ID Theft State of the Union

Brian Koerner   

An interactive discussion with accredited identity theft expert, Brian Koerner. Mr. Koerner reminds listeners that ID theft situations still cause plenty of financial and personal difficulty for millions of people annually.

Transcript

John: Welcome back to the CreditFYI Café. Hi, I'm your host, John Fischer, here again with some helpful insights into the credit world, your personal finances, identity theft matters, and other related issues.

Today, we'll talk about some of the roots of identity theft, particularly from a consumer viewpoint. We're joined by accredited identity theft expert, Brian Koerner. Hey, Brian. Thanks for joining us today.

Brian: Hi, John.

John: Brian, it seems to me that people seem to be far more aware of the realities of ID theft these days, but they're not concerned enough. In your opinion, how can people stay more proactive?

Brian: Well, John, I think, really through education. You know, we've certainly seen an increase in the number of people who are aware of identity theft , and you know, I get calls all the time from people who are concerned about it. But I'm still seeing that people just don't — they're really not educated — they really don't understand what they need to do. So I think as we move forward, you know, as they go to CreditFYI and some other resources to get educated, you're going to start seeing an increase in people trying to really reach out and understand what they need to do so they don't become the next victim.

John: So, there really is enough information out there, but the onus — if you will — is really on the individual to pay attention and to read up on things.

Brian: I think that's true. Anytime you get some resources that can put it all together for them, that's great, because people are really pressed for time. And as it stands, there's really only a few places they can turn to get that information; CreditFYI being one of them.

John: Sure, and you bring up a good point. With time, obviously being the most precious entity to any busy person, it's easy to miss things. What's the most common form of identity theft in your mind?

Brian: Well, you know, if you look at the different types, if you categorize it at a high level, you really have: "New account" — and what they call "new account and other frauds" — and they have "existing accounts." The most common form of identity theft really is, what we call "credit card fraud." So, I don't know if you heard, a few years ago, every 79 seconds another case of identity theft would occur. And it was the fastest-growing crime in America. But in part it was the fastest growing crime because of how they categorized it. And you know, there's a misconception out there that "identity theft" is someone running around with your precious name. And that's not really always the case. Although, if they do steal your name and pretend to impersonate you, then certainly, you are an identity theft victim. You also are an identity theft victim if somebody steals your credit card, and uses it without your knowledge. So, a large percentage of cases of identity theft really are "credit card fraud," which as you know, has been around, you know, for 20-30 years. But it's only relatively recently — in say, the last 8-10 years — that we've really heard a lot about identity theft.

John: So even though the reality is that some of those numbers have improved, — at least nationally, and that's certainly good news — I do hear people occasionally complaining and I do read, that people don't think the government is involved enough. If the government were more directly involved in fighting the problem — and please correct me if I'm wrong, if they are more involved than not only I or some of our listeners might realize — how long might it take to see some of those results?

Brian: You know that's really hard to quantify, right? But I think that you have seen in 2006 President Bush put an identity theft task force together. Their mission was really a few things: It was trying to 1.) improve the government the way that they handle all of our sensitive information with all the breaches that we see, very often the government is involved in them. So part of the mission of that task force was to better secure our data that they manage. In addition to that, legislation, education and law enforcement — so we're starting to see over the last few years, you know, them really going after those identity crooks. There was a time — back 6-7 years ago — that a victim would call up the police and want to report identity theft, and they wouldn't even take a report. So I think you're starting to see a lot of that change. It's hard to quantify if they get more involved, you know, how quick will we benefit from that. I think we've seen a benefit, but at the end of the day, I think it's more important for people to understand that they really have to own it. It's your information, it's your credit, and you have to protect it. And although it's great that the government is involved, and the task force, I think, is making progress — at the same time and at the end of the day — you know it's our job to protect our identities.

John: I certainly would agree, and I know that on this program we try very hard to focus on that, and to help listeners realize that that's certainly the biggest part of the equation. That's good news, however, to hear that — at least in your expert opinion — that the task force is making a dent, so to speak. And perhaps it'll lead to more improved numbers in the not-so-distant future.

Brian: That's great.

John: Was there anything else specifically, Brian, in terms of sort of an overall identity theft identification — at least for starters here on this program — you'd want to instill into our listeners — both our regular listeners and our first time listeners?

Brian: John, I think the biggest thing that I see — over and over again — is people just not protecting their information. So if there's one thing I can really say, it's protect your personal information. And protect it fiercely. I mean, over and over again, we see people who are giving out their Social Security numbers — giving out their other sensitive information, even in times they don't have to. So, I mean if there was an approach, people need to consistently check their credit reports. You know, do it two, three, four times a year. Personally, I check my report four times a year. And the reason is that one of the most expensive forms of identity theft is when a crook opens a new account in your name. And if you check your credit report, a lot of times you can see that as it happened and limit the impact. The other part of this is when I say, "Protect our information," I mean over and over I see people give out their Social Security number because they're asked to do so. You know? Ask if it's necessary. Very often, you don't need to provide that information to those folks who are asking it. And even folks in my own family — my mother, for example — was asked to provide a Social Security number. And when she started asking, "Well, why do I need to provide it to you?," it became very clear that because it was on the form — but that the people didn't actually need it. So, you know, let's not give these organizations our information if they don't need it. Because once we give it to them, then we have to worry about them protecting it.

John: Sure. Well, you heard it here, folks. The onus — rightly or wrongly — is really on you. When you think about identity theft, remember that the burden to protect yourself is pretty much on your shoulders. There are some government agencies out there trying to help make things better. The program is a lot more proactive than it was. But at the end of the day, so to speak, you really have to self protect. Be smart with things, like Social Security numbers. Don't give them away — certainly not to anyone who you don't know represents an agency or organization you trust and have dealt with previously. So be smart, and don't take chances with your personal information — bar none. Thank you, Brian Koerner. We look forward to your next visit into the CreditFYI Café, and thanks for spending some time with us today.

Brian: Thanks, John. I really appreciate it. My pleasure.

John: So here's some food for thought for our next podcast. Of all the reported identity theft instances in the U.S. during 2007, what percentage do you think were directly related to credit card debt? 80%? Do I hear 60%? 40%? Anyone for 20%? Stay tuned for the answer in our next CreditFYI podcast.

In the meantime, we'd love to hear what you think. So the next time you've got credit-related, financial and ID theft-oriented questions, just send us an e-mail at: creditfyicafe@creditfyi.com. We're counting on you!

Until then, remember that the biggest factor in controlling your credit destiny … is you.