Identity theft
The Federal Trade Commission defines identity theft as the use of your name, Social Security number, date of birth or other identifying information without authority to commit fraud.


Rights of identity theft victims
Under the Fair Credit Reporting Act, victims of identity theft have a number of rights to help them recover.

  1. Fraud alerts - People who suspect they have been the victim of identity theft have the right to ask potential creditors and credit reporting agencies to place a "fraud alert" in their file. A call to one credit reporting agency will lead to a fraud alert with all three major agencies. An initial fraud alert stays in place for at least 90 days. An extended alert remains in place for seven years.
    Requesting an extended alert requires the filing of an identity theft report.The Federal Trade Commission has developed an ID theft affidavit that allows victims to report information to the FTC and to many companies using one standard form.
  2. Free copies of credit files - An initial fraud alert entitles a consumer to all information on file with each of the three credit reporting agencies. An extended alert allows two free file disclosures in a 12-month period after placing the alert.
  3. Right to documents - A creditor or business must provide copies of applications and other business records relating to transactions and accounts resulting from identity theft. The records must be requested in writing.
  4. Debt collector information - A debt collector must provide identity theft victims with information relating to a debt incurred as a result of identity theft. This information includes the creditor's name and the amount of the debt.
  5. Information block - Individuals have the right to block information from their credit reports that results from identity theft.
  6. Reporting ban - Consumers may prevent businesses from reporting information to credit reporting agencies that is related to identity theft.

Electronic Fund Transfer Act
This act provides consumer protection for all transactions using a debit card or electronic means to debit or credit an account. It limits a consumer's liability for unauthorized electronic fund transfers, but that limit is not as protective as the $50 limit on fraudulent credit card transactions.

The loss depends on how quickly a consumer reports the loss of an ATM or debit card:
  • Loss reported before card used without permission - Consumer not responsible for any unauthorized withdrawals.
  • Loss reported within two business days - Liability limited to $50.
  • Loss reported after two business days but within 60 days of account statement mailing - Liability limited to $500.
  • Loss reported 60 days or later after mailing of account statement - Liability is unlimited.



Introduction to the Principles of Risk and Insurance

Related Articles
  1. Managing Wealth

    How to Recover From Identity Theft

    Identity theft isn't going away, and fixing it can take time and money. But doing nothing isn't an option. Rather than become a victim, it is time to take action.
  2. Insights

    Are You A Target For Identity Thieves?

    The Americans at highest risk for identity theft and identity fraud aren't the ones you most expect. See if you're on the high-risk list.
  3. Managing Wealth

    Morgan Stanley's New Identity Theft Protection (MS)

    Morgan Stanley now offers identity theft protection to high net worth clients, pursuant to a poll in which they cited this as a top fear.
  4. Personal Finance

    What To Do If Your Identity Is Stolen

    Having your identity stolen is a nightmare. If you are ever faced with the situation, use these steps to alleviate the problem.
  5. Insights

    Pros And Cons Of Credit Monitoring Services

    Identity theft is a complex problem. Learn if credit monitoring services are the solution.
  6. Insights

    Identity Theft: How Much Should You Worry?

    Identity fraud cost $18 billion last year. But are enough Americans victimized – with big enough losses – that it's worth buying protection?
  7. Insights

    Identity Theft Protection Services: Worth Having?

    A detailed review of what you get from American's leading identity theft protection agencies. Start here before deciding whether you need this coverage.
  8. Tech

    Avoid Becoming An Identity Thief's Next Victim

    Use these 7 techniques to keep yourself under the radar and out of the way of identity thieves.
  9. Insights

    Identity Theft: Who To Call For Help

    If your identity is stolen, it's critical to act fast. Find out what to do if it happens.
  10. Tech

    Whose Fault Is Identity Theft?

    You've been so careful, so how did they get your information? Who is really to blame for your identity being stolen?
Frequently Asked Questions
  1. Who are Monsanto's main competitors?

    Learn about Monsanto Company's two main operating divisions and its main competitors within each sector, including The Mosaic ...
  2. What is an assumable mortgage?

    The purchase of a home is a very expensive undertaking and usually requires some form of financing to make the purchase possible. ...
  3. Do I have to complete all exams within a certain period of time to receive the CFA charter?

    According to the CFA Institute, a candidate can take as much time as necessary to complete all three levels of the CFA program.Therefore, ...
  4. What is a reasonable amount of debt?

    It really depends on numerous factors - what stage of life you are at, your spending and saving habits, the stability of ...
Trading Center