General Insurance Topics

Identity Theft

A friend of mine got a letter in the mail in 2006 telling her she owed money for a department store bill that had gone unpaid for several months. For our purposes, we’ll say her name is Kathleen Robinson. The letter came addressed to Katherine Robinson; but when she inquired and told them the first name is different, they read her the credit card number. Yup, same number. She informed them that they weren’t her charges and the store did not pursue it. Weeks later she received a phone call from a collection agency. Apparently, someone owed money on a gas credit card that had been taken out in her name. She didn’t have a gas card. Subsequently, the garbage company threatened to stop collecting her trash. It had become apparent to her that someone had stolen her identity. How does this happen and what can you do about it?

How it Happens

Identity theft occurs when someone gets your name, address, credit card number (with or without the card itself), possibly your social security number or other personal information, and uses them to open accounts, charge merchandise, and run up big bills by pretending they are you. They don’t pay the bills, leaving you with collection agencies calling and your credit in ruins. It’s a nightmare and very difficult to correct and reverse the damage.