DETROIT – Angela Ruane contacted Help Me Hank when she discovered someone opened an AT&T account in her name and ran up a $2,000 bill.
"It was really frightening that it was that easy for somebody to do that," she said.
Tony and Lillian Logan of Macomb County were told they owed $300 dollars for a Comcast account opened in Detroit, even though they hadn't lived in the city since 2002.
These customers are not alone in facing identity theft through a utility company. The security company, Lifelock, says utility fraud is one of the most common types of fraud its customers reported in the first quarter of 2016.
"It's very difficult to detect how your information was exposed in order for these thieves to open these new lines of credit," said Paige Hanson, Chief of Identity Education at Lifelock.
Can companies do more to protect us?
While utility companies are also victims in identity fraud cases, these two customers tell Help Me Hank they feel big corporations should do more to stop identity thieves, especially when they open new accounts.
"Something as simple as requiring that you produce a picture ID," suggested Tony Logan. His wife was not a Comcast customer when thieves used her information to open an account in October of 2015. Ironically, the Logans opened a new Comcast account in November of 2015.
"When we opened our account a month later in Macomb County, a flag should have went up and they should have questioned 'Well, Ms Logan what about your account in Detroit?'"
Help Me Hank spoke with representatives for both companies. They say it's not unusual for customers to have accounts at two addresses, and that isn't always a huge red flag on their side. They don't require photo IDs during installation because sometimes the account holder isn't home during installation.
AT&T released this statement to Help Me Hank, “Before service can start new customers must provide specific personal information to verify their identity. This is validated against credit bureau information. Additional steps may be taken to validate a customer's identity depending on information in the credit inquiry. We quickly investigate and resolve fraud claims. Learn more about how to defend against identity theft and fraud at www.att.com/fraud.”
And Michelle Gilbert, the Vice President of Public Relations at Comcast Cable released this statement, "Unfortunately, identity fraud is a growing concern for everyone, and we take it very seriously. We take a comprehensive approach to help protect our customers’ personal account information that includes authentication policies and procedures. We also have a security website with general information for customers and a link to an alert page for known scams.
“There are many things people can do to help ensure the security of their accounts and help protect their personal information, including creating strong, unique passwords, regularly monitoring to detect any unordinary activity and enabling the right level of security and privacy on all their devices.”
It's no secret that many legitimate customers crave convenience when it comes to opening an account. Imagine if you were opening a new utility account and you needed to present identification, needed to be at home for installation, and had to jump through hoops to authenticate your identity. It's a balancing act we face many time, juggling security with convenience.
"Sometimes companies take the approach of not asking for as much information because they want those accounts to be open," said Paige Hanson, Chief of Identity Education at Lifelock.
By the way, the fraudulent charges have been removed from the accounts of both customers in this story.
Two things you must do!!
Until companies start to take more vigorous steps, the responsibility for protecting your identity is really up to you. In general, the two things you must do to minimize your risk, protect your personal information, especially your Social Security number. Second, make sure you are checking your credit report at least once a year. As soon as you spot a fraudulent account, you can minimize the damage and start getting the bogus information removed from your credit history.
Also, here is a longer list of strategies that can help limit your risk, with more specific suggestions.
1) Secure your Social Security number by leaving your Social Security card at home in a safe place. Don't write that number on your checks and only
share that information when absolutely necessary. If someone asks for your Social Security number, ask why they need it and how they will protect your information.
2) Never respond to unsolicited requests for personal information (your name, birthdate, social security number, or bank account number) by phone, mail, or online.
3) Watch out for “shoulder surfers.” Shield the keypad when typing your passwords on computers and at ATMs.
4) Collect mail promptly. Ask the post office to put your mail on hold when you are away from home. Pay attention to your billing cycles. If bills or financial statements are late, contact the sender.
5) Review your receipts. Ask for carbon copies and incorrect charge slips as well. Promptly compare receipts with account statements. Watch for unauthorized transactions.
6) Shred receipts, credit offers, account statements, and expired cards, to prevent “dumpster divers” from getting your personal information.
7) Store personal information in a safe place at home and at work.
8) Install firewalls and virus-detection software on your home computer.
9) Avoid during personal business on any unsecured public wifi networks.
10) Create complex passwords that identity thieves cannot guess easily. Change your passwords if a company that you do business with has a breach of its databases
11) Order your credit report once a year and review to be certain that it doesn't include accounts that you have not opened. Check it more frequently if you suspect someone has gained access to your account information.