The
law that gives consumers the right to freeze thieves out of their
credit files goes in effect tomorrow, July 1st. The law allows
consumers to block access to their credit reports and scores unless
they affirmatively unlock their credit files by contacting the credit
bureaus and providing a security code.
“Identity
theft is the top consumer crime in Colorado. Last year, the state
ranked fifth, up from 11th two years ago, in the nation for the number
of identity-theft victims per capita, according to the Federal Trade
Commission (FTC). Complex identity theft crimes occur when thieves
steal Social Security Numbers or other personal data and use the
information to take funds by opening credit card accounts, renting
homes or obtaining loans”, said Rex Wilmouth Director of CoPIRG
(Colorado Pubic Interest Research Group).
Easy
access to consumers' confidential identifying information, including
social security numbers, has contributed to this epidemic. Credit card
companies, merchants, credit bureaus and other businesses do not
adequately safeguard consumers' private financial information, making
it relatively easy for thieves to steal this data and use it to take
out new credit or to rack up charges on existing accounts.
“Victims of identity theft literally have their lives stolen. They face
credit and mortgage denials, out-of-pocket costs, and even arrest when
mistaken for the thief using their name”, said Wilmouth. The Federal
Trade Commission (FTC) estimates that it took the average victim of
identity theft in 2004 600 hours and an average of $1,495 to clear
their name; cases average two to four years to be resolved. This is up
from 175 hours and $808 in out-of-pocket expenses in 2000. The FTC
estimates that identity theft cost consumers $5 billion and businesses
$48 billion last year. “When a business, institution or other entity is
sloppy with consumers’ personal information, it’s the victim that is
responsible for cleaning up the mess. It is time to prevent the crimes
by safeguarding personal information”, said Rep. Angie Paccione the
sponsor of the law.
“Often, all a thief needs is a social security number to open an
account fraudulently, and rack up charges in an innocent victim’s
name”, said Rex Wilmouth. Social security numbers were originally only
meant for the federal government’s use to track wages and benefits. But
now, these numbers are used by a multitude of public and private
institutions—such as health insurance companies, universities, cell
phone companies, utility companies and others—as identification
numbers, or as a security measure to confirm an individual’s identity.
The widespread use of these numbers completely undermines the use of it
as a security measure. Widespread use also provides numerous
opportunities for identity thieves to gain access to valuable
information.
If
a thief were to obtain someone’s personal information they would start
to steel that persons identity by opening accounts in their name. On a
frozen account the creditor would reject these applications because
they would not have access to the credit report to determine if the
potential client could pay for the loan or credit. The crime would be
stopped in its tracks at that point saving the victim all the trouble
of cleaning up their credit. This is why the credit freeze bill is such
a valuable tool in preventing identity theft.
Secure
your identity: As of July 1st anyone in Colorado can freeze ID thieves
out of their credit report. This is a law that CoPIRG, Rep. Paccione
and Senator Grossman fought hard for so you may obtain a security
freeze on your consumer report to protect your privacy and ensure that
credit is not granted in your name without your knowledge.
How to place a security freeze:
1.
Write one of the consumer reporting agencies, by certified mail, to
request a security freeze be placed on your account. That consumer
reporting agency will notify the other two.
2. Information you need to provide in your letter is:
a. Full name
b. Address and previous address if applicable.
c. Social security number – they will not process your freeze without your SSN.
d. Date of Birth
e. Proof of current address – utility bill as an example
3. The three credit consumer reporting agencies are:
a. Equifax Security Freeze
P.O. Box 105788
Atlanta, GA 30348
www.equifax.com
b. Experian Security Freeze
P.O. Box 1017
Allen, TX 75013
www.experian.com
c. Trans Union Security Freeze
P.O. Box 6790
Fullerton CA 92834-6790
www.transunion.com
Fees:
o In Colorado there is no fee to implement the freeze.
o $10 to temporarily lift the freeze
o $10 to permanently remove the freeze
