Identity theft encompasses a wide range of deception, from a stolen credit
card used to charge purchases to an existing account, to stolen information
used to impersonate the victim, open new accounts (even ones for utilities),
and rack up thousands of dollars in debt.
With over 500,000 new cases each year (and some say upwards of 900,000),
identity theft is one of the fasting growing crimes in America. In many
states it isn't even illegal, or hardly punishable if it is. Often the
perpetrator goes uncaught and unpunished. Worse still is that it takes on
average 12 months for the victim to realize he is a victim and by then it
may nearly impossible to climb back out of the black hole of damaged credit,
costing hundreds of hours and hundreds of dollars to try to fix it.
Sadly, since much of this goes unpunished, companies often write off the bad
debt and then charge you and me higher interest rates and fees to cover
their losses. So we all are indirect victims of identity theft. The more
vigilant we become, the better off we will all be.
What can you do to protect yourself from becoming a victim of identity
theft? There is no absolute guarantee, but the more precautions you put in
place, the harder it will be for someone to steal your information and use
it illegally. What follow below are some ideas that you can use to start
protecting yourself now.
1. Check your credit reports annually.
This is your first and foremost line of defense. Contact the three major
credit reporting agencies (www.equifax.com,
www.experian.com,
www.transunion.com) every year to
obtain a copy of your credit report. Some websites also offer a 3-in-1
report. Go through them carefully, looking for any inaccuracies. Report any
problems immediately. Consider asking them to require your permission to
issue new credit lines.
2. Protect your Social Security number.
Many companies ask for your Social Security number (SSN) to use for
recordkeeping. Ask if you can substitute a different number. This is
especially true of driver's licenses and health insurance cards. Never give
out your SSN to anyone over the phone or internet if you did not initiate
the contact. Don't carry your Social Security card with you and don't have
your SSN preprinted on your checks (or your phone number either).
3. Protect passwords and PINs.
Always protect your passwords and PINs from being seen by others, especially
at ATMs. Don't write them down and carry them with you. Do not store
passwords on your computer's hard drive. If you need to write them down,
store them somewhere else. Passwords should be hard to discover (bad
choices: mother's maiden name, birthdates, last 4 digits of SSN or phone
number, or a series of consecutive numbers). When possible use a mix of
upper- and lower-case letters, numbers, and symbols.
4. Know your billing cycles.
Know when to expect your bills. If any of them is late, call the company or
agency and check on its status. A late/missing bill could mean that someone
has stolen your information and changed the billing address, leaving you
unaware of the charges that may be racking up.
5. Shred everything with your information on it.
All those credit card applications you receive in the mail and throw away
are an open invitation for someone to open an account in your name. Invest
in a good cross-cut shredder and shred all documents with any financial
information on them, including credit card receipts. Then put the remnants
in the yuckiest, ickiest trash you've got to discourage dumpster-divers from
stealing them and putting them back together.
6. Make the post office your ally.
Deposit outgoing mail at your local post office or in a locked post office
drop box. Thieves actually patrol neighborhoods, stealing mail out of
mailboxes. A little acid wash, and voila!, they change the amount and the
person being paid. Don't give them the chance! If you're going out of town,
have the post office put a hold on your mail. Consider getting a post office
box or ask your post office about getting a key-operated community mailbox
for your neighborhood.
7. Technology doesn't beat everything.
Don't give out personal information over cellular/mobile/wireless phones, or
cordless phones. (This includes telephone banking.) Their radio frequencies
can be easily intercepted, overheard, and hacked.
Surfing the internet puts you at risk from hackers breaking into your
system; consider purchasing a "firewall" program to protect your computer
from outside access. When divulging personal information on the internet
(for example, when making a purchase) always look for privacy policies and
the little "lock" symbol that indicates your information is secure.
Don't use your email address for user IDs on websites; there are "robots"
that specifically search for this on sites like eBay to try and trick you
into divulging your personal information. You may receive an
official-looking email asking you to "verify" or "update" your information.
Remember that anyone who already has your information will not ask you to
verify it. Always be suspicious of such tactics. The same goes for people
who call you and claim to be somebody like a bill collector, government
agent, utility worker, etc. If in doubt, call the company they appear to be
representing.
If you use a laptop computer use a strong password (combination of
upper/lower-case letters, numbers, symbols); don't use automatic login;
always log off when finished; and don't store financial information on it
unless absolutely necessary.
When disposing of your personal computer, deleting your personal information
usually isn't enough. Use a "wipe" utility program to render files
unrecoverable.
8. Be aware of the opportunities to steal your information.
Think of all the places that store your personal information, such as the
offices of doctors, dentists, accountants, loan officers, health insurance,
schools, courts, etc. Ask them how they protect your information. Request
that they shred anything with personal information on it when disposing of
it.
Keep your wallet or purse in a safe place at work; not all of your fellow
coworkers are trustworthy. Be aware of the "Good Samaritan" scheme where
your missing wallet is returned (after one of your several credit cards is
removed; you have so many that you probably won't notice!). Only carry a
minimum number of cards and identification with you.
9. If desired, subscribe to a credit monitoring service.
If you're really worried about identity theft, consider subscribing to a
credit monitoring service. They will regularly notify you of your credit
status and anything suspicious that might be going on.
10. Make a list and check it twice.
Make list of all your credit card numbers, banking account numbers, and
driver's license number with their customer service numbers and keep them in
a safe place. That way you'll have a starting place if something should
happen to you.
Remember, the more vigilant we all are, the more protected we all are.
For more information regarding identity theft , see the federal government's
website at
www.consumer.gov/idtheft.
CrediClear can help you reduce your interest rates
Credit Problem? No problem! Apply for a home equity loan to consolidate
debt.
$250 Discount Offer — Discount of
up to $250 is based on the number of application steps completed online and
will be applied toward your closing costs if you apply online and your loan
funds with Countrywide Home Loans.
CrediClear can help you reduce your interest rates
CrediClear can help you reduce your interest rates
Is your debt
spiraling out of control? Debt Relief Network can help reduce harassing
creditor calls, avoid bankruptcy and eventually improve your credit
before your credit is ruined forever.
