'Dumpster Diving' and Trashed Credit

By REGINA HONG

Feb. 1, 1999 12 AM PT

SPECIAL TO THE TIMES

They’re called “dumpster divers,” and they search through the trash for valuable records that people carelessly throw away.

These treasure-seekers hit the jackpot when they come across discarded checks and other paper items containing personal identification numbers. Orange County police investigators said the crooks have opened bank and cellular phone accounts, manufactured new checks, furnished homes and obtained driver’s licenses--all with personal information found in trash cans.

“If there’s an opportunity, they’ll take it,” said Adeline Hayes, a Santa Ana economic crimes investigator. “Why take the chance?”

The hottest items that divers search for these days are checks--even ones that should be invalid. In one case, a thief bought goods from stores all over Santa Ana after finding checks from a closed-out account in the trash, Hayes said. The cashiers did not check the thief’s identification carefully.

Later, the owner of the checks had the burden of straightening out the matter with store owners, Hayes said.

Thieves also can lift the ink from canceled checks--or they can use the account numbers on checks to create their own. One man operating out of a Buena Park motel paid dozens of dumpster divers to sort through trash in search of checking account numbers, economic crimes detective Roger Powell said.

After collecting the valid numbers, the crook used his laptop computer to produce checks with altered names. These aren’t difficult to pass off at stores, officials said.

Check approval systems such as Equifax and Trans Union show if an account number has a bad history but don’t match the account number with a name. Furthermore, some stores have insurance for fraudulent checks, thereby reducing the incentive to check IDs carefully.

In recognition of the growing problem, a state law that took effect Jan. 1 increased identity theft from a misdemeanor to a felony. The law tripled the maximum fine and prison sentence. Police warn, however, that people still must guard against the theft of personal information.

Most investigators recommend buying a shredder or tearing records profusely before throwing them away.

Crooks can take credit card numbers off slips and purchase goods, including pizza and furniture, over the phone and through the mail.

If someone gets hold of a Social Security number, he or she can open a cellular phone account or even a bank account. With only a driver’s license number, a crook can obtain a new license at the Department of Motor Vehicles by claiming to have lost the old one.

“There’s always people looking at quick opportunities to make money,” said Lt. Hector Rivera of the Orange County Sheriff’s Department.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

Identity Theft Nightmare

Identity theft is when someone wrongfully adquires your personal identification, credit or bank account information and then uses it to obtain money, credit, goods and services or access to bank accounts. The best way to prevent identity theft is to shred all items with personal information before diposing of them.

Do Not Throw in the Trash Unless Shredded:

* Checks returned from banks, old checkbooks, blank checks, checks torn in half

* Anything showing your credit card numbers: cards chopped in half, receipts, bills

* Envelopes with pre-approved credit card offers

* Anything with your bank account numbers, driver’s license number, Social Security number or date of birth

* Old loan papers

If You Are a Victim

* Report the crime to police immediately

* Call the fraud units of three major credit reporting agencies to let them know about the theft of your credit cards, account numbers or identifying information. The companies: Experian (formerly TRW), (888) EXPERIAN (888-397-3742); Equifax (800) 525-6285; Trans Union (800) 680-7289

* Notify utility companies to let them know a thief may try to establish credit using your account

* Notify your bank if any personal identification has been stolen; close checking, savings and any other accounts that may apply; obtain new numbers

* If someone has your driver’s license number, contact the DMV to obtain a new one

How Theft Occurs

* Mail theft: Thief steals credit card payment or pre-approved credit offers delivered by the post man

* Dumpster Diving: Businesses discard customer information without shredding it and thieves retrieve it; similar to individuals discarding like information into home garbage without shredding.

* Insider access: Business employee illegally obtains information the business has legitimately gathered.

* Purse/wallet loss: Thief steals or consumer loses a wallet or purse containing information

* Computerized services: Businesses that package and sell electronic personal information don’t provide enough security

* Internet: Personal information available on the Internet gathered by a thief and used to obtain credit

One Key...And What It Can Unlock

Your name and Social Security number, which appear on so many documents, are all a thief needs to assume your identity.

* Gain access to your bank accounts

* Obtain credit in your name

* Earn income in your name

* Rent an apartment

* Obtain utility service in your name

* See your credit reports