Identity Theft › First Sound Bank

What is identity theft?

Identity theft is the illegal and fraudulent use of an individual's personal identifying information. Identity thieves use information such as Social Security number, birth date, and mother's maiden name to open new bank and/or credit card accounts, obtain loans, and charge on existing credit card accounts.

There have been incremental decreases in the number of identity theft occurrences over the last several years. However identity theft is here to stay. Experts attribute the incremental decreases to the combined efforts of industry, consumer, and monitoring/protection systems that are catching fraud more quickly. Despite the improved numbers consumers need to remain vigilant. Recent studies have found several significant trends that consumers should be aware of including:

Over the last few years students have been severely impacted by fraud.Yet among all consumers they are the least concerned demographic. A recent study found that 22% of students were unaware that they had become a victim of identity theft until they were either contacted by a debt collector or were turned down for new credit.
In recent years consumers have been effected by significant data breaches at retailers such as Target and Home Depot. These types of breaches were shown to greatly impact consumer purchasing decisions. With some 28% of fraud victims reporting that they avoided these retailers post-fraud.
New account fraud continues to be a common type of fraud among fraudsters. Studies show that victims of new account fraud were three times more likely to take a year or more to discover that their identities were misused, compared to other types of fraud such as existing credit card account fraud.

At First Sound Bank, we are committed to protecting our customers' personal information. To help educate our customers about identity theft, we have provided information on how identity theft happens, how to prevent it and what to do if you are a victim.

How identity theft happens

Theft/Robbery
dumpster diving for documents containing personal or financial information
stealing a purse or wallet
taking incoming or outgoing mail from your home mailbox
breaking into your home and taking documents or a computer with personal or financial information stored on it
shoulder surfing at ATM machines and POS terminals in order to capture PIN numbers
Address change
identity thieves change the address on account statements or bills and have them sent to their own address or, more likely, a PO Box
From businesses
stealing information from the workplace
bribing an employee
conning an employee (see Social Engineering)
hacking into a company's computer system
Skimming
stealing credit/debit card information by using a data storage device when processing (swiping) a card
Internet
Phishing - fishing for confidential information
the consumer receives an email that appears to be valid and originate from a financial institution, government agency or other reputable entity
the message states an urgent reason why you must "verify" or "re-submit" personal or confidential information by clicking on a link embedded in the message - the link appears to be the website of the legitimate company but really belongs to the "phisher"
Spyware
software that can track online usage and personal information, even record every keystroke
often unknowingly installed by consumers because it is packaged with other software
Trojan Horse virus (i.e. Zeus financial malware)
an email virus usually released by opening an email attachment
the virus scours the hard drive for personal information or credentials then transmits this information to the thief's remote server
Social Engineering
the identity thief calls a financial institution posing as a customer, an official at another bank, a government regulator or a law enforcement officer trying to get information on customer's account
may use intimidation (threatening to close account), helplessness or claim an emergency situation

What to look for

Bills or statements that don't arrive when expected
New or replacement credit cards that don't arrive in a timely manner
Credit card bills or account statements for accounts you didn't open
Calls or letters from collection agencies about accounts you didn't open
Unexpected denials of credit
Emails asking for personal information that don't address you by name, threaten action if you don't respond, or contain spelling errors
Accounts listed on your credit report that you have no knowledge of establishing

How to prevent it

To reduce or minimize the risk of becoming a victim of identity theft or fraud, there are some basic steps you can take.

General recommendations

Be cautious about giving your personal information to others unless you have a reason to trust them or if there is a logical, legitimate purpose for sharing this information
Monitor your financial information including bank statements and online banking consistently
Check your credit report regularly
consumers are entitled to one free credit report every 12 months ( www.annualcreditreport.com )
Maintain careful records of your banking and financial accounts
Keep sensitive information secured - both at home and work
Shred all financial and personal documents before discarding them
Don't give out personal information over the phone, mail or internet unless you initiated the contact
Remove your name from the marketing lists of the three credit reporting bureaus -- Equifax, Experian, and TransUnion. Call 888-5OPTOUT or go online to www.optoutprescreen.com. This will limit the number of pre-approved offers of credit that you receive. When tossed into the garbage, these are a potential target of identity thieves who use them to order credit cards in your name
Collect your mail promptly each day and use a US Postal Service mailbox for outgoing mail; when you are away from home for an extended time, have your mail held at the Post Office, or ask a trusted neighbor to pick it up
Limit your receipt of paper statements and documents by utilizing paperless options
the fewer personal documents sent through the mail, the less chance there is for possible fraud
use Bill Pay to pay bills on-line or set-up automatic deductions from your checking account and/or credit account
regularly monitor and manage your accounts on-line with Sound Internet Banking to detect any fraudulent transactions more quickly
Reduce the number of credit and debit cards you carry in your wallet; don't carry your Social Security card or number with you
Shield your hand when using a bank ATM machine or anywhere that requires you to enter your PIN. "Shoulder surfers" may be nearby with binoculars or a video camera
Always take credit card and ATM receipts with you. Never toss them in a public trash container. When shopping, put receipts in your wallet rather than in the shopping bag
Never permit your credit card number or SSN to be written onto your checks

Online

Don't click on a link provided in an email - it may direct you to a phony website that looks legitimate but isn't. Don't cut and paste links - type the web address into the address bar
add bank and other financial institution sites to your "favorites" list
Place passwords on credit card, bank and utility accounts
this not only prevents a thief from getting information about you or your account but also prevents him from making changes to the account, e.g., address change
Don't use personal information for passwords; create "strong" passwords using letters (upper and lower case), numbers and symbols
don't use automatic log-in/"Remember Me" functions offered on some websites
Use firewalls and anti-virus programs on your personal computer, keep these services up-to-date
Don't open emails or files sent by strangers
Be selective when downloading software and read the fine print carefully
Encrypt files containing sensitive information before emailing them
Do not use debit cards when shopping online. Use a credit card because you are better protected in case of fraud
Look for signs of security when shopping online
A padlock symbol in the status bar
An "s" after "http" in the URL
The words Secure Socket Layer ("SSL")
If you get deceptive spam, including email phishing for your personal information, forward it to spam@uce.gov

What to do if identity theft happens to you

Keep a list or photocopy of all your credit cards, debit cards, bank accounts, and investments -- the account numbers, expiration dates and telephone numbers of the customer service and fraud departments -- in a secure place (not your wallet or purse) so you can quickly contact these companies in case your credit cards have been stolen or accounts are being used fraudulently
Washington State allows ID theft victims to place a security freeze on their credit reports. A security freeze locks, or freezes, access to the consumer credit report and credit score. Without this information, a business will not issue new credit to a thief. When the consumer wants to get new credit, he or she uses a PIN to unlock access to the credit file
Depending on the type of Identity Theft, you may need to contact the following - (you may want to initially contact them by phone but it is important to follow up in writing. Also, always ask the creditor for a letter confirming that they have closed a fraudulent account and discharged the debts):
All financial institutions where you have accounts that an identity thief has taken over or that have been created in your name but without your knowledge. You may need to cancel those accounts, place stop-payment orders on any outstanding checks that may not have cleared, and change your Automated Teller Machine (ATM) card, and Personal Identification Number (PIN)
all creditors with whom your name or identifying data have been fraudulently used
your local office of the Postal Inspection Service if you suspect that an identity thief has submitted a change-of-address form with the Post Office to redirect your mail, or has used the mail to commit frauds involving your identity. For more information visit: https://postalinspectors.uspis.gov/
the Social Security Administration if you suspect that your Social Security number is being fraudulently used (call 800.269.0271 to report the fraud)
File a police report
File a complaint with the Federal Trade Commission (FTC):
Federal Trade Commission
877-IDTHEFT ( 877.438.4338 )
www.ftc.gov/idtheft

Credit Reporting Agencies Fraud Divisions:

Equifax: 800.525.6285 or www.equifax.com
Experian: 888.397.3742 or www.experian.com
TransUnion: 800.680.7289 or www.transunion.com

Other Identity Theft prevention and support resources:

www.staysafeonline.org
www.onguardonline.gov

Receive free, confidential help by contacting Call For Action at 1-866-ID-HOTLINE ( 1.866.434.6854 ) or www.callforaction.org