Identity theft is a growing problem that can damage your good name and your credit record, while costing you time and money. Victims of identity theft can be denied loans due to the negative impact on their credit report. Some have even been arrested for crimes another person committed under their name!
While identity theft can happen through email or on the internet, it usually happens in a more low-tech way. Thieves rely on any number of ploys to steal your name and your social security number. These include:
- Phishing: Sending spam emails or pop-up messages that pretend to be from legitimate institutions
- Skimming: Stealing your credit or debit card number when processing your card for a normal transaction
- Dumpster Diving: Going through the trash looking for statements or bills with your information on it
- Stealing: Stealing your wallet or purse with the information in it
- Mailbox Mooching: Taking your statements from your mailbox, then using the information to change the address and divert your mail to a new location
- Pretexting: Stealing your information from companies with whom you do business by contacting them and pretending to be you.
Once they have your personal information, they can open fraudulent accounts under your name, get jobs using your social security number, obtain drivers licenses or passports under your name, or even commit crimes under your name.
Be On Guard Against Identity Theft
To help avoid becoming a victim of identity theft, guard your personal information closely. This includes:
- Being careful about what information you throw away - Don’t leave account numbers and other personal information intact waiting to be plucked from the trash. Thoroughly shred all sensitive information before throwing it out.
- Guarding your Social Security number - Your employer and the government need your social security number for tax purposes, but be wary of handing it out to other businesses who use it for their own record keeping.
- Watching Your Mailbox - Don’t leave outgoing mail unprotected in your mailbox. That little flag sticking up is an invitation that something interesting is there for the taking. Use a U.S. Postal Service box instead. For incoming mail, make sure you pick it up regularly as soon as possible after delivery. If you’re going to be away, make arrangements for the post office to hold the mail while you’re gone.
- Sharing Information Carefully – When giving out sensitive personal information online or over the phone, make sure you’re dealing with a legitimate business and not just an ID thief on a phishing expedition.
- Safeguard Your Valuables – Keep your valuable personal information in a safe place away from easy access from thieves. This includes the information you carry in your wallet or purse!
Carefully review all your account statements each month to make sure there are no unauthorized charges. Also, notice if bills that normally arrive each month stop coming. This may be a sign that the account, along with your identity, as been hijacked to a new address.
It’s also an excellent idea to review your credit report annually to look for any discrepancies that may indicate that someone has stolen your identity. Under the Fair Credit Act you are allowed a free copy of your credit report annually from each of the three credit reporting agencies. You can obtain a copy by visiting www.annualcreditreport.com, or calling toll-free 877-322-8228.
If Your Identity is Stolen
If you fall victim to identity theft you should:
- File a Identity Theft Report with Local Police – putting the incident on record will help limit any fraudulent activity done in your name, plus it will give you documentation to present to the three credit reporting bureaus to also minimize damage to yourself.
- Notify Banks, Financial Institutions, and Creditors
- Dispute Unauthorized Transactions
For more information, visit the Federal Trade Commission’s web pages on ID Theft.