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Identity Theft Protection Tips
ID Theft: Don’t Pay for Protection You Already Have
With identity theft crimes on the rise, a new batch of monitoring services and insurance coverage plans has followed. But before you start throwing your hard earned cash at agents for these added identity theft protection services, it’s in your best interest to find out what coverage and services you already have access to.
Monitoring services
Different identity theft monitoring services offer varying levels of monitoring activity. Basic services do nothing more than scan your credit files at one or all of the three major credit reporting agencies, alerting you to any changes. By law, you are entitled to a free copy of your credit report every year so this is something you can do yourself for free. However, the higher priced services may include monitoring public records and Internet-based financial black markets where thieves buy and sell other people’s personal information.
Insurance coverage
Before investing in an identity theft insurance policy, rifle through the home insurance policy that you already have or call your agent to clarify coverage. Many insurers automatically include identity theft coverage in homeowner policies. If you don’t have coverage for ID theft, be thorough in your research before signing up for it. The insurance may cover expenses, such as lost wages and legal fees, but it won’t reimburse you for stolen money. When weighing these factors, keep in mind that it is rare that ID theft victims incur any legal fees. Also, many policies exclude payment if a family member commits the crime.
The bottom line is “buyer beware” before you pay for protection from identity theft that you may already have.
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IDENTITY GUARD® Tip: Beware of Insurance Offers for Credit Card Loss Protection
As identity theft crimes escalate at a rapid pace, more and more scam artists are finding ways to capitalize on the vulnerability and uncertainty consumers feel, especially when it comes to credit card fraud protection. One of the more common tactics popping up both online and offline are offers for credit card insurance services. Don’t be fooled – be informed!
Thanks to the Truth in Lending Act, liability for unauthorized credit card charges is capped at $50 per card if you report the activity within 60 days of the charges appearing on your statement. Even better news is that the major credit card companies offer free identity theft protection, guaranteeing that you are not liable for ANY fraudulent charges on your credit cards. Additionally, many companies conduct protective monitoring of your credit card account based on your previous spending patterns. They will flag accelerated spending or unusually large amounts, sometimes freezing the account, and notify you of the suspicious activity or to receive authorization. Most companies will also offer single-use virtual credit card numbers for online purchases.
While the credit card insurance offers you receive should raise warning flags, identity theft monitoring services are gaining in both popularity and consumer support. These services continually track a variety of documents and records to monitor the use of your personal information on anything from new credit applications, to changes in your credit scores, and the lucrative “black market” for credit card laundering.
Your first line of protection is awareness. You can learn more about protecting yourself against credit card fraud and identity theft by calling the Federal Trade Commission (FTC) at 1-877-382-4357. Or download three free publications from their website: Credit, ATM and Debit Cards: What to do if They’re Lost or Stolen, Fair Credit Billing, and Take Charge: Fighting Back Against Identity Theft.
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Benefits of Monitoring Your Credit Report
If you stockpile as much information as you can possibly get your hands on about identity theft protection and prevention, you’ll find every resource names two priorities: protect your Social Security number and keep close tabs on your credit report. Why are they such a big deal?
Without question, the worst cases of identity theft are directly attributed to thieves who able to capture a victim’s Social Security number. In the eyes of the government, your SSN is your identity. With your SSN in hand, thieves can open new accounts, take out loans and even file for bankruptcy in your name, leaving your credit history in shambles. The damage can be done quickly, and it will be costly for you to clean up the mess.
Your credit report is your financial report card. Any time you want to apply for a loan or new credit cards, the lending institution will request a copy of your credit report to review your history, look for red flags, and determine if you are creditworthy, with emphasis placed on your credit scores. The better your scores, the greater your financial integrity and you’ll have no problems with acquiring financing. However, if you credit report is poor, you will not only be deemed high risk, you may be denied financing.Every account you open and each late payment or default on mortgage and car loans, credit cards and utility bills will be reported and included on your credit report.
A thief with your SSN has the power to destroy your credit history. By monitoring your credit report regularly you can detect any fraudulent activity early and take steps to stop it.
For more information about identity theft monitoring and protection, visit the Federal Trade Commission (FTC) website.
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IDENTITY GUARD® Tip: Five Self Defense Tactics Against Identity Theft
Fraud protection is rarely a priority – until you’ve been the victim of identity theft. Do you have a fraud protection plan? Use these five self-defense tactics to protect against identity theft:
1. Get a copy of your credit report from all three credit reporting agencies. Just by examining these three documents you can determine if there are erroneous facts or suspicious line items that need to be clarified or corrected. You are entitled to request and receive one free credit report every year from each of the three credit reporting agencies. Contact:
Equifax: 1-800-525-6285;P.O. Box 740241, Atlanta, GA 30374- 0241
2. Read your bank and credit card statements! Typically the first warning that your identity has been stolen appears as unauthorized charges on your credit cards or unauthorized withdrawals from your bank account. Get in the habit of opening, reviewing and reconciling your statements right away. If you have access to your accounts online, it’s even easier to check them frequently for any discrepancies.
3. Ask about security procedures whenever you are required to share your personal information. This could be at the doctor’s office, your workplace, or even the gym membership you apply for down the street. Find out who can access your information and what measures are in place to protect your confidential information.
4. Make sure “dumpster divers” come up empty. Before throwing away or recycling paper, tear up or shred receipts, old insurance forms, credit card statements, or any document that contains personal and confidential information.
5. Protect your Social Security Number (SSN). Stolen credit card numbers and fraudulent charges are “easy” to fix compared to having your SSN stolen. Refuse to provide your Social Security Number if the person can’t give you a satisfactory reason for needing it.
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Avoid Becoming an ID Theft Victim by Trusting Your Instincts
It’s happened to just about everyone – someone asks you a personal question and you hesitate to answer. Yet, more often than not, you volunteer the information anyway despite the faint twinge of discomfort. Most times no real damage is done for having shared information, yet, when it comes to precautions you can take for identity theft protection, trusting your instincts is one of the best deterrents you have.
Here’s a short of list of ‘instinctual behavior’ that will help protect against identity theft:
If a company asks for your Social Security number, say no. Some businesses are still in the habit of setting up accounts with and using Social Security numbers as a form of ID. And if you check the health insurance card you carry in your wallet, you may be surprised to find that your account number is your Social Security number. Current legislation is calling for this practice to be stopped because it leaves the door wide open for identity thieves. If you are applying for a loan or credit card, filing your taxes, or submitting paperwork for a job, the request will be legitimate. Otherwise, get a reason for the request and make sure you’re comfortable with the explanation before agreeing to provide your Social Security number.
Watch clerks and servers charge your credit card. While it may be a courtesy for a waitress or store clerk to save you the steps of paying your bill at the register, letting your credit card out of your sight is a risky practice. If it doesn’t “feel right” to hand someone your card and have them disappear into the kitchen or a back room to run the charge, don’t do it. Go to the register and witness the transaction yourself.
Be wary of fundraising calls. If you want to donate to a charity or support local fundraising efforts, take the initiative to contact the organization rather than respond to a phone call you receive at your home. Fundraisers, phone surveys, and callers claiming to need to verify your account information may be legitimate, but are also popular covers for fraud schemes. Giving out personal information and credit card information to unknown callers isn’t being polite – it’s being foolish.
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IDENTITY GUARD® Tip: A Security Freeze Offers Greater Protection to Victims of Identity Theft
Identity theft victims – including nearly 10 million Americans each year – know how frustrating and time-consuming it can be to repair the damage done to credit and finances. Once you’ve been a victim, identity theft protection rises to the top of the priority list.
As added protection against identity theft, any consumer can place a 90-day fraud alert with each of the three credit reporting agencies to monitor and notify you of any suspicious activity on your accounts. However, if you have been a victim of identity theft, 34 states have already enacted a law that allows individuals to place a “security freeze” on their credit reports. This type of action goes beyond identity theft monitoring. It can be considered a significant step toward identity theft solutions.
Security freeze laws don’t just monitor activity, they stop it. With a security freeze, access to your credit report and credit scores is locked. Without your personal information new credit will not be given to any applicant. You are the only one with the authority to release information using a predetermined PIN to unlock access to your credit file.
In most states the security freeze is free to victims of identity theft. And, in some states, this option is only available to proven victims, while in other states the option is available to non-victims for a fee. To find out if your state has a security freeze law, visit consumerunion.org.
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Proactive Steps Deter Potential for Identity Theft
With so much of our personal information already widely distributed in databases and storage files, it’s impossible to gain complete control over whether or not we’ll be victims of identity theft. What we can do to increase identity theft protection is be proactive by rethinking current vulnerabilities that we can control.
For example, increase the use of passwords. Using passwords online is common practice, but you can help to increase credit card security by placing passwords on credit card, bank, and phone accounts, too. When you do use a password, avoid using the traditional ones like your mother’s maiden name, the last four digits of your Social Security number or your birth date.
Be conscious of where you keep your personal information stored in your home, especially if you use or employ contractors like a cleaning service, have roommates, or if anyone has access to your home when you’re not there.
Ask questions about how your personal information is secured at work, at your doctor’s and dentist’s offices, and banking institution or credit union. Find out who has access to personal information and verify whether or not your information is shared with other companies. If it is, request that you be removed from the list.
Apply new meaning to the old saying, “one man’s trash is another man’s treasure.” Dumpster divers aren’t always looking for discarded items that can be cleaned up and reused. Some of them are searching your trash for documents containing your personal information so they can help themselves to your identity. Make sure the trash you throw out doesn’t result in someone trashing your credit history.
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IDENTITY GUARD® Tip: Added Precautions Can Protect You Against Identity Theft
With identity theft tagged as one of the fastest growing financial crimes, consumers are starting to be more proactive about prevention and protection. But where can you find useful information?
1. Contact the Federal Trade Commission (FTC). The FTC is the first line of defense for victims of identity theft and serves as a clearinghouse for complaints. FTC service representatives help victims understand the process for filing reports and can advise on the steps to take for credit repair and recovery. The FTC also offers information for prevention and protection from identity theft. There are many free downloadable reports available from the FTC web site that can serve as an identity theft protection guide. For more information, call the FTC at 1-877-382-4357 or visit their website.
2. Consider using identity theft monitoring services. In addition to government resources, there are private businesses dedicated to designing services that help you protect yourself against identity theft. Identity theft monitoring services will regularly track and monitor your credit report, alerting you to changes made to personal and financial information. They also have an inside track to the “back alleys” and “black markets” found on the Internet where stolen personal information is shared, sold or circulated, resulting in an individual’s credit damage to spread like wildfire.
No agency or business can give you a 100% guarantee that you’ll never become a victim of identity theft. Yet, the more proactive you are to seek information, such as from ann identity theft protection guide, the better equipped you will be to execute a plan for prevention and protection from identity theft.
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Identity Theft: Protecting Kids from Being the Target
Most of the advice we get about identity theft protection is directed at adults. Fair enough. We’re the ones holding the credit cards that attract the most prevalent type of identity theft crime – credit card fraud. But thieves don’t necessarily see it that way. Kids are ‘fair game’ to identity thieves, especially online.
Parents already worry about online predators trying to lure children and teens out into the open. But precautions against identity theft ploys should also be on the top of the list of concerns. Many kid-friendly sites are social sites where they go to meet new friends, communicate with current friends and talk about where they “hang” and what they do. But the innocent sharing of names, addresses, birth dates, and other personal information makes a predominantly kid populated website a great phishing hole for identity thieves.
What can you do? Web filters and security software may be able to prevent kids from accessing certain websites, but it can’t stop them from freely sharing information. In additional to external identity theft solutions:
Teach kids about privacy. Even very young children can understand the basics of privacy. If children are old enough to find their way around the Internet, they’re old enough to understand that the Internet is a very public place and personal information must be kept private.
Make a rule that your child needs parental permission before entering any personal information into a web form. There will be occasions when it’s okay for kids to give out information such as signing up for an e-zine or to access free online games and puzzles. Just make sure they know they need to ask your permission to do so first.
