What I Learned about First Premier Bank after being Hit with another Identity Theft

Identity theft experts agree that once you fall victim to fraud, odds are pretty good it will happen to you again.

 Identity theft victims go one further: in addition to being the target of a random criminal, you often feel beat up by the system--or lack thereof--supposedly designed to help you. 

Some creditors' actions or in-actions--not the perpetrator's--dictate the ease or difficulty a victim experiences after the crime has been committed.

Nobody can 100 percent prevent an identity theft from occurring. We are no longer in control of our own information. All we can do is to work to lessen the risk--and the impact by having a plan of action in place -BEFORE we learn our identity has been compromised or stolen.
 
So here I go again.

My identity has been stolen and this time I am dealing with a credit card company that defies the laws of common sense as well as the laws of the land in handling its fraud cases.

But let's start at the beginning, and you'll see for yourselves why this crime is so frustrating, why law enforcement needs resources, consumers need stronger protection laws, and why you need to have a plan of action and plenty of patience!

It all began when I noticed a charge on my credit card statement from Comcast Cable company.  Two charges, actually, one for nearly three hundred dollars and one for one hundred dollars.  Each had separate account numbers assigned to the charges. I called my Visa company and informed them that I had not made those charges, and asked them to check into the matter.  They told me I needed to first contact Comcast, find out what they were for and then dispute the charges with them.  Visa would then cancel my credit card, issue a new one and investigate the charges from their end. Sounded easy enough.

Believing this was a simple case of credit card fraud, I thought I could handle the problem by calling Comcast and then filing a dispute. 

Comcast confirmed that accounts were opened using my credit card -but not my name.   Oddly enough, Comcast never asked for a billing address for the credit card--if they had, they would have seen that it was not the same as the residence where the cable was being turned on.  Verifying that one small piece of information could have stopped this bit of fraud before it had a chance to get started.  But no. Were they going to turn off the cable? No. I needed to prove I didn't give her permission to use my credit card and that could be done through an investigation by my credit card company.

I called my credit card company -and then LifeLock.

This incident wasn't looking like a simple case of credit card fraud, either.  Comcast provided LifeLock with a name and address in a nearby city where the cable had, apparently, been turned on using my credit card.  The two payments were the person paying the previous tenant's past due bill (the cable company won't turn on the cable in an apartment until the bill is current, even if the current tenant is not the person who racked up the charges) and the initial set-up payment to Comcast.

LifeLock, thankfully, took over much of the workload from there. The more information they dug up, the more alarmed I got. Now it seems the person using my credit card number to have cable turned on in her name had somehow also obtained my personal identifying information, including my name, my date of birth and worst of all, my Social Security Number--and she was already using it to harm to my credit and identity.

According to the trail the identity thief left, aside from obtaining cable in late November, a First Premier Bank credit card application was opened online.  

On December 16th, in a three party call between LifeLock, myself and First Premier we notified the bank of this fraudulent inquiry on my credit report. We learned that the applicant used my name, my SSN and my date of birth, but not my address to successfully activate a credit card account with them.  What address did she use? The same address where the cable account was opened.

I pleaded with the bank rep to tell me what she needed from me in order to get that application, have them take steps to close the account and help to stop further damage from occurring. I explained I wanted to get police to go to that address -but without their help -law enforcement couldn't do so. I was promised a "security representative" would call me. That didn't happen.

Each day they didn't call me, Lifelock, would call them -and keep me updated.

My LifeLock customer service rep had already spent considerable time being passed from person to person throughout the bank while trying to gain access to their so-called security department. But that would not happen.  Why? Because we learned that First Premier has a policy that refuses incoming calls be made to that department. Does that make sense?

If a consumer suspects an identity theft has occurred, they are not allowed to speak with a fraud department representative -not until they fax a written request to do so. We did so immediately.  I couldn't help but take note that their website prominently states they protect their customers and take identity theft seriously. Well, it appears, at least in my experience, they are protecting their customer---the perpetrator!

As any victim of fraud, I was anxious to mitigate any further damages that this fraudster could cause, so we again explained the Comcast situation and pleaded with First Premier representatives to help me.  They said the account was closed and the card was not mailed out. They further relayed I needn't be concerned because though there were "bank fees of $180.00" charged to it, that would be "forgiven" if the account were deemed fraudulent.

When asked why I was not allowed to speak with a fraud representative, I was told they had "3 million" customers -they're very busy".  I noted that if they stopped extending online credit so easily -maybe they could offer assistance to me -the victim--and provide me with the information the law says I am entitled to. I didn't receive a response -just a promise I would receive a call back shortly from their "security department". 
 
Not only were most of the First Premier representatives condescending and rude, they gave misinformation. When asked repeatedly for a list of exactly what they needed from me in order to expedite my ability to send police to the address to stop further harm, I was told I simply needed to fax a request for the pertinent information. When I replied we had done so, we were told, "send a second request marked "urgent second request" and she, the bank representative, would additionally duplicate our request and forward directly to their "security department".  She apologized that the security department had not gotten back to me, but promised AGAIN -they would. They didn't.

I am grateful that I had LifeLock to turn to because though I made myself available for the necessary conference calls, I knew they were on the job and making the many calls, tracking down the additional inquiries placed on my credit report, keeping an eye out for more fraudulent accounts, sending faxes and pleading with First Premier to help the victim: me.

LifeLock continued to call over and over, speaking to representative after representative until something got done.  It was not what we were promised. No paperwork. No call. No return fax. Instead, LifeLock received by way of snail mail, a two-page letter reciting more about their policies and what they NOW wanted from me. The letter was dated December 22 a week after the first faxed request and notification of a fraudulent account --and not received until December 30th.

Here's an excerpt from the first paragraph:

This letter is in regard to your recent request for information regarding Denise Richardson.

"First Premier Bank fulfills subpoenas that are issued in accordance with the Uniform Act to Secure the Attendance of Witnesses from Without a State in Criminal Proceedings (the Uniform Act). This Act requires that a South Dakota attorney signs such a subpoena or it must be accompanied by an Order from a South Dakota Judge. The Judge will set a hearing and certify factual findings have been made. In the absence of such an Order or a signature of a South Dakota Attorney, out-of-state Criminal Subpoenas will not be complied with."

The second paragraph lists the various documents they will need and accept prior to complying with any request for information;

a copy of my photo ID,
driver's license or birth certificate,
pay stub,
a letter from the Social Security Department on their letterhead,
signed letter from employer on company letterhead
and oh yes, the credit card number -the number I had already noted was with the perpetrator and a copy of police report or FTC Affidavit, .

If I have questions, it notes I can call customer service, but I still can't contact their so-called security department. And the letter itself is signed by "customer service"...so I question whether or not a "security department" even exists!

Does this sound like they are helping the victim or protecting the perpetrator?

Did they get a photo ID from the credit card applicant? No.

Did they even bother to determine when they did a credit check that I didn't live at the address the applicant requested the credit card be mailed to? No.

Did they comply with my fraud alert? No.

Did they get a pay-stub, birth certificate, Social Security Card or how about a signed letter from their employer? No, no and no.

Victims are scrutinized much more than the actual thief.  Could that be why identity theft is the number one growing crime in this country?

I gave First Premier the benefit of the doubt. I shouldn't have bothered. 

Each and every promise to help me, the victim, would be broken.  We learned that long after they were notified of the fraud, the card they had promised would not be mailed out --was! It was mailed to the fraudulent address a week after we notified them of the fraud. I mentioned to First Premier that their actions were harming my ability to protect my identity and my credit rating. I relayed that I was well of aware of their reputation of charging customers high fees and interest at a rate of 79.9% and remarkably they responded without hesitation,  --"NOT on your card though!" as if that made it alright. I reminded them, I don't have a card with them, but thanks to them, someone who is using my identity does.

You would think that with the name and the address of the person using my personal information to obtain utilities and a credit card, someone, aside from me, would want to send law enforcement over to the address used by the fraudster and have him or her arrested. Nope...it doesn't work that way. As I always remind consumers, when it comes to identity theft, the victim is forced to prove their innocence.  It's very easy to open a fraudulent account -not so easy to close it!

I reported the fraud to my local police, but the police department in the perpetrator's jurisdiction couldn't proceed against the offender because they didn't have verification from either Comcast or First Premier--yet.  In the mean time, my credit score is being ruined because even though they knew the credit card was a fraudulent account -they reported the account to all three credit bureaus.  We now know this person has opened a Comcast account and a credit card and LifeLock is now tracking down an AT&T credit report inquiry out of Michigan...so who knows what will crop up next?

Here's a little background on First Premier Bank, to really give you a taste of what innocent consumers are up against when dealing with them. 

Thanks to new regulations designed to stop outrageous credit card fees, First Premier charges the maximum allowed, 25 percent of the person's credit limit.  This means that a card with a $300 limit would cost the user $75 up front, before any purchases are made.  Thanks to a lack of regulation, there are no limits on what a credit card company can charge in interest if the bank has a branch in South Dakota. So First Premier is allowed to charge more than any movie Mafioso or loan shark--legally. They have been charging customers a whopping 79.9 percent!  That means if you charge $100 dollars in purchases on a First Premier card, if you don't pay it off immediately you owe $180.  That's insane!  According to a spokesperson for CardHub.com, quoted on the Caveat Emptor blog, even lousy credit terms are better than no credit terms for people in an emergency.  (And I would add identity thieves)

I did a quick online search to find out if others had similar experiences and complaints against First Premier policies and whether or not complaints about a perceived systemic disinterest in helping victims of identity theft, along with the inability to speak to their elusive "security department" existed, and no surprise, I certainly got an eyeful.  I found several sites with dozens if not hundreds of complaints against First Premier, their policies, and/or their customer service. 

Creditors' sloppy practices--both in preventing fraud and in helping victims recover from fraud--are at the heart of the identity theft problem. Last year alone, more than 9.9 million Americans were victims of identity theft, a crime that cost them roughly $5 billion. If creditors and credit bureaus won't step up and do the right thing, then we need to urge our legislators to do so.  With law enforcement short on resources and creditors allowed to make up their own rules, consumers and victims are as much at the mercy of creditors as they are of identity thieves. We can't change our names, Social Security numbers or date of birth -but identity thieves can use that information and simply change an address and viola -they get whatever they want?

I agree with identity theft victim Eric Drew, who blames the industry for its "acceptable level of risk" in issuing credit.  Credit card companies, he says, "know that a certain percent of the credit they issue will be fraudulent, but that level is acceptable for them to maximize their short term profits.  The problem is that they take this risk on behalf of the consumers that have their financial identity ruined by having credit issued in their name to an impostor, and it is time we put a stop to this flagrant violation of the American identity."

But until we have better legislation, you can check out the FTC page on what exactly are your rights regarding identity theft.  When it comes to getting information from a business, here's what you can do.

What does all this mean? 

I have said a million times (or close to it) there is no magic way we can prevent identity theft from occurring.  Nobody is immune to it. There is no absolute protection from it. There are however, steps that can be taken to reduce the odds and impact. Truth be told, an important consideration is whether or not you are ready, willing and able to go it alone, or have someone in your corner to turn to, when you learn your identity has been stolen or compromised. I choose the latter -and with plenty of good reasons.

Let my latest identity theft be a warning to you!  I have been a victim of fraud before, I am a Certified Identity Theft Risk Management Specialist, and I spend my life passionately warning others of the risks of fraud and identity theft, yet it happened to me -again.

The stats show it isn't if you will become a victim one day--it's when. Best advice?

Have a plan of action. The fewer precautions you take to protect your identity, the greater at risk you are. But remember, nobody is immune to it!

Take steps to lessen your risk and the blow.

You may be able to recover quickly from a credit card fraud, but restoring your identity and peace of mind after an identity theft occurs? Not so easy.

Stay tuned for updates as the story continues to unfold...