PROPERTY OWNERS BEWARE OF IDENTITY THEFT

Santa Monica, California— The fraudulent scheme to steal your identity and steal your money usually begins with the simple theft of your name and address. This can be accomplished by taking your outgoing letters in your mail slot or the delivered mail in your box. The next step typically involves the submission of a "Change of Address Form" to the U.S. Postal Service. The thief substitutes his address for yours and is then able to receive your mail at the end of the month when credit cards statements, bank statements, etc. are delivered.

Regrettably, the U.S. Postal Service allows anyone to submit a "Change of Address" form with no proof of identity. The thief simply forges your signature. He or she can submit the form by mail or over the internet with no questions asked. By the time you realize that you haven't received your mail, the thief already has additional valuable information about you, and is using that information to defraud you.

Particular targets are the elderly who presumably have paid off their mortgages in full. For some criminal enterprises, this is where the search for victims begins. This information on a paid-off mortgage is easily accessed via various on-line databases. Once it is known that there is equity to support a new loan, they go in for the kill. One of my client's cases is a textbook example of identity theft against a property owner with a paid-off mortgage. In the spring of 2000 every two weeks, for four consecutive weeks, a forged "Change of Address" form was sent to his local post office. On the first occasion, after noticing that he had not received mail in a few days, and after inquiring of neighbors as to whether they had received their regular deliveries, he inquired at his local post office.
The homeowner was told that he had changed his address and his mail was being forwarded. My client insisted that he had not moved, that he had lived in his home for the last twenty-seven years and that he had intended to remain there permanently. He asked to see the "Change of Address" form. He saw the forged signature. He pointed it out to the postal clerk. The clerk gave him the original "Change of Address" form and assured him it would not happen again. A week and a half later, it happened again. Then again. And again.

On each occasion my client returned to his local post office and demanded that they place his name on a list to ensure that his mail is never forwarded again. At minimum, he requested that they require some photo identification. The manager of the postal station said she could not possibly keep such a list because there was no department to oversee such information. Moreover, she said that postal rules permit a person to mail in a "Change of Address" form. The postal service simply assumes that the signature is valid. After two months of on-again, off-again mail service, the thief had what he wanted. He had obtained my client's social security number, date of birth, California driver's license number, and knew that the property had been paid off in full. He had opened a bank account in my client's name, using my client's stolen identity information. He had opened several mailbox rentals in my client's name. He then applied for a $210,000 real estate loan. The information on the loan application listed my client's true name and identifying information, the true address of the property, but the thief requested to use his "business address" for all correspondence related to the loan. The "business address" was one of the rented mailboxes. The mortgage broker, who was a participant in the fraudulent scheme, stated that he took the information on the application over the telephone. The notary stamps had been stolen months earlier. The appraiser was involved and perhaps others in the chain of application and funding. The funding details were very specific. The funds were to be wired into the fraudulent bank account on a specific day. On that same day the funds were wired out of that account and out of the country. Several months later my client began receiving letters from the mortgage company that had funded the loan. Your monthly payment is late; we intend to foreclose on the loan. The property owner walked into my office scratching his head. "Something funny is going on, " he said. "I own my property outright. Can you look into this? " We did.

What can you do to protect yourself? Never leave mail in a mail slot where someone walking by could steal it. Have your mail delivered to a locked mailbox or through a slot in your door so that it is securely delivered inside your home. Write to your local member of Congress and request that the U.S. Postal Service change their rules and require that "Change of Address" forms be delivered to the post office in person, by an individual who can show at least two forms of photo identification. Finally, place a fraud alert on your credit report. Call the toll free numbers for the three major reporting agencies: Experian (888) 397-3742, Trans-Union (800) 836-8761, and Equifax (800) 685-1111. Tell them to place a "Fraud Alert" on your reports. Ask them to telephone you at a number you designate whenever any inquiries are made regarding your credit. No loans will be approved, or credit granted, if the fraud alert is on your account. In addition, your credit reports would not be accessible on the Internet, even if the thief does have access to your social security number and California driver's license number.

During the last ten months in Los Angeles and Orange Counties, over one hundred victims have been hit in a similar way with identity theft by, it appears, the same ring of conspirators. They apparently go from state to state, stealing a few hundred identities, making as many applications as possible, and then by the time the victims become aware of the problem, they are already operating in another city and have stolen millions of dollars. Your personal identity is worth an inestimable sum. Protect it.