Identity Theft: How to Protect Yourself
Identity theft encompasses a wide range of deception, from a
stolen credit card used to charge purchases to an existing account,
to stolen information used to impersonate the victim, open new
accounts (even ones for utilities), and rack up thousands of dollars
in debt.
With over 500,000 new cases each year (and some say upwards
of 900,000), identity theft is one of the fasting growing crimes in
America. In many states it isn't even illegal, or hardly punishable if
it is. Often the perpetrator goes uncaught and unpunished. Worse
still is that it takes on average 12 months for the victim to realize
he is a victim and by then it may nearly impossible to climb back
out of the black hole of damaged credit, costing hundreds of hours
and hundreds of dollars to try to fix it.
Sadly, since much of this goes unpunished, companies often write
off the bad debt and then charge you and me higher interest rates
and fees to cover their losses. So we all are indirect victims of
identity theft. The more vigilant we become, the better off we will
all be.
What can you do to protect yourself from becoming a victim of
identity theft? There is no absolute guarantee, but the more
precautions you put in place, the harder it will be for someone to
steal your information and use it illegally. What follow below are
some ideas that you can use to start protecting yourself now.
1. Check your credit reports annually.
This is your first and foremost line of defense. Contact the three
major credit reporting agencies (www.equifax.com,
[http://www.experian.com], [http://www.transunion.com]) every year to obtain a
copy of your credit report. Some websites also offer a 3-in-1
report. Go through them carefully, looking for any inaccuracies.
Report any problems immediately. Consider asking them to require
your permission to issue new credit lines.
2. Protect your Social Security number.
Many companies ask for your Social Security number (SSN) to use
for recordkeeping. Ask if you can substitute a different number.
This is especially true of driver's licenses and health insurance
cards. Never give out your SSN to anyone over the phone or
internet if you did not initiate the contact. Don't carry your Social
Security card with you and don't have your SSN preprinted on your
checks (or your phone number either).
3. Protect passwords and PINs.
Always protect your passwords and PINs from being seen by
others, especially at ATMs. Don't write them down and carry them
with you. Do not store passwords on your computer's hard drive. If
you need to write them down, store them somewhere else.
Passwords should be hard to discover (bad choices: mother's
maiden name, birthdates, last 4 digits of SSN or phone number, or
a series of consecutive numbers). When possible use a mix of
upper- and lower-case letters, numbers, and symbols.
4. Know your billing cycles.
Know when to expect your bills. If any of them is late, call the
company or agency and check on its status. A late/missing bill
could mean that someone has stolen your information and
changed the billing address, leaving you unaware of the charges
that may be racking up.
5. Shred everything with your information on it.
All those credit card applications you receive in the mail and throw
away are an open invitation for someone to open an account in
your name. Invest in a good cross-cut shredder and shred all
documents with any financial information on them, including credit
card receipts. Then put the remnants in the yuckiest, ickiest trash
you've got to discourage dumpster-divers from stealing them and
putting them back together.
6. Make the post office your ally.
Deposit outgoing mail at your local post office or in a locked post
office drop box. Thieves actually patrol neighborhoods, stealing
mail out of mailboxes. A little acid wash, and voila!, they change
the amount and the person being paid. Don't give them the
chance! If you're going out of town, have the post office put a hold
on your mail. Consider getting a post office box or ask your post
office about getting a key-operated community mailbox for your
neighborhood.
7. Technology doesn't beat everything.
Don't give out personal information over cellular/mobile/wireless
phones, or cordless phones. (This includes telephone banking.)
Their radio frequencies can be easily intercepted, overheard, and
hacked.
Surfing the internet puts you at risk from hackers breaking into
your system; consider purchasing a "firewall" program to protect
your computer from outside access. When divulging personal
information on the internet (for example, when making a purchase)
always look for privacy policies and the little "lock" symbol that
indicates your information is secure.
Don't use your email address for user IDs on websites; there are
"robots" that specifically search for this on sites like eBay to try
and trick you into divulging your personal information. You may
receive an official-looking email asking you to "verify" or "update"
your information. Remember that anyone who already has your
information will not ask you to verify it. Always be suspicious of
such tactics. The same goes for people who call you and claim to
be somebody like a bill collector, government agent, utility worker,
etc. If in doubt, call the company they appear to be representing.
If you use a laptop computer use a strong password (combination
of upper/lower-case letters, numbers, symbols); don't use
automatic login; always log off when finished; and don't store
financial information on it unless absolutely necessary.
When disposing of your personal computer, deleting your personal
information usually isn't enough. Use a "wipe" utility program to
render files unrecoverable.
8. Be aware of the opportunities to steal your information.
Think of all the places that store your personal information, such as
the offices of doctors, dentists, accountants, loan officers, health
insurance, schools, courts, etc. Ask them how they protect your
information. Request that they shred anything with personal
information on it when disposing of it.
Keep your wallet or purse in a safe place at work; not all of your
fellow coworkers are trustworthy. Be aware of the "Good
Samaritan" scheme where your missing wallet is returned (after
one of your several credit cards is removed; you have so many
that you probably won't notice!). Only carry a minimum number of
cards and identification with you.
9. If desired, subscribe to a credit monitoring service.
If you're really worried about identity theft, consider subscribing to
a credit monitoring service. They will regularly notify you of your
credit status and anything suspicious that might be going on.
10. Make a list and check it twice.
Make list of all your credit card numbers, banking account numbers,
and driver's license number with their customer service numbers
and keep them in a safe place. That way you'll have a starting
place if something should happen to you.
Remember, the more vigilant we all are, the more protected we all
are.
For more information regarding identity theft, see the federal
government's website at http://www.consumer.gov/idtheft.
stolen credit card used to charge purchases to an existing account,
to stolen information used to impersonate the victim, open new
accounts (even ones for utilities), and rack up thousands of dollars
in debt.
With over 500,000 new cases each year (and some say upwards
of 900,000), identity theft is one of the fasting growing crimes in
America. In many states it isn't even illegal, or hardly punishable if
it is. Often the perpetrator goes uncaught and unpunished. Worse
still is that it takes on average 12 months for the victim to realize
he is a victim and by then it may nearly impossible to climb back
out of the black hole of damaged credit, costing hundreds of hours
and hundreds of dollars to try to fix it.
Sadly, since much of this goes unpunished, companies often write
off the bad debt and then charge you and me higher interest rates
and fees to cover their losses. So we all are indirect victims of
identity theft. The more vigilant we become, the better off we will
all be.
What can you do to protect yourself from becoming a victim of
identity theft? There is no absolute guarantee, but the more
precautions you put in place, the harder it will be for someone to
steal your information and use it illegally. What follow below are
some ideas that you can use to start protecting yourself now.
1. Check your credit reports annually.
This is your first and foremost line of defense. Contact the three
major credit reporting agencies (www.equifax.com,
[http://www.experian.com], [http://www.transunion.com]) every year to obtain a
copy of your credit report. Some websites also offer a 3-in-1
report. Go through them carefully, looking for any inaccuracies.
Report any problems immediately. Consider asking them to require
your permission to issue new credit lines.
2. Protect your Social Security number.
Many companies ask for your Social Security number (SSN) to use
for recordkeeping. Ask if you can substitute a different number.
This is especially true of driver's licenses and health insurance
cards. Never give out your SSN to anyone over the phone or
internet if you did not initiate the contact. Don't carry your Social
Security card with you and don't have your SSN preprinted on your
checks (or your phone number either).
3. Protect passwords and PINs.
Always protect your passwords and PINs from being seen by
others, especially at ATMs. Don't write them down and carry them
with you. Do not store passwords on your computer's hard drive. If
you need to write them down, store them somewhere else.
Passwords should be hard to discover (bad choices: mother's
maiden name, birthdates, last 4 digits of SSN or phone number, or
a series of consecutive numbers). When possible use a mix of
upper- and lower-case letters, numbers, and symbols.
4. Know your billing cycles.
Know when to expect your bills. If any of them is late, call the
company or agency and check on its status. A late/missing bill
could mean that someone has stolen your information and
changed the billing address, leaving you unaware of the charges
that may be racking up.
5. Shred everything with your information on it.
All those credit card applications you receive in the mail and throw
away are an open invitation for someone to open an account in
your name. Invest in a good cross-cut shredder and shred all
documents with any financial information on them, including credit
card receipts. Then put the remnants in the yuckiest, ickiest trash
you've got to discourage dumpster-divers from stealing them and
putting them back together.
6. Make the post office your ally.
Deposit outgoing mail at your local post office or in a locked post
office drop box. Thieves actually patrol neighborhoods, stealing
mail out of mailboxes. A little acid wash, and voila!, they change
the amount and the person being paid. Don't give them the
chance! If you're going out of town, have the post office put a hold
on your mail. Consider getting a post office box or ask your post
office about getting a key-operated community mailbox for your
neighborhood.
7. Technology doesn't beat everything.
Don't give out personal information over cellular/mobile/wireless
phones, or cordless phones. (This includes telephone banking.)
Their radio frequencies can be easily intercepted, overheard, and
hacked.
Surfing the internet puts you at risk from hackers breaking into
your system; consider purchasing a "firewall" program to protect
your computer from outside access. When divulging personal
information on the internet (for example, when making a purchase)
always look for privacy policies and the little "lock" symbol that
indicates your information is secure.
Don't use your email address for user IDs on websites; there are
"robots" that specifically search for this on sites like eBay to try
and trick you into divulging your personal information. You may
receive an official-looking email asking you to "verify" or "update"
your information. Remember that anyone who already has your
information will not ask you to verify it. Always be suspicious of
such tactics. The same goes for people who call you and claim to
be somebody like a bill collector, government agent, utility worker,
etc. If in doubt, call the company they appear to be representing.
If you use a laptop computer use a strong password (combination
of upper/lower-case letters, numbers, symbols); don't use
automatic login; always log off when finished; and don't store
financial information on it unless absolutely necessary.
When disposing of your personal computer, deleting your personal
information usually isn't enough. Use a "wipe" utility program to
render files unrecoverable.
8. Be aware of the opportunities to steal your information.
Think of all the places that store your personal information, such as
the offices of doctors, dentists, accountants, loan officers, health
insurance, schools, courts, etc. Ask them how they protect your
information. Request that they shred anything with personal
information on it when disposing of it.
Keep your wallet or purse in a safe place at work; not all of your
fellow coworkers are trustworthy. Be aware of the "Good
Samaritan" scheme where your missing wallet is returned (after
one of your several credit cards is removed; you have so many
that you probably won't notice!). Only carry a minimum number of
cards and identification with you.
9. If desired, subscribe to a credit monitoring service.
If you're really worried about identity theft, consider subscribing to
a credit monitoring service. They will regularly notify you of your
credit status and anything suspicious that might be going on.
10. Make a list and check it twice.
Make list of all your credit card numbers, banking account numbers,
and driver's license number with their customer service numbers
and keep them in a safe place. That way you'll have a starting
place if something should happen to you.
Remember, the more vigilant we all are, the more protected we all
are.
For more information regarding identity theft, see the federal
government's website at http://www.consumer.gov/idtheft.
