Identity theft is a crime that has become a serious issue in this country. Identity theft occurs when a thief uses your name, address, Social Security number or account information without your knowledge to commit fraud or other crimes.
Victims of identity theft can spend vast amounts of time and money trying to clean up the damage that thieves have done to their credit record and good name. Job opportunities can be lost if a potential employer notes a poor credit record, unaware that the record may contain fraudulent information. Loans can be turned down, leading to problems purchasing a house, a car or even a hotel room. Worst of all, victims can even be arrested for crimes committed by someone using their name.
How Can Someone Steal Your Identity?
Identity thieves use a variety of both high-tech and low-tech methods to gain personal information on their victims.
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From Businesses: Thieves may work for a company with access to personal information and may attempt to steal it, bribe other employees to steal it or hack into a computer that houses the information.
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From Credit Reporting Agencies: Thieves may pose as an employer, a landlord or a business, and attempt to gain access to your information by pretending they have a legitimate need for the information.
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From Places You Do Business: Thieves may attempt to use an old receipt to gain access to your credit card information. Or, they may use a special device to "skim" your credit card when it is being processed at a place where you do business.
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From Your Home, Car or Person: Thieves may attempt to steal your wallet, mail or personal documents from your home. One large concern in this day and age is the information on your computer.
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On Their Own: Thieves sometimes attempt to complete a change of address form and have statements, invoices or other information mailed to an alternate address, providing them with easier access.
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Directly from You Through Fraud: Thieves may pose as a legitimate business interest and try to convince you to give them personal information. Then they can use the information to commit fraud.
What Can Identity Thieves Do with Your Personal Information?
Once identity thieves gain access to your information, they can make your life miserable in many ways, including:
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Use your credit cards for spending sprees;
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Open new credit card accounts in your name, spend to the limit and never pay the bill, leaving the wreckage for you to deal with once it appears on your credit report;
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Establish phone or cell phone accounts in your name without your knowledge;
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Use checks, counterfeit checks, check cards or debit cards to drain your checking and/or savings accounts;
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Obtain loans in your name;
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File for bankruptcy under your name to avoid debts they have incurred, and/or
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Give your name to the police during an arrest, then not show up to court, thereby, leading to a warrant for your arrest.
How Can I Minimize the Risk of Being a Victim of Identity Theft?
As with any other crime, it is virtually impossible to completely eliminate all possibilities of becoming a victim of identity theft. However, steps can be taken to help minimize your risk:
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Check your credit report regularly. These are available from any of the credit bureaus (Equifax, Experian or Trans Union). These three nationwide consumer credit reporting agencies are sponsoring a web site where you can receive a credit report from all three bureaus for free, once every 12 months. The web site is www.annualcreditreport.com. If you see anything suspicious on your recorded history, report it at once to the credit bureau.
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Unless you have initiated the contact or you are certain who is calling you, do not give out personal information over the phone. Thieves may try to gather information from you such as account numbers, your mother's maiden name or other identifying pieces of information. They may pose as representatives from businesses you deal with, government representatives, bank representatives or even solicitors.
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Do not carry your Social Security card on you. Instead, leave it in a secure place.
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Do not list your Social Security number on checks.
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If your driver's license number is the same as your Social Security number, request that it be changed.
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Do not leave outgoing mail in your mailbox. Instead, drop it in a secure mailbox. If you will be out of town, make sure someone picks up your mail for you or have the Postal Service hold your mail until you return.
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Tear up or shred all receipts and old statements with account numbers or other personal information on them.
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Place passwords on your accounts that would be difficult for thieves to detect or find, preferably an alphanumeric combination with a few special characters that a thief could not guess. Several credit card issuers now allow you to list both a question to answer and the password that correctly answers it. Choose a question that is easy to remember with an answer that only you would know.
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Follow-up with creditors if bills do not arrive on time. This could mean that a thief has taken control of your account and changed your address to avoid being caught.
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Be wary of promotional scams or anyone requesting personal information. You should completely understand why they need this information and how they wish to use it.
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Cancel all old credit accounts that are no longer active.
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Destroy all old credit cards when an account is closed or when the issuer sends a new replacement card. Throw away the pieces of the card in at least two separate places.
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Add software to your personal computers to help protect against spyware and computer hackers. The credit bureau Equifax provides a service, for a fee, where you are notified any time information is requested from your credit file or a new account is added to it. Participants in the program receive e-mail notification whenever a credit file has activity. If you are interested in this service, go online to Equifax at www.equifax.com, and click on "Get Equifax Credit Watch."
What Do I Do if I Believe I am Already a Victim of Identity Theft?
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Contact the fraud departments of any of the three major credit bureaus to place a fraud alert on your credit file. All three will then be notified, and they send you credit reports free of charge.
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Close any accounts that you know have been affected and complete an "ID Theft Affidavit."
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File a police report. Get a copy of the police report, and submit a copy to your creditors or any others that may require proof of the crime.
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File your complaint with the Federal Trade Commission.
Where Can I Find More Information About Identity Theft?
The Federal Trade Commission has a very thorough, complete web site dedicated to this topic, at www.ftc.gov/idtheft. Several other sites exist and are easy to find through an Internet search on the topic "identity theft." For more information regarding this topic, please contact The Henssler Financial Group at 770-429-9166 or comments@henssler.com.
All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing.
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