Identity Theft Tips from MetLife, Your Life Winter 2005

Stay one step ahead of the bad guys with this guide to preventing, spotting and recovering from identity theft.

Two years ago while on a business trip in Miami, someone pinched my bank card number at a hotel or restaurant. It was my only bank card, and in the space of just a few hours, the thief had wired a $500 cash advance to Haiti and purchased pre-paid long-distance phone minutes.

Meanwhile, oblivious to these developments, I was already pointing my car homeward. Because a Tiger Woods tee shot easily outdistances my cell phone's coverage area, my frazzled wife back in Michigan couldn't reach me to relay news that the bank had inquired about unusual account activity. She worried that I'd been kidnapped! When I finally moseyed into Atlanta and phoned from the hotel, she explained our situation. I canceled the card. Next day, I drove home -- 700 miles -- on just the $34 in my pocket and not much in my stomach.

Since then, I've learned much about identity theft, which is the fastest-growing crime in America. It occurs when your name, Social Security number, credit-card number or other information is used, without your permission, to commit fraud. Although most individual victims incur only minor out-of-pocket expenses -- liability in a case of credit-card fraud is limited to $50 -- there can be enormous hassles trying to erase the black mark that's been placed on your good name and credit.

Recent laws limit the amount of information businesses may share and requires them to secure or properly destroy sensitive customer data. Yet the Federal Trade Commission (FTC) estimates that almost 10 million Americans were victimized by identity thieves in 2004.

"People should indeed be worried, despite all the crackdowns," says Steve Blackledge, legislative director for the California Public Interest Research Group (CALPIRG). "Identity theft is very popular among criminals. It's an easier way to make money illegally than, say, drugs. There are no guns or shootouts involved, no locks to pick."

WHAT IS IT?
So what have I learned? First of all, I found that experts at the nonprofit Identity Theft Center in San Diego define three kinds of identity theft:

HOW DO THEY DO IT?
The No. 1 source of information for identity thieves is mail stolen from mailboxes and garbage cans, according to a 2003 CALPIRG study. These "Dumpster divers" especially cherish discarded offers for credit.

Another popular ploy is "shoulder surfing." Observers steal your calling-card number or bank information by watching you while you dial a phone or use an ATM. They may be standing nearby, or they may use cameras or even binoculars to snoop on you.

You also may be vulnerable when you pick up the phone. In "pretext calling" phone scams, someone poses as a bank officer or account representative and asks for verbal verification of information such as Social Security and account numbers.

The key is to be alert to the warning signs of identity theft. When the bank called my wife after that suspicious account activity in Miami, it was obvious that something was wrong. But there are other clues that can alert you to possible identity theft:

HOW CAN I PREVENT IT?
The good news is that you're not defenseless against identity theft. The smartest thing you can do is to guard your mail -- a locking mailbox can help. You also should safely dispose of tax-related and financial papers, as well as mail such as credit or calling-plan offers. Use a crosscut shredder for this purpose. A strip-cut shredder shears paper into long slices that could be reassembled; a crosscut shredder has two opposing blades that produce a fine dice.

Minimize the information you share, especially on checks. Don't include your Social Security number or driver's license number on checks. When writing a check, include only the last four digits of your account number or Social Security number on the "For" line. "People are concerned enough these days that they may not want to include their home address -- you don't need to have that," says Consumer Bankers Association spokesman Fritz Elmendorf. A post-office-box number or work address could suffice.

Taking steps to safeguard your communications -- whether you're talking on a cell phone or shopping online -- also is a must. Remember: Cordless phones are essentially short-range radios whose broadcasts can be monitored by strangers. When using a cell phone in a public place, be careful what you divulge; wait until you're at home to call in the order for last-minute holiday gifts.

Don't give out sensitive information to someone who calls you, perhaps claiming to be from your bank and asking you to confirm your account number. Provide such information when requested only if you've initiated the call and it's to the phone number listed on your statement.

In my brush with identity theft, I was lucky. My bank card waived even the $50 I was liable for, and no lasting damage was done to my credit. But today I'm much less oblivious to the risks and much more cautious in my dealings -- in person, on the phone and online. I prefer to be the only one doing business as me.

Take Action!

Identity theft may not forever ruin your financial life, but it's likely to cast a long shadow of inconvenience. "It obviously takes time to recover," said Tena Friery, research director at the nonprofit Privacy Rights Clearinghouse, who advises victims to be vigilant about reviewing their credit files for accounts, credit cards and debts that aren't theirs. Take these steps if you're a victim:

Close the affected accounts and file a police report. Be prepared to do this by keeping photocopies of both sides of your driver's license and of all credit cards that you normally carry with you. That way, if your wallet is lost or stolen, you'll know what information and accounts are in jeopardy.
Contact the fraud department at any of the "big three" credit-reporting agencies -- Experian, Equifax and TransUnion -- to place a fraud alert on your file.
File a complaint with the Federal Trade Commission (FTC), which maintains a database of identity-theft cases.
Inform your creditors and note all contacts' names, departments, phone extensions and dates of conversations.

Get the Advantage with MetLife Auto & Home:

MetLife Auto & Home Offers You a Free Identity Theft Resolution Service
"Does my homeowners insurance cover me for identity fraud?" asks Susan DiMezza, a MetLife Auto & Home customer from Rhode Island. It does now! MetLife Auto & Home is pleased to announce that its brand-new Identity Theft and Credit Protection coverage is included at no extra premium on most MetLife Auto & Home homeowners, condo and renters policies. In fact, we're the first insurance carrier to offer this free coverage, which offers real help in dealing with the aftermath of identity theft.

A personal advocate guides the process. MetLife Auto & Home -- working with its partner, IdentityTheft 911 -- will provide you with a personal advocate who will guide you step-by-step through the recovery process. The advocate will help you contact creditors, legal authorities, credit-reporting agencies and even debt collectors. The advocate also can help you file any necessary statements or affidavits as you recover from identity theft. "When someone is the victim of an identity theft, they experience great emotional upheaval," says MetLife Auto & Home Product Development director Noel Edsall. "There is uncertainty as to what to do next. This isn't just a matter of sending people a bunch of paperwork and saying, 'Here, fill this out and mail to these places and let us know if you have any problem.' A personal advocate will complete the affidavits and send them to you for your signature."

Follow-up monitoring. With the Identity Theft coverage, you'll get a full year of comprehensive credit and fraud monitoring to help you detect suspicious activity if you're a victim.

If you suspect that you've been a victim of identity theft, call MetLife Auto & Home's toll-free claim number: 1-800-854-6011. For questions about this coverage, speak to your agent or representative or click here.