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Today's Feature Article • Tuesday, August 21, 2001

How To Become A Victim Of Identity Theft!
-- by Michael S. Hyatt

Gordon comments:  Americans living in financial glass houses are waking up, en masse, to the privacy issue -- the SSN being the primary lynch pin of their discontent. Original SS cards stated: "Not to be used for identification purposes". Uh, huh. 

For a view of your grandchildren's fully regulated future, rent the video "THX 1138" in which citizens no longer HAVE numbers, they ARE numbers.

The New World Order gravy train would grind to a halt were indexed humans the globe over simply to stop using their government-issued numeric identifiers. After all, how can thousands of "Bob Smith's", "Pierre LeBrun's", or "Kim Wong's" easily be identified, surveilled, catalogued and tracked by their respective Big Brothers without uniquely assigned electronic tattoos?

While the following piece is ostensibly about the exploding "white collar" crime of "identity theft", it isn't the actual identify of the victim that the perpetrator creeps into, it is his or her credit profile. Of course, if one does not live on, or need, credit (as I do not), who the heck cares who steals it? Good riddance to bad rubbish, I say.

Like the decrepit rowboat, purchased over and over again by hapless inmates attempting to escape from Devil's Island in the movie "Papillon", border-hopping Mexicans and other enterprising "illegals" routinely purchase the very same SSN -- maybe yours -- over and over again, often for fees as low as 500 FRN's each. Perhaps a wily entrepreneur could make a quick buck here by simply RENTING his "identity" to the less credit-worthy and the numerically disadvantaged. There you have it, an opportunity is born!

As for myself, I stopped using my very own electronic bar code back in 1991. Like a toddler flicking a wet booger, I finally got rid of it, legally, in 1995 (via Affidavit of Revocation and Rescission sent certified mail to Bob Rubin, then Secretary of the Treasury), and haven't missed it for a minute. Maybe I should reconsider that decision and begin viewing my old dog tag as an appreciating collectible!

Excellent books to read on the subject of identity theft and privacy generally are, among others, "Bulletproof Privacy" (ISBN 1888766026) by Boston T. Party; "How To Be Invisible" (ISBN 0312252501) by J.J. Luna; "Identity, Privacy And Personal Freedom" (ISBN 1581600429) by Sheldon Charrett, and; "Invasion Of Privacy: How to Protect Yourself In The Digital Age" (ISBN 0895262878) by Michael S. Hyatt, author of the following pithy piece and host of www.moreprivacy.com.

While Mr. Hyatt's article is geared towards enumerated, taxpaying members of Club Federale and absent all mention of the Law (as in, citizens are not required to have or use a SSN in the first place), it is nonetheless superbly instructive for privacy seeking freedom lovers everywhere.

It's 10:00PM. Do you know where YOUR Social Security Number is? ;-)

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How To Become A Victim Of Identity Theft! -- by Michael S. Hyatt

So you want to become a victim of identity theft? Congratulations! It's never been easier. Last year, approximately 500,000 people had their identity stolen. This year, that number will increase to 750,000 cases and that's just the tip of the iceberg.

Many experts believe that as many as two-thirds of all cases of identity theft go unreported. So, your chances of becoming a victim are very good. No wonder the Federal Trade Commission has referred to identity theft as "the fastest growing white-collar crime in America."

Here are some more facts you should consider:

Incidences of identity theft are growing at the rate of 40-50 percent per year.

The FTC identity theft hotline (877-IDTHEFT) is already currently logging more than 2,000 calls a week. Most people don't know such a line even exists.

The Secret Service estimates that in 1997 consumers lost more than $745 million due to identity theft. Many law enforcement experts believe that number is now more than several billion dollars annually, considering losses to credit card companies, victim costs (including legal assistance), and judicial and law enforcement time in investigating and trying cases, etc.

An independent study in 1999, commissioned by Image Data LLC, an identity theft prevention service, found that approximately one out of every five Americans, or a member of their families, have been victimized by identity theft.

On average, victims spend 175 hours and $808 in out-of-pocket expenses to clear their names.

Doesn't this sound fun?

Why are incidences of identity theft multiplying so rapidly? Because identity theft is such an easy crime to commit.

Identity thieves don't have to be educated. Abraham Abdallah, who was arrested in March for stealing the identities of 217 of the world's richest people, was a high school dropout. You don't have to be working in the financial services business or any other enterprise with access to sensitive personal data. Abdallah was a busboy. You don't even have to have any specialized computer knowledge. In fact, you don't even have to own a computer! Abdallah used a public library computer. Although Abdullah was eventually caught, he successfully
made off with several hundred thousand dollars.

So how do you get started?

If you are serious about becoming a victim of identity theft, the single most important thing you can do is become an attractive target. This is much easier than you think.

Just follow these simple, step-by-step suggestions:

1. Give Your Social Security Number Out To Anyone Who Asks. 

In order to rip off your identity, a thief needs your SSN. Sure, he can go to the trouble of buying your SSN from any one of a dozen Web sites, but why make it difficult for him? If you want to become an easy target, and thereby improve your chances of identity theft, you must put your SSN where it is easily accessible. If possible, make sure it is printed on your driver's license. Also, be sure to have it printed on all your checks. Give it to anyone who asks - even those who don't really have a legitimate need for it. After all, why risk embarrassment by refusing to give out your SSN.

2. Lose Your Wallet Or Purse.

Consider how much personal information you carrying in your wallet. In addition to your driver's license, you should also carry several other important documents that typically have your SSN on them: your Social Security card, health insurance card, voter's registration card, student ID, gun carry permit, professional license, etc. In addition, it's a good idea to carry your birth certificate in your wallet. When it comes to identity theft, this is even better than a SSN! Finally, make sure that your home address and phone number are also in your wallet. This will make the package complete and ensure that the identity thief has everything he needs to almost instantly steal your identity. Now,
simply lose the wallet and wait for the fun to begin.

3. Receive Your Mail At Your Home Address.

This is critically important. Identity thieves make a habit of driving through neighborhoods and stealing mail while the residents are at work. They love to get their hands on bank statements, brokerage statements, and - best of all - pre-approved credit card offers. If your mail sits in your mailbox all day, it practically begs to be stolen. That's why getting a post office box or private mail box is the worst thing you can do. This allows your mail to be received in a secure environment, making it difficult if not impossible for thieves to get at it. In addition, it's so much more convenient to receive your mail at home.

4. Throw Sensitive Data Directly In The Trash.

When you've finished reading your mail, throw it directly into your trash. This includes your check statements and other documents with account numbers or your Social Security number. It has become fashionable in many neighborhood to shred these documents first. Please don't do it. It makes it much more difficult for identity thieves to put these documents back together. In fact, most of them will be so discouraged they will move on to an easier target. If you simply must shred your trash for the sake of your image, then don't buy a "cross-cut" shredder. A regular shredder cuts the paper into long strips. These are more easily reassembled. A cross-cut shredder, however, cuts the paper into small squares, making it nearly impossible to reassemble.

5. Don't Bother Checking Your Credit Report.

I mean, really, what's the point. True, if you check your report regularly (say, once every 6 months), you could detect when someone had opened an unauthorized account in your name. In fact, if you didn't want your identity stolen, this would provide an opportunity to nip it in the bud. But you are in the opposite situation. You want your identity stolen and the more accounts that are opened the better. So why waste your precious time checking your report. Part of the fun of having your identity stolen is waiting several months until some creditor you've never heard of calls your home out of the blue, demanding payment for something you didn't buy. By this time, your credit report - and your credit rating - should be a mess!

6. Don't Reconcile Your Checking And Credit Card Statements. 

Again, this is similar to the point I just made. Identity theft often starts out as credit card fraud. If you check your statements regularly, you might notice small charges to vendors you don't recognize. If these go undetected, the perpetrators might try buying more expensive goods, or just stealing your identity altogether. If you try to stop this activity, you will only discourage the thieves and ruin your chances of becoming a victim. In addition, it's a hassle to scrutinize every transaction. The best thing you can do with these statements is throw them directly in the trash (without shredding, of course).

7. Don't Bother Opting Out Of Your Bank's Data Selling Program.

The 1999 Financial Modernization Act gives you the right to opt out of your bank or other financial institution's data sharing program. But don't even think about opting out. First, it's just too confusing to try and figure out how to do it. Second, and more importantly, if you do, you will ruin one of your best chances for becoming a victim. You'll stop getting all those wonderful, pre-approved credit card offers. More importantly, your bank will not be able to sell your sensitive account data to third parties, including data profilers who may re-sell it on the Web to anyone with a credit card. This, of course, includes identity thieves who often simply purchase the information they need to do their work.

8. Finally, Use Passwords And Pins That Are Easy To Crack. 

My personal favorite is the word "password." If you don't find that creative enough, use your mother's maiden name or the last four digits of your Social Security number. These are the combinations thieves try first. You can also use any word that appears in the dictionary. More sophisticated criminals can use a password cracking program that will "throw every word in the book" at the system until it gets a match. Whatever you do, avoid pass phrases (more than one word), especially ones include numbers and other symbols. These are almost impossible to crack and will send your would-be thief into the night, in search of easier targets.

Will the steps I have outlined above guarantee that your identity will be stolen? No. But they dramatically improve your chances. Try to complete as many of them as possible and, hopefully, you will soon become a victim.

Good luck!