According to a 2009 Javelin Strategy & Research report, 9.9 million U.S. citizens were victims of identity theft in 2008. Vital information is in the hands of those handling credit applications, rental services, documents related to health care service, etc. No one is immune. According to a 2009 Newsweek report, that includes the chairman of the Federal Reserve Board, Ben Bernanke, also a victim of an identity theft.
How Does Identity Theft Occur?
Information such as name, address, phone numbers, social security numbers, bank and credit card information is a goldmine for identity thieves. In addition to common thefts, identity thieves obtain personal information by stealing it from third-party vendors who have records of this information, such as financial institutions.
The most obvious means of obtaining vital information is by stealing a purse, wallet, or mail. Thieves will contact people by email, phone or mail with claims of being a legitimate business outfit. They may find information in personal and business trash dumps. Credit and debit card numbers can be stolen by skimming information from a data storage device.
How To Detect if an Identity Fraud has Happened to You
According to the U.S. Federal Trade Commission (FTC), identity fraud risk can be minimized by cautiously managing identifiable information. Registering with a credit monitoring services may be useful. Keep in mind, however, that while creditor monitoring services may alert to unauthorized activity, this is only after the bad deed has occurred.
Monitor financial account balances. This will include checking for unauthorized withdrawals and charges. If monthly accounting records are not received in the mail, this could mean that a change of address has occurred.
Personal Security at Home, Work, and On the Go
Stop carrying a SSN card in wallets and purses. Once a social security number has fallen into the wrong hands it can not be replaced like a debit card or credit card. Store vital documents and cards in a secure place, like a fireproof lock-box or safe. Keep wallets, purses, and paperwork with personal information in secure locations at work, the gym, and other public places.
Purchase a shredder to properly dispose of paperwork that has any personal identifiable information, including charge receipts or junk mail with name and address information. Do not use an unsecured mailbox for outgoing mail. It is best to deposit mail into U.S. postal office collection boxes or directly at the local post office, not unmonitored community collection centers. Also, promptly remove income mail from mailboxes. If planning to be away from home for a while, contact the USPS to request a vacation hold (800-275-8777).
Securing Finances and Private Matters Against Identity Theft
Request to pick up new bank checks orders from the bank, instead of having them mailed. Do not use easily available information for passwords on credit card or debit cards. Change all passwords that are currently easily discerned from available information.
Only carry credit and debit cards that will be actually used in the wallet and purses. Before typing personal or financial information into a web-site, check the URL for a "https" (the "s" stands for secure). This helps, but is not fool-proof. Try to avoid storing financial information on desktop and laptop computers.
Internet Security and Securing a Computer From Identity Theft Attacks
Do not give out personal information on the phone, on the Internet, or through the mail unless 100% sure who is on the receiving end. Thieves pose as banks, Internet Service Providers, and government agents. Request to use alternative types of identifiers, instead of social security numbers, for security identification purposes.
Obtain and install virus protection and firewall programs and other patches for an operating system and software programs and keep it updated. Do not open files, click on hyperlinks, or download programs sent by strangers. This may be a cleverly disguised spyware or computer virus that captures passwords and other information typed into the keyboard.
Use strong passwords that include numbers and letters. Don't use automatic log-in features that saves name and passwords. Log off when finished. Before disposing of a computer use a "wipe" utility program to overwrite the entire hard drive. Deleting files using the keyboard or mouse commands may not be enough.
Obtaining Copy of a Credit Report from a U.S. Reporting Agency
If personal information that can be used by an identity thief has been lost or stolen, or if someone has been a victim of identity theft, file a police report as soon as possible and start carrying the police report everywhere. There have been reports of identity thieves using a stolen identity to conduct felonious crimes. A credit report check should be requested, with updates more than once a year after such occurrences.
The three main nationwide consumer reporting companies are Experian (888-397-3742), Equifax (800-685-1111), and TransUnion (800-916-8800). A free annual report can be obtained from one or all of the national consumer reporting companies by request through annualcreditreport.com; by calling 877-322-8228; or by submitting the Annual Credit Report Request Form and mailing it to: Annual Credit Report Request Service, PO Box 105281, Atlanta, GA 30348-5281. Upon request, only the last four digits of a social security number will appear on the credit reports.
References:
- "2009 Identity fraud Survey Report," Javelin Strategy & Research, February 2009.
- "Bernanke Victimized by Identity Fraud Ring," Newsweek Magazine, August 25, 2009.
General Disclaimer: This article is for informational purposes only and should not be used as a substitute for legal or tax advice.
Vanessa Cross - Vanessa Cross is a freelance writer who writes about international trade, business law and small business development issues.
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