On September 24, 2007, Miguel Carcamo was going through his mail. For some reason, Miguel had not yet received his bank statement, which he usually re- ceived at the beginning of each month. Although he was concerned, he took no action and decided not to worry about it. After all, was it his fault that the bank was a little behind? Two weeks later, Miguel got a mys- terious call from a creditor claiming that he needed to pay an overdue balance on his Visa card. Miguel, frus- trated to receive such a call in the middle of dinner with his family, told the person that he must be mis- taken and that he had paid his bill already this month. Before the caller was able to ask any more questions, Miguel hung up the phone. On October 15, 2007, Mi- guel tried to use his credit card. Unfortunately, the card didn’t work because of insufficient funds. Upset and embarrassed, Miguel called his bank to inquire about the card. The bank had already closed for the day; how- ever, Miguel left a message explaining what had hap- pened. On October 16, 2007, Miguel’s bank called regarding the message he had left the night before. The caller stated that Miguel had not only maxed out the credit limit on his Visa card but had also maxed out on the increased credit limit for which he had recently applied. Miguel stated that he had not applied for an increased credit limit.

It took several days, but after an investigation, Miguel discovered that he had been a victim of

identity theft. Fortunately, besides his bank account being drained for a few thousand dollars, two fraud- ulent credit cards had been issued in his name. Both his bank statement and the new credit card statements were sent to a PO box at the post office.

1. What were some of the obvious red flags of identity theft that Miguel should have noticed?

2. When Miguel noticed the red flags, how could he

have minimized his losses?

3. Now that Miguel has been a victim of identity theft, what are some of the steps he should take to repair the damage to his reputation, credit, and finances?