Safeguarding Your Personal Information From Identity Thieves
An identity thief doesn't just steal your credit card and
personal information to start buying crazily in your name. He
gets new cards, opens new loans, and leaves a long trail of
unpaid bills in your name. He even uses your identity to commit
acts of terrorism or other crimes. What are you to do?
Identity theft occurs more frequently than you would like to
believe - and is committed frequently by someone you know. This
is what happened to Linda Foley, a magazine writer, who learned
that her own employer had swiped her identity to open cell phone
and credit card accounts. Now Foley, along with her husband,
fight back as the Co-Executive Directors of the Identity Theft
Resource Center (ITRC) in San Diego, California.
Can This Happen to You?
After Bridget J. Thomas learned that her identity was stolen by
a bank employee at a branch 300 miles from the one she used, she
was shocked. And that was just the beginning of her nightmare!
When the thief was caught, she was working at a different bank
in a different state. After her arrest, collection agencies
continued to hound Ms Thomas.
Setting the Record Straight Might Not Be All That Easy - or
Quick!
Setting the record straight is the tip of a nightmarish iceberg
that can take months - even years to accomplish - often with
undue pain and suffering for the victim. In serious cases
victims spend an average of 600 hours and $1,400 in
out-of-pocket expenses to repair their credit. Until they can
prove their innocence, they are more likely to be:
* charged higher rates for insurance and fees for credit cards,
* rejected for student loans or home mortgages,
* arrested for crimes they did not commit.
* unable to get or keep a job,
A Call From A Collection Agency Or A turndown For A Loan Is
Often the Only Tip-off That Your Identity Was Stolen.
A thief needs only one thing to open the doors to his windfall -
your Social Security number. Unfortunately it is routinely used
by government agencies, health care providers, utility
companies, merchants, employers, and financial institutions.
Often, your Social Security number is publicly available. That's
how General John M. Shalikashvili, the former Chairman of the
Joint Chiefs of Staff, became a victim. His Social Security
number and those of many other military officers were published
in the "Congressional Record" and were later posted on the
internet. Thieves used their identities to open 273 new credit
cards accounts and run up a bill of over $200,000.00 in charges.
Develop a Form of Defense
To stop identity thieves in their steps, there are several
things you can do. You can begin by freezing access to your
credit file. By doing so, you cause your file to become
off-limits to anyone who does not know the secret PIN (Personal
Information Number) of your choosing. This sets the wheels in
motion to protect you from the bad guys - anyone who attempts to
apply for credit in your name. It causes their application to be
rejected; although your credit cards won't be affected. And if
you want to apply for new credit or let a bank, store, or agency
run a background check on you, you can get a credit thaw. For
example, if you decided to shop for a big-ticket item, like a
car, you might thaw your history for auto dealers.
Other Things You Can Do - Starting NOW!
* Periodically check your credit report for suspicious
activities. Americans are now entitled to a free annual credit
report from each of the three bureaus: Experian, Equifax, and
TransUnion.
* If you elect to shop online, use a credit card rather than a
debit card. With a credit card, you have the extra protection of
maximum liability of $50.00 for unauthorized purchased.
* Learn more about "phishing" email scams, and other schemes,
frauds, and cons to separate you from your identity and your
money. For more information about these scams and about
resources at your disposal, go to www.Prot
ectingYourIdentity.blogspot.com/.
In the Event You Do Become A Victim
Here are some steps to take:
* Act fast and prepare yourself for an uphill battle
uncooperative and unsupportive credit card and law enforcement
agencies. For guidance and support, I suggest that you turn to
organizations and agencies like ITRC
(www.identitytheftcenter.org), the Federal Trade Commission
(www.FTC.gov), and others. All can be found at www.Prot
ectingYourIdentity.blogspot.com/.
* Call the fraud dept. of one of the three credit bureaus,
Experian, Equifax, and TransUnion, and request that a fraud
alert be placed on your credit reports. (The other two credit
bureaus will automatically be notified.) The alert lasts for 90
days and requires creditors to call you before opening new
accounts in your name; however, a word of caution is in order
here. There are no legal requirements to honor alerts and
merchants who are eager to make a sale may ignore them.
* Close your credit card accounts and change the passwords on
all your financial and banking accounts.
* File a police report. Although credit bureaus won't extend a
fraud alert without it, be aware that local police departments
may be reluctant to provide a report. Many may lack the
resources to properly investigate the crime.
* Mail copies of the police report to all three credit bureaus
with a cover letter demanding your complete credit file.
* Call every credit where you know a bogus account has been
created and have them close your file immediately. Demand copies
of all fraudulent applications for credit and billing
statements. Creditors don't want to divulge that information,
but they will if you enclose a copy of a police report and
forward your request it in writing via certified mail.
Conclusion: Face it, identity theft is a growing problem
affecting everyone in some way or another. With the increase
popularity of internet usage, it has become easier for
cybercriminals to steal our identity. In 2002 alone, the victim
total due to identity theft climbed to 10 million, a new high.
The cost to the economy was up an astonishing 41 percent to
$52.6 billion, according to The Identity Theft Survey Report,
available from the Federal Trade Commission at the website
(www.consumer.gov/idtheft/). Each year these totals are climbing
with no apparent sign of slowing down.
What are your chances of becoming a victim of some form of
identity theft? According to the Federal Trade Commission is one
in ten.
"So what am I to do?" you ask. My recommendation is that first
you educate yourself with information and resources at your
disposal. Next, purchase identity theft insurance. Find more
information at www.Prot
ectingYourIdentity.blogspot.com/.