Some Protections Against Identity Theft

Identity theft occurs when someone uses your personal information, like your credit card number or name and Social Security number, without your permission, to commit fraud or other crimes. The United States Federal Trade Commission (FTC) estimates that as many as 10 million people in the United States have their identities stolen each year. In fact, you or someone you know may have experienced some form of identity theft.

Here are some ways to minimize your risk of identity theft, detect a potential problem quickly, and take the right steps if you suspect a problem.

It’s about the “3 D’s” of identity protection—Deter, Detect, Defend.

DETER - Deter identity thieves by safeguarding your information.

§ Shred financial documents and paperwork with personal information before you discard them.

§ Protect your Social Security number. Don’t carry your Social Security card in your wallet or write your Social Security number on a check. Do not have it preprinted on checks. Give it out only if absolutely necessary or ask to use another identifier.

§ Do not give out personal information on the phone, through the mail, or over the Internet unless you have initiated contact and know who you are dealing with.

§ Do not sign the back of your credit cards. Instead, write “Photo ID Required”

§ Don't leave a paper trail. Never leave ATM, credit card or gas station receipts behind.

§ Do not write the complete credit card account number on a check when making a payment to the credit card company. Instead, only write the last four numbers. The company can process your payment without the entire number.

§ Never click on links sent in unsolicited emails; instead, type in a web address you know. Use firewalls, anti-spyware, and anti-virus software to protect your home computer; keep them up-to-date. Visit OnGuardOnline.gov for more information.

§ Do not use an obvious password like your birth date, your mother’s maiden name, or the last four digits of your Social Security number.

§ Be defensive with personal information. Ask salespeople and others if information such as a Social Security or drivers license number is absolutely necessary. Ask anyone who does require your Social Security number -- for instance, your insurance company -- what their privacy policy is and whether you can arrange for the organization not to share your information with anyone else.

§ Make a photocopy of the contents of your wallet. Copy both sides of your driver’s license, credit cards, etc. and keep the photocopies in a safe place. This information will be useful if your wallet is lost or stolen and you need to cancel accounts.

§ Keep your personal information in a secure place at home, especially if you have roommates, employ outside help, or are having work done in your house.

DETECT - Detect suspicious activity by routinely monitoring your financial accounts and billing statements.

§ Inspect your credit report. Credit reports contain information about you, including what accounts you have and your bill paying history.

§ Regularly review your financial statements and billing statements regularly, looking for charges you did not make.

§ Be alert to signs that require immediate attention:

ü Mail or bills that do not arrive as expected

ü Unexpected credit cards or account statements

ü Denials of credit for no apparent reason

ü Calls or letters about purchases you did not make

DEFEND - Defend against identity theft as soon as you suspect a problem.

§ Place a “Fraud Alert” on your credit reports, and review the reports carefully. The alert tells creditors to follow certain procedures before they open new accounts in your name or make certain changes to your existing accounts. The three nationwide consumer reporting companies have toll-free numbers for placing an initial 90-day fraud alert; a call to one company is sufficient:

Equifax: 1-800-525-6285

P.O. Box 740241, Atlanta, GA 30374-0241

Experian: 1-888-EXPERIAN (397-3742)

P.O. Box 9532, Allen, TX 75013

TransUnion: 1-800-680-7289

Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92634

Placing a fraud alert entitles you to free copies of your credit reports. Review your credit reports for inquiries from companies you haven’t contacted, accounts you didn’t open, and debts on your accounts that you can’t explain.

§ Close accounts that have been tampered with or established fraudulently.

ü Call the security or fraud departments of each company where an account was opened or changed without your okay. Follow up in writing, with copies of supporting documents.

ü Use the ID Theft Affidavit at ftc.gov/idtheft to support your written statement.

ü Contact the Social Security Administration fraud line: 800-269-0271

ü Get written verification that the disputed account has been closed and the fraudulent debts discharged.

ü Keep copies of documents and records of your conversations about the theft.

§ File a police report with law enforcement officials to help you with creditors who may want proof of the crime.

Sources: US Federal Trade Commission and MSN Money Online