How serious of a problem is Identity Theft?
Someone’s identity is stolen every 20 seconds in America. The Federal Trade Commission has declared Identity Theft the fastest growing crime today. From January 2000 - January 2002, Identity Theft reports to the Federal Trade Commission grew tenfold to over 3,000 reports a week. Two major credit card companies, Visa and MasterCard, have documented a rise in credit card fraud losses due to Identity Theft from about $760 million in 1996 to $1.1 billion in 2000 -- an increase of about 43 percent.

How does Identity Theft occur?
Identity theft occurs when an imposter takes your personal data – name, social security number, driver’s license number, address and/or date of birth—and uses this information for personal financial gain. By using your name, date of birth and social security number, thieves can get a driver’s license or open credit cards accounts and run up thousands of dollars in debt before your find out. This criminal can also apply for public services; buy merchandise, lease cars or apartments and leave you with the bill. The thief changes the mailing address on accounts, so you won’t find out until it is too late. The criminal may even go as far as using your personal information to gain employment under your identity. If someone works under your identity and fails to pay the proper Federal Income Tax on his earnings, you will be held liable for the tax.

Given how financial information is processed in the United States, it can take up to one year before you find out that you are a victim of Identity Theft. By the time you find out, your credit rating may be damaged enough to and prevent you from getting a mortgage, a car loan, or even a job.

The 1990’s spawned a new variety of crooks called identity thieves. Their stock in trade is your everyday transaction. Each transaction requires you to share personal information: your bank and credit card account numbers; your income; your Social Security number (SSN); or your name, address and phone numbers. An identity thief co-opts some piece of your personal information and appropriates it without your knowledge to commit fraud or theft. (An identity thief steals some piece of your personal information and uses it without your knowledge to commit fraud or theft.) An all-too-common example is when an identity thief uses your personal information to open a credit card account in your name.

Who is responsible for solving Identity Theft problems?
In reality Identity Theft victims are asked to conduct their own investigation to prove that their identity was stolen before law enforcement can take any action. Because of privacy and confidentiality laws, you have to be the one that inquires into each questionable credit card bill, each questionable loan, and each questionable service charge. It has to be this way because you’re the only one who knows what credit cards you have, what loans you’ve taken out, and what services you’ve used. Also, be prepared to be treated badly. Unlike other victims of crimes who are treated with respect, Identity Theft victims find they have to prove they are victims instead of “dead beats” trying to avoid paying bad debts.

How do I solve IRS related problems?
The source of most IRS related problems are the result of an employer reporting that a person is earning income by using your personal identifiers. Perhaps someone has stolen your Social Security number and is using it to acquire a job. For example, if you live and work in California and the IRS has a record of you also working a job in North Carolina, the IRS will tax you on the total income earned even if it is obvious to you that you should only have one source of income. The Reactive Kit will help you provide the appropriate agency with the necessary forms and records so that your Identity Theft case can be resolved quickly and painlessly.

How can I protect myself from Identity Theft?
52% of all Identity Theft victims, approximately 5 million people in the last year, discovered that they were victims of Identity Theft while monitoring their own accounts. Organization and documentation are the keys to taking control of your identity. The Proactive Kit will help you closely monitor your financial information and financial transactions so that you can identify and solve a potential Identity Theft problem before it happens.