What Is Identity Theft?
By Nicole Soltau |
One of the prime axioms in life is just when you think it couldn’t happen to
you, it does. This is a sad fact, and even more so when you consider the crime
of identity theft. You take years to establish your financial and individual
identity and reputation, and in one moment the illegal act of another washes it
all away wreaking havoc on your financial life. The reasons for identity theft
are as varied as the circumstances of the unsuspecting victims. There are ways
to protect yourself. Being diligent and using common sense can go a long way in
preventing this troublesome event from happening in your life. Following are
some steps to consider:
1. Protecting your
information.
Keep your social security card separate from your
other identification, leaving it at home if at all possible. Have a sheet with
all of your credit card numbers and companies listed and in a safe place, so in
the event of theft you can call quickly to cancel the
accounts.
2. Limit preprinted check
information
Checks are another potential bonanza for an identity
thief. Even though it may make checking out a little harder, only put your basic
information (name, address, maybe a phone number) on your checks. This will
prevent an ID thief from getting your drivers license or social security number
off a check left lying around.
3. Properly dispose of sensitive
information after it no longer is needed.
The identity thief is
not above digging in a dumpster for information that can get them something on
someone else’s tab. Credit card and banking statements, applications for credit
cards, phone bills and utility bills all need to be shredded to prevent anyone
from getting your information. Checkbooks need to be treated the same to get rid
of your account numbers on them.
4. Share sensitive information
with care
Giving information out over the phone is sometimes
required for security purposes, and some companies that call you might ask you
to verify personal information to make sure that they are speaking to the right
person. If you are unsure of the caller’s identity, erring on the side of
caution is advised. This can prevent inadvertent sharing of sensitive
information with someone that has misrepresented their intentions or identity.
Ask for a call back number and check it out if you have any doubts at
all.
5. Avoid easily decipherable passwords
When
choosing a password for your sensitive accounts try to avoid any word and or
number combinations that can be easily discovered. Some examples include your
mother’s maiden name, your house number or birth date. If possible, place
security questions, to which only you know the answers on your
account.
These steps provide a good first line of defense against
identity theft but, unfortunately, they do not provide a guarantee. If you
follow steps and still become a victim of identity theft, take action
fast.
Important actions if you are the victim of identity
theft:
The first step is to report it to the authorities. Most
companies have to have a police report or case number before they can work with
you to undo the damage. With the report or number in hand, you will need to call
all of your credit card issuers and advise them of what has happened so they can
flag your account with a fraud investigation flag. Utilities and phone companies
must be notified as well.
Be mindful that there are three credit
reporting agencies that collect and compile information about your credit
history and habits. You will need to inform at least one of them so that a fraud
alert can be placed on your file. Once the alert is placed the first agency will
inform the other two bureaus to place alerts as well. You can choose an initial
if you merely suspect identity theft and adopt a wait and watch approach or an
extended alert if you are certain that you have been a victim of this
crime.
You will also need to get a copy of your credit report and review
its accuracy. Give particular attention to recent activity that does not seem
familiar. Write and or call all of the companies that report information related
to your identity theft. Most credit card companies will only hold their
customers responsible for up to $50 dollars in cases of theft, and most banks
will replace stolen money pending verification.
Identity theft can make
securing loans for home ownership or education impossible. It may even prevent
employment with agencies that require a particular credit score. If you have
been the victim of identity theft it can take weeks or years and often quite a
bit of time and money to undo the damage. It makes sense that victims often feel
angry, overwhelmed and discouraged. If you are the victim of identity theft it’s
very important to be proactive. When you act quickly you will minimize the
damage and loss by limiting unauthorized access to your sensitive account
information.
Be sure to keep records of all activities and contacts
related to your identity theft. You may also want to make periodic checks of
your credit report and sign up for an account monitoring service, which
immediately alerts you when inquiries to your credit report occur. Stay alert
and keep aware.
About the
Author
Nicole Soltau is the President and Founder of
http://CreditUnionRate.com - The
Leading Credit Union Directory Search, Find, Join.
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