ID Theft a Growing Credit Nightmare for Consumers

Someone has stolen Ventura resident Melia “Georgie” Hahn’s identity.

She doesn’t know who and she doesn’t know how. But based on $1,200 in debts the thief racked up in her name, and reflected on her credit report, Hahn has a pretty good idea why.

“All somebody needs is your name and Social Security number and they go shopping,” said Hahn, a 45-year-old heavy equipment operator. “They are long gone before anyone finds out about it.”

An estimated 3,000 people nationwide contact credit bureaus every day to report identity theft, now considered one of the fastest-growing financial crimes in the nation.

Thieves typically sift through trash cans or mailboxes to find a person’s address, date of birth and Social Security number. With that information they can obtain credit cards, loans--even a driver’s license--in someone else’s name.

Most people have no idea they have been victimized until the unpaid charges appear on their credit report.

Consumers rarely face monetary losses because banks or credit card companies usually cover the bogus charges. But many victims end up fighting to clear blemishes from their credit histories, and some lose their ability to borrow money or refinance homes.

“It’s a huge problem,” said Werner Raes, an Anaheim police detective and expert on identity fraud who helped Hahn with her case. “For victims, it is a time-consuming and emotional effort to clear their names. They feel very, very violated.”

Last year the Ventura County Sheriff’s Department reported 34 cases of identity theft. So far this year the department has reported 13 cases.

But authorities say the numbers are probably much higher.

“This is one of those crimes where there may be a lot of victims but until the police link those credit cards to a suspect, we wouldn’t see it in our office,” Deputy Dist. Atty. Bill Redmond said.

Identity theft isn’t necessarily a new crime. Credit card forgery and false impersonation have been around for years.

But authorities say as Americans have become more reliant on credit and bank cards for business transactions, criminals have caught on.

“We’re not the cash society that we were 20 years ago,” said Redmond, who supervises the district attorney’s felony unit. “We order things over the phone and dish out a credit card number and never think twice about it.”

Authorities say sophisticated thieves are using the Internet to acquire Social Security numbers and other personal information. Others target isolated mailboxes, swiping bank statements or pre-approved credit card applications.

It is just as common, Raes said, to find “dumpster divers” rooting through trash bins behind businesses or car dealerships hoping to find information that can be used to obtain credit or open other accounts.

“From there, it can fan out in any direction,” Raes said. “They can buy boats, cars--whatever.”

Two years ago federal and state lawmakers enacted laws to curb identity theft. Violations of the federal law carry a maximum penalty of 15 years in prison, whereas California’s law is punishable by up to three years in prison.

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But first, authorities have to crack identity fraud cases--and that isn’t easy. Often, there is a long gap between when the crime occurs and when it is reported to law enforcement. Officials say a single case can consume hundreds of work hours as detectives chase down paper trails, which may cross county or state lines and involve other victims or government agencies.

Such crimes can easily fall through the cracks as victims are referred from one agency to another.

That is what happened to Tina and Paul Willcoxon of Port Hueneme. Their ordeal began five years ago when mysterious charges began to appear on their credit card accounts. Initially, they blamed each other.

But when large cash withdrawals began to appear on the monthly bills, the couple realized someone else had been using their accounts.

“In the beginning there were little charges, and slowly but surely it got so big that they were actually able to open checking accounts,” said Tina Willcoxon, 40.

“They had a driver’s license in Paul’s name,” she said. “It was just awful.”

The Willcoxons are now aware of at least 15 major credit card accounts that were opened using their names. One of the bills came to their address, while others were mailed to a different mail drop.

They estimate the thieves ran up about $70,000 on charges. But they say no one--not the FBI, the district attorney or the Secret Service, one of the federal agencies that investigate identity theft--has pursued the case.

“It’s a nightmare,” said Tina Willcoxon, crying as she spoke. “To date, our credit report is 63 pages long. I’m so stressed. It has just totally ruined our lives.”

Unlike other crimes, law enforcement officials say there is not much they can do to prevent identity theft.

“A lot of this is on the merchant and the consumer,” Redmond said. “The recommendation that we give to the public is to review your financial records because you never know.”

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For consumers, the best way to guard against identity theft is to limit the amount of personal information available to thieves, authorities say.

Shred discarded papers that contain account numbers. Do business only with secure and reputable Internet sites. And never give out personal information over the phone unless you initiate the contact.

Raes also recommends people remove their names from pre-approved credit lists. Even then, he said, “I don’t think there is anything any of us can do to prevent this. The information is out there.”

Ultimately, the solution may lie in tighter sales practices. Raes says fraud could be greatly reduced by having consumers place a fingerprint in invisible ink on checks and credit card receipts.

Similarly, “smart cards”--which use microchips to contain more detailed information than conventional credit cards--have been used for years in Europe.

“The basic concept has to be identifying people at the point of the transaction,” Raes said. “You need to know who you are doing business with.”

The explosion of identity fraud has caught the attention of lawmakers in recent years. There are eight bills pending in the state capitol aimed at curbing the problem.

One, SB 1767, would bar employers, health care providers and colleges from using an individual’s Social Security number as an identifier. It would also require credit card companies to obtain more detailed information when issuing new accounts.

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For Hahn, the proposed legislation comes too late.

She first learned her identity had been stolen in 1995 when she applied for a credit card and a $600 cellular phone charge showed up on her credit history. After a fight with creditors, Hahn thought she had cleared her name. Then, a few years later, a second $600 phone bill surfaced when she was trying to refinance her house.

Now, Hahn has a fraud alert on her accounts. She has bought a paper shredder and applied for a new Social Security number. She continues to fight to clear her credit record and is also considering suing the phone company.

“These people are just horrendous,” she said. “I have proved beyond a reasonable doubt who I am and they still won’t do it. If I was the real criminal, I wouldn’t be writing letters.

“Something needs to be done,” she added. “Nobody should have to go through this.”