Last December, educational professional Lola M.* got a lesson of her own in the complicated world of identity theft when someone broke into her department’s office and stole computer discs containing the personal information of dozens of employees.

Even though she and her coworkers received training in case their identities were stolen, Lola never seriously considered the type of damage that was to come. “Out of fifty or sixty people in my department, I said no — it’s never going to be me,” she says. “Months went by, and in February I received a letter from a company indicating that I was opening credit and they wanted to verify my address because my home address didn’t match the address they tried to open the credit with. And I panicked.”

Thus began a crash course in protecting her credit and personal information.
Her credit card company suggested that she call Experion, one of three national credit bureaus tracking and providing credit reports. When she did, she was shocked to find out that someone had taken out a car loan in her name to the tune of $2,000.

Sadly, Lola is not alone.

“The Federal Trade Commission did a survey last year, and they were able to find that approximately 9.9 million individuals over the age of 18 have suffered some sort of identity theft,” says Brian Lamkin, a section chief with the division of the FBI that deals with financial crimes.

According to Lamkin, identity theft is usually committed to help facilitate some other type of crime — like credit card fraud, check fraud, or even mortgage fraud. When perpetrators try to avoid detection by law enforcement, that’s when his division gets involved.

Skilled identity thieves use a variety of methods to gain access to personal information. They don’t just steal wallets but also mail, taking over bank and credit card statements, pre-approved credit offers, new checks and tax information.

One popular scam involves filling out a “change of address form” to divert this type of mail to another location. The car loan taken out in Lola’s name was traced back to a PO Box at a mail office she had never heard of, also registered under her name.

Thieves posing as telemarketers are able to wheedle social security numbers and dates of birth out of unsuspecting consumers, and “dumpster diving” through trash gives them ample scraps of info with which to open new accounts and go on shopping sprees.

As Lola learned, identity theft doesn’t just happen at home. Thieves can hack into a company’s computers, bribe an employee who has access to records, or steal records outright.

Lamkin has seen an increasing number of consumers fall victim to online scams. “For some reason people are very aware they don’t want to talk to a telemarketer,” he says. “But they let their guard down on the Internet when they see fancy websites.”

Etel G.’s* problems began in a less high-tech way. After her husband passed away 10 years ago, she had to change her name on everything from her credit cards and bank accounts to her mortgage. She was shocked to learn later that someone had intercepted delivery of her VISA card and was having a shopping blitz at her expense. “She had an Arkansas drivers’ license with a picture ID, yet with my name on it. She spent approximately $2,500,” Etel says. “She almost got caught but took off when she noticed the store clerk got suspicious of her identity.”

Etel eventually had to go back to the credit union, sign piles of paperwork, and reapply for another credit card — but her problems didn’t stop there.

Years later, she was engaged to be married again. After selling her house and moving into a new home, she cleaned out some of her late husband’s personal items and donated others to Goodwill; somehow, someone found and stole checks that were inadvertently thrown out. They managed to do about $3,000 worth of damage. “It did give me an eerie feeling to see a signature of my name on a check,” she says. “To see my late husband’s name written, too. It was scary. It was sad.”

The latest FTC reports show that identity thieves caused $33 billion dollars worth of damage to businesses last year, but the emotional damage to individuals can be just as overwhelming. Like Etel, Lola felt distressed when creditors started contacting her and demanding payment for goods she had never authorized.

“That’s when I felt violated,” she says. “You know, that’s not me! How can that happen?”

Secret Service agent Larry D. Johnson understands how upset victims can get when their most personal information has been stolen — especially since no one is safe. “Everybody is a victim,” he says. “Congressmen, movie stars, even law enforcement are victims.”

The Secret Service has been dealing with instances of financial fraud since 1865. It started out investigating counterfeit currency and has moved towards combating identity theft today. Based on his extensive experience in investigating some of these cases, Johnson suggests taking a proactive stance once ID theft occurs. “I think the most important thing is to notify the police department,” he stresses. “Most credit card companies would like to see a police report to know that the victim has notified the police. ... Attaching that police report goes a long way in determining who’s at fault.”

Both Etel and Lola found help and support at their local credit unions, and a growing number of banks are implementing plans to help their customers deal with the sometimes-overwhelming task of fixing their credit history.

“Everybody benefits when we protect your identity. It’s just good customer service,” says Ronni Burns, director of business practices at CitiCards. Parent company CitiBank rolled out an identity theft solutions unit last year and now provides victims with a dedicated specialist to help walk them through the maze of paperwork and credit reports.

One of the first things CitiBank does is place fraud alerts on the customer’s files with each of the three credit reporting bureaus — Equifax, Experian, and TransUnion. What that does is prevent any new unauthorized cards from being issued.

Brian Lamkin of the FBI echoes that same advice. “One of the first things we tell people is, if you think you’ve been a victim of identity theft, immediately call all of your creditors,” he says. “Call one of the three credit bureaus and let them know. ... You can call either Experian, Equifax or TransUnion, and they will let the other two know.”

Additionally, Spanish speakers have an extra outlet where they can turn. “It’s important because Latinos are no less at risk to be victims of fraud in comparison to any other consumer group in the U.S.,” says Sandra Pedroarias, the director of outreach for the Office of Financial Education in the Department of Treasury and a former Hispanic outreach coordinator at the Federal Trade Commission. “According to government reports, Hispanics make up over 13% of the U.S. population, and we know that this market is a vital force to the economy. So it’s important that we provide resources and educational materials that will help consumers to minimize their risk of becoming victims of fraud, including identity theft.”

Damage done to credit history can be undone, but it does take time. Many credit agencies and banks require victims of identity theft to take extra steps even after their financial problems are cleared up. Keeping track of paperwork creates an extra hassle for otherwise innocent victims of fraud, but it also offers an extra degree of protection.

“I had to cancel all of my credit cards, cancel my bank accounts, and inform my bank about what happened,” says Lola. “And now, for the last month I’ve had to give the bank a list of everyone I wrote a check to. In a way, it was such a drag and such a frustration that I have to go through all of this because some idiot stole my social security number.”

But she adds that in the end she’s happy to go to all the trouble because it means her accounts are now more secure than ever before. And she has very practical advice for anyone looking to protect their own identity.

“Invest in a shredder,” she says. “It’s only about twenty dollars at Target. Anything that has your name, your social security number, anything that has to do with you as an individual. ... Shred it!