Identity theft happens in a variety of ways. The mental image that springs to mind is of a lone bad guy, trying to cheat the system by using stolen cards to pick up a big-ticket item; a television, a stereo system, etc. This stereotype, while not completely inaccurate, is a fairly complete picture of what happens. Most people are familiar with the end results when your purse or wallet is lost or stolen—people try to use the credit cards, checks and drivers licenses before the cards are cancelled, maxxed out, or voided. What isn’t so well known is exactly how the contents are used. What you learn may surprise you.
The driver’s license can be used in a number of ways; having this ‘alternate’ ID is the most well-known way to access goods and services denied to someone with either a bad driving record, those ineligible to hold a license, or someone with a criminal background. The thief who vaguely resembles the picture on your ID will try to use that ID along with your credit cards. Mel Gibson’s character in the movie Payback made a point to pick the pockets of people who looked like him. If you think that the average thief isn’t smart enough to consider this tactic, guess again-some thieves group together and try to match the stolen ID to the face of one of the group.
Your drivers license number can be used to do a number of things in your name—the most troublesome of these, believe it or not, is often car rental. On the surface it doesn’t seem like a major problem—after all, once you have established that your ID was stolen, the car company will take your name off the fraudulent transaction, right? While this may be the case, you may have to deal with a police inquiry if a third party has rented a vehicle in your name for use as a getaway car for a robbery, drug deal or other crime. You will get it all sorted out in the end, but the inconvenience and potential embarrassment is something most people never dreamed could happen, all over a missing license.
Professional thieves take full advantage of your ID and credit/debit/ATM cards. They understand that there is a limited amount of time that they can safely use your credit, your likeness and your name. Once they have obtained a purse or wallet, no time is wasted going to the shopping mall to make large purchases, later to be returned or exchanged, with receipt in hand. The returns are done for quick cash, and large amounts of returns can indicate pooling of money for drugs or other illegal activities. Many groups drive up and down in strip malls with trucks or vans, letting members of their crews out in front of Old Navy, Nordstroms, Borders and other retail outlets. The thieves enter the store, grab hundreds of dollars of merchandise off the racks without looking at sizes, prices or colors, then get in line for the quick score. The merchandise returns are made later, and usually without fear; those doing the returns sometimes try to brazenly steal additional merchandise in the same store.
There has been a great increase in the policy many retailers now use of only crediting merchandise returns back to the original card and not giving cash back for a credit card purchase. Thanks to these retailers, thieves often must resort to using a “fence” to whom they will sell the stolen goods. These items later wind up at flea markets, for sale on the internet, and sometimes even overseas for sale in open-air markets or tourist attractions. Whatever the final destination, there is still a large underground market for stolen merchandise whether purchased by credit card or stolen by organized groups of shoplifters.
There are many ways to protect yourself against these people. One of the best ways is to get into the habit of not signing your credit cards—instead, write the phrase “see ID” on the back. There is a minor inconvenience in having to show your license every time you make a purchase, but the safety factor is well worth the hassle. When you lose your credit cards or license, it’s critical to make a report immediately—the thieves are already trying to use your personal info for their own purposes.
At some point, just about everyone will lose their credit cards, their identification, anything not nailed down that you must carry with you on a day to day basis. The key is to be prepared for that day, act quickly, and shut down the flow of credit from your cards as soon as possible. Report your ID stolen to the proper authorities, and get in touch with a credit counseling agency to see what can be done to stop any potential damage to your credit rating while you are sorting out the mess.
