Identity theft is when someone obtains a person's identifying information, such as name, address, date of birth, social security number or mother's maiden name. Using this information illegally, an imposter can open new credit card accounts, drain your bank accounts, purchase automobiles, apply for loans, open utility services and on and on.
How to Outsmart Identity Predators
Be careful about giving out personal information
Protect your mail
Guard your credit cards
Pay attention to billing cycles
Safeguard personal information in your home
Find out who has access to your information at work
Be smart about passwords & PINs
Zero responsibility doesn't mean zero problems
Check your credit report regularly
If you suspect that your identity has been compromised
Helpful links
Be careful about giving out personal information. Whether on the phone, by mail, or on the Internet, never give anyone your card number, Social Security number, or other personal information for a purpose you don't understand. Ask to use other types of identifiers when possible, and don't carry your SSN card. Be sure to keep it in a secure place.
Protect your mail. To stop a thief from obtaining personal information about you by going through your trash or recycling bin, tear or shred your charge receipts, credit applications, insurance forms, bank statements, expired charge cards, and pre-approved credit offers. Deposit outgoing mail in post office collection boxes or at your local post office. Promptly remove mail from your mailbox after it is delivered. If you plan to go away, call the U.S. Postal Service at 800-275-8777 and request a vacation hold.
Guard your credit cards. Minimize the information and the number of cards you carry in your wallet. If you lose a card, contact the fraud division of the credit card company. If you apply for a new credit card and it doesn't arrive in a reasonable period, contact the issuer. Watch cashiers when you give them your card for a purchase. Also, when you receive a new card, sign it in permanent ink and activate it immediately.
Pay attention to billing cycles. Contact creditors immediately if your bills arrive late. A missing bill could mean an identity thief has taken over your credit card account and changed your billing address.
Safeguard personal information in your home. Especially if you are having service work done in your home. Employ outside help or have a roommate on site while the work is being completed.
Find out who has access to your information at work. Be sure to verify that records are kept in a secure location and are accessible only to employees who have a legitimate reason to access it.
Be smart about passwords & PINs. Memorize your passwords and personal identification numbers instead of carrying them with you. Avoid using easily available information like your mother's maiden name, your birth date, the last four digits of your SSN or your phone number or a series of consecutive numbers.
Zero responsibility doesn't mean zero problems. Because credit card companies must limit consumer responsibility to $50.00 in most cases of fraud, and because many new cards include "zero responsibility" protection, some people think there is no reason to worry about credit fraud. In its most advanced form-identity theft-credit fraud can cause wide-ranging long-term problems. Identity thieves can use your personal information to take over your credit accounts and open new ones. They may even use your good credit to get a job, take out a car loan, or rent an apartment.
Check your credit report regularly. Checking your credit report can help you catch mistakes and fraud before they wreak havoc on your personal finances. Make sure your report is accurate and includes only those activities you have authorized. It is also a good idea to review your credit report from each of the three major credit-reporting agencies every year. It is possible that information is reported to one but not the others.
If you suspect that your identity has been compromised
Notify creditors and financial institutions by phone and in writing
Immediately file a police or identity theft report with your local police
Report the crime to the Federal Trade Commission
Contact the fraud unit of the three national credit reporting agencies
Ask utility companies to watch out for anyone ordering services in your name
Helpful links:
www.consumer.gov/idtheft
www.creditinfocenter.com
www.usdoj.gov/criminal/fraud/idtheft.html
www.callforaction.org
www.bos.frb.org/consumer/identity
