Protect Yourself From Identity Theft

By now, most of us knows of at least one horror story of the consequences of identity theft: maxed out credit cards, drained bank accounts, even arrests in cases of mistaken identity. Identity theft is a booming industry: a recent GAO report stated that 750,000 Americans are victimized each year. Once your identity has been taken, it can be a nightmare tangle of financial, court and personal challenges that can take years to straighten out --- if it can ever be truly straightened out at all. One study indicated that it takes an average of 175 hours of work to unravel the situation. The most effective way to protect yourself is to avoid the theft to begin with; a daunting task in itself in this digital and computerized age. Following are some tips regarding how to prevent identity theft, and what to do if your identity is stolen.

Safeguards
One way thieves can get your personal data is by sifting through your personal trash at home. If they find a credit card offer, old banking statements or credit card statements, or an application for credit that your began filling out but didn’t complete, they have enough to get started. The thief can apply for the card in your name, access your bank account via on-line banking, or go on a catalog shopping spree, all within mere minutes of grazing through your curbside trash can. To protect yourself, invest in a small shredder for around $20. Get in the habit of shredding all financial documents or other papers that contain identifying information about you or your finances. When you use your credit card in public, keep the receipt until you get home and then shred it; gas station trash cans can yield many credit card numbers in one dumpster dive.

Another common trick is to go through your mailbox, again, looking for personal information they can exploit, or pre-approved credit card offers. Empty your mailbox promptly if it doesn’t lock, or move your mailing address to a post office box. If you leave town, arrange for a trusted neighbor to pick up your mail daily.

The internet is fertile fishing ground for identity thieves. They use pop-up ads claiming excellent mortgage rates to lure homeowners into applying for "instant approval." The catch? You have to give them your financial information so they can "verify" your identity. Another internet scam is to pose as your internet service provider (ISP) and ask for information. The logo looks legitimate, the quality is very professional, and most people don’t think twice about it. The best policy is to never, ever give out your personal or financial information over the internet to anyone you don’t know and trust. When making an on-line purchase, check the lower right side of the screen for an icon that indicates that the site is secure. If it’s not there, don’t purchase from that provider. Use only one credit card for all your on-line purchases.

"Shoulder surfing" is another popular scam. The identity thief peeks over your shoulder at the ATM machine and memorizes your personal identification numbers as you punch them in. Never punch in your numbers at the ATM while anyone is around, even if the stranger "looks honest." With as much free money as they are reaping, they can afford to dress well. Since there have been some cases of the thief using high powered binoculars to watch the machine from a distance, use your body to block anyone’s view of the keypad, even if you don’t see anyone around.

Your most coveted number to an identity thief may be your social security number. Once someone has your card, he/she can get a drivers license with just one piece of fake I.D. The next step will be to open a checking account in your name. Once they have a bank account, the bank will usually offer them a credit card in your name. Now they have a social security number, a drivers license, a credit card and a bank account, and with those four items, the financial world will greet them with open arms. There’s a lot of power in that little piece of cardboard! To protect yourself, never, ever carry your social security card in your wallet. Keep it in a safe or lock box, and only pull it out when the original card is needed, such as applying for a mortgage. If your card ever goes missing, report it to the Social Security Administration immediately, and request a new number. Be very wary of people who ask for your social security number. Many businesses ask for it as a form of identification, when other numbers could be used just as easily. Do not have your checks imprinted with your number, either (for that matter, don’t have your drivers license number printed on them either; many retailers won’t ask to see identification if the number is already printed on it).

When someone steals your identity, you may not even be aware of it for months or years, unless you apply for a loan that requires a credit check. Suddenly, you see a list of credit cards you don’t own, loans you never applied for (mostly defaulted, of course; thieves aren’t known for their fiscal responsibility with someone else’s credit). Check your credit report at least once a year to look for any evidence of misuse or fraud. Experian, Equifax, and TransUnion are some of the better known credit trackers you could contact. You may also want to consider credit bureau protection services, which would alert you if there was a sudden change in your credit report.

Now, Today, This Minute, make a detailed handwritten list of all of your important numbers, along with telephone numbers to contact in case you have to report identity theft. Do not make this list on your computer!!! Once your list is complete, keep it in a fire-proof lockbox or safety deposit box. Once your identity has been stolen, the faster your response, the more damage control you accomplish


Recovering Your Identity
If your purse/wallet is stolen, or you suspect identity theft, contact the fraud departments of each of the above credit bureaus and alert them to the theft. They will place a "fraud alert" in your file, so any creditors will be warned to contact you before granting any credit to the applicant.

Contact your bank if you suspect the thief has access to your account numbers or PIN numbers. You may need to close the accounts that you have, and reopen them under a new account number and PIN.

Contact your credit card companies and alert them. Most credit card companies won’t hold you responsible for fraudulent purchases, but unless you notify them quickly, the thief could have run up thousands of dollars in charges that could take months to verify.

Contact the police and file a report. Get a copy of the police report; some of your creditors are going to want to see it.

Follow up all telephone contacts with a written letter. Be sure to get the name and extension of every person you talk to. Keep all your notes in one, safe place; you’ll probably have to refer back to it later.

A Website to Check Out:
www.idtheftcenter.org

To Contact the Credit Bureaus:
TransUnion: 800-888-4213 (fraud department: 800-680-7289)
Experian: 888-EXPERIAN (fraud department: 888-397-3742)
Equifax: 800-685-1111 (fraud department: 800-525-6285)