CONSUMER ALERT

MIKE COX
ATTORNEY GENERAL

 The Attorney General provides Consumer Alerts to inform the public of unfair, misleading, or deceptive business practices, and to provide information and guidance on other issues of concern.

IDENTITY THEFT INFORMATION FOR MICHIGAN CONSUMERS

Identity theft continues to top the Federal Trade Commission’s (FTC’s) reports of fraud complaints by consumers.  This alert is an ID theft summary specifically for Michigan consumers, including references to Michigan law. 

SPECIAL INFORMATION FOR VULNERABLE ADULTS AND THEIR CARETAKERS:

The Attorney General's Health Care Fraud Unit investigates and prosecutes cases involving abuse of elderly and other vulnerable adults, including cases of ID theft. (See the Attorney General's Abuse Alert on identity theft for more information.)

Victims and caretakers of victims who live in a residential care or assisted living facility should directly contact the Attorney General's 24-hour Health Care Fraud Hotline at 1-800-24-ABUSE / 1-800-242-2873.

THE MOST IMPORTANT INFORMATION ABOUT ID THEFT - CONSUMERS CAN HELP THEMSELVES!

This alert explains some simple and effective steps consumers can take to:

• Reduce their risk of becoming a victim, and 
• Respond quickly and effectively if their personal information has been fraudulently misused.

WHAT IS ID THEFT?

Identity theft is the wrongful use of YOUR personal information – such as your name, social security number, or credit card number - without your permission by another person to commit fraudulent or criminal acts.  ID thieves take out phony loans or ring up bogus charges in your name.  Some consumers have even experienced criminal convictions in their names from the criminal acts of ID thieves. 

The inability to gain access to credit and the disruption of daily life can be devastating.  Victims of ID theft often have trouble getting new credit cards or loans because of the damage to their credit ratings, and the time and emotional toll consumers pay when trying to reverse the effects of ID theft can be heavy.

ID theft is a silent crime.  Experienced ID thieves may use your identifying information for months or years while you remain unaware.  Often, consumers first learn that they have become victims of ID theft only when they are denied credit on the basis of negative entries on their credit reports.

There is good reason for consumers to be concerned - ID theft:

• Can strike anyone at any time;

• Can destroy a consumer’s credit standing;

• Can cause adverse employment actions;

• Can result in wrongful criminal convictions;

• Creates nightmares for citizens trying to restore their good names;

• Causes heavy fraud losses to honest businesses and drives up prices to consumers.

HOW ID THIEVES OBTAIN YOUR PERSONAL INFORMATION:

ID thieves use your personal information to impersonate you. The information might include your credit card or bank account numbers, your social security number, your date of birth, your mother’s maiden name, your driver’s license or state ID number, your email address, account passwords, and other items that can uniquely identify you. 

ID THIEVES:

• Steal wallets and purses containing your personal information, such as social security numbers, driver license numbers, credit and debit card information, and checking account numbers;
• Steal your mail – financial statements, utility bills, medical correspondence, pre-approved credit offers, social security checks, and tax documents all contain personal information useful to ID thieves;
• Submit a change-of-address form with the US Postal Service to divert your mail to another location;
• Rummage through household or business trash containers.  For professional "dumpster divers," trash containers are gold mines of valuable personal information;
• Fraudulently obtain your credit report by posing as a landlord, bank, employer, or someone else who may have a legitimate need to review your report;
• Find personal information you have left in a place accessible to the public, such as a store or unlocked car;
• Get hold of the personal information you share on the Internet;
• Obtain your personal information from an insider – for example, a store or bank employee.

HOW IDENTITY THIEVES MISUSE YOUR PERSONAL INFORMATION:

• They open a new credit card account, using your name, date of birth, and social security number.  When they use the credit card and don't pay the bills, the delinquent account is reported on your credit report; 
• They establish telephone or other utility service in your name; 
• They open a bank account in your name and write bad checks on that account; 
• They take out loans or obtain credit in your name; 
• They counterfeit checks or debit cards, and drain your bank account; 
• They file for bankruptcy under your name to avoid paying debts they've incurred under your name, or to avoid eviction. 

 INFORMATION FOR VICTIMS OF ID THEFT:

 ID theft victims who call the Michigan Attorney General's office are immediately advised to: 

1.   Contact the fraud departments of each of the three major credit bureaus to report the theft.  Ask for a "fraud alert" to be placed on your file and request that no new credit be granted without your express, personal approval.  Ask how long your account will be flagged.  Record the expiration date of the fraud alert, and call back as this date approaches if you wish the alert to remain on your file.  

            Equifax:            1-800-525-6285 

            Experian:          1-888-397-3742

            Trans Union:      1-800-680-7289

2.    For any accounts that have been fraudulently accessed or opened, contact the security or fraud departments of your credit card issuer, bank, utility company, etc.  Close these accounts.  Ask for your account to be password protected to prevent further unauthorized activity, and use unique passwords (not your mother's maiden name or social security number) on any new accounts you open.  

3.   File a report with local police or the police where the identity theft took place.  Record the report number and keep a copy of the report, in case the bank, the credit card company, or others need proof of the crime later.

4.   Call the FTC's ID Theft Clearinghouse toll-free at 1-877-ID-THEFT (1-877-438-4338) to report the theft.  Counselors will take your complaint and advise you on how to deal with the credit-related problems that could result from ID theft.  Complaints are entered on the nation's only central identity theft database.  The database and related identity theft information is accessible to law enforcement around the nation to help them spot patterns and pursue criminals.

The FTC's booklet ID Theft: When Bad Things Happen To Your Good Name (available at http://www.consumer.gov/idtheft) is suggested reading for all consumers and should be reviewed by victims of identity theft.  This booklet is a comprehensive national guide and details important matters not covered by this alert.  

If a company insists on pursuing a debt that is obviously the result of identify theft, the Michigan Attorney General's Consumer Protection Division may be able to help you resolve the problem.  Please file a complaint with our office.  (Contact information for the Consumer Protection Division is listed below.) 

FILING A POLICE REPORT & MICHIGAN LAW ON IDENTITY THEFT:

One of the first things victims of identity theft are advised to do is to file a police report with local police or police where the identity theft occurred.  Victims should keep a copy of the police report for their records.  Credit card companies and financial institutions may require a victim to show a copy of the report to verify the crime. 

Some victims of identity theft have reported that law enforcement is reluctant to receive a report.  The following laws, passed in the last few years, may still be new or unfamiliar to some law enforcement. Proving a copy of the law may improve your chances of successfully filing a report.   

• A person who knowingly possesses, prepares, submits, or receives an application for a loan, or other extension of credit, in another person's name and without authorization is guilty of a felony punishable by imprisonment for up to four years, or a fine of up to $2,500.00, or both.  MCL 750.219e  
• A person who receives with the intent to forward, possesses with the intent to forward, or forwards an application for a loan, or other extension of credit, knowing or having reason to know the application has been prepared or is being submitted in another person's name without authorization, is guilty of a felony punishable by imprisonment for up to four years, or a fine of up to $100,000.00, or both.  MCL 750.219f  
• A person who obtains or attempt to obtain, without authorization, personal identity information of another person with the intent to unlawfully use that information to: (1) obtain financial credit; (2) purchase or lease real property; (3) obtain employment; (4) obtain access to medical records; or (5) commit an illegal act is guilty of a felony punishable by imprisonment for not more than five years or a fine of not more than $10,000.00, or both.  MCL 750.285 

ID THEFT PREVENTION - STEPS YOU CAN TAKE TO REDUCE YOUR RISK:

·         Don't disclose your social security number, your date of birth, your mother’s maiden name, your driver’s license or state ID number, your email address, account numbers, credit card numbers, or other personal information unless you know who you’re giving it to and for what purpose.  For example:

·         If a retailer asks to record your social security number or driver’s license number on your check, ask why, and consider paying with cash instead of by check; 

·         Ask how a prospective employer will handle the personal information on your application; 

·         Be aware that identity thieves may call you posing as representatives of banks or governmental workers, contact you with bogus email offers with links to phony websites, or send you sweepstakes offers in the mail – all in an effort to trick you into revealing your personal information. 

·         Never give out your SSN, account numbers or other identifying information to someone who calls you and demands your personal information.  If in doubt, find the telephone number of the government office, credit card company, or other business independently – from your monthly account statement or telephone directory – and say you’ll call back.  If the caller resists your request, hang up. 

·         Carefully - and promptly - review records, especially your credit card statements, bank, and mortgage statements, for unauthorized charges or fraudulent use.  In addition, scrutinize your local, long distance, cellular, and other utility bills each month.  Report, in writing, any unauthorized uses. 

·         Shred or destroy all mail and other documents containing your personal information - credit receipts, bank statements, medical documents, utility bills, pre-approved credit offers, etc. - before discarding them to prevent "dumpster divers" from fishing your valuable personal information out of the trash.

·         Keep sensitive documents in a safe and secure place at home, especially if you have roommates, employ outside help, or are having service work done in your home.

·         Cancel all credit cards that you do not use.  These account numbers are listed on your credit report and may be stolen by ID thieves.

·         Don't use insecure mailboxes.  Never mail personal checks from an unlocked mailbox and make sure your sensitive mail is delivered to a secure mailbox or PO Box at your local post office.

·         To stop receiving pre-approved credit card offers in the mail, call 1-888-5-OPTOUT (1-888-567- 8688).

·         Register with the FTC’s national do-not-call program to reduce your telemarketing calls.  Michigan consumers who have access to an email address are able to sign up, at no cost, on the national registry online at www.donotcall.gov.  The toll-free number to call for registration is 1-888-382-1222. 

·         Tell banks, insurers, and other financial institutions not to share your customer information. Under federal law, they are required to honor your request.  However, the law does not prevent these institutions from sharing your information with sister companies, subsidiaries, or companies with whom they have a "joint marketing agreement."

·         Limit the information printed on your personal checks - your middle name, phone number, SSN, and driver's license number; and if you have an established account, even your address can be left off your checks when you order new checks from your financial institution.

·         Keep a secure master list or photocopies of all important identification and account numbers – driver’s license, social security card, credit cards, bank and utility account numbers, expiration dates, and the phone numbers of the customer service fraud departments of your card issuers.  Keep this list in a safe, accessible place, such as a safe or safe deposit box - and not your purse, wallet, or car – so that you can respond quickly in case your identification is lost or stolen.  You may wish to use the Attorney General's Master List of Financial and Identification Information available at:                                           http://www.michigan.gov/documents/Master_Info_Form_v1_78440_7.3.pdf

·         Memorize all your passwords or keep them in a very safe location, such as a safe deposit box.  Don’t record them on anything you carry with you in your purse, wallet, or car.  Never keep passwords or PINs near cards or documents identifying the account they belong to, unless the information is stored in a safe deposit box or other very secure place. 

·         Shop smartly online.  The Internet puts vast information at your fingertips.  Before shopping, though, make sure that you are familiar with the company or seller, including their privacy policy.  Disclose only necessary personal information, and opt out of information sharing if possible.

·         Order a copy of your credit report from each of the three major credit-reporting agencies every year.  Make sure it is accurate and includes only those activities you've authorized.  The law allows credit bureaus to charge you up to $9.00 for a copy of your credit report.

Equifax —
www.equifax.com
To order your report, call: 1-800-685-1111
or write: P.O. Box 740241, Atlanta, GA 30374-0241
To report fraud, call: 1-800-525-6285
and write: P.O. Box 740241, Atlanta, GA 30374-0241

Experian —
www.experian.com
To order your report, call: 1-888-EXPERIAN (397-3742)
or write: P.O. Box 2104, Allen TX 75013
To report fraud, call: 1-888-EXPERIAN (397-3742)
and write: P.O. Box 9532, Allen TX 75013 

TransUnion —
www.transunion.com
To order your report, call: 800-916-8800
or write: P.O. Box 1000, Chester, PA 19022.
To report fraud, call: 1-800-680-7289
and write: Fraud Victim Assistance Division
P.O. Box 6790, Fullerton, CA 92834-6790

Consumers may contact the Attorney General's Consumer Protection Division at:

    Consumer Protection Division
    P.O. Box 30213
    Lansing, MI 48909
    517-373-1140
    Fax: 517-241-3771
    Toll free 877-765-8388
    www.michigan.gov/ag

Additional information is available at the FTC's website: