Identity theft a growing problem

Matthew Taylor didn't think identity theft could happen to him; after all, he was careful about discarding personal information.

Then one day Taylor noticed withdrawals from his checking account that neither he nor his wife had made. Someone had taken his name and routing and account numbers from a check he had written for a bill.

Taylor found out someone had been calling the bank and using the identification to make withdrawals from his account.

"Thankfully, we caught it before it got out of hand," he said.

Michelle McDaniel, president and CEO of the Better Business Bureau of North Alabama, said monitoring accounts is the best way to discover identity theft. "(Identity theft) is a growing problem, one that happens every day," McDaniel said.

According to the Federal Trade Commission, the number of identity theft reports filed from the Shoals area to the FTC increased more than 45 percent from 2007 to 2008.

McDaniel said statistics indicate there were 3,221 identity theft complaints filed in 2007. That increased statewide to 4,342 complaints in 2008.

She said her hope is that the increase was because more people realized they had been a victim and reported it.

"No matter what, it's certainly not a good sign to see such a jump in the numbers," McDaniel said.

The Shoals area is not alone, said Tami Neely, an official with LifeLock, a Identity Theft Protection company based in Tempe, Ariz.

"Nationwide, identity theft was up 50 percent from 2007 to 2008," Neely said. "Not just one or two states, but every state saw an increase in identity theft."

Identity theft is at epidemic status, the FTC said.

"In 2000, there were 230,000 reported identity theft cases," Neely said. "In 2008, 1.2 million reported cases. We wouldn't let violent crimes get that high, but this crisis with identity theft is quickly getting out of control."

Florence police detective Cliff Billingsley handles white-collar crime for the department. He said there are several identity theft reports filed each month.

"We get a few reports of someone stealing a driver's license and making fake ones, using fake checks and credit cards," Billingsley said. "The biggest thing we see is where someone has gotten someone else's identification and made a fake one to pass and cash checks with."

McDaniel said identity theft is a crime with no age barriers. "Anyone, young or old, at any time can become a victim," she said.

In 2007, 29 percent of identity theft complaints were from individuals 18 to 29 years old, according to the FTC. The next highest age group affected was 30 to 39.

"Unless you don't have a Social Security card and no bank accounts, you can't be 100 percent sure you will not become a victim of identity theft," McDaniel said.

FTC experts say identity theft starts with the misuse of personal identifying information such as name and Social Security number, credit card numbers or other financial account information.

Some of the methods thieves use to get information include:

• Dumpster diving: Rummaging through trash looking for bills or other paper with your personal information on it.

• Skimming: Stealing credit/debit card numbers by using a special storage device when processing your card.

• Phishing: Pretending to be a financial institution and sending spam or pop-up messages to get you to reveal your personal information.

• Change of address: Diverting your billing statements to another location by completing a change of address form.

• Stealing: Stealing wallets and purses; mail, including bank and credit card statements, pre-approved credit offers; and new checks or tax information. They steal personnel records, or bribe employees who have access.

• Pretexting: Using false pretenses to obtain personal information from financial institutions, telephone companies and other sources.

"It's hard to believe, but dumpster diving is still the big issue," Neely said.

McDaniel said once garbage is put on the curb, it becomes legal domain and anyone can go through it. She said the best way to prevent someone getting information and using it is to shred unwanted documents.

"It just makes good sense to shred," said Tommy VanSandt, owner of Keystone Office Center in Florence. VanSandt said he shreds all of his documents and has a shredder that is available to others in the office complex.

"You get so much junk mail, and it has information on it that can be damaging if someone gets their hands on it," VanSandt said. "Anything that has my name on it, I shred it."

John Carrico, of Tuscumbia, received a shredder for Christmas from his mother-in-law; in fact, she gave shredders to everyone in her family.

Carrico said he routinely uses the shredder at work and at home.

McDaniel said it's good practice for individuals to check their credit reports periodically and also have their names removed from marketing lists so fewer credit applications will be sent to their residences.

"The biggest thing is to be aware," Neely said. "We live in a bubble. The sooner we become aware of the problem, the better educated we can become."

McDaniel said identity theft is a crime of access. She said the less information made available and the less accessibility thieves have, the less likely it is that identity theft will occur.

McDaniel said the BBB uses programs throughout the year to educate the public.

"We want people to be aware of the problem and hopefully they will take information from our seminars back home and share it with others," she said. "We want people to be prepared and protected against this growing problem."

For details about identity theft, call the BBB of the Shoals at 740-8224 or the Federal Trade Commission at (877) 438-4338.

Tom Smith can be reached at 740-5757 or tom.smith@TimesDaily.com.