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Featured Articles in
this Issue:
A To-Do List
for People on Debt Management Plans
Billed for Merchandise You Never
Received?
Credit and Your Consumer
Rights
What is a FICA Credit Score?
Can You Really Fix Your Credit
Protecting Yourself Against Identity Theft
Useful Online Resources
FirstGov for Consumers
MyMoney.Gov
National Foundation
for Credit Counseling
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Becoming the victim of identity theft and fraud can be an extremely
traumatic event. Identity theft is a very disheartening crime.
You can victimized by complete strangers or very close relatives. Identity theft can be mass production scams or individual con artists.
Identity theft is a one of the fastest growing crimes. In 2003, the
Federal Trade Commission (FTC) reported that 27.3 million American have
been victims of identity theft in the last five years. Identity theft can
negatively affect your credit rating and lead to debt. Your credit
rating is an important tool that facilitates the financing of mortgages,
car loans, etc. Increasingly, employers are checking the credit
reports of prospective employees. Given the importance of your
credit in today's environment, it is essential that consumers take steps
to protect their personal information. It is important to keep in
mind that even when the
consumer does everything right they can become the victim of identity
theft. Nevertheless, taking certain precautions can minimize your
risk.
Definition of identity theft:
So what is identity theft?
Identity theft is the deliberate assumption of another person's
identity by using their personal information, such as date of birth,
mother's maiden name and social security. The theft of identity is
usually to gain access to their credit and commit fraud.
The most common types of identity theft fraud are:
- using or opening a credit card account fraudulently
- opening cell phone or utility accounts fraudulently
- passing bad checks or opening a new bank account
- getting loans in another person’s name
- working in another person’s name
Methods used to gather information in order to steal identities:
- your mailbox
- someone fraudulently changes your address
- online sources, such as personal webpages, blogs, genealogical
databases
- onlookers at ATMs and the checkout counter
- trash cans and dumpsters
- lost purse or wallet
How to avoid ID theft
Once a victim of identity theft, the process to clearing your name and
your credit is not always straightforward or easy. Further,
despite being a victim, repairing the damage takes time. Here are a few
tips on how to detect cases of identity theft:
- Monitor your credit card and bank account statements,
instead of just glancing over them quickly or passing them along to your
spouse to pay off. — This is also a good idea to catch the occasional
double debit by merchants.
- Call your credit card company or bank if an account statement is
late. A missing bill may indicate that someone called the company using your
name, and changed the billing address to prevent you from catching their
shopping spree. In addition, be sure you have your credit card bills
sent to a secure location. It is a bad idea to send credit card
statements to college dormitories or other shared spaces -- you may want
to consider using a secure PO Box.
- Make sure your credit card company has your current phone number so
the company can call you if they see a suspicious pattern of charges on
your card.
- Don’t give out personal information on the phone, through the mail,
or online unless you
initiate
the contact or know
the caller. Thieves will pose as bank representatives, bill collectors, Internet service
providers, government agents, and ex-boyfriends to get you to reveal
personal information. If you get a phone call or an e-mail about
suspicious activity on your account, give no information over the phone
or online. Instead, take down the card representative's name and call
them back at the number listed on the back of your card. In addition, be mindful of
email phishing scams. No
reputable company will send you an email asking you to divulge personal
information. Don't be fooled by official looking emails and the look of
the website link provided.
- Don't divulge personal information on chat boards, blogs, forums,
etc. such as revealing your mother's maiden name, your pet's name, or any other
type of information that is typically used to verify accounts. You
may also want to be wary of listing your vacation itinerary.
- Don't leave copies of your credit card receipts behind at the
register or anywhere else. In addition, don't throw away your
credit receipts in public trashcans or leave them on the table before
your server picks up the receipt when you are out in an restaurant.
- Shred, tear up or black out all pre-approved credit card information or any other documents
with personal information such as credit card receipts, insurance forms,
bank statements.
- Put outgoing mail directly into post office boxes and not in your
own mailbox. If you’re going on vacation, place a hold on your mail at
the post office. You may also want to suspend newspaper
subscriptions.
- Keep Social Security cards and information in a safe and secure
place. Your social security number should be protected.
Don't carry it in your wallet unless absolutely necessary.
- Cancel any credit cards you don’t need or use. Be sure to tell the
lender to note the card as “cancelled at the cardholder’s request.”
- Don’t pre-print your Social Security or driver’s license numbers on
your checks.
- Don’t put your Social Security number on your resume.
- Give out your Social Security number only when absolutely necessary.
Ask to use other identifiers when possible. Make sure your university is
not using Social Security numbers for student id’s.
- If you suspect that you may be a victim of fraud, order a copy of
your credit reports once a year to verify their accuracy. Due to recent
legislation you can obtain a free copy of your credit report once a year
from
http://www.annualcreditreport.com.
What to do if you become the victim of identity theft?
Read this article to find tips on
what steps to take should you become a victim of identity theft.
Find more sites about
identity theft.
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