Frequently Asked Questions: Identity Theft

What is identity theft?

People use the term “identity theft” loosely. True identity theft occurs when a thief uses your personal information, such as your Social Security number, home address, checking account number, etc., to commit fraud and open new accounts. Fraudulent charges on a credit card or ATM card may mean that someone has stolen your credit card account number to make purchases that you did not approve, but it may not indicate that your identity was stolen.

True identity theft occurs when a thief steals your personal information to:

• Open new credit card accounts
• Take out loans for new cars or homes
• Access bank accounts and withdraw funds
• Rent homes
• Get medical treatment and charge it in your name
• They may even use the victim’s name as an alias when committing a crime

These activities can result in a significant financial and emotional cost.

How do thieves steal my personal information?

Obtaining your personal information may be easier than you think.

Thieves:

• steal wallets, purses and mail that contain private information about you and your family;
• complete a “change of address form” to divert mail from your home to another location;
• rummage through trash looking for personal information;
• fraudulently obtain personal information by posing as an employer, landlord, your bank, credit card company or telemarketer, and
• intercept cell phone calls when you are making a purchase.

Because the thief uses a victim’s personal information to create a fictitious person at a different address or to commit fraud or crimes, the victim is usually unaware of the problem for a period of time. That gives the thief the opportunity to commit multiple fraudulent acts or crimes without the victim’s knowledge.

What is the difference between credit card fraud and identity theft?

Fraudulent charges on a credit card or ATM card may mean that someone has stolen your credit card account number to make purchases that you did not approve, but it may not indicate that your identity was stolen.

The misuse of a credit card account is definitely an irritant to anyone that it happens to, but it is relatively easy to resolve with a phone call and a letter to the credit card company. And today, most banks and creditors limit an individual’s exposure to just $50 if notified within a given period of time.

True identity theft occurs when a thief uses your personal information to open new credit accounts, purchase vehicles or apply for loans, for example.

Are there laws against identity theft?

Yes. In October 1998, the United States Congress passed the Identity Theft and Assumption Deterrence Act of 1998 (Identity Theft Act) to address identity fraud. Even with this law, identity theft continues to exist and the number of Americans impacted escalates each year.

Do the police find the majority of identity thieves?

No. Most victims don’t know how the thief obtained an individual’s personal information, making it hard to apprehend the thief. For a criminal, identity theft is a low-risk, high-reward endeavor. Due to a number of factors, identity theft is one of the least convicted crimes in America.

What should I do if someone has stolen my identity?

If someone steals your personal information, it’s important to take immediate action.

First, contact the police to file a written report. Make sure you get a copy of the report. You may need a police report to submit to your creditors. Next, contact ERIE's Identity Recovery Hotline at 1-866-ERIENOW to begin the recovery process.

Once we’ve verified that you are a victim of identity theft, we will put you in touch with the case management services and get you on the road to recovery. The case management services will walk you through the recovery process including:

• Contacting the fraud departments of the three major credit bureaus to place a fraud alert on your credit file. This alert requests that creditors contact you before opening any new accounts or making any changes to your existing accounts.
• Ordering copies of your credit report from all three of the major credit bureaus to review recent activity.
• Closing accounts that you believe to have been tampered with or opened fraudulently.
• Writing letters on your behalf to the Social Security Administration or other government entities.
• Providing legal referrals for assistance with court appearances or other legal situations.
• Keeping detailed records of the steps taken and remaining to restore your identity.

Will my personal information be safe with the case managers?

Yes. Our case managers go through an extensive interview process, including a county, state and national criminal check, complete with fingerprint analysis, and a credit report check. Additionally, all Employees receive thorough training before working with our Policyholders. Each case management specialist is a state licensed investigator and must complete continuing education requirements each year. Information you provide to our investigators will be treated with the utmost security.

Will I need a lawyer if my identity is stolen?

You may need a lawyer if your identity is stolen. With ERIE’s Identity Recovery Coverage, we’ll walk you through the recovery process including finding legal representation in the event that you need to attend court hearings or prepare legal documents. ERIE’s coverage will also reimburse you for certain expenses associated with obtaining legal representation.

Are my children covered with ERIE’s Identity Recovery Coverage?

Yes. Identity theft is a crime that impacts thousands of minors each year. ERIE’s Identity Recovery Coverage will protect any insured as defined by ERIE’s homeowner policy including named insureds, any resident relative, ward or any persons in the care of the named insured.

Is the money fraudulently lost, for example $500 charged to my credit card, reimbursed with ERIE’s Identity Recovery Coverage?

Similar to industry products, actual money fraudulently lost — for example, reimbursement for charges on a credit card or money withdrawn from a checking or savings account — are not covered with ERIE’s Identity Recovery Coverage. Consumers can typically recover this money from the affected financial institutions and most banks and creditors limit a consumers’ exposure to $50.

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