Stop Identity Theft

Al Macintyre's Radio Weblog : Al's random interests while learning what can be done with Weblogging, and perhaps what ought to be done.

Stop Identity Theft

This is one of several problems I have struggled with trying to figure out how to solve. I think that solving this kind of problem is akin to developing a computer program, in which we have to consider all the possibilities. For similar topics written to this weblog by Al Macintyre, see: Banking Stories, Identity Protection, e Bounty Hunt, and Stop Phone Spam; Security and e-law categories. Sometimes a link to one of my stories gets inexplicably broken (with the title in double quotes not being properly translated into a hyperlink, and I cannot figure out how to fix it on a timely basis. Use this directory of my stories as a backup if need be. http://radio.weblogs.com/0107846/stories/ You can also use the envelope at bottom of column to the left to send me an e-mail. I have additional Word documents detailing topics of personal security issues, that can be sent upon request as e-mail attachments.

Here is my solution to this big problem.

Require Credit Bureaus to offer identity protection in the form of
- The person involved would have the option of selecting how much goes into the data base about them.
- This would be the easiest to implement, but would need national legislation to get it started.
Request issuers of credit to match detail of what is in the credit bureaus.
- The goal is to not let a bald headed man run up humongous bills in the name of a mature blond woman, or vica versa, for those individuals who have opted in for this level of detail into their credit bureau data bases.
- This will be the most difficult part of the process to implement. Think through how we use credit cards today. On the internet, all they have is the credit card number, and where we calling from. In a store, they have standard box which takes credit card and amount of purchase. Most stores do not have a security camera of the purchaser.
Require issuers of credit, when they witness suspected fraud attempts, to notify police promptly.
- The customer is in the bank, opening an account that may be legiitmate, or may be the first step in a chain of identity theft. Their physical description does not match what is in the credit bureau. Push a button, click an idon ... I have with me a 'customer' who claims to be this person but some stuff does not match. Perhaps the data base is wrong, but to play it safe, let's call security to check this person out more carefully. Make sure this person picture is identified on the bank cameras field of view.
Require issuers of new credit accounts, and additions of increased description, to send notification of the event to the OLD ADDRESS of the person.
- Although this is wasted postage in the case of the vast majority of legitimate account openers, it closes a couple of serious loop holes.
  - Under the current system,
    - Person A has a good credit rating living at address A.
    - Person B goes to a bank, claims to be person A, opens a new account and says that there is a change to address B.
    - All billing for the new account goes to address B.
    - Person B spends thousands of dollars in the name of Person A.
    - Person A is none the wiser.
    - Person B does not pay any bills.
    - Bank cuts off credit for this new account.
    - Person B skips town.
    - Bank tracks down person A at address A where they were all along.
    - Person A is now stuck with fighting over being stuck with the bills incurred by person B.
  - By the simple expedient of sending notification to the OLD ADDRESS of person A that a new account has been opened in their name, you catch most of the identity fraud that occurs today when it starts, instead of months later when person B has skipped town.
  - We also need to have the Post Office take a photo of the people who fill in change of address forms, so that if down the road it turns out that person A has not moved, and person B has perpetrated this fraud, the Post Office has a picture of person B to help police. I do not have a solution for the mailing in of change of address. I do not want to inconvenience legitimate person As just put a stop to persons B nonsense.
  - Let's suppose person C decided not to have all this stuff in data bases about them, because they value their privacy. Person B can then go to the system, claim to be person C, I have changed my mind - I have opted in for more description, and now person B has a greater claim to the identity of person C than person C does, until person B skips town leaving person C saddled with huge debt.
  - Person C now has two protections, under my scheme, that are much better than the reality today.
    - The notification in the mail to the OLD ADDRESS about the change to their identity records, at the beginning of the fraud attempt.
    - The bills were run up in the name of a description of a person that does not match person C in reality.