In need of advice on suspected employment/ssn fraud

[cooper_monica]

A few months prior to filing my bankruptcy I went to the irs to file a late tax year, and was told by them that during 2007 and up until june 2008 they show that I have been receiving money from the state for employment. They gave me a printout and it was paid to someone in carbondale, il. I currently stay in the chicago area, and have been a truck driver for almost 2 years straight over the road. She told me to contact the states attorney to dispute the income. There was not one penny of taxes taken out of the income, and she estimated that I would owe 3,000 for self employment tax.

Just to give u alittle background info. I used to go to school in carbondale, Il. I moved back to chicago almost 4 years ago. But a close friend of mine still stays there, actually she stays 3 houses down from the address reported to me from the irs. I contacted her and im a pretty straight forward person, this friend of mine is like a sister to me. I didnt ask any questions, i told her what they told me, and after doing some research I found out that it was a child care provider check that she has been receiving. It was very hard for me to try and overlook the circumstances, But i told her to stop the check, and that she must pay for the taxes and I wanted a copy of proof that she had sent the check and proof that it had been cashed by them when she received it.

This all happened in june of 2008. All I asked her to do was send in the money owed for 2008, and next year in 2009 i would get the info from the irs (since i didnt trust her) as to how much was owed for tax year 2008. She said she would use her student loan i n august to pay for the costs and she would stop the check. A month or two later she stated she now put her child in child care and that she had paid the taxes. I contacted the irs in november no check had been received. I contacted her and not only did she not remember when she was supposed to have sent the check, she stated she would provide me with proof that she had paid. The next day i got a phone call from an automated system for child care providers. I asked her if she was still receiving the check in my name she stated yes.

So as u know, Im ticked, i have slowly and surely slowly stopped talking to her, altogether. The only reason i staye in contact with her is basically hope that my friend would actually do right. And bc I love her children. She gets a lot of money from the state, Child care, Medical card, section 8 and thats not including the 10,000 a year she gets from student loans, she gets almost 8,000 for taxes back, and I pay bc i dont have kids almost 6 to 9 thousand dollars a year in taxes. It ticks me off to see someone so greedy mess me over after all that I have done for her. And to get a second chance and not only lie to me again, but also not try to make things right. And if you are wondering how she was able to defraud the system to get the checks:

I used to live with her and most of my info was on her computer, she signed the forms, she received the checks and signed for them, and now she is getting the checks direct deposited into her bank account. I decided in june if she continued to lie to me, and not pay the taxes that by the end of the year i would proceed with a police report, and report to social security of my identity theft situation.

What would you do? Or have u been in this situation?

[BankruptPinoy]

Hi. Just a quick note. This will not really help much for now, but for later. It's the Luna book How to be invisible. Gives info about protecting yourself, along with Abagnale's books.

http://canaryislandspress.com/index.cfm/page/Books/index.htm

Maybe you can ask Luna for his thoughts:

http://canaryislandspress.com/index.cfm/fa/questions

http://www.abagnale.com/books.htm

http://www.amazon.com/Stealing-Your-Life-Ultimate-Prevention/dp/0767925874/ref=sr_1_4/179-0794456-2893541?ie=UTF8&s=books&qid=1229276154&sr=1-4

My thoughts are you have nothing to feel guilty about. You were very reasonable and tried to help. I think to protect yourself, you're gonna have to file a police report.

"There is virtually no risk involved in identity theft. One in 700 thieves are caught and charged," said Abagnale. "The FBI will not investigate [an identity theft] crime less than $100,000. Most U.S. attorneys will not prosecute crimes under $250,000 and most district attorneys will not prosecute crimes under $5,000. The criminals know that if they stay under the threshold, they're not likely to get prosecuted. So we can't rely on the government to protect us, we can't rely on the bank to protect us, we can't rely on the police to protect us-- we have to be a little smarter, a little wiser."

-Abagnale

[cooper_monica]

thanks

thanks for the advice, life is too hard nowadays. especially with friends like that.

[BankruptPinoy]

You can get detailed advice by calling the Federal Trade Commission’s ID Theft Clearinghouse toll-free at 877-438-4338 or going to www.consumer.gov/idtheft. You can also provide information about your problem, which will help law enforcement agencies investigate and track ID theft. The FTC will send you a free booklet, “ID Theft: When Bad Things Happen To Your Good Name,” or you can get it online. There are other steps that you might want to take right away.
If you believe that someone is using your identity illegally, report the crime to a law enforcement agency. It isn’t always possible for agencies to investigate every case, but making an official “identity theft report” can help you solve problems resulting from the ID theft. The “identity theft report” must be a document that subjects the person filing it to criminal penalties for providing false information. This is intended to discourage people from filing phony reports to try to avoid paying legitimate debts, not to prevent legitimate ID theft victims from reporting the crimes. You can report the crime to:
The police department where the theft occurred
Your local police
A state or federal agency, including the U.S. Postal Inspection Service (do not use a complaint to the FTC as an official identity theft report).
When a financial account is involved, contact the bank immediately. If your credit card, debit card, ATM card, or checks have been lost or stolen, or if you suspect that someone has obtained your account number for fraudulent purposes, inform the financial institution promptly and ask what you need to do to protect your money.
Know your payment rights. Under federal law, you are not responsible for more than $50 if someone uses your credit card without authorization, and most issuers will remove the charges completely if you report the problem as soon as you discover it. While your losses could be greater if someone uses your debit card, the card issuer may have a policy that offers you more protection than federal law provides. You can contest checks that have been used with your forged signature or unauthorized withdrawals from your bank account.
Respond quickly to debt collectors. If debt collectors contact you about accounts opened in your name or unauthorized charges made to your existing accounts, respond immediately in writing, keeping a copy of your letter. Explain why you don’t owe the money and enclose copies of any supporting documents, such as an official identity theft report. You have the right to ask the debt collector for the name of the business that is owed the debt and the amount owed. And you have the right to ask that business for copies of the credit applications or other documents relating to any transactions that you believe were made by the ID thief.
Put a fraud alert in your credit files. This will oblige creditors to take extra precautions if someone applies for credit in your name to verify that it’s really you. There are two kinds of fraud alerts. An “initial fraud alert” does not require you to provide a copy of an official “identity theft report” and stays on your credit records for at least 90 days. This is the kind of alert to use if you think you might be a victim but you’re not sure – for instance, if you lost your wallet or you find out that someone has gotten access to the customer records at a place you do business. An “extended fraud alert” should be placed when you have reason to believe that someone has illegally used your identity. You must provide a copy of an official “identity theft report” to request an extended fraud alert, which will stay on your credit records for 7 years. If you put an initial fraud alert on your files, you can always request an extended alert later if the situation warrants it. Just contact one of the three major credit bureaus to place the fraud alert; it will be shared automatically with the other two: Equifax, 800-525-6285, TDD 800-255-0056, www.equifax.com; Experian, 888-397-3742, TDD 800-972-0322, www.experian.com; TransUnion, 800-680-7289, TDD 877-553-7803, www.transunion.comwww.ftc.gov/credit or call 877-382-4357 for more details and to see when you can make your requests. You don’t have to ask all three credit bureaus for your reports at the same time; you can stagger your requests if you prefer. Do not contact the credit bureaus directly for these free annual reports. They are only available by calling 877-322-8228 or going to www.annualcreditreport.com

What Should I Do If I've Become A Victim Of Identity Theft?

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If you think you've become a victim of identity theft or fraud, act immediately to minimize the damage to your personal funds and financial accounts, as well as your reputation. Here's a list -- based in part on a checklist prepared by the California Public Interest Research Group (CalPIRG) and the Privacy Rights Clearinghouse -- of some actions that you should take right away:
Contact the Federal Trade Commission (FTC) to report the situation, whether Online,
By telephone toll-free at 1-877-ID THEFT (877-438-4338) or TDD at 202-326-2502, or
By mail to Consumer Response Center, FTC, 600 Pennsylvania Avenue, N.W., Washington, DC 20580.
Under the Identity Theft and Assumption Deterrence Act , the Federal Trade Commission is responsible for receiving and processing complaints from people who believe they may be victims of identity theft, providing informational materials to those people, and referring those complaints to appropriate entities, including the major credit reporting agencies and law enforcement agencies. For further information, please check the FTC's identity theft Web pages . You can also call your local office of the FBI or the U.S. Secret Service to report crimes relating to identity theft and fraud.

You may also need to contact other agencies for other types of identity theft:
Your local office of the Postal Inspection Service if you suspect that an identity thief has submitted a change-of-address form with the Post Office to redirect your mail, or has used the mail to commit frauds involving your identity;
The Social Security Administration if you suspect that your Social Security number is being fraudulently used (call 800-269-0271 to report the fraud);
The Internal Revenue Service if you suspect the improper use of identification information in connection with tax violations (call 1-800-829-0433 to report the violations).
Call the fraud units of the three principal credit reporting companies:

Equifax:
To report fraud, call (800) 525-6285 or write to P.O. Box 740250, Atlanta, GA 30374-0250.
To order a copy of your credit report ($8 in most states), write to P.O. Box 740241, Atlanta, GA 30374-0241, or call (800) 685-1111.
To dispute information in your report, call the phone number provided on your credit report.
To opt out of pre-approved offers of credit, call (888) 567-8688 or write to Equifax Options, P.O. Box 740123, Atlanta GA 30374-0123.

Experian (formerly TRW)

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To report fraud, call (888) EXPERIAN or (888) 397-3742, fax to (800) 301-7196, or write to P.O. Box 1017, Allen, TX 75013.
To order a copy of your credit report ($8 in most states): P.O. Box 2104, Allen TX 75013, or call (888) EXPERIAN.
To dispute information in your report, call the phone number provided on your credit report.
To opt out of pre-approved offers of credit and marketing lists, call (800) 353-0809 or (888) 5OPTOUT or write to P.O. Box 919, Allen, TX 75013.

Trans Union
To report fraud, call (800) 680-7289 or write to P.O. Box 6790, Fullerton, CA 92634.
To order a copy of your credit report ($8 in most states), write to P.O. Box 390, Springfield, PA 19064 or call: (800) 888-4213.
To dispute information in your report, call the phone number provided on your credit report.
To opt out of pre-approved offers of credit and marketing lists, call (800) 680-7293 or (888) 5OPTOUT or write to P.O Box 97328, Jackson, MS 39238.

Contact all creditors with whom your name or identifying data have been fraudulently used. For example, you may need to contact your long-distance telephone company if your long-distance calling card has been stolen or you find fraudulent charges on your bill.

Contact all financial institutions where you have accounts that an identity thief has taken over or that have been created in your name but without your knowledge. You may need to cancel those accounts, place stop-payment orders on any outstanding checks that may not have cleared, and change your Automated Teller Machine (ATM) card, account, and Personal Identification Number (PIN).

Contact the major check verification companies (listed in the CalPIRG-Privacy Rights Clearinghouse checklist) if you have had checks stolen or bank accounts set up by an identity thief. In particular, if you know that a particular merchant has received a check stolen from you, contact the verification company that the merchant uses:
CheckRite -- (800) 766-2748
ChexSystems -- (800) 428-9623 (closed checking accounts)
CrossCheck -- (800) 552-1900
Equifax -- (800) 437-5120
National Processing Co. (NPC) -- (800) 526-5380
SCAN -- (800) 262-7771
TeleCheck -- (800) 710-9898

Identity Theft: What to Do if It Happens to You

http://www.privacyrights.org/fs/fs17a.htm

When You Personally Know The Identity Thief

http://www.idtheftcenter.org/artman2/publish/v_fact_sheets/

Fact_Sheet_115_When_you_personallyknow_the_identit y_thief.shtml

Fact Sheet 115
When You Personally Know The Identity Thief

When a friend, family member, co-worker or ex-spouse steals your identity: What are your options when you kow the imposter?

This guide covers the following topics:
The Reality of the Situation
What If You Suspect the Imposter Is Someone You Know?
Frequently Asked Questions
Therapy – a way to start healing and live with the consequences of your actions
Letter Forms You May Use Are in Guide 115
Letter Form 115-1: A Letter from the Victim to the Credit Issuer when the imposter will not cooperate.
Letter Form 115-2: A Letter to be written by the Imposter accepting responsibility for accounts or charges.
Letter Form 115-3: A Letter to be used when both parties privately reach an agreement with each other to resolve the case.

Case Examples:
Case 1: “My adult daughter used my information without my knowledge to open several credit cards and buy a car. She hasn’t paid on any of these accounts and now the bank and credit card companies want me to pay. What do I do? I don’t want to see her go to jail.”

Case 2: “My father has a gambling problem. He opened several checking accounts in both my name and my brother’s name. Then he wrote bad checks for his debt. He’s 68 years old and my family thinks we should just pay off the debt. I know that if we do, he’ll just do it again. What do you advise?”

Case 3: “My ex-husband is using my 8 year old son’s SSN to open credit cards. He even got a driver’s license using his information. How do I stop him?”

Case 4: “My friend apparently went through my papers one day and found my SSN. She has several credit cards that she applied for in both of our names. I found out when I applied for a card and it was denied. She says she will pay off the cards but can only afford $20 a month. The credit card companies want all of it now. I can’t afford to pay these off. It is more than $10,000. What do I do? She won’t sign a letter saying these are really her cards because she is afraid they will arrest her.”

Identity theft is a complex crime at best. When the imposter is someone known to you, the impact of the crime magnifies dramatically:
How do I prosecute my own mother?
What kind of father would I be if I allowed the police to arrest my son?
Should I practice “tough love?”
What will the other family members think of me?
What will my friends say?

You basically have three choices:
Proceed as if this was a regular case of id theft.
Make a police report (this is not the same as pressing charges against the person)
Cooperate with law enforcement’s investigation
Working with the creditors to see if a resolution can be made without police involvement
Paying the debt and living with the consequences

This guide will address some of these choices and possible solutions.

The Reality of the Situation
Let’s look at this situation from various points of view.
The law: If you do not report this case, there will be no police report, and no investigation. If you want the protection of the law as a victim of identity theft (and all the benefits you gain as a recognized identity theft victim), you must make a report. To get the protection of federal and state laws you must have a police report. You are not an accomplice or co-conspirator unless you knew about the fraud for a while and did nothing to stop it, or if you participated in the fraud yourself. If you refuse to make a report, you may appear suspect when you try to clear the fraud activity (civil or criminal).

Credit card companies and financial institutions: The credit card companies and financial institutions want their money back. That is a reasonable expectation. It is your task to convince them that another person has taken over your accounts and/or opened new accounts in your name – all without your permission or knowledge. You will have to prove that you have not benefited financially from these accounts. Unfortunately, without a police report, your job will be much tougher. Credit card companies do not take victims seriously without a police report.

The imposter: There are as many reasons to steal as there are imposters. The imposter may have an emotional problem or addiction that forces them to seek more money than they can afford. Examples are gambling, drugs, alcoholism, compulsive spending, domestic abuse or the need for attention. The imposter might be in severe financial straits and decide this is the best way to balance things out.

Some imposters use identity theft to abuse the victim, as in the case of an ex-spouse, former boyfriend/girlfriend or an angry child.

Some imposters do not believe that they have actually harmed the victim, “rational lies.” They rationalize that the credit card company will absorb the loss and the victim will be forgiven the debt. The imposter does not realize the emotional and financial impact of this crime or the extensive hours and cost of clearing up compromised financial records.

The reality is that this was a choice made by the imposter. We all have choices and there is always a better solution than to steal. They have chosen to sacrifice you for their own needs.

The victim: When you personally know the individual who has used your information, the emotional impact of identity theft dramatically increases -- the sense of violation and betrayal, embarrassment for yourself and the imposter, the abuse of trust, even your feeling of how you evaluate others.

You may feel that this decision is not cut and dry. That feeling is one that many family identity theft victims experience as they begin to explore their options. This decision has many ramifications, for you and for those who know both you and the imposter. And those who know both of you may put pressure on you to assume the responsibility for the crime to protect the criminal. As you explore this subject, you will find that indecision seems to lift and you are able to see the path you eventually will choose to take.


One victim put it this way:

“The person who stole my identity was a friend. When I first found out, I was angry at what she did to me, apparently without concern for my feelings or financial security. I reported the situation to the police and then spent the next few weeks worrying about her safety. Would she be arrested? Would she be angry with me? She did get arrested and pled guilty.

The day they took her from the courtroom in shackles was a very difficult day for me. I had a lot of mixed feelings. I knew she would not be able to hurt me for a while, that she would pay for her crime. People told me I should be celebrating. But how do you celebrate when you get to walk in the sunlight and the person you thought was a friend is behind bars, on a cot, alone and unable to feel the breeze on her face?






It took me a while to stop identifying with her. I also had to make peace with myself. I was not the cause of the crime. I was simply a way for her to get money. By going to the police, I had actually given her a gift. A chance to change her ways and get her life together. I finally realized this crime was not about me. It was about her and her problems. I was just an innocent bystander. She was not capable of understanding friendship.”


What If You Suspect the Imposter Is Someone You Know?

Normally these are the steps you would take are on Fact Sheet 100 and Fact Sheet 100 A. To review:
The first step is order copies of your credit reports from Experian, TransUnion and Equifax. These reports are free if you believe you are a victim of financial crime or have been refused credit or a job. Place a fraud alert on each of them. (see ITRC-Debix message)

Using the info from your credit reports as evidence, file a police report.

Call all the companies or collection agencies listing an account that you have not personally opened or that show a pending application. Request they send you a copy of the application and transaction records. Remember, you must send a police report with this request.

Remember, you are not liable for this debt, and the company is taking advantage of the fact that you are a family member if they insist that you pay.

Keep trying to get the company to remove the debt.

If you have a police report listing all the fraud accounts, the credit bureaus must block the fraudulent accounts from your credit reports within 30 days. But that means you must file a police report first.

Commonly Questions and Answers:
What if I file a police report? Won’t everyone hate me? The person who used your information showed a lack of concern for your safety and financial good health. The old saying, “I didn’t think it would really hurt you; the credit card companies just write off the loss,” cannot be allowed as an excuse. The cost of loss is passed on to all of us in higher prices and taxes. If you have approached that person and told them you have a problem they caused AND they don’t respond with an offer to make it completely right immediately, they’ve told you their answer. They don’t care about you and how this affects your life. Why would you continue to protect someone who is putting you at risk?

By contacting the authorities and cooperating fully, you have not caused this person to be arrested. They caused this by their own actions. In your heart, you must understand you did the right thing, sometimes the most difficult action you will ever take. Be careful if you think this person may become violent. Do not confront him/her. Let the police handle the situation and make sure you take the necessary steps to protect yourself.


What if the imposter admits guilt? Can I make a deal with the creditors?

Both parties should contact the credit issuing company(ies) and discuss the situation. See if the credit issuers will allow the imposter to fully pay the bill. Many will not. It is important for you to understand - THIS IS NOT AN AGREEMENT BETWEEN YOU AND THE IMPOSTER. IT IS AN AGREEMENT BETWEEN THE IMPOSTER AND THE CREDIT ISSUERS. Send Letter Form 115-2 (the imposter will need to sign this transferring responsibility from the victim to himself/herself) with the affidavit of fraud that the creditor sends you.

Note- You may NOT force someone to accept responsibility. They must do so willing, without coercion or threats from you.

Note- The creditors are NOT required by law to accept this document of responsibility. Most will not without a police report. Many companies will keep your information on the account in case the impostor does not pay the bill so that they still have somebody they can pursue for the remaining money owed.


We recommend that the imposter provide a check for at least 15-25% of the debt to mail with the documents or whatever the credit issuer demands as a first payment. The check should be made payable to the credit issuer, not you. Photocopy everything before sending it. Creditors may ask for all of the money or they won’t agree. Be prepared for that answer.

My family wants me to forgive the imposter and they will help you pay off the bills slowly together. What are the consequences of this? If the imposter and credit issuer will cooperate, have the account moved to the imposter’s SSN. Have the family work out an agreement in writing, signed by all parties, to put the debt in the imposter’s name to pay it off.

UNDERSTAND - if you pay the debt in your name, any negative information on your credit report will remain on your report for seven (7) years. You have assumed responsibility for the debt, and any negative credit worthiness consequences.

The imposter either will not admit guilt or does but will not sign any forms. I have conclusive proof of the crime. How should I proceed? Proceed as in Question One or Three – the choice is yours. Either make a police report, or pay the bill.

The creditor won’t believe either the thief or me? Now what? Assuming you have provided proof, have filed a police report and there is a notarized admission of guilt by the imposter, you need to speak with a higher level person that you are currently dealing with. Ask for the legal department if all else fails. See ITRC’s Fact Sheet 116 on Dealing with Collection Agencies

The perpetrator is my ex-spouse or soon to be ex-spouse . What is the best way to proceed? If the person has opened up credit cards in your name, without your authorization, we recommend that you have your divorce attorney address this as part of the divorce proceedings or settlement. If the divorce is final, you may choose to deal with this as in Question One above or go back to your divorce attorney for additional court assistance. Send a copy of the divorce decree with a cover letter to the creditors and let them go after your ex-spouse. For more information you can read our Fact Sheet 115A What if my spouse is stealing my identity?

Does mediation help? Mediation is a form of civil action. This is an option if you don’t want to take criminal legal action. The mediator will attempt to work out a structured solution and legally binding agreement as to the circumstances between the imposter, the creditors or collection agencies and you. However, the downside is that the collection notice or bill still remains on your credit report unless the creditor will transfer the account to the imposter’s Social Security Number. (see question 3 above). If the party refuses to go to mediation, you have to decide – are you going to pay the bill, take them to small claims court and sue them for the amount owed or report them to the police?

Do I need legal assistance? If your impostor has committed crimes in your name, you should definitely contact a criminal defense attorney and have him/her help you to clear your name from the FBI and state criminal records databases. See the ITRC Fact Sheet 110 Criminal Identity Theft . If your family member committed financial fraud, and the creditors will not remove the fraud after you have written letters, you may need to hire a consumer law attorney. For referrals, contact the National Association of Consumer Advocates, your local or state bar association or other resources in The Identity Theft Survival Kit available at http://www.identitytheft.org/. It provides additional attorney-written letters on diskette dealing with this situation

THERAPY:

Whatever option you choose, you may want to look into emotional counseling, for yourself, the imposter, and for your family if the imposter is a family member. This is a challenge and all involved must learn “boundaries.” See ITRC Fact Sheet 108 “The Emotional Impact of Identity Theft” for a list of resources.
For the victim : It often benefits victims of familial identity theft to talk with a professional, either to help you make your decision or live with its consequences.

For the imposter : This person has issues that need to be identified and dealt with. Possible therapies could include anti-theft counseling, anti-substance abuse counseling (for example, alcohol, drugs, gambling), responsible financial management, developing a conscience, accepting responsibility for one’s actions, etc.

For the family or between the victim/friend : The bottom line is that you will eventually all have to live with the consequences of the actions taken by the imposter. You need to talk out your anger (and you will experience anger), open new lines of communication, and see how interactions might have led to this action. You also need to establish boundaries to avoid new cases of abuse/identity theft.

Whatever you decide to do, know the Identity Theft Resource Center is here to help you through this maze. Please call or email us if you want additional help.

[BankruptPinoy]

Fact Sheet 115 When you personallyknow the identity thief

http://www.idtheftcenter.org/artman2/publish/v_fact_sheets/Fact_Sheet_115_When_you_personallyknow_the_identity_thief.shtml