Scams v. Identity Theft

Even though the title of this page is focused on identity theft, many people confuse being the victim of a scam with being a victim of identity theft. Both are very unfortunate situations, but the actions and outcomes are different, so it is important to distinguish between the two. 

​Scams:

Scams are a general category of fraud that involves misrepresentation, deceit, or concealment to convince a person to act, or not act, causing injury as a result of the false information. Even though the victim is tricked, the key is that the victim does the act themself. For example: the victim sends money to an account given to them by the scammer believing that it will be returned, or used for something else. 

    • Demands for upfront payment

    • Door-to-door sales (sign-on-the-spot contracts)

    • Cash only, wire transfer payments, sending gift cards

    • Anything that sounds too good to be true

    • Companies or individuals who want you to assign insurance or federal benefits.

    • Schemes dealing with transferring money back and forth (often involving Paypal or Venmo)

    • Scammers can rig caller ID to look like they are calling from the government.

      • FACT: government agencies usually will not call or email, they contact you via US mail.

    • Scammers will say that they are trying to “verify” personal information.

      • FACT: Government agencies do not get your personal information over the phone, instead they will direct you to their website. This is a phishing scam.

    • If someone claims to work for a government entity, but asks for payment, it is very likely to be a scam.

      • FACT: Federal and state workers do not ask for or accept money.

  • Sadly, little can be done in time to fix a scam. If you suspect that you are being scammed or that someone has tried to scam you, you should report it to:

    1. Police

    2. City Attorney’s Office

    3. The California Attorney General’s website

    4. Report to the FTC: ReportFraud.ftc.gov

    5. The California Department of Financial Innovation and Protections (DFPI)

    ​For money that has been wired, there is a very short window (3 days) where it may be possible for the FBI to reverse the transfer through their Internet Crime Complaint Center (IC3)

​Identity Theft:

Identity theft is a person using the identity of the victim without permission to gain access to the victim's benefits, credit, or other assets. The key is that the victim does not do the act themself.

  • If you think that your personally identifying information has been compromised you should check and open your mail regularly so that you can seek help immediately. Additionally, take these steps:

    3 Steps for Preventing ID Theft:

    1. Freeze Your Credit Report

      • This is free to do.

      • You must create an account and freeze with each of the 3 credit bureaus: TransUnion, Experian, Equifax.

      • This will prevent new accounts from being opened in your name.

      • NOTE: You must unfreeze the credit reports if applying for new accounts. And if the ID thief knows your personal information (like a family member), they may still be able to bypass the freeze.

    2. Monitor Your Existing Account

      • Locate all physical tender, cards, checkbooks, and devices with cash apps.

      • Review all items in monthly statements (bank and credit card) for unusual or unauthorized charges.

      • Notify the creditor/ bank immediately of fraudulent charges (see next section for appropriate steps).

    3. Monitoring Your Credit Report

      • Use AnnualCreditReport.com. This is the free website from the FTC. Other sites may ask for your credit card information or sell your data.

      • Review all three credit reports and dispute suspicious, unfamiliar, or fraudulent accounts.

  • If you are a victim of ID theft, here are the steps you can take. Follow this order:

    1. Make a report with the FTC

    2. Make a report with the police (OPTIONAL)

      • Make a police report, often online, with police in the county where you live.

      • NOTE: if you know who committed the crime, you may need to make the report with a live person.

    3. Contact the companies that may have been impacted

      • Call the fraud department of the impacted companies and report the fraud. Close any accounts and reverse charges.

      • These can be companies where you had existing accounts, or companies where new accounts or loans have been opened in your name.

    4. Change Account Credentials

      • Change all logins, passwords, and PINS for financial accounts and e-mail.

    5. Fraud Alert / Credit Freeze

      • A fraud alert makes it harder for a person, including yourself, to open new accounts in your name.

      • If you file a fraud alert, you only need to do it at one of the three credit bureaus and that bureau must notify the other two.