Protecting Our Identity

Consumers are not the only ones concerned about and taking steps to protect against identity theft. Many states are taking important steps to protect their residents. A few of these steps include stiffer penalties, imposing sanctions and fines on careless companies and providing their residents with many tools necessary to correct the errors that identity theft has caused.

Many identity theft savvy consumers are: installing anti-spy ware, using shredders, reducing the use of their social security number, using services to stop junk mail and risky credit card applications. But what about the actions of others? After all the care you take to protect yourself, what happens when others, such as companies or service providers do not?

Businesses that have access to your information aren’t always looking for you. It is far too easy to simply throw important personal information away, than to take the sometimes expensive steps needed to have it professionally disposed of. But many states are looking out for your best interest, especially when it comes to identity theft. Texas has a growing reputation for being proactive in preventing identity theft and tough on punishing businesses who don’t protect the consumer. Texas law requires vendors to take specific precautions before disposing of personal documents that may include customers’ bank accounts, driver’s license and Social Security numbers. In the state of Texas, you can bet companies will be thinking twice before dumping your credit application in a public trash can.

Examples of Poor Business Practices:

Public trash cans outside a local Radio Shack were filled with thousands of customer’s sensitive personal and credit information after the dumping of these documents. Credit applications containing names, social security numbers, debit and credit card numbers as well as addresses and telephone numbers and receipts were located, exposing many Radio Shack Consumers to identity theft or credit card fraud.

After investigations by the State of Texas Attorney General’s office, a settlement was reached. Under the settlement with Radio-Shack, the retailer is required to enhance security procedures and implement employee training. Radio Shack also agreed to unannounced compliance audits in all Texas stores bi-annually.

Select Medical was investigated after a report that over 4,000 documents were found in the garbage behind their Select Physical Therapy Location. These un-shredded records included bank account numbers, drug testing results, insurance verification sheets as well as sensitive social and vocational therapy questionnaires.

Select Medical will also be required to amend security procedures and implement training for Texas employees about the newly established state laws governing customer record disposal.

The insurance forms are of particular concern in light of the growing trend of medical identity theft, in which an individuals’ insurance information is used to obtain medical services or to commit insurance fraud.

Under the settlement agreement, the state of Texas will receive nearly $1.5 million in fines, including attorney’s fees. As outlined in the Identity Theft and Protection Act, the remainder will be used for the investigation and prosecution of future cases of identity theft.

Stiff penalties are just one of the steps taken to protect and prevent identity theft. The Texas Attorney General’s Office has created a checklist for victims of identity theft to take steps and track their progress during recovery. The identity theft check list includes information and forms on: closing all fraudulent accounts made in your name, contacting the 3 major credit reporting agencies and requesting a fraud alert or security freeze for new accounts, reporting identity theft crimes for local law enforcement and obtaining a copy of the police report, and reporting identity theft crimes to Federal Trade Commission and completing and ID Theft Affidavit. Victims are also advised to file a consumer complaint with the Office of the Attorney General in the event that they are harassed by credit collectors as a result of identity theft. Additionally The Texas Attorney General’s Office also offers an Identity Theft Victim’s Kit.

According to 2006 state statistics on identity theft, Texas ranks fourth in the area of identity theft. States are ranked according to victims per 100,000 people, and it should be noted that Texas also has a higher population than many other states. The top ten states with the Most Victims of Identity Theft Per Capita are: Arizona, Nevada, California, Texas, Florida, Colorado, Georgia, New York, Washington, and New Mexico.

Just because your state did not make the top ten list, doesn’t mean you are safe. No matter where you live, this crime is a real problem. Information, advocacy, laws and prosecutions in any state will ultimately help everyone but in the mean time consumers must educate themselves and arm themselves with protection against identity theft as well as the remedies available to them. With the continued efforts of law enforcement, state and federal agencies, stiffer fines and penalties as well as requiring a higher standard of care from businesses, progress is being made on many levels in protecting consumers.



By: Lisa Carey

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Just recently, I received an email from a priest stating that his email address has been accessed by a different person. He added that the person who stole his email address uses it to solicit money from friends. The person even created stories like he had been abducted and is now trapped in an unknown island and needs money in order to survive. He ended his message by saying that he is safe and all right and there is nothing to worry about. He has no idea how it happened and apologized to those who might have fell for the unauthorized emails.

This is an example of identity theft. It may not have damaged the priest financially but if he hadn’t known that someone else is using his identity to generate money, his reputation would have been greatly affected.

Identity theft is an illegal use of another person’s identity. The usual objective of people who use someone else’s identity is to steal money or acquire other benefits. One reason why people pretend to be someone else is to get away from a crime he or she committed. Another reason which may seem extreme is to assume the person’s role and live his life. This is also happening in the business world, other businesses would use other organization’s name to take credit for the other organization’s achievements.

Unfortunately, identity theft can happen to anyone at any place or time. It chooses no one. An individual’s identity may already be stolen without him knowing it. Most of the time, individuals only know that their information has been stolen when they could no longer apply for a loan or they have been sent bills for items they did not purchase. When these happen, it would be very difficult to undo the damage.

If you are a victim of identity theft then you should take actions immediately. If this involves credit cards, contact the agency who issued the card and insist that you speak with someone responsible for fraud protection. It is also important that there is a written complaint to document the proceedings of your claim to innocence.

It is best to ask for copies of credit reports from three chief reporting agencies. Verify and be certain that debts and loans included are those you have incurred. It is always better to file a police report. Retain a copy because creditors might look for proof that you have been a victim and not an irresponsible credit holder.

Identity theft is very damaging. It cannot only cause havoc on your finances but will also break the reputation you have taken cared of for years. Because of this, it is important for us to be mindful of our actions. We should be careful to whom we give our information. Thieves may just be waiting for us to drop a card or forget a paper containing our identification numbers.

In this fast paced era, the only ones who can really protect us from being taken advantage of, is ourselves.



By: Puripong Koomsin

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Your identity is extremely valuable. You need it to prove who you are for various purposes in your day-to-day life, such as opening a bank account, obtaining a loan, getting a credit card, purchasing goods or services, applying for a passport or driving licence, or claiming benefits. If a criminal gets hold of your personal details, they can do exactly the same things in your name without your knowledge. And it’s not rare for this to happen - the problem of identity theft is increasing all the time and the Home Office estimates that it costs the UK economy £1.7 billion a year.

It’s therefore extremely important to keep your personal information safe. There are lots of things you can do to protect yourself from identity fraud. This practical factsheet provides some useful tips and information on how to do this.

Ways in which your identity might be stolen

A house burglary in which personal documents are stolen.

Handbag or wallet theft.

Fraudulent internet or phone banking scams in which you inadvertently give out personal details to fraudsters in the belief that you are being contacted by a legitimate organisation such as your own bank.

Post in your name being delivered to a previous address of yours and used to commit fraud in your name.

Having your post stolen or redirected without your permission.

Internal systems fraud - for example, payroll data from employees of the Government Tax Credit Office was stolen in 2005 and their details used to falsely claim benefits.

Criminals raking through your rubbish to find personal information.

How will you know when your identity has been stolen?

Often people first find out about it when they are refused credit because their credit rating has dropped.

You’re not receiving any post at all, or key documents or letters you have been expecting do not arrive.

You receive bills or invoices for goods that you didn’t purchase.

There are some transactions on your bank account that you don’t recognise.

You have received solicitors letters or letters from debt collectors that have nothing to do with you.

You apply for benefits and are told that you are already claiming.

You receive correspondence from a government agency demanding repayment of benefits when you have never claimed anything in the first place.

Who loses out?

You - your credit rating could be damaged and you might find it difficult to obtain credit in the future. You will also have to prove to the organisations demanding payment from you that you are not responsible for them.

The government - the public purse suffers from billions of pounds worth of fraudulent tax and benefit claims every year.

Financial organisations - the companies with whom your details have been falsely used to obtain money may never be able to recover what was stolen in your name.

How to protect yourself against identity fraud

Don’t throw anything containing your name and address and/or other personal details into the bin without shredding it first. This includes bills, bank statements, benefits statements, receipts and even unwanted post and junk mail.

Always let your bank and other organisations of which you are a customer know when you move house.

Don’t use your mother’s maiden name as a security password.

Check your credit rating with each of the three UK credit agencies at least once a year. (These are Experian, Equifax and Call Credit.)

Don’t use the same password for all accounts.

If you’re worried that someone else could easily intercept your post, arrange to collect important items rather than have them posted to you, e.g. credit cards or cheque books from your bank.

Cancel stolen credit cards immediately.

Contact the DVLA or the Passport Agency immediately if your driving licence or passport have been stolen.

Don’t give out your credit card numbers or other personal information over the phone if people nearby could overhear.

Check your bank and other financial statements regularly to check for suspicious transactions.

If you receive a phone call or email from what seems to be a legitimate organisation requesting personal details, check it’s genuine before proceeding. The best approach is to take their phone number and call them back. Banks will never ask you for your PIN or login details for their banking system.

Ensure your computer is safe for making online transactions - get anti-virus software and a good firewall for protection, and only ever enter personal details onto secure sites (with the prefix https in the address).

What to do if your identity has been stolen

Contact the organisations with whom the fraud has been committed to explain what has happened.

Inform the police.

Get in touch with the Royal Mail if you suspect your mail has been intercepted.

Contact CIFAS, the UK’s fraud protection agency, and register with their protection service to help prevent future fraud.

Get credit reports from the three credit checking agencies to identify exactly what has been done in your name.



By: Benedict Rohan

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In its annual report earlier this year, the Federal Trade Commission announced that the most vulnerable targets of identity theft are 18-29-year olds. Likewise, the 2007 Identity Fraud Survey Report, released by Javelin Strategy & Research, uncovers similar findings: “Adult victims between the ages of 18 and 24 are least likely to take easy, but important, safeguards such as shredding documents and using antivirus software and firewalls, resulting in more than 5 percent of those surveyed falling victim.”

And Stephen Knighten, a research associate for Javelin Strategy & Research, adds that residence hall life may increase a student’s risk for identity theft: “Oftentimes, you’re in a situation where you probably have a roommate and people coming in and out of your apartment … physical documents tend to sort of sit around, and there are more avenues of access with your roommates’ friends and your friends.”

The Internet Crimes Against Children program last year investigated 2,329 cases of enticement and of predators traveling to meet minors, and 252,000 cases of child pornography. Yet those numbers provide just a glimpse of the activity, since many local police forces are too small to investigate child porn.

“It’s absolutely overwhelming,” says Brad Russ, director of Internet Crimes Against Children’s training and technical assistance program, which trains 1,000 officers each year. “The scope and the scale of the problem far exceeds our capacity.” Intensifying the epidemic is that more than half the world has no laws dealing with child pornography.

And what are some of the other careless acts of college students that leave them vulnerable to identity theft? Here are a few of the ways they might be inviting predators, hackers, and other cybercriminals:

* They setup and use an unsecured wireless network. (Hackers love this because it makes their drive-by hacking that much easier. And not only is the student’ information stolen, but the hacker may add software to turn the student’s computer into a “zombie” computer thereby taking remote control of it. Hint:It only takes a few more moments to create a userid and password for an extra level of protection.)

* They use guests’ computers in the business centers of hotels to enter their personal and/or financial information. (The newest trend for hackers is to hack into these computers so that can secretly record every keystroke and commit other crimes using the student’s information. Hint:If you use courtesy computers at a hotel, make absolutely sure that you are on a safe and secured line. And, taking it a step further, do not enter any personal and financial information unless it is absolutely necessary and this is your only option. See the related story from ABC News’ Good Morning America in the video below.)

* They inhabit social networking sites and let their younger siblings share the site with them. (While social networking sites, like MySpace, and many others, are extremely popular communities where young people innocently engage in countless hours of banal chatter and photo-sharing, unfortunately, these social networking sites have also become the hangouts for child predators, child pornographers, and other cybercriminals. HintPutting filtering and monitoring software on kids’ computers provides some protection. Parents, use legitimate software to block Web sites and create a log of visited sites. As parents and guardians, you can monitor a child’s activity from other computers and be notified of violations via E-mail or cell phone.)

* They quickly and without verifying identities add new “friends” to their instant messenger buddy lists. (While it is rewarding to see your buddy list grow with new friends from around the world, be sure that you absolutely know that the new friend is actually who he says he or she is. Many times predators and cybercriminals (male and female) will hide behind pictures of extremely attractive ladies in sexy poses. HintBefore adding any new friends to your buddy list, take time to read their profile (which may or may not be completed fully), or do further investigation by visiting their website. An incomplete profile should serve as a red flag and raise you level of suspicion.)

It may take a village to raise a child, but in a world of online social networking, decentralized networks and servers, and increasingly tech-savvy child predators, it’s going to take a united effort among government, industry, and families to keep them safe. To protect your child, you need an Internet security team of experts making sure that you, your family, and your business computer are always safe and secure.

The best protection you can have in today’s rapidly changing world of cyber-attacks is to have expert support for all your Internet security needs that will provide technical support without any hassles and without charging you extra fees. It will become even more critical than it is today as time goes on. You need to find your own personal team of experts to rely on. If you ever have a security problem, you will want to have a trusted expert you can call for professional help, without any hassles and extra costs!

Remember: When you say “No!” to hackers and spyware, everyone wins! When you don’t, we all lose.

© MMVII, Etienne A. Gibbs, MSW, The Internet Safety Advocate and Educator



By: Etienne A. Gibbs, MSW

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Ninety-nine percent of UK’s small online businesses believe that fraud is not their responsibility, as a survey commissioned by PayPoint.net, reveals today. The 350 small online businesses surveyed believed liability for fraud lay elsewhere, including:

·                        Banks (35%)

·                        Bank and credit card issuers (24%)

·                        The payment service provider (23%).

 

The tendency of small business to hold others responsible flies in the face of the fact that consumers associate bad experiences on a site directly with the merchant, regardless of fault. This reveals a worrying disconnect between the retailer’s perceptions and their customers’ expectations. Additional PayPoint.net research also shows that consumers are willing to vote with their feet: just 3 per cent of online shoppers would trust a small online business with their money, preferring to shop with larger online brands. Furthermore, 81 per cent of consumers are suspicious of the security of small, unknown companies demonstrating that small online retailers have more, not less to prove.

 

The research supports the launch of PayPoint.net, a leading ‘bank-independent’ provider of online payment services, designed to help smaller online businesses level the field with blue chip online brands.  With online retail sales defying the credit crunch, leaping 38 per cent to over £26.5 billion in the first half of this year (source: eRetail Sales Index), PayPoint.net offers small businesses all the tools they need to begin trading securely online, minimising fraud and building trust with their customers. What is more, PayPoint.net can provide small businesses with no trading history everything that they need to set up shop online within just five days.

 

Alessandro Hatami, Managing Director of PayPoint.net explains, “Small online businesses lack the resources of their larger competitors but have an even greater interest in ensuring their customers have the safest possible experience on their site.  This situation has led to a haphazard approach to managing fraud - which is in stark contrast to what larger businesses are able to do.  We have launched PayPoint.net to help small companies level the playing field with the big brands in terms of customer security and fraud protection: the safer customers feel, the more likely they are to visit again.”

 

PayPoint.net suggests that small online businesses implement a range of measures to secure their site, including:

·                        PCI DSS - Merchants must now be fully compliant with this new worldwide data security standard or risk losing cardholder data leading to substantial brand damage, loss of customers, fines or even being barred from accepting card payments; using a hosted payment platform means merchants are compliant by default

·                        3-D Secure, (”Verified by Visa” and “SecureCode”) - this enhanced buyer identification process mitigates risk and removes the liability for fraud entirely from the shoulders of merchants

·                        Use an Address Verification Service to confirm the identity of the person claiming to own the credit card. This is done by checking the billing address of the credit card provided by the user with the address on file at the credit card company

·                        Comparing the IP address of the PC at the customer’s actual location with billing and shipping addresses



By: Paypoint

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The loss by staff at Her Majesty’s Revenue & Customs of two CDs that contain sensitive information about 25million UK residents is only the latest in a series of high-profile scare stories that highlight the need to protect our personal and financial information, and prevent us becoming the unwitting victims of identity fraud.

In 2006 an estimated 178,000 people in Britain were affected by identity fraud which cost the country close to £1.7billion. There is a thriving illegal market in stolen identities where the price of obtaining someone’s date of birth, credit card details and other sensitive information can be as little as £7.

Of course, when the government potentially gives away our personal information there is little we can do. And, it’s not just government incompetence that poses a risk; fraudsters infiltrating commercial organisations and stealing customer’s details is also a real threat, and one that has reared its ugly head recently.

A member of staff at the Cardiff call centre of Tesco Direct – the online & catalogue shop for superstore giants Tesco - was arrested after stealing shopper’s debit and credit card details. Working in the telephone orders department the fraudster passed on the customer’s personal and credit card details to accomplices in London who then used them to buy goods. Of course, Tesco customers will be reimbursed their losses, but those who were affected will have suffered a great deal of inconvenience and worry, and their confidence in using their cards online or on the phone may well be shattered.

The combination of the tax office fiasco and the calculated infiltration of Tesco has prompted a lot of opinion from fraud experts about the seriousness of these security breaches. Some, say the information lost by the government would be of little use to potential fraudsters, but others say there is enough information there for criminals to start making significant inroads into stealing numerous people’s identities.

But, what can you do to minimise the risk? It has always been important to compare credit cards and the benefits that they offer when shopping around for a new card, but now a growing number of credit card deals include online fraud protection as part of the package. For those worried by recent events and who do a great deal of online shopping this should be considered an essential benefit. As well as refunding you in case of loss, you will also have peace of mind.

Although there is no way to stop government incompetence or commercial fraud, if you possess UK credit cards that offer fraud protection at least you won’t be out of pocket in the long run should the worst ever happen.



By: andrew.regan.2006@googlemail.com

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rd fraud has increased significantly in recent years, according to law enforcement officials and consumer protection organizations like the Public Interest Research Group and Privacy Rights Clearinghouse. More consumers own credit cards now than in the past, and criminals are constantly looking for new ways to tap into accounts. All of this means cardholders need to protect their credit cards now more than ever before.

Perhaps the most obvious form of credit card fraud takes place in the form of theft. Even if you don’t lose your card or have it stolen, however, your credit card account could still be in danger. It is not uncommon for criminals to steal your credit card identity - details such as the number on the card and the expiration date. A stolen account number is the first step in a series of credit card fraud incidents. Unfortunately, cardholders may not be aware of the theft until the unauthorized activity starts showing up on the bills.

Identity Theft

Identity theft occurs when your personal information is gathered without your authorization and used for criminal purposes. It occurs when someone steals information that identifies who you are, such as your name, address, date of birth, or social security number. Sometimes you need to submit this information when applying for credit, opening a new bank account or making a purchase. When someone taps into these accounts or transactions without authorized permission, your information could be in danger. According to a Federal Trade Commission survey issued in October 2007, an estimated 13.5 percent of U.S. adults (30.2 million consumers) were victims of one or more identity fraud incidents in 2005.

Credit card thieves can come in two forms. The first of these are complete strangers, and the other kind falls into the category of people you know. This second group can include anyone from friends and family members to neighbors, co-workers, or anyone that you have an established relationship with. More than half of the identity theft cases that occur are committed by criminals that have established relationships with their victims.

This doesn’t mean that you should be wary of all of your friends and in-laws. You should, however, be aware of certain warning signs. Here are a few of the common ways that identity theft happens:

- Someone may steal your wallet or purse. When they get a hold of it, they have instant access to your credit cards and bank information.

- Your personal information can be taken from information you submit on the Internet.

- Fraudsters may locate your discarded receipts by looking through your trash can. If your name or account number appears on the receipt, they can use it to their advantage.

- A clerk at a store might make an extra copy of your credit card, or take the numbers from it.

- Your utility bills, credit card and bank statements, tax information, and new checks can be stage-managed to land up at the wrong place.

- You may get a phone call or email offering a free trip or a cheap travel package. To receive it, however, you have to submit your account number. Once you do, the source can start using your card number to make unauthorized purchases.

After collecting your personal information, fraudsters may get the mailing address on your credit card account changed by calling your creditors and opening new lines of credit. In some cases, they might do more than just rack up purchases on your card. They might open bank accounts in your name, apply for loans in your name, or set up new phone accounts. The list of possibilities is nearly endless.

New Credit Card Crimes

One of the newest methods that identity thieves are using is referred to as skimming. In this technique, a small hand-held electronic device called a skimmer is used to gather the information embedded in the magnetic strip of the card. With a simple swipe of your card in the hand-held skimmer, all your personal identification information is collected in just a second. It is then used to create a counterfeit card or make purchases online.

Crime perpetrators are continually trying out different technologies to carry out identity theft. Fortunately, many organizations are fighting the battle against credit card crime by developing new encryption techniques. Business are doing all they can to help individual consumer keep their private information a closely guarded secret.

Despite various improvements and efforts, almost anyone can be a victim of identity theft. And it can be nerve-wracking to find unauthorized charges on your personal credit card bills. Most credit card companies will cover the amounts charged to your card in fraudulent cases. Still, it is in your best interest to do all you can to protect your credit card, as well as your personal identification information. Prevention is always better than the cure!



By: Stephanie Andrews

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Identity theft is defined as another person or group of people that steal your personal and financial information in order to commit a crime or fraud. There are many ways in which a criminal or organization can collect your identity information and use it in a fraudulent manner; understanding how your identity information is obtained can help you to protect yourself from most types of identity theft crimes. Here are some tips.

Common ways in which your identity information can be obtained is through common acts of theft such as your wallet or purse being stolen, Stealing mail out of your mail box that might contain special financial information such as account numbers and name and address info, looking through your trash for important documents and information, and acquiring it through email.

Common Theft

If your wallet or purse has become lost or stolen, it is extremely important to contact your credit card companies, credit reporting agencies and to make a police report. It might take a few minutes for your credit cards to be used or a few months for other types of identity theft and fraud to occur with the information that is found in your wallet or purse. While it is impractical not to carry your important credit cards with you, if you are robbed, make sure you have a plan of action to notify the proper authorities in a quick and orderly manner.

Shred Your Documents

Theft such as important documents from your garbage does occur. Many laws do allow others to sift through your garbage and you will be surprised how easy it is to determine a person’s identity and financial information from the documents that one throws away. If you are planning on throwing away documents with personal or financial information, make sure you first shred it before tossing it in the garbage; this will greatly reduce any incidence of identity theft through the garbage.

Email and Phishing Scams

Email and phishing scams are quite frequent and are a major source of identity fraud. Here is a tip to protect yourself from the vast majority of identity theft on the web. If any entity through an email or web site requests personal information or financial information from you, do not directly input your information. Instead contact the entity directly to make sure they are the ones that are legitimately requesting your personal or financial information.

For instance, if an email requests you to click a link and enter your personal or financial information, simply close the email and visit the source of the request (i.e. the bank or company web site). Usually there will be a message waiting for you to input specific information. If not contact the company directly to find out if they require any information from you.



By: Connie Barker

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If you’ve ever made a major purchase like a home or automobile, you should know how important credit reports are to your life. Credit reports are used for much more than just checking your ability to pay a debt. Many service companies (apartments, auto insurance, cable TV, etc.) check your credit reports before they approve your application. Potential employers are likely to check your credit reports before they make the decision to hire you. Credit reports are the single most valuable tool for you to find out if you’ve become the victim of identity theft.

Your credit report score is a number ranging from 330 to 830, calculated based on a complex and high-protected algorithm. The higher your credit score, the better your credit. A good credit report score makes it more likely that your loan or credit application will be approved, and it makes it more likely that you’ll get a favorable interest rate on money borrowed (whether through a loan or credit card). Three companies (Experian, TransUnion, and Equifax) are the major credit report bureaus that collect and maintain information on your borrowing and repayment history, and they provide reports to your potential creditors upon request. U.S. citizens can by law request one free credit report each year, and you can sign up for a fee to maintain more regular access to your credit reports at all three companies.

What Information Do Credit Reports Contain?

Credit reports contain very detailed information about you including your legal name and any aliases you may have used, current and past addresses, employment history, and date of birth. They also contain details on your credit status that includes:

- Current and past payment status (for example, number of payments over 30, 60, 90 days) on individual loans and credit accounts

- Total number of open and closed accounts, including the credit limit and account balance

- Whether payments on our accounts are current or delinquent

- Public record information like bankruptcy, local court records, liens, judgments, and child support records (This information that can stay in your record for up to 10 years.)

- Specific credit inquires made when we applied for loans or credit accounts in the past (kept very current)

- Detailed account history for each account (kept very current) indicating both on-time and overdue payments

- Credit card debt limit, account balance, and payment history (for active, open, AND closed accounts)

- Your credit score

What is Identity Theft?

Identity theft is a serious crime where someone else uses your personal information (name, social security number, home address, etc.) without your permission to commit fraud or other crimes. The federal government estimates that as many as 9 million American’s identities are stolen each year. Identity thieves may use your credit report score and record to rent an apartment, obtain a credit card, open a telephone account, or get approval for a major loan (like a mortgage).

When the identity thief fails to pay for the goods or services he has obtained, default on payments will show up in your credit report. This not only lowers your credit report score, but the creditors will most likely come to you to pay off the debt. People don’t usually know this is happening unless they spot an unauthorized charge on a credit card or see unknown credit inquiries and accounts on their credit report.

Some people are able to resolve identity theft problems fairly quickly, but others spend years and thousands of dollars trying to restore their good credit report.

How Does Identity Theft Occur and What Can I do to Prevent It?

While there are a wide variety of ways thieves get your personal information and steal your identity, here are some of the most common methods:

1. Dumpster Diving - The identity thief goes through your garbage to find bills or other mail with your personal information. One way to prevent this is to shred any paper with your name, address, or any other personal information. Be very careful about what you throw out. Once it’s in the garbage, it’s an open book.

2. Skimming - Some technologically-saavy identify thieves can steal your credit card numbers while they are being processed at the store. This is particularly easy when you make online purchases. While you can’t protect yourself from all of these attempts, you can use secure sites when entering credit card or bank information on the internet. Though it’s probably not generally approved of, you can easily use false address and telephone numbers to discourage use of your private information. Be sure and check your statements as soon as they come in for unauthorized orders are charges. And if you do much online banking or bill-paying, you can check your accounts regularly online for charges you didn’t make. Be careful and cautious in using ser IDs and passwords to make purchases or apply for credit on internet sites.

3. Phising - An identity thief may pose as a bank or credit card company and ask you to verify personal information. They may do this through an e-mail that looks as if it has come from a trusted business, through a spammed e-mail asking you to follow an innocent-looking link to their not-so-innocent website, or they may catch you off guard with pop-ups or instant messages requesting personal information. They may even use the telephone to get this information from you. NEVER give your personal information out to anyone you don’t know. Before verifying private information with an online service, check to make sure that the company you deal with is really the company that sent the request.

4. Changing your Address - Identity thieves have been known to divert mail by submitting a change of address notice with the post office, thereby diverting your personal credit information to them. This is one area where maintaining and checking your personal information with companies on the internet may allow you to spot such fraudulent attempts.

5. Old-fashioned Theft - Hold on to your wallet, your purse, mail, pre-approved credit offers, checks, or tax information. Once an identity thief has possession of your belongings, they can easily imitate you and abuse your good credit report.

6. Pretexting - Another technique that is difficult for you to control is the practices of obtaining your personal information from the companies you deal with. The identity thief may pretend to be conducting research to get information the establishment would not otherwise divulge. Once he has your personal information, he may call your bank, pretending he’s lost his checkbook or other important information like your investments. Pretexting is against the law, but you may be the last to know when it’s happened.

The single most important thing you can do to keep your own identity safe is to be aware of all activity on your accounts and to make regular reviews of your credit reports. They will contain the information you need to know if someone else is meddling in your business and using your identity for their benefit. The sooner you know something’s going on, the more quickly and effectively you’ll be able to stop it and have your credit reports corrected. Allowing abuse of your credit report to gone on for months or even years can create a serious, costly, time-consuming effort to win back your good reputation.

What Should I Look for on my Credit Report for Evidence of Identity Theft?

Review your credit report carefully as soon as you receive it. Pay close attention to the report of inquiries about your credit. If you have specifically applied for a loan or opened a new account, you should find a credit inquiry from that company. But additional inquiries may indicate that someone else is making applications using your name and information. If you find such inquiries, immediately contact the inquiring creditor and the credit report agency.

Immediately notify the credit reporting agency if you find errors like a closed account that shows as open or a paid-off balance that appears to be outstanding. You may have to provide documentation to support corrections, and you may have to make the same contact several times to assure the correction is made. But be persistent. Your credit report is a direct reflection of your financial dealings. Creditors and credit report agencies are obligated to report correct information.

Check every credit statement you receive to verify that you know about and approve all charges it contains. Make sure it reflects recent payments, too. Contact the creditor quickly and follow-through to make sure your account information is accurate and up-to-date.

A little common sense and a lot of precaution will help you avoid identity theft and bad credit you didn’t earn. Keep up with your accounts. Review credit reports regularly, and be sure to follow-up when they contain errors. You’ll find the rewards of your effort in your credit report score!



By: Abhishek Agarwal

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If you’re young or you’re old, protecting your identity is very important. If you don’t already know, if someone steals your identity, they can cause serious damage to your credit report without you knowing. While you’re not responsible for actions thieves make, it can take hundreds of hours just to patch everything up. This is why it’s extremely important that you prevent this from happening.

There are many ways that thieves can get your identity. Some techniques it’s very hard to prevent such as a department store hack where they access secure information via a store’s server or by getting your number on the black market via the internet or other avenues. Listed below are a few ways that you can prevent yourself from someone stealing your identity.

Shred everything you get

Whenever you get something in the mail whether it’s a pre-approved offer of it’s a bill with your name on it, make sure that you shred it through a paper shredder. A paper shredder cost no more than thirty dollars at your local office supply store. It’s always best to shred just about everything so that a crook can’t piece it back together. Ripping the papers in half simply won’t do, make sure that you shred them.

Watch the ATM

If you like to use the ATM a lot, make sure that you look around the machine before you pop in your card. Smarter thieves will place a device on the ATM machine that will actually steal all of your information. These devices usually look foreign to the machine. If something like this does show up on the ATM and you don’t feel safe, don’t use it and notify the bank immediately.

Don’t put bills in the home mail box

Whenever you pay a bill or you’re mailing a bill out, make sure that you don’t place it in the mailbox at home. Thieves can simply take the mail out of your box and alter it so that the check looks like it’s written out to them. The best thing to do is drop it off at the post office or a usps mailbox that’s secured.

Don’t give your information out

If someone requests information from you such as your social security number and personal information, don’t feel like you need to give it to them. Make sure that only the correct officials receive information like this. Never ever give your personal information to someone you don’t know over the phone.

Cancel inactive credit cards

If you have credit cards that haven’t been used in six months, make sure that you call up the companies and cancel them. When you have credit cards this old, you probably don’t check the online activity or the situation. This is an easy target for a crook.

Crooks will find many ways to steal your identity. It’s important that you follow the steps mentioned above. You also have to remember that there are a million other ways to steal your identity. It’s up to you to be smart about it.



By: Tom Tessin

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