A Personal Tale of Identity Theft

by Cathy Scott

Two days before Thanksgiving, I was the victim of a short-lived identity theft.

I’d gone to the supermarket that evening and spent $75, including dinner-to-go from the salad bar. When I arrived at the grocery, I grabbed my wallet, not my purse, from my car and went inside to shop.

When I walked out of the store after shopping, I had my wallet and keys in one hand and two paper shopping bags in the other. When I reached my car, I put the bags down to press the unlock button on my keyless door opener. Then I picked up the bags and put them in the car. A large SUV was parked next to my car and I had to squeeze in between the two to slip into the passenger seat, which distracted me. I got in, put on my seat belt and headed home.

A few minutes later, once in my driveway, I realized I did not know where my wallet was. I searched the grocery bags, under the car seats, next to them, in the center console, on the floor, in the back. No sign of the wallet. I got back into my car and hurried back to the store. Not more than 15 minutes had elapsed. I parked near where I had just been and checked the blacktop parking lot as I walked toward the store.

The checkout clerk didn’t have my wallet, and no one had turned it in at the service counter. “It must be in my car somewhere, “ I told a store clerk.

Inside my wallet was an ATM/Visa credit card, my driver’s license, my athletic club card, a Barnes and Noble membership card, and some business cards from other people. No money was in the wallet except for coins. I don’t typically keep photos in my wallet.

When I finally walked into my house, two messages had already been left on my phone from the bank. “This is the fraud unit at Wells Fargo Bank,” the message began. “Please call us immediately to verify some recent activity on your ATM card.”

Oh, no, I said to myself. Someone has my wallet.

I called the bank's fraud unit (open 24 hours) and talked to an employee. She asked, “Did you authorize anyone to use your card?”

“No,” I answered.

“Did you lose your card?”

“Yes,” I said. “About 40 minutes ago.”

“Someone just tried to make another purchase a few minutes ago. We flagged it,” she said.

Whoever picked up my wallet in the parking lot had a decision to make. “Should I walk the wallet into the store? Or should I keep it?”

The person kept it. And then she got very busy. (I say “she” because the person used my Nevada driver’s license as identification for her ensuing shopping spree.)

She made her first stop down the street at Grumpy’s, a neighborhood gas station, charging $1 on my card. The bank said it looked like a test purchase, to see if she could get away with using my ID. An internal flag went up at the bank, because it was an even dollar--a dead give-away for a fraud purchase to see if the person could pull it off.

To me, it appears the thief was not alone, and here’s why. The second stop on the spending spree, after having success at Grumpy’s, was a Taco Bell drive-thru about two miles away. The total was $23.68. But that apparently was not enough quick food for the thief. She drove back to a strip mall across the street from the supermarket and spent another $23-and-change on fast food.

Next up was a Payless Shoes in the same parking lot. Grand total? $88.

Then, a few doors away from Payless, she went into Target and attempted to purchase $200 worth of electronics. By then, my bank was onto her, flagged the account, and would not pay. But being declined didn’t stop the thief. She proceeded from the electronics department at Target to one of the main checkout registers for another purchase (I don’t know what the price was). She was turned away for that too.

Not to be dissuaded, she walked a few doors up from Target and went into Bed, Bath & Beyond for yet another attempt to buy merchandise with my plastic. At the checkout, the clerk rang up a $5 item. “Declined,” she was told.

The bank employee assured me that I was not responsible for the purchases and asked if I wanted to prosecute. "Absolutely," I said.

The snafu for the thief in this quick-and-dirty shopping trip is that drive-thru restaurants have surveillance cameras that take clear photos of cars--and license plates--as does Grumpy’s, because it’s a gas station with cameras pointed smack-dab at the parking lot and gas pumps. And at each and every place the thief went to, she not only committed fraud by using my bank card, but she presented my driver’s license as an ID. That’s a felonious federal offense of identity theft.

By my count, she committed four counts of theft, three counts of attempted theft (state offenses), and seven counts of felony identity theft. The bank has its own investigators and, by the next morning, had opened a case.

As for me, I had my work cut out for me. I got up early the next morning--Thanksgiving eve--which wasn't how I had planned that morning; I'd intended to spend it and most of the afternoon, writing. Instead, my first stop of the day was the Nevada Department of Motor Vehicles.

The banker had told me the night before that I could get a temporary ATM card but that I could not do that without proof of a driver's license. So, I drove to the DMV, where I stood in two lines before I was able to present proof of my identity with an ancient photo ID from a newspaper I’d once worked for, along with my phone bill. Because driver’s licenses are now embedded with a logo, the license was mailed and not immediately available.

With a paper driver’s license in hand and the dated press pass, I drove to the bank to get a temporary ATM card. I answered their security questions so they could access my account. But without a name and account number stamped on it, the card they gave me is only useful in ATM machines, not for debit or credit at stores. It was a step back in time to not-so-long-ago banking.

My third stop was Office Max to pick up a fraud complaint form that was faxed there by my bank. I filled it out and faxed it back. I went to the gym later in the day to work out and have my photo taken for a new gym membership card. I needed something with a current photo on it, and that did the trick.

I blame myself for being in a hurry and careless with my wallet, but I mostly blame the thief who took advantage instead of handing over my wallet to a supermarket employee. Luckily, my wallet didn’t have my Social Security card inside, and I don’t include my Social Security number on my driver’s license, so the thief didn't have access to it. And I also don’t typically keep my checkbook in my wallet, so I didn't have to close out my checking account and open a new one, thank goodness.

My fourth stop was at a department store. With gym and ATM cards, cash and a temporary paper driver's license, I needed something to put them in, so I bought a new wallet.

More than anything, this was a major hassle, an expense to my bank, nominal expense to me but a major inconvenience. Luckily, I wasn’t flying out of town for Thanksgiving, because I wouldn’t have been able to board a plane without identification.

This should be a slam-dunk case for Las Vegas police, given the cameras at the two fast-food restaurants and surveillance at the stores, snapping the woman's photo each time she presented my driver's license to a store clerk. I know there are bigger fish to fry, but it appears, relatively speaking, to be an uncomplicated case to solve, given the strong possibility that at least one of the fast-food cameras camptured the license plate. Plus, each transaction made wth my card was time stamped, as are surveillance photos. It's a matter of matching them up.

That afternoon, I went to Payless Shoes, and the clerk there said the thief showed my driver's license to make the $88 credit purchase. And it was the bank employee who told me, because the card was used for credit (my pin number wasn't in my wallet and the person did not use it as an ATM card), that it's identity theft.

It's been just a few days, but I'm already ultra sensitive about my wallet, as well as my Blackberry, hardly letting them out of my sight when I'm out and about. I don't want it to happen again.

My advice to holiday shoppers is, while you're hitting the stores buying gifts, hang on to your wallets! You never know who's nearby, ready and willing to steal your identity.

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Yes, It Could Happen to You

by Donna Pendergast

I was not planning to write this article today. In fact, I never planned to write this article at all. I had a post waiting to go, sitting in the queue all ready for today, but the events of the past two days have caused me to preempt it and write this piece instead. I think that this "public service announcement" is more important than what I intended to post originally. I will tweak the other post for a future date.

Flash back 48 hours ago to Friday night when I arrived home around midnight to find an e-mail message from an old friend who lives in New York. He is a Vice President for the NFL and was in town for the Final Four basketball game. He had an extra ticket and wondered if I was interested in attending the next day's game. Hmmmm . . . yeah, right, like I had to think about it.

Saturday comes around and it is a beautiful day. I arrive in downtown Detroit, pay an outrageous amount for parking and trot over to the Irish bar where we had decided to meet. So far, so good—no, so far, so great. I was happy. I get to see my old friend, downtown Detroit is awash in a sea of green and white, and there is excitement in the air. Such a great day for a basketball game especially when the home team is in the Final Four.

Within a few hours everything would change.

My buddy and I arrived at the Ford Field before the start of the game. You could feel the excitement in the air. I too was excited right up to the time that I went to the restroom and realized that my wallet was gone. My credit cards, my license, my debit card, $150 cash, you name it, it's gone.

In my initial panic I think that my car keys are gone as well but then realize that they are with the parking valet, thank God for small miracles. OK, at least even if they have my home address, they don't have my keys as well. I can get home and I can get in the house. The Southfield police also reassure me that they will keep an eye on the house just to make sure that everything looks alright.

That's where my good luck ended, but I will get to that in a minute.

Needless to say the experience put a damper on the evening. Yes, my hometown team, Michigan State, won their game but all that I could think about was my wallet and whose hands it might be in—always the prosecutor, I guess. However, I stayed to watch the first game and was even excited by the result despite my apprehension.

Increasingly anxious, I decided to go home after the first game ended. I got home, got in, and reassured myself that someone would take the money, dump the wallet, and go on their merry way.

I was wrong.

I spent Sunday morning cancelling credit cards. While I was on the phone with one company, my credit union monitoring agency called to ask if I has just spent $900 at Walgreens in Livonia, Michigan. Of course, I had not. Remember, I can't leave the house because I have no money, no debit card, and no license to drive.

As it turns out, nearly $1200 had been charged to my debit card before they were able to shut it down. That being said, I have been told that the credit union will refund that amount. I'm on the hook for $50.00 at the most and will probably not even be charged that amount. Once again, thank God for small miracles.

Being a prosecutor for 22 years, one would think that I am the last person who would be victimized. I know how things go down, I've seen it all before. Quite frankly, for the most part, to say that that being a prosecutor has made me a more cautious person is an understatement at best. But guess what? Even I am not immune to fraud and deception as knowledgeable as I consider myself to be.

I'm pretty sure in hindsight that I know when the wallet was actually lifted. As soon as I got into the bar a guy sidled up to where my friend and I were standing at the bar claiming that he was a small percentage part-owner of the bar and wanting to make small talk. My friend and I laughed at him, but he was harmless right? Not so right. The bar was mobbed, he continued to hover and at one point he made his way to the other side of me, the right shoulder side where I carry my purse.

I had a hobo purse with no top flap (you see where this is going, I trust). At some point another guy approached (an accomplice I'm sure), coming up to the bar to say that I had beautiful eyes. My friend an I were laughing but as it turns out we were probably being silently laughed at that very second. I am completely convinced that at that moment as my attention was being distracted my wallet was being lifted from the hobo purse.

It all seems weird in hindsight, but remember this was a happy crowd and everybody was high fiving each other and talking to everybody around them. What a perfect place to commit a crime.

And guess what? Someone knew in advance that these type of venues are a fertile haven for unsuspecting victims. The local news warned about pickpockets at the Final Four just the other night. I only half paid attention because I didn't anticipate being downtown and even if I was, I'm a prosecutor, so no one would dare touch me—right? I guess not so right.

Listen people, if it can happen to me it can happen to you. This is your wake up call.

I have taken the day off today and will be running from venue to venue. First, the credit union to get money so I can go to the Secretary of State's Office for a new license and registration. That's only the beginning—the list goes on. More frightening is the ever-present shadow of identity theft that will now loom large for a long time to come. I am taking all of the appropriate precautions but I just want to cry.

I think these guys were out-of-town professionals because one of the early debit charges was a Hertz rental car. But I'm not quite sure because the other small charges that were incurred before the big charge (which prompted my monitoring company to call) were for $25 dollars at Bed Bath and Beyond and and a small charge at a local restaurant. My credit union monitoring company did tell me that often times a few small charges are made to test the waters before they go in for the "big bang." As the monitoring company told me, I'm lucky that the "big bang" was only $900 before we got them shut down. I'm sure that the next charge would have been for substantially more.

Be aware, readers, this can happen to you too. Once again, I could just cry—in fact I'm sure I will when I get to bed.

Statements made in this post are my own and are not intended to reflect the views, opinion, or position of the Michigan Attorney General or the Michigan Department of Attorney General.

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What Happened to Stealing the Old-fashioned Way? A Look At Identity Theft

by Robin Sax

Technology and modern electronics have forced even the most crotchety people to log on, tune in, and get wired. Shopping online isn’t even new anymore. We have become accustomed to Internet banking, greeting cards, and social networking. And like anything else, with every new development comes a new way for criminals to commit crimes. It seems that criminals stay one step ahead of the unsuspecting, law-abiding citizen, as well as law enforcers.

Stealing the old-fashioned way is plain stupid. Facing the victim can bring high risk and small gain for thieves. For a little bit of cash, jewelry, or perceived valuables, thieves leave witnesses who can identify them, potentially fight back, and notify police. Besides the risk in the crime itself, there are also many punishable consequences, such as gun enhancement--charges that are potentially subject to the “Three Strikes” doctrine, or equivalent repeat offender laws, as well mandatory, long prison sentences.

Stealing by identity theft, on the other hand, offers great profit at very low risk. After all, there is no victim contact, no weapon, it can be done any time of day or night, and best of all, the loot is delivered. Further, the labor involved in investigating these crimes is high. and everyone knows law enforcement agencies are overworked with little resources. Even if and when the perp is apprehended. the sentences are typically low-level slaps on the wrists.

The magnitude of the problem is huge, but what is being done about it? The FTC released its annual report revealing that identity theft is among its top ten complaints. For over six years in a row, identity theft has been the source of much frustration and accounted for approximately 37% of the consumer fraud complaints filed with the FTC last year.

The misuse of other people’s personal information is a huge issue. But is it really identity theft? I argue no. It’s just another version of the old-fashioned crime of fraud, coupled with modern technology that allows for impersonation.

No one is actually becoming another person. Rather, the thief is fraudulently acquiring someone’s personal information and using it to buy items, take out loans, and acquire objects of value.

There is no shortage of ways to get information these days. Whether by “phishing” (setting up Web sites to resemble reputable companies) or by stealing mail or utilizing inside sources, impersonation and fraud is one of the most prolific forms of theft these days.

It’s surprising to me that few people are outraged enough to do something about it. After all, stolen personal information can wreak havoc on a person’s life and particularly on their credit. And then there's the years it can take to rebuild one’s resources and security after being a victim of this crime.

Identity theft can affect millions, but the victims seem to suffer in silence. Is it because credit card companies only hold the credit holder liable for the first $50? Is it because there is so much anonymity to the crime? Or is it because the big financial institutions haven’t shelled out enough of their own money to warrant more protection for consumers?

Whatever the reason, the focus in the real world is just as absurd. Every time I whip out my credit card, the nice cashier asks for ID to make sure that my name matches my picture. Doesn’t it make sense that an impersonator will get an ID that matches the name? Just like many aspects of crime. the focus is all wrong. It’s time to stop focusing on having the innocent validate their identity, and instead work on the preventive aspects.

Just yesterday my friend told me she took out an American Express card in her dog's name by using a phony Social Security number. First it was a joke to see if it was possible. But then it became a scary commentary on how just how bad the state of financial security is.

When my friend showed me the card, I couldn’t help but to imagine some nice clerk asking for ID and validating Fido as the card owner, then finishing the transaction.

While identification checks will probably continue, a better solution can be achieved in how we validate and acquire our cards and information to begin with. Financial institutions are far too eager to make transactions possible and ultimately pass this ease on to merchants and consumers.

"We need to make the entity that is in the best position to mitigate the risk be responsible for that risk," says financial security expert Bruce Schneir. "And that means making the financial institutions liable for fraudulent transactions."

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