Developing Critical Thinking and Consumer Skills: A Victim of Identity Theft Wants Your Help Your friend Lisa Williams, whose banking experience consisted mainly of ATM use, knew something was wrong when a Citibank debt consolidation representative called her. Lisa was astounded to learn that she had an overdue credit card balance of $4,600. Impossible! she thought. She didn't even own a Citibank credit card! Unfortunately, Lisa is one of more than 27 million Americans who have been victimized by fraud or identity theft in the past five years.55 Your Task. Lisa asks you to help her through this mess. Using the critical-thinking steps outlined in this chapter and listed here, decide on a problem-solving strategy.

At the same time, learn more about identity theft for your own protection. To find information, search the Web or use a campus database. Answer the following questions in a class discussion or in a memo to your instructor. (See Chapter 7 and Appendix B for information about writing memos.)

1. Identify and clarify the problem. How do banks issue credit cards? What information is needed? How is it verified? How do identity thieves get your personal information?

2. Gather information. Should Lisa ask Citibank for its application record for this fraudulent card? How can you learn more about identity theft in general?

3. Evaluate the evidence. Should Lisa investigate this herself or involve the police? Should she go to credit bureaus (Experian, Equifax, and TransUnion) and ask for their help in clearing her credit record?

4. Consider alternatives and implications. What actions can a victim of identity theft take?

5. Choose and implement the best alternative. What should Lisa do first, and what follow-up actions should she take? How can people reduce the chances of identity theft?