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The
concept of identity
theft is relatively
new, building greater
momentum over the
last five years.
It's nightmarish
to think about, isn't
it? After all, it's
hard enough to build
up a good credit
history and it takes
a long time... the
thought that somebody
could come along
and just trash it
in a matter of
weeks is understandably
scary.
The
crime is spreading
quickly because the
risk vs. reward ratio
is much better for
identity thieves
than for say, bank
robbers. To the average
criminal who just
wants something for
nothing, why go through
all the trouble and
risk of an armed
robbery, when a handful
of stolen social
security numbers
is all one needs
to start living the
good life? The nature
of the crime is such
that it attacks people
on a personal level,
in a way that's
difficult to control...
and where the victim
is automatically
presumed guilty-before-innocent
by the credit industry.
The
truth is that now
would be one of the
worst times in history
to become a victim.
Since the crime is
relatively new, so
are the laws against
it... and the protections
for victims are spotty.
Several consumer
advocacy groups are
sprouting, in many
cases led by the
former victims themselves.
Most
people know the
common sense things
one can do to minimize
the chances of
identity theft,
like protecting
social security
numbers, making
sure to buy things
online only from
secured websites
and tearing up
credit card solicitations.
But, like anything,
the theives keep
finding more and
more ways to steal
our good reputations.
The
following tips
represent some
identity-protection
steps you can
take, mostly minor
little habits
that will go a
long way toward
protecting your
identity. A little
knowledge goes
a long way...
identity theft
is like any other
crime, not something
to necessarily
fear but to be
aware of, like
locking your car
door when you go
to work.
Sometimes, during a move, mail that's supposed to be re-routed can slip through
the all-powerful fingers of the post office and ultimately end up at your old
address. This could happen in the case of an offer for a new credit card... or
even worse, the replacement for one of your expired cards!
Take the whole
thing, dump it on
a copier and make
a copy. Then, flip
everything over and
make yet another
copy. Archive your
copies in a safe
place... right between
your tax returns
and your autographed
Milli Vanilli records,
perhaps.
This way, if your purse or wallet ever comes up missing, you'll have a good idea
of what was lost— as well as the right customer service phone numbers
at your fingertips to report the incident to your creditors (which of course
you would do immediately after your belongings disappear).
Your tax professional,
bank, insurers and
creditors need your
social security number.
Your veterinarian,
doctor and lawn-care
people do not. Many
legitimate businesses
ask for the numbers
as a means to keep
track of their customers,
but that doesn't
mean you have to
give it to them.
The social security
number, instituted
during Franklin D.
Roosevelt's administration,
was never intended
to be used as a barcode
for private businesses
to track customers;
it worked out that
way simply because
everyone has a
social security number,
the numbers are unique
and they are firmly
attached to an individual.
Essentially,
if you are asked
to give your social
security number
for a service that
doesn't involve
an application
for credit or a
tax return, chances
are you can substitute
some other form
of identification.
If a business isn't
willing to work
with you on this
point, there are
plenty who will.
Why
worry about your
SSN when dealing
with a business
you already trust?
Because once you
divulge that number,
it's accessibility
is no longer under
your control. A
single piece of
paper, casually
discarded by an
otherwise honest
business, can end
up in an unsecured
landfill among
the piles of garbage— where
it could remain
legible for years,
even decades. Worse,
some identity thieves
will even go "dumpster
diving" at
businesses they
believe might have
thrown away such
information.
Hardly a
day goes by that
we're not solicited
for credit cards,
sign-and-deposit
check loans or
opportunities to
refinance our homes.
The credit industry
is a booming business.
Take
a minute to look
over that junk
mail that you've
been tossing out...
if someone were
to dig through
your trash this
week, what might
they find out about
you? Credit card
stubs with account
information, correspondence
from banks, account
information and
utility bills...
any of these items
are enough to attract
the interest of
a thief, because
any of which could
contain information
that's good
for one free ticket
to ride at your expense.
Office
paper shredders
are plentiful and
cheap, and they
are a good way
to help head off
trash-day opportunists;
at the very
least, tear up
anything that could
be of possible
value to a thief
before tossing
it in the can or
recycle bin.
If someone
gets your social
security number and
uses it to rack up
debt without paying,
you'll know as soon
as the bill collectors
come calling. But
what about cases
where the thief actually
pays the bill, using
your identity for
a free low-interest
ride on your hard-earned
good credit? This
you might never know...
unless you regularly
check your credit
report. You can order
your credit report
from: TransUnion, Equifax and Experian.
Beyond
identity theft,
it's just a plain
good idea; errors
on your credit
can hurt you.
Computers have been around long enough now that many of us have 'junk' machines
sitting around— first-generation Pentiums, 486's and the like— that
aren't just used, they're plain used up. Before you part out an old
machine or unceremoniously dump it on the scrap heap, think hard about what information
might be on that dusty ol' hard drive. Chances are you haven't used
the dinosaur in a long time, so think about what you forgot was
even there to begin with!
Simply
deleting old
files on your
computer isn't
going far enough...
without getting
too far into
it, important
information can
get left behind
similar to a
fingerprint;
information like
credit card numbers,
bank balances
and other things
that you certainly
don't want falling
into the hands
of the general
public. Use a
file-shredding
application like AutoClave (available
as freeware)
to reduce the
chances of your
old computer
coming back to
haunt you.
There are
several scam artists
pretending to be
major US corporations
(like Best
Buy, Ebay and
too many banks
to mention), sending
out e-mail to folks
asking them to "confirm" their
account information.
At Discover NEO
we've received
many messages from
our readers who
have opened their
e-mail to find
very legitimate-looking
inquiries about
an account.
The
trouble is, if
you fill out
this form the
results could
potentially be
disastrous— dogging
you for years,
costing untold
amounts of money
and hundreds
of hours on the
telephone. Identity
theft can be
so crippling
that many insurance
companies now
offer policies
against it.
Think
this is just
a worst-case
scenario? The
practice is so
prevalent that
scam artists
even have a name
for it: "phishing." The
legitimate-looking
email forms,
with their official
corporate logos,
links and legitimate
phone numbers
use a remote
mailing script
that could redirect
your mail anywhere
on the planet.
Instead of sending
your SS number,
mother's maiden
name and account
info to a company
you know and
trust, it's on
the way to some
hacker's e-mail
account in Singapore.
Or a teenager
working from
the family computer.
Or Kermit the
Frog. The bottom
line: once you
hit that "Submit" button,
the contents
of that message
could go to anyone.
If
you've had a
credit card or
other loan for
any length of
time, you know
that your creditors
have your account
information...
and that they're
not about to
just lose it.
If you find a
seemingly legitimate-looking
message in your
inbox and you're
not sure what
to do, call your
creditor's customer
service number
and ask them
about it in person.
The telephone
is still one of the
scam artist's favorite
tools. Many times people
who dutifully shred
all of their junk
mail and grudgingly
guard personal
information on
the web will happily
offer it to a slick
salesperson on
the phone. After all,
online information
is static for the most
part— so
it's either available
or it's not— but
a scammer might just
catch a person in the
right mood at home
when they might disclose
something useful. These
telescammers especially
like to prey on elderly
folks, many of whom
are retired and therefore
available at home for
a greater part of the
day.
The
best rule of thumb
is to do some reasearch
before accepting
any offers for credit
over the phone. Don't
ever discuss current
payments, interest
rates or any account
details with an unsolicited
caller. A legitmate
business will,
in all cases,
have a
callback number
which you can
verify.
Submit a complaint
form to the Federal
Trade Commission
via their web
site
or contact
their identity
theft hotline at
1-877-438-4338.
Immediately contact
each of the three
major credit reporting
bureaus:
Equifax
To
report fraud,
call: 800-525-6285
and write
P.O. Box 740241, Atlanta, GA 30374-0241
Hearing
impaired call 1-800-255-0056
and ask the operator
to call the Auto
Disclosure Line
at 1-800-685-1111
to request a copy
of your report.
Experian
To
report fraud,
call: 888-EXPERIAN
(397-3742) and
write
P.O. Box 9530, Allen TX 75013
Hearing
Impaired/TDD: 1-800-972-0322
Trans
Union
To
report fraud, call:
800-680-7289 and
write
Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92634
Fraud
alerts
A fraud alert
lets potential
creditors know
that your credit
report may have
been compromised.
The alert status
informs them that
they should confirm
that you, as you,
are the one making
a credit inquiry.
This extra measure
of security can
help prevent thieves
from getting credit
in your name, but
bear in mind that
it may cause delays
in your own purchases;
subsequent creditors
will have to contact
you directly.
Call any
of the toll-free
numbers of the
three agencies
above to activate
a fraud alert.
Once the fraud
alert is confirmed,
the agency will
send you a copy
of your credit
report and notify
the other two agencies
of your status.
Immediately
contact any creditor
whose account you
suspect may have
been affected, as
well as the creditor
of any account you
suspect may have
been opened fraudulently.
If an
account creditor
requires an FTC Identity
Theft Affidavit,
you can get one here in
PDF format.
Visit
the Better Business
Bureau's identity
theft web site.
Visit
the Federal Trade
Commission's identity
theft web
site for
consumers.
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