Last year, more than nine million Americans became victims of identity theft. It doesn't have to happen to you. Here are the best ways to protect yourself from this crime, and what to do should the worst occur.
How can someone steal who you are? Buy a car in your name? File an income tax
return in your place? Do you think it can't happen to you? Think again.
Identity theft can cause a tremendous shock if you're turned down for a
mortgage, refused a credit card, or collection agencies begin to hassle you to
pay up on purchases you know you didn't make.
This article explains:
How identity theft occurs and how it can affect your life
How to prevent identity theft
What to do if identity theft happens to you
Resources that can help
Identity theft hits 9.3 million Americans each year, and can create havoc in
your credit-and personal-life. Don't let it happen to you. Take precautions.
Stop identity theft.
What is Identity Theft?
Identity theft can happen two ways: through account takeover or name fraud.
Account takeover occurs when a thief steals your current credit
account information, like your credit card, and makes purchases either with the
card itself (stolen from you) or using the account number and expiry date. You
find out about this when you get your monthly credit card bill with charges on
it that you didn't make.
Name fraud, also known as application fraud, is even worse
than account takeover. It happens when someone uses your SSN to open new
accounts, usually credit applications, to make purchases using your credit
rating and good name. You don't usually know about this until it's too late,
when you're trying to buy a new home, car, or get a student loan, and you
discover ID thieves have ruined your credit and good reputation.
How to Prevent Identity Theft
According to the Better Business Bureau's 2005 report on ID theft, thieves
get your personal information in simple ways: when you lose your wallet or it's
stolen; or when friends, family members, or other people, who have access to
your personal information, steal it from you and misuse it. Often, ID thieves
get your personal information by traditional channels (like digging through your
mailbox) and not electronic ones, like the Internet.
Your Protection Checklist
ID theft cost Americans a whopping $52.6 billion last year. But, there are
several things you can do to protect yourself against this crime.
Don't's:
Don't carry multiple credit cards; limit yourself to one or two
Don't carry your SSN with you or write it down on public applications
Don't have your driver's license or SSN printed on your checks
Don't toss out those expired credit cards, pre-approved credit applications,
bill statements, or anything else with your personal information-completely
destroy it by shredding or cutting
Do's:
Install a lock on your mailbox!
Photocopy everything in your wallet or purse, or at least make a list of
your ATM/credit cards, driver's license, and critical medical information
Password protect your palm pilot-and make sure you backup this information
regularly on your computer's hard drive
Close any bank accounts that you no longer use
Remove your name from any pre-approved credit lists
Remove your name from the telephone book (and don't forget the reverse
directories)
Remove your name ("opt out") from any pre-approved offers of credit for the
three consumer credit reporting offices by calling 888-5OPTOUT (888-567-8688).
You can opt out for two years, or permanently
Check your credit rating at all three credit offices at least once a
year
About Your Credit Rating
Your credit is your responsibility, so take care of it. There are three
consumer credit reporting offices in the US, and you should check your rating at
each of these offices at least once a year. A recent change to the Federal Fair
Credit Reporting Act (FCRA) now allows you to request one free copy of your
credit report each year (go to www.annualcreditreport). If you're unemployed, on
welfare, or a victim of ID theft, you can always receive these reports at no
cost to you.
If Identity Theft Happens to You
Act fast. Take these steps to ensure that you suffer as little as possible
from this crime:
Open a folder and begin to track everything you do, who you call, write,
email, and all phone numbers and contact information you're given (the list of
resources at the end of this article offers a good starting point)
Contact the police and file a report
Contact the Federal Trade Commission (FTC) and file a report
Pull out your photocopied/list of wallet/purse items, and begin to
cancel/notify the proper authorities, prioritizing by credit cards, bank cards
& check cashing cards, driver's license, SSN, medical cards, birth
certificate, library cards, telephone calling cards (kiss your pre-paid calling
cards goodbye) and movie rental cards
Contact the consumer credit agencies and have them place a "fraud alert" in
your credit file
What Is a Fraud Alert?
A fraud alert is a notice national consumer credit agencies place in your
file alerting potential creditors and others that you may have been the victim
of identity theft. A fraud alert makes it more difficult for someone to get
credit in your name. It may also delay your own applications for credit. You can
have a fraud alert placed in your file just by calling any one of the three
agencies, which will then notify the other two.
There are two kinds of alerts: an initial alert, which lasts 90 days, and an
extended alert, which lasts seven years. You will likely also have to provide
other information regarding your identity, and complete an identity theft
report. For details, go to www.consumer.gov/idtheft.
Quizzes and Fact Sheets
Can't imagine you're at risk? Take this identity theft quiz and find out:
http://www.privacyrights.org/identity.htm#ITquiz
Other Resources that Can Help
The Federal Trade Commission
Online FAQs, great information flyer you
can download:
(877)-IDTHEFT
www.consumer.gov/idtheft
Privacy Rights Clearinghouse (nonprofit)
Identity theft quizzes, FAQs,
victims'
cases:
(619)-298-3396
www.privacyrights.org/inquiryform.html
www.privacyrights.org
Identity Theft Resource Center (nonprofit)
Lists regional victim support groups and guides for victims:
(858)
693-7935
www.idtheftcenter.org
Consumer credit reporting companies
Experian:
1-888-EXPERIAN
www.experian.com
Trans Union:
1-800-680-7289
www.transunion.com
To receive your free annual credit report:
www.annualcreditreport.com
Social Security Administration Fraud Line:
1-800-269-0271
www.ssa.gov
To remove your name from mail and phone marketing lists