Identity theft has become one of the fastest growing crimes in the United States – affecting both consumers and retail businesses – and it is being used as a means of furthering or facilitating other types of crime, from fraud and organized crime to terrorism.
Identity thieves often steal purses or wallets or steal newly issued cards or credit-card applications from mail boxes. Some will rummage through trash to pick out bank and credit card statements. Letters that contain "pre-approved credit-card" offers, if not shredded or destroyed, can be sent back to the issuing bank requesting that the card be sent to the recipient, but at a new address of the identity thief's choosing.
These fraudsters take advantage of us as we simply go about our everyday routines – charging dinner at a restaurant, using payment cards to purchase gasoline or rent a car, or submitting personal information to employers and various levels of government. Consumers may be leaving or exposing their personal data undertaking any of these, and identity thieves can unearth and use it without the consumer's knowledge or permission. Here are a few examples: • "Shoulder Surfing": looking over a customer's shoulder from a nearby location as he enters is PIN at an ATM machine. By installing a fake ATM device that reads the card's encoded data, or by distracting the consumer while his card is taken or switched with another, an identity thief can then use his PIN to drain that bank account without his knowledge. • "Skimming": Identity thieves also "skim" or "swipe" customer credit cards at restaurants and cash stations, using an electronic device known as a skimmer. The skimmer records the personal information data from the magnetic stripes on the back of the cards. Identity thieves then transfer or transmit the data to another location where it is re-encoded onto fraudulently made credit cards.
• E-Mail and Web site "Spoofing": The creation of e-mails and web sites that appear to belong to legitimate businesses, such as financial institutions or online auction sites. The sole purpose is to obtain the consumers' personal data to engage in various fraud schemes.
• Theft from Company or Government Databases: Criminals have broken into offices to steal computer hard drives, bribed or compromised employees into obtaining personal data for them, and hacked into databases. I have been a longtime advocate of efforts to root out consumer fraud, having chaired Senate hearings on sweepstakes fraud as well as mail, internet and telemarketing schemes that specifically target the elderly. In 2000, I conducted an investigation that revealed the widespread availability on the Internet of a variety of fake identification documents. I introduced legislation based on our findings, signed into law later that year, that provided needed updates to federal laws against false identification to ensure that they are suited to the Internet age and the technology associated with it.
There is a great deal more that can be done to fight this fraud, however. The first line of defense is to promote public awareness of the dangers of such crimes, the types of schemes in which criminals are likely to engage, and what consumers can do to report suspicious or criminal activity and help law enforcement officials catch up with the identity thieves. By following the preventive actions outlined in "Operation Identity Crisis", consumers can significantly reduce their odds of falling prey to an identity thief.
"Operation Identity Crisis" is a national campaign to educate consumers about identity theft and provide consumers with tips to prevent them from becoming potential victims. The campaign was kicked off this fall, with Jerry Orbach, of NBC's Law and Order, as the national spokesperson for the campaign. The Postal Inspection Service is partnering with the Federal Trade Commission, the United States Secret Service, the Department of Justice and various financial institutions in this endeavor. Earlier this month, I joined with officials from the U.S. Postal Service and the Secret Service in a press conference in Portland to kick off the initiative.
The Postal Inspection Service is involved because much of the criminal activity takes place through the mail. Identity thieves often steal mail to get the information needed to apply for checks and credit cards or submit fraudulent applications for new cards by mail. During Fiscal Year 2003, Postal Inspectors have already arrested over 2,800 suspects for credit card and identity theft offenses.
The Postal Inspection Service and the other agencies involved in "Operation Identity Crisis" are working to publicize steps that you can take to reduce the risk of identity theft. They recommend that you never leave mail in your mailbox overnight or on weekends and always deposit mail in U.S. Postal Service collection boxes. Tear up unwanted documents containing personal information and review your consumer credit report annually. Always sign your credit cards and report lost or stolen cards immediately. Check expiration dates on credit cards and be sure that new cards reach you. Match credit card receipts against monthly bills. Memorize your Social Security number and other passwords; don't carry them with you. And never leave receipts behind – at ATMs, on counters at financial institutions, or at gas pumps. For more information, you can visit the U.S. Postal Inspection service website at www.usps.com/postalinspectors. Working together, we can do a great deal to limit our exposure to identity theft. I commend the Postal Inspection Service, the Postal Service, the Federal Trade Commission, the Secret Service and the Department of Justice for their continuing efforts to educate and protect the American consumer. And I hope that you will follow the steps outlined in "Operation Identity Crisis" to protect yourself. You can count on my continued support as we work together to prevent individuals from becoming victims of this fast-growing crime.