Identity crisis

Posted: April 1, 2009

By Peter Adelsen

Although Indiana has fallen down the list of states in reporting identity theft, the fact is that Indiana has seen an increase, but not has much as some other states.

In Indiana, the number of reported identity theft complaints increased by 563 from 4,026 in 2007 to 4,589 in 2008, which was a 14 percent increase, according to the Federal Trade Commission. The state ranked 26th and 31st nationally, respectively.

Locally for 2007, the Kokomo metropolitan statistical area, which includes Howard and Tipton counties, ranked eighth in the state with 83 complaints and ranked 237th nationally. For 2008, the Kokomo area moved up to fourth in the state with 129 complaints and ranked 129th nationally. This was a 55 percent increase from the previous year. The number of complaints is only one part of the rankings, though. The ranking is based on the number of identity theft complaints per 100,000 inhabitants for each metropolitan area, according to the Federal Trade Commission.

The South Bend-Mishawaka metropolitan statistical area has run away the past two years for first place in the state with 463 in 2007 and 530 in 2008. The area ranked 37th and 52nd nationally, respectively. To the east is the Elkhart-Goshen metropolitan statistical area, which ranked second in the state in 2007 with 212 complaints and ranked third in 2008 with 237 complaints. Nationally, this region ranked 110 and 128 in those years.

As identity theft crimes worsen, many different organizations are trying their best to prevent and educate against this crime.

Banks, such as Salin Bank, are taking better precautions against identity theft. Salin Bank security officer Michael Hubbs said that Salin is using two ways to go after identity thieves. He said that, with the help of an outside vendor, Salin Bank uses a network intrusion program to monitor all activity on its Web site and is antiphishing against criminals who mimic the Web site and then prompt a person to enter information from an e-mail. He said when phishing occurs, the bank tries to shut it down within 24 hours.

However, the bank cannot do all the protection, he said.

"I am certain that there are people who don't know their identity has been stolen," he said. "The bank only knows when the victim finds out. Most of the time it's the client who has to do the legwork, and simply getting a copy of your credit report every year helps."

Banks also monitor their clients' electronic transactions with fraud watch. The bank checks the person's spending habits to see if something is irregular, Hubbs said. So if something is out of the ordinary, the account may be frozen.

"Banks engage in this simply to prevent losses, and this is in the bank's and client's best interest so both don't end up losing money," he said.

Hubbs also said that nine times out of 10 that money stolen goes to the foreign nexus, meaning the money is hidden overseas.

Michelle Sybesma, a spokesperson for the Indiana Attorney General's Identity Theft Unit, said the Attorney General's Office assists victims and educates community organizations free of charge.

"When an identity crime happens, a lot of times it crosses police departments in different jurisdictions," she said. "This helps with the jurisdictional red tape as a way to solve the problem and to guide them back to rectify the situation."

She also said that credit is only a small portion of identity theft. The larger problems are with Social Security fraud, IRS tax-related issues, mail fraud, medical ID theft, and even acts of terrorism, she said.

"It's less about the fact that they took your identity. It's about what they did with it that is the problem," she said. "All they have to be is desperate and smart enough to connect the dots back to somebody."

As identity theft increases, many companies are now offering identity insurance, but this only works after an identity has been stolen; it does not prevent the theft, she said.

"Start to understand identity crime because there are a lot of organizations out there profiting on identity theft," she said.

She said that the Indiana Attorney General's Office could do as much for consumers free as these insurance companies do for a fee.

The majority of the identity theft occurs in or near the southern border states of Arizona, California, Florida, Texas, and Nevada. According to Tami Nealy, director of public affairs for LifeLock, employment-related identity theft is a trend in those states.

"This is a part of the immigration issue, and it has ripple effects," she said. "All they need is the Social Security number and the name of somebody else. They need no proof of age, state where they live, and eye color."

Hubbs agrees that identity theft has a lot to do with immigration.

"There is a large immigration influx who are in the country illegally, and you need resources to find a job," Hubbs said. "You need a government ID and a bank account to cash checks, so they either make fake Social Security numbers or assume somebody else's."

Hubbs said that there is never any excuse when using someone else's identity, including if it was "an accident."

Also since September 2008, there has been a 38 percent increase in people stealing identities through file-sharing networks online, Nealy said.

Nealy said one reason why identity theft has increased is that it is easier than ever.

"There has been a 52 percent increase in government documents and benefits fraud," she said. "One of the easiest ways to do this is through filing your tax return on your computer. Then once the thief gets your identity, he or she can apply for Medicare, Medicaid, or even a driver's license in your name."

So what can people do to help protect them from identity theft?

• Educate yourself about identity theft

• Look at your bank statements for any irregularities

• Destroy personal papers that you don't need

• Destroy medical records/prescriptions when not needed

• Don't leave personal items in hotel rooms

• Request a free credit report from a Web site like AnnualCreditReport.com

• Never give out your personal identification number (PIN)

• Don't use your mother's maiden name as a password

• Don't carry your Social Security card with you

Link: http://kokomoperspective.com/news/article_85a5739f-f814-5867-9222-29836e7a6f19.html