Identity Theft

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The stealing of an identity has never been easier. All that is needed is high quality computer software, a scanner, and a printer.

The U.S. Office of Consumer Affairs says identity theft is one of the fastest growing segments of credit card fraud. And by using the Internet, this crime has risen to the point that it defrauds more than a thousand people a day, and costs billions of dollars each year.

When identity theft happens, a survey of 1000 people by Deluxe Payment Protection Systems showed that consumers look to two places to resolve the problem - law enforcement, and their financial services institution.

Consumer Reports lays the problem right on our doorstep. In a report in that magazine, it cites poor fraud detection services in financial institutions as one of the reasons why identity theft has skyrocketed.

Stop It At The New Accounts Desk
The place to stop identity fraud is, of course, at the new accounts desk.

The careless opening of accounts, according to some experts, costs our industry over $15 billion a year. President Clinton last year signed into law the Identity Theft Protection Act of 1998 which makes identity theft a federal crime, providing mandatory restitution for victims. The new law authorizes the Federal Trade Commission to maintain a national database of identity theft reports, provide information to victims, and refer complaints to consumer reporting agencies.

Deluxe Payment Protection Systems, a business unit of Deluxe Corporation, has published common sense guidelines for you to pass on to your account holders to reduce the risk of identity theft. Feel free to copy it and/or use it in a statement stuffer.

Protect Against Identity Theft

1. Safeguard your checkbook and supply of checks.
2. Don't put paid bills with checks inside your mailbox for postal pickup.
3. Guard your identity. Keep bank account number, Personal Identification Numbers (PINs), Social Security Numbers, etc. out of your pocketbook and wallet.
4. Shred or destroy financial documents such as old bank statements or credit offers that contain account numbers or account information.
5. Always write checks in ink.
6. Use caution when providing financial information over the phone. Know how the information will be used.

We often put our front-line employees under considerable pressure to establish as many new customer relationships as possible. Occasionally, our new accounts people will override negative information, or fail to make inquiries, resulting in account losses due to fraud or account abuse.

It's so easy to obtain false identification, and steal someone else's identity. Stay sharp, new accounts people. It's up to you!

Copyright © 1999 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 9, No. 4, 5/99