule and your mail carrier.
Your home is the front line in the ongoing battle against identity theft, pure and simple.
Finance 
