Protecting Yourself from Identity Theft
September 4, 2009 in Fraud & Scams, Privacy & Security
The Federal Trade Commission reports that as many as 9 million Americans have their identity stolen each year. As the economy grows tighter, identity theft grows wider. What is identity theft? How do thieves steal an identity? What do they do with a stolen identity? Most importantly, what can you do to fight this rapidly growing crime?Identity theft occurs when your personal information – name, Social Security number, credit card number, bank account numbers, driver’s license or any other identifying data – is used by someone without your permission to commit fraud or other crimes. Thieves can spend “your” money, break the law or establish a new life using your name. Your losses can be in money and/or time away from your life and pleasures. This is a serious crime and can take years to rectify.
Probably the oldest form of stealing one’s personal information is by snatching your purse, wallet or mail. Try putting your shoulder bag across your body, not draping it over one shoulder making it easy to snatch and run. Stolen mail could include bank or credit card statements, pre-approved credit cards or any financial information. You can put a hold on your mail while you are away and not let it pile up in your mailbox. Thieves have also been known to file a change
of address in order to have your mail diverted to another location. Dumpster diving is another method of stealing personal information where thieves rummage through your trash looking for any identifying numbers that can be used for their own purposes. Don’t put your trash out to be picked up until the morning of the scheduled pick-up. A special storage device can be used to “skim” or store your credit card information as an employee processes it. When handing your credit card to an employee, be sure it never leaves your site. Cash is always a good idea when going to a restaurant. Be particularly careful of emails claiming to be from financial institutions or companies wanting you to reveal your passwords or personal information. Call the institution to check on the validity of the email. Beware of any person, company, phone call or email wanting you to give them information under false pretenses. This is called “pretexting” and your information is sold to people who use your assets, get credit in your name or to investigate you. Hang up and Google the phone number or company. These practices are used every day and no one is immune to the crime of identity theft.
Why is this such a problem and how is this information used? There are a multitude of ways thieves can wreck havoc on your life and take years to correct. Credit cards can be opened in your name with delinquent accounts showing on your credit report. This could go on for months before you realize what is happening. How often do you check your credit reports? Setting up a wireless phone is a common practice, also.
A new loan could even be taken out in your name! If a thief decides to commit a crime using your identity, a warrant could be issued for your arrest. When government issued information is stolen, a thief can assume your identity and file a fraudulent tax return. No one wants to deal with the IRS! These are real problems that 9 million Americans face every year.
What can you do to thwart these actions? Being aware of how identity theft can happen is a good start. Simple measures like the ones listed above can go a long way in preventing identity theft. The law allows consumers to receive free annual credit reports from the three major credit bureaus. Routinely ask for these reports by logging on to www.annualcreditreport.com to request a free report. You can place a fraud alert on these reports free of charge. Also, consumers can opt out of unsolicited credit card offers by going to the website, www.optoutprescreen.com . There is a five year opt-out plan or a permanent opt-out plan. When you aren’t receiving any “pre-approved” credit card offers, they can’t be stolen. All mail with any personal information should be shredded before being put in the trash. Most identity theft is done by dumpster diving or trash digging. Thieves have even been known to piece bits of papers together to steal information. A cross-cut shredder is the best way to prevent this from happening. When buying a shredder, make sure it is a cross-cut shredder and shred everyday. For those who are too busy or simply don’t like doing this, a service can be called to your house to shred. This is especially a good idea when shredding years of information – like tax returns or financial statements – that would take many hours with a home shredder.
Article provided to the La Quinta Chamber of Commerce – GEM Publication January 2009 page 25.
