President Jon Hensinger thanks Gwyneth Lewis for her presentation

In today’s environment, almost everyone has been a victim of identity theft or knows people who have had their identity stolen. Gwenyth Lewis, an independent associate with Pre-Paid Legal Services, treated the audience at the November breakfast meeting to a presentation that highlighted the scope and ramifications of identity theft, provided some prevention strategies, and offered solutions to reduce the trauma should one’s identity be stolen.

If you stop to think about it, private information about each of us is contained in various databases, such as the social security system, the military, the motor vehicle system, and hunting and fishing license databases. Something as simple as a stolen or lost driver’s license can be used to create a fake license and passport, access your social security number, rent an apartment, take out a loan, start utility services and purchase cell phones. The average person is in 55 different databases. Statistically, one in five will become a victim of identity theft, according to Gwyneth, and she projects that figure will likely go to one in three in 2006.

Identity theft can result in credit card debt, bad credit history, higher interest rates, bankruptcy, emotional distress, arrest and jail. On average it takes 600 hours to clear up an identity theft. That amounts to 15 work weeks of time. The average financial loss is $1800 in unreimbursable expenses to the individual.

Businesses must take great care to safeguard the personal information of their employees. The Fair and Accurate Credit Transaction Act (FACTA) addresses an employer’s liability to its employees should employee information be stolen. The act imposes fines up to $2500 per victim per incident of theft. State fines may also be instituted. On average, identity theft costs a business $92,000 per victim.

Many people wrongfully believe that they will not be a victim of identity theft because they are careful, they monitor their credit and they do not have finances worth stealing. Nothing could be further from the truth. Even Bill Gates had his identity stolen. So here are some prevention tips:
· If you carry your checkbook with you, remove the reorder form in the book and put it away for safekeeping.
· Sign your credit cards.
· Don’t carry your social security card or your voter ID card around with you.
· Cross-cut shred all documents which bear some means of identifying you.
· Eliminate unneeded ID from you wallet, such as your voter registration card.
· When mailing something, use only a blue Post Office box. Do not leave mail in your mail box or door to be picked up.
· Stay with your credit card at restaurants. Wait staff can run your card thru a skimmer on their belt while walking to the cashier to run your card thru.
· Don’t give out your social security number on the phone or computer.
· Never mail out your complete social security number.
· Avoid free standing ATMs where someone could learn your pin number or steal the entire machine. Choose ATMs built into bank walls.


Businesses can also take steps to prevent theft of employee and customer information. A business should:
· Perform a background check on all employees and vendors who have access to the premises, such as cleaning service personnel.
· Inspect computers to see if a key logger (a device that stores key strokes) has been attached.
· Keep personal information on identification badges, time cards, licenses and work schedules to a minimum.
· Encrypt data on computers and safeguard laptops.
· In the event of a breach of security, notify individuals in a timely manner.


Because identity theft has become so prevalent and is so time-consuming and costly to correct, Ms. Lewis recommends that businesses and individuals consider retaining a restoration service or a licensed private investigator prior to any theft occurring. These vendors can restore an identity far quicker than you or I can. These vendors will be able to contact the FTC, banks, all credit bureaus, police, Social Security Administration, FBI, US Postal Service, medical insurance providers and motor vehicle departments to begin the process of restoring an identity to its rightful owner.