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The Honolulu Advertiser

Posted on: Sunday, April 18, 2004

Financial institutions providing assistance to victims of identity theft

By Eileen Alt Powell
Associated Press

NEW YORK — More help is on the way for victims of identity theft, one of the nation's fastest-growing crimes.

Two big banks — Citigroup and Washington Mutual — have started free programs to assist customers whose names or accounts are compromised by thieves.

And in June, a national organization representing some of the largest banks, brokerages and finance companies will launch an Identity Theft Assistance Center to help victims clear their names.

"ID theft has reached epidemic levels in the United States, and our customers are having real problems," said Steve Bartlett, president and chief executive of the Financial Services Roundtable, the Washington, D.C., organization behind the center.

There's no question that identity theft is a growing threat to American consumers.

A study last year for the Federal Trade Commission found that almost 10 million people a year are falling victim to identity thieves. In the most egregious cases, the thieves open new accounts using stolen Social Security or other identifying numbers, or they buy cars or even homes. In other cases, they tap into unsuspecting consumers' accounts and empty them.

The FTC maintains a registry and provides guidance for victims at its Web site www.consumer.gov/idtheft.

Still, the government can do little to reduce the time and expense that consumers must invest to try to undo the damage, estimated to cost consumers some $5 billion a year, and businesses and financial institutions nearly $50 billion, according to the FTC study.

Ronni Burns, director of business practices for Citi Cards, a division of New York-based Citigroup, said Citi credit and debit card holders who fall victim to identity thieves will be referred to a specialist who will serve "like a case worker" in dealing with their problems.

"We find that the first thing they need is a lot of reassurance," Burns said. "The person calling in doesn't know how it happened, exactly what's happened, but they feel their privacy has been invaded and they're frightened."

 •  Protecting yourself

Among the most common ways that criminals obtain personal data:

• Dumpster diving: going through trash to get checks, credit card or bank statements, or other records. Method of prevention: shred your records before tossing

• Shoulder surfing: thieves who watch to see you punch in your telephone calling card or credit card number. Method of prevention: keep your dial punching private

Pre-approved credit card mail: criminals who retrieve the mail from the trash and try to activate the cards. Method of prevention: cut up and shred cards and applications

Spam, phone calls: unsolicited e-mail and phone calls asking for personal data. Method of prevention: don't respond to these requests

Source: U.S. Department of Justice, Advertiser research
Burns said Citi will help consumers check their credit bureau reports and place fraud alerts on their files, if necessary, to prevent further unauthorized use of the person's identity.

"We'll also assist in filling out the necessary forms, from a police report to a universal fraud affidavit to send to all creditors," she said.

Seattle-based Washington Mutual began offering help "because we found in talking to our customers that they were very concerned about ID theft," said Cathy Pricco, first vice president for deposit strategy and product management.

Customers must sign up for the service, which will give them access to the savings bank's ID theft center if they have problems.

The free service comes with ID theft insurance of up to $5,000 "to help offset recovery costs, including legal fees, lost wages and out-of-pocket expenses," Pricco said.

Washington Mutual also is offering a broader service, for a monthly fee of $10, that will include monitoring of credit reports, e-mail alerts of credit changes and ID theft insurance of up to $15,000.

Bartlett of the Financial Services Roundtable said that in addition to helping consumers, the Identity Theft Assistance Center will create a database "with material we can share with law enforcement agencies."

The goal, he said, is to improve the chances of catching the thieves and prosecuting them.

Catherine A. Allen, chief executive officer of BITS, a roundtable affiliate that deals with electronic financial services, said consumers would be referred to the center by participating financial institutions.

"ID theft used to be a petty crime," Allen added. "Now we're seeing some very sophisticated rings at work."

James Walsh, editor of the recently published book "Identity Theft — Protect Your Name, Credit and Information," said some of the new services may be helpful, "but there isn't a silver bullet when it comes to ID theft."

He warned that if it happens, consumers likely face two tough years while sorting things out.

"The best think you can do is be vigilant about your personal information and try to prevent it," Walsh said.