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.
© Simple Joe, Inc.
Chemain Evans is a quality control specialist for Simple Joe, Inc.,
makers of the popular Simple Joe's Expense Tracker PC software. Expense
Tracker is a quick and simple way to keep track of your expenses and
stay within your budget. Expense
Tracker is ideal for tracking personal, business, home and club expenses.
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