Identity Theft Blog

It recently became frighteningly clear that no one is immune to identity theft schemes, not even Federal Reserve Chairman Ben Bernanke. On Aug. 25, Newsweek reported that Bernanke was one of hundreds of victims in an elaborate identity theft scheme. Led by Clyde Austin Gray Jr., who has pled guilty to conspiracy to commit bank fraud, the criminals stole more than $2.1 million from hundreds of consumers and 10 financial institutions.

What makes this identity theft scam so unique is it combined the high-tech with the traditional: The thieves pick-pocketed unsuspecting people in retail stores and at sporting events to obtain checks, credit cards and other personal records. Next, the criminals would reproduce phony IDs with the victims’ information but with their own photos.

Bernanke became a victim of the scam last summer when his wife’s purse was stolen from the back of her chair at a Washington D.C. Starbucks. The pick-pocket made out with his wife’s Social Security card, 4 credit cards and the couple’s joint account check book. Of course, that pick-pocket wasn’t the typical criminal out for a few hundred dollars; he was a part of extensive crime ring led by Gray.

Identity theft schemes like this reinforce the need to “go back to basics” to protect yourself. Follow these tips to avoid becoming the victim of pick-pocketing:

• Carry your cash and credit cards in separate pant pockets or in separate areas of your purse.

• Don’t carry your wallet in a back pants pocket. Instead, keep it in an inside jacket pocket or a front pants pocket.

• Don’t carry a purse in your hand because it can be easily knocked away. Instead, wear a bag with a shoulder strap and keep the outside flap toward your body.

• Make sure purses are zipped up or closed at all times.

• Never carry your Social Security card in your purse or wallet.

• Keep a list of credit card numbers, drivers license number and check card numbers—as well as the phone numbers of all issuing banks and credit card companies.

• Lastly, always remain alert. Be especially vigilant in crowded places such as shopping centers, at ATMs and at store checkout counters where you might lay down your belongings.

If you do find yourself a victim of pick-pocketing, follow these 5 steps immediately:

1. Report stolen credit and debit cards to the issuing companies. That’s where your list of phone numbers and card numbers will come in handy. You may also want to follow up with written letters detailing the theft.

2. Contact the 3 credit reporting agencies to report the theft. Ask them to attach a fraud alert to your report.

3. Call any other applicable organizations. If your Social Security card was stolen, call the Social Security Administration; if you drivers license was stolen, contact your state’s department of motor vehicles.

4. File a police report. You’ll want to contact the police in the area where your belongings were stolen.

5. Monitor your credit. You may not only be a pick-pocketing victim, but the victim of an identity theft scheme as well. So use an ID protection service to monitor public reports and your credit report, and alert you to any suspicious activity.

Posted by Cole on Monday, August 31st, 2009 at 8:18 am
Filed under Identity Theft Stories, Identity Theft Tips. Tagged: Ben Bernanke, identity theft scheme.