What is Identity Theft?
According to the U.S. Department of Justice, identity theft is “a crime in which someone wrongfully obtains and uses another person’s personal data in some way that involves fraud or deception, typically for economic gain.”
As the fastest growing crime in the U.S., identity theft affects millions of people each year. In 2004 alone, there were nearly ten million incidents of identity theft in the country, costing American consumers a total $5 billion, according to the U.S. Postal Service.
How can I protect myself?
In this day and age, we all have to go above and beyond to protect our identities. Here are a few steps you can take to decrease your chances of becoming a victim:
- Keep your Social Security card, along with any other personal information, securely locked away in your home.
- Never give or confirm your personal information over the phone to an unknown person or company.
- Shred documents and paperwork that contain personal information before you discard them. Identity thieves often dig through garbage to obtain this information.
- Because identity thieves often steal personal checks from the mail, do all of your banking and bill-paying online. Check your bank account daily for unidentified charges, transfers or withdrawals.
- Check your credit report at least twice a year for inaccuracies and new accounts that you did not open. If you know your credit is good and a creditor turns you down for a loan or credit card, request a copy of your report immediately.
- Never click on links in unsolicited emails; instead, type in a web address that you know is secure.
- Use firewalls, anti-spyware and anti-virus software to protect your home computer.
- Don't use obvious passwords like your birth date, mother's maiden name or pet’s name. Create the most complicated passwords possible, including letters, numbers and characters.
- Collect delivered mail from your mailbox as soon as possible, and drop outgoing mail containing financial information at the post office. If you are out of town, ask the post office to hold your mail until your return or have someone you trust collect it.
- Use reliable ATMs at reputable sites only. Do not keep ATM pin numbers in your wallet or with your ATM card. Make sure no one is looking over your shoulder as you enter your pin at the ATM.
- When shopping online, make sure the company is reputable, displays an approved security symbol and uses an encrypted page to take payment details. The encrypted page should not generate warnings about being signed by an unknown authority.
- Don’t carry all of your credit cards with you. Carry only those you use regularly. When handing over your credit card to make a purchase, do not let it out of your sight.
- Don't order checks pre-printed with your driver's license number, social security number, phone number or address.
- Freeze your credit so that no one can open any form of credit in your name.
What do I do if my identity is stolen?
If you discover that you are a victim of identity theft, report it immediately to local law enforcement. Notify one of three major credit reporting agencies right away (Equifax, Experian and TransUnion). The law requires that if you contact one agency, it is that agency’s responsibility to call the other two.
Contact all of your creditors and notify them of the identity theft. For help getting unauthorized charges or accounts off of your credit report, contact the Federal Trade Commission identity theft division.
If your identity or personal information has been stolen, you should also check your bank account as soon as possible. If you discover that someone is illegally using your account, contact your bank and close the account immediately.
Steer clear of “advance fee” or “guaranteed” loans
“Advance fee” or “guaranteed” consumer and small business loans are against the law. Therefore, do not respond to any advertisements for these types of loans.
These businesses typically ask you to pay a fee ranging from $30 to several hundred dollars in exchange for a loan. However, FTC regulations state that a lender cannot ask for payment on loan until the applicant receives the loan or credit.
Before responding to a questionable ad promising “easy credit” or “guaranteed loans,” remember the following:
- Legitimate lenders never "guarantee" that you will receive a loan or credit card before you apply, especially if you have bad credit, no credit, or have filed bankruptcy.
- Although it is common practice for a lender to ask you to pay for a credit report or appraisal for a real estate loan, legitimate lenders will never ask you to pay for the processing your application.
- Never give your credit card number, bank account information or Social Security number over the phone unless you are familiar with the company and know why the information is necessary.
- Do not make any payments to a lender until you have a loan offer confirmed in writing. In some cases, advance fee loan companies simply pocket your money and disappear. If you have been a victim of such a scam, report the company to your local Better Business Bureau.
When it comes to identity theft, we all have to be proactive. If you consistently monitor your finances and protect your personal information, you are much less likely to fall victim to this horrible crime.
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