Keep your Identity Safe in the New Year!

Each year millions of people are the victims of identity theft in the United States.  Unfortunately, these crimes are rising drastically due to the economic crisis we are facing as a nation.  The Federal Trade Commission stated that Identity Theft was the number one complaint for the past 11 years.  There is no guarantee that your identity won’t be stolen, however there are several actions to take to lessen your risk.  Before we dive into what steps to take to avoid being a victim let’s find out how our identities are stolen. 

One of the main ways identities are stolen nowadays is through the internet.  Cyber hackers use a technique called phishing.  Phishing is a method that is used to capture sensitive information.  This method is often times used through email or instant messaging.  The hacker will send a link to the potential victim that appears to be a trusted site.  As soon as that link is clicked on it will prompt the viewer to enter personal information to “resolve” the problem.  Once that data is entered it will be stored into a database where the thief has full access to it. 

Improved technology has changed the ways many Americans pay their bills and view other important data.  Many people access personal accounts through the Internet on the computer or a mobile phone.  It has proved over time to be very convenient.  In the fast paced world we have grown accustom to live instant service and results.  Online transactions accomplish both of those.  However, with most conveniences come risks that you must be aware of. 

Think for a moment if a hacker got your bank account number and pin what could they do with that information?  The obvious answer is that the thief could easily empty your account and leave you with no money.  In addition to stealing your funds the thief could also steal your identity.  There is a lot of personal information available on your banks site.  In short your life would be a financial nightmare and probably take a lot of time to clean up.  The advantage of simplifying tasks that are done on the Internet often outweighs the risk of your personal information being compromised.  With that said it is important to be aware of the dangers lurking in cyber space.  Follow the steps below to reduce your exposure to cyber hackers. 

Protecting your Computer

• Only use computers that have firewalls.  A firewall protects your computer from people with bad intentions.  Most corporations have firewalls, however be wary of conducting personal business on a work computer since they are usually monitored.  You may not know who is monitoring your computer.
• Antivirus Software and spyware should be installed and updated.  These are both a vital tool against hackers.  These components can be downloaded or purchased at a relatively low fee.
• Be cautious of messages from unknown sources that require you to download information.
• Refrain from answering any sensitive questions such as, Social Security Number, birth date, last 4 digits of a credit card number, postal code etc. through email or on the Internet.
• Keep your password in a secured place and do not share with anyone.
• Look for a lock symbol in your browser status bar. There should be either a lock symbol or start off with “https.” Look for it any time you’re about to engage in a financial transaction.
• Use a search engine to verify that whatever online form or online activity that requires your personal information is legitimate. The internet has become a powerful tool that allows you to check on almost anything. Unless if you have done business before with that online service, check to see if there are any complaints.
• Watch your statements. Review your statements and look for unauthorized transactions such as purchases and withdrawals.
• Try to use sites like PayPal when you can. If you receive any requests from a company like PayPal for bank for personal information via email, DO NOT respond. PayPal and other like companies do not allow this type of practice.

As we have discussed computers can put you in a vulnerable position to have your identity stolen, however don’t think you are safe if you don’t log on to cyber space.  A large percentage of this crime happens in other ways.  Below you will find a list of the main ways identities are stolen each day.

Ways that your Identity can be Stolen

• Thieves will steal your mail that has personal information on it, such as credit card bills, mortgage statements, and other documents.
• People pulling your credit report without authorization.  Thieves can access your report by posing as a landlord or other authorized personal.
• “Skimming” your credit card data.  Skimming is capturing your credit card information into a storage device.  These devices could be attached to an ATM.
• Stealing your wallet or other sensitive information.
• Completing a change of address form to redirect your mail.
• Dumpster diving.  Dumpster diving is when someone goes through your trash to obtain sensitive information about you.

Thieves will go to extreme measures to steal your information; however there are ways to reduce your risk and avoid a financial headache.  Please follow the tips below.

Tips to Reduce Risk of Identity Theft

• Don’t write credit card numbers down.
• Don’t give anyone who contacts you credit card or debit numbers.
• Shred or tear up any credit offers or applications.
• Check your statements every month.
• Pull your credit often to look for any inaccuracies.
• If mail suddenly declines or comes to a halt inquire why. 
• Don’t give personal facts, such as date of birth or social security number to any individual.
• Be vigilant of surroundings while supplying personal information.   Shoulder surfing is very common.  It is when someone listens in on your conversation or looks over your shoulder to receive sensitive material.
• Don’t carry valuable documents with you.
• Monitor your checking account frequently and challenge any suspicious activity.

The reality of it is many people are not even aware that their identities have been compromised until the damage has been done.  Identity theft at its worst can take years to correct.  It is so important to find out immediately if you have been jeopardized.  Please review the signs below.

Red Flags that your Identity has been Stolen

• Your mail suddenly stops or is decreased a lot.  You are missing important documents, such as bills you normally receive.
• Your credit card statement shows purchases you did not authorize.
• A collection agency or creditor contacts you for an account that you did not open.
• You have accounts or inquiries on your credit report that you did not authorize.
• Your important documents, such as license, social security card, etc. are missing.
• Your trash is dumped over and it appears someone has physically gone through it. 
• You apply for something and suddenly get denied.
• You receive credit or bank cards in the mail that you never applied for.
• You receive a letter stating you have been denied for credit, yet you didn’t apply for anything.
• You receive a notice of change of address that you didn’t request.

If these red flags have happened to you it is very possible that you are a victim of identity theft.  There are actions to take immediately.  Below is a process that everyone who has their identity jeopardized should follow.  If your situation requires further steps you will notified by your creditors or credit bureaus.

The Federal Trade Commission recommends taking the following steps:

1.    Contact a credit bureau and request a fraud alert is put on your credit.  The agency you contact is required to notify the other 2 agencies.  The contact information for the agencies is below:

• Trans Union: 1-800-680-7289
• Equifax: 1-800-525-6285
• Experian: 1-888-EXPERIAN (397-3742)

A fraud alert will help prevent a thief from any more fraudulent activity under your name.  You are entitled to free copies of your credit reports if you are the victim of identity theft.  Once you receive them review them immediately.  Be suspicious of any inaccurate information. 

The credit bureaus offer two types of fraud alerts. 

• Initial alert.  This will remain on your report for 90 days.  This alert would be used if your personal information has been stolen. 
• Extended alert.  This will stay on your report for 7 years.  This alert is only used if you have been a victim of identity theft.  The credit bureaus will provide you with 2 free copies of your report per year to monitor any changes or inaccuracies.  Furthermore, your name will be removed from marketing lists for a time of 5 years. 

There must be proof of identity theft in order to place either alert on your account.  Be aware if you are trying to obtain credit with either alert on your report, the process will be longer than usual because the creditors are required to take extra steps to be sure it is you.

2.    Close any accounts that are affected. 

Contact the fraud department of your credit cards by phone and with a certified letter.  Let them know as soon as possible that you were a victim of identity theft and to close the account immediately. 

Avoid using the same passwords or Personal Identification Numbers (PINs).  Never use a pass code that is easy to crack, such as your birthday, mother’s maiden name or other personal information. 

Additionally, request a letter from any creditor where fraudulent activity occurred stating that the account was closed and the charges were discharged.  Keep this letter for your records in case you are contacted in the future regarding the debt. 

3.    Contact the local police department.

File a report about the crime that occurred.  If the police will not provide you with a copy of the report then request the police report number. 

4.    Contact the Federal Trade Commission to file a complaint report. 

The FTC keeps track of all identity theft claims.  By taking this step it helps the law enforcement officials locate identity criminals nationally.  The FTC will investigate companies for violations of laws as well.  You can file a complaint with the FTC online at www.ftc.gov/idtheft.com or by telephone at 877-IDTHEFT. 

About The Author

Financial Help Services, Inc is a nonprofit 501(c)(3) credit counseling company.  FHS has been assisting clients with their financial needs since 1990. We are an accredited agency with the BBB, maintain an A+ rating, and are BSI/ISO certified.  For more information please visit our website at www.financialhelpservices.net.