Identity theft - Watch out for new caller ID scheme

The most recent strategy from dishonest people can be used to trick you into thinking you are talking to a credit union or bank when the person on the other end is really a crook who wants to steal your information. A rather new strategy used to fool people into giving up financial information over the telephone is caller ID faking.

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Identity or credit theft is a problem that is rapidly growing, and as growing numbers of people are fooled into providing personal information, more criminals choose to get into the crime business. Identity theft is very profitable; this crime contributes to millions of dollars worth of criminal financial transactions each year.

It takes, typically, about a year for the average victim to sort out the mess caused by identity theft or credit theft. During that time, their own credit is tarnished. The crook can use stolen credit to spend a great deal of money in the victim's name, and the victim gets stuck with the bills. This crime is the crime of someone stealing personal or financial information from an individual so that they can appear to be that individual when applying for loans or credit.
 

Thieves are now employing a new technique called "caller ID spoofing." Caller ID allows individuals with telephones to see who is calling by viewing a small display adjacent to, or attached to, their phone. By using caller ID spoofing, a crook can change the number that shows up on the display, making it seem that the person on the phone is someone from a trusted business, such as a bank, charge card company, or some government agency. With caller ID equipment, the display will reveal both the full name and the phone number of the person on the other end.

The goal of the opportunists may be a bank card number, bank account number, or a Social Security number or some other piece of information that can be exploited for financial gain. The caller ID makes the phone call seem to be legitimate, so the would-be victims usually comply, only to find out later that their information has been stolen and used for fraudulent purposes. With a faked number, the person on the phone can pretend to be a banker or government official, calling on some vital business. The person on the phone will often invent some story about why they are on the phone, but in the end, the will inevitably ask for personal information from the would-be victim.

How can you shield yourself from these kinds of calls? Here are a couple of tips:

If you think the need may be legitimate, ask the caller to submit their request in writing.

There is simply no legitimate reason at all for any institution to request your Social Security number, bank account number or charge card number. Don't provide financial or personal information to a stranger who calls you via the telephone, period.

Get an unlisted phone number and do not give out the number to anyone. If people do not have your telephone number, then they can't call you.

Your bank already has your information; they will not contact you to ask for it. Banks or credit unions don't contact customers requesting their personal information.

You need to take great care to protect your financial information, as no one will do it for you. As technology advances, it is going to get much harder to avoid becoming a victim. As time goes on and technology improves, criminals are becoming much better at finding ways to steal the personal information from their victims.