Mindy Bockstein, left, warned that "dumpster diving" is the most common way for thieves to steal personal information. Photo: Matt Allinson

Reported on July 31, 2010

A state government group in Albany shredded more than 3,000 pounds of documents on July 28, destroying such a volume of paper that members needed a truck to haul away the waste.

The New York State Consumer Protection Board did it as part of its ongoing “Shred the Word” campaign against identity theft. Staff members invited Albany residents to join them outside Joseph L. Bruno Stadium, where 3N, a local document destruction company, provided the service free of charge.

Identity theft, which cost Americans more than $50 billion in damages last year, is New York’s most prevalent type of fraud. In 2009, more than 18,000 New Yorkers reported identity theft – the nation’s sixth-highest rate per capita, according to the state group. To combat this financially-destructive crime, the consumer protection board has worked to educate people. They have also prodded state legislators to enact stronger consumer protections, including a 2008 security freeze law and restrictions on the use of social security numbers.

Mindy Bockstein, the board’s executive director, said people are becoming more knowledgeable about protecting their identities, but there is work to be done. She said people mistakenly believe identity theft is confined to the Internet. Yet, phony websites and e-mails from Nigerian royalties constitute just a small portion of all identity fraud.

“Dumpster or mailbox diving is still the most common way for thieves to steal an identity,” Bockstein said, standing in front of 3N’s disposal truck. Scammers look for credit card offers, which they can use to open accounts in victims’ names; or they try to reconstruct identities from pay stubs and bank statements. With the right information, they can fraudulently open new lines of credit, drain existing accounts or amass medical bills. Due to the rising cost of health care, identity theft for medical purposes is a growing concern for the board.

Bockstein advised people to destroy their unwanted mail. “That is why we are here,” she said, pointing to a stack of papers destined for 3N’s mobile guillotine. She suggested people stop unsolicited credit card offers by calling 1-888-5OPTOUT and also reminded travelers to make mail arrangements if they leave home for more than a few days. Identity thieves often target empty households with bundles of letters stuffed into the mailboxes.

Jorge Montalvo, director of strategic initiatives for the consumer protection board, corrected another misconception. He said only one website, www.annualcreditreport.com, is where New Yorkers should obtain their free credit report provided by state law. He warned of private companies using similar web addresses and catchy advertisements to lure customers into paying for credit protection.

Bockstein reviewed some of the recent results of her group’s advocacy. As part of New York’s 2008 Identity Theft Prevention and Mitigation Act, it is now illegal for businesses to require social security numbers on personal checks used for payment. It is also illegal for businesses and other institutions to use social security numbers for their user identification numbers. Bockstein said that this is important, because thieves often use these numbers as keys to stealing other aspects of a victim’s identity.

Additionally, New York now allows consumers to call for a security freeze on their credit file, should they feel their identity has been compromised. The freeze blocks businesses from accessing the individual’s credit history, thus thwarting the opening of new accounts. The consumer can unfreeze their credit file in a matter of minutes, and the freeze does not affect their credit score.

Bockstein and Montalvo are proud of their advocacy. They admitted that most consumer protection happens at the federal level but called New York an incubator for change that pushes federal action.