Consumer Corner with Anita Wilson: Stopping identity theft in its tracks

AP

Published: 01-23-2025 2:42 PM

A Hampshire County college student received a bill for a cellphone plan he never signed up for with a telephone number he didn’t recognize.

A Franklin County resident was befuddled when she looked at her Medicare statement and saw services provided at a hospital in Florida, but she lives here in Massachusetts year-round.

A small business owner received a debt collection notice from a company she had never heard of claiming she owed thousands of dollars.

These are all real people who were victims of identity theft. Identity theft is when someone uses your personal or financial information without your permission to commit fraud. That information can include your name, Social Security number, date of birth, credit card or bank account number, or insurance or Medicare number.

This information can be used to buy items using your credit card or bank account, obtain a new credit card or loan, open an account for a utility such as phone service, electricity, or cable, apply for unemployment or other government benefits, to claim your tax refund, or file false insurance claims.

If all that trouble isn’t enough, identity theft also can damage your credit score and affect your ability to get credit, result in financial losses, and can cause potential legal consequences if you get sued for an outstanding debt in which someone used your credit and personal information to open.

A survey co-sponsored by AARP estimates that identity theft and related fraud cost Americans $43 billion in 2023 alone.

All three of the people mentioned above came to our Consumer Protection Unit seeking help. We advised the college student to dispute the bill with the company’s fraud department. We suggested the woman report the fraud to Medicare. We counseled the business owner to request a proof of the debt owed by the company. And for all of them, we advised them to run their credit scores and file a complaint with the FTC, (More information on how to do this at the bottom of this column.)

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Identity theft has become so common that the FTC sponsors National Identity Theft Awareness Week during the last week of January, this year partnering with other government and community agencies to present educational webinars to better prepare consumers to spot, avoid, report, and recover from identity theft. The schedule can be found here. https://consumer.ftc.gov/features/identity-theft-awareness-week.

In recognition of National Identity Theft Awareness Week, I have some information and tips to share with you about avoiding identity theft and fraud.

How can identity theft happen?

Personal and financial information can be stolen during a data breach, when a hacker breaks into a company’s computer systems and takes information stored there. Last year, the Massachusetts Office of Consumer Affairs and Business Regulation received reports of more than 2,292 breaches involving nearly 2.25 million Massachusetts residents.

It can also happen when someone obtains documents with personal or financial information, or by stealing a wallet with credit cards, bank cards, insurance cards, and personal ID inside. Some scammers will go through trash or recycling bins for documents with account numbers or steal mail.

Other ways identity thieves can cause trouble are by using emails, phone calls, or text messages to pretend to be from a bank, government agency, or business to trick the recipient into providing them with account logins, passwords, or other personal information. They may also install skimmers at ATM machines, cash registers, and fuel pumps to steal information from your debit or credit card. Many times, a consumer is not aware that their information has been exposed or stolen until they see signs of fraud or identity theft.

Signs of identity theft

Some signs of indentity theft include:

■Unexpected charges on bank or credit card statements for items never bought.

■Unexpected bills from a company that you haven’t done business with for accounts you didn’t open.

■Debt collection calls or letters for accounts you didn’t open.

■Information on your credit report for accounts you never opened.

■Inquiries on your credit report that you didn’t authorize, which could be a sign someone is using your information to apply for credit.

■Denials of loan or credit applications even if you have a solid credit history.

■An unexpected drop in credit score.

■Your tax return is rejected.

■Services listed on your Medicare or insurance statement that you didn’t receive.

■Mail stops coming to or is missing from your mailbox.

There are some steps you can take to protect yourself from identity theft and fraud. Consider freezing your credit reports with each of the credit monitoring companies — Equifax, Experian, and TransUnion. This simple step blocks someone who may have your personal information from opening new credit accounts in your name. Importantly, it will not prevent you from using your existing credit cards.

Check your credit reports at least once a year and report any mistakes or accounts that you didn’t open. Limit who has your personal information. While there are certain circumstances where you are required to provide your Social Security number and date of birth such as opening a bank account or applying for government benefits, you shouldn’t need to provide that information in most situations.

Don’t provide any information to someone who reaches out through phone calls, text messages, email or social media these methods. For legitimate transactions, you should be the one reaching out.

Keep your account numbers and other sensitive information out of the wrong hands by shredding personal documents and bills. Carry bank and credit cards, insurance cards, and your checkbook only on the days you will be using them; otherwise store them in a secure place at home. Look for signs of fraud in your existing accounts and review bank, credit card, and insurance statements each month and report unauthorized charges.

Reporting, getting help

If the theft involves a bank account, credit card, or a loan, notify that financial institution immediately. If you believe your information was used by someone known to you, contact the police.

The FTC takes reports of identity theft and helps consumers create both a personal recovery plan and an identity theft report. This can be done online at https://www.identitytheft.gov or by phone at (877) 438-4338. You will receive a step-by-step plan to guide you as well as a report you can keep in your records. Keep all records and documents related to the identity theft or fraud as well as documentation of the actions you have taken to resolve the situation.

If you have questions or would like to receive additional information contact the Consumer Protection Unit at 413-586-9225 in Northampton or 413-774-3186 in Greenfield. Information can also be found at our website https://www.northwesternda.org/consumer-protection-unit/pages/consumer-resources.

Anita Wilson is the Director of the Consumer Protection Unit at the Northwestern District Attorney’s Office.