Identity Theft

Identity Theft

Do you know anyone who’s been the victim of identity theft? It can be a devastating experience, both financially and emotionally. If you’re unlucky enough to have your identity stolen, expect your life to be turned upside-down for months or even years as you attempt to undo the damage inflicted by “the other you.” Your bank and brokerage accounts can be cleaned out, your credit rating trashed, and worse… Identity thieves usually open a new credit card or charge card account using your name, your date of birth, and your Social Security Number (SSN). Or they’ll call your card issuer and, impersonating you, change the mailing address on your account. After requesting a replacement card, the thief goes on a shopping spree, running up charges on “your” account. Because the statements get sent to the new address, you may not realize there’s a problem… until the account becomes seriously delinquent and the collection agencies start to call. Thieves commonly establish cell phone service in your name and run up huge charges. They often open a bank account in your name and write bad checks. All this negative activity is posted on your credit report. Here are nine ways to protect yourself:

1. Keep your Social Security Number on a strict “need to know” basis. Once an identity thief has your SSN, he or she can use it to obtain other ID’s and open accounts in your name. Some doctor’s offices, schools, and other institutions ask you for your SSN for their forms. I politely refuse to comply unless they can show me a good reason for needing it. Never write your SSN on a check. As your check is processed, it’s seen by many eyes… along with your legal name, address, etc. Never supply any personal information (especially not your credit card number, PIN numbers or SSN) to anyone who calls *you*. Legitimate companies *never* call customers asking for info like this. If you’re compelled to respond, get their number, check it against a web site or directory, and call them back.

2. Subscribe to a credit monitoring service. I use Privacy Guard. For only $80 a year, they send me notices of any inquiries or postings to my file in all three major credit reporting agencies, and provide access to full credit reports, DMV record, SSN record, MIB (Medical Information Bureau) record, and more. Well worth it.

3. Buy a shredder. Thanks to Arthur Anderson, paper shredders have gotten a bad name. That’s a shame. There are a lot of things you shouldn’t just throw into the trash: charge card receipts, expired cards, credit application forms, insurance forms, bank/brokerage statements, cancelled checks, and anything with your SSN or account numbers. Shred instead. And, if yours is like most households, you get several “pre-approved” credit card offers in the mail every week. Don’t just toss them in the trash… you’ll make things way too easy for the identity thieves.

4. Know what's on you. Go over to the copy machine right now. Take everything out of your wallet and lay it on the glass: credit cards, license, insurance cards, ID cards, etc. Make a copy. Flip everything over and copy the reverse. (Tip #1: if you put a coin on the glass in one corner, it’ll help you match the front and back of your cards on the copies. Tip #2: if the raised card numbers don’t copy well, run a magic marker over them lightly.) Make sure the customer service phone numbers are legible, then file your copies in a secure place (but one you can still get to quickly if your wallet is ever lost or stolen). Don’t just stuff everything back in your wallet. Take this opportunity to review and remove anything nonessential. DO NOT carry your social security card in your wallet.

5. Secure your incoming and outgoing mail. Consider installing a mail slot or a security mailbox by the curb like this one from Steel Mailbox Co. Don’t leave mail sitting out anywhere if you can avoid it.

6. Be smart about managing your passwords. Many people get lazy and use the same password for everything. Bad idea. Almost as bad as carrying around a card or having a post-it on your computer monitor with all your passwords. Don’t use publicly known info like your birth date, phone number, kid’s name, etc.

7. Buy a file safe. (Preferably a fireproof one.) Bolt it to the floor or have it professionally installed. Next best is a securely locked file cabinet or desk file drawer. Keep your personal information away from maids, service people, and contractors working in your home.

8. Know your cycles. Be aware of your credit card and store charge card billing cycles. Make a call if your bills don’t arrive on time. Contact your cell phone company and other firms where you have credit accounts. Put a password lock on your accounts. This way, changes can’t be made without your knowledge and approval.

9. Secure your computer. Put a firewall on your home computer. Best is a hardware router/firewall *and* a software firewall like ZoneAlarm. Make sure your web browser supports strong (128 bit) encryption. Of course you should also run an antivirus program like Norton or McAfee, and an anti-spyware program like PestPatrol. You should know that password protecting Microsoft Office documents and Quicken files provides very little security. They’re very easily compromised by commonly available “lost password” cracking tools. Take special care to physically secure your laptop computer. Use a Kensington lock in the office and at home.
A missing wallet or purse is more than an inconvenience. It’s a goldmine of information for an identity thief. Therefore, you must do ALL of the following things if your wallet is lost or stolen (especially if it’s stolen):


File a report with your local police precinct. Do this immediately, and be sure to get a copy of the police report – in case you need proof of the loss for your credit card company or bank.

Cancel ALL your credit cards and store charge cards. Then order new cards with *new* account numbers.

Contact the fraud departments at all three of the major credit-reporting agencies: Experian 888-397-3742, Trans-Union 800-680-7289, and Equifax 800-525-6285. Request placement of a “fraud alert” on your account and also include a “victim’s statement.” Also request a copy of your credit reports and review them carefully. Order new copies in two or three months to verify your corrections or changes, and to watch for unauthorized activity (better yet, use a service like Privacy Guard).

Contact your department of motor vehicles, report your driver’s license as missing, and request a new one. If your state uses your SSN as your license ID, see if an alternate ID is available (same thing goes for your college ID or medical card).

If you carry any bank account information or blank checks in your wallet (and you shouldn’t), report the loss to your bank. Cancel your checking and savings accounts. Get new accounts with new numbers, a new ATM/debit card, new checks, and a new Personal Identification Number (PIN). It’s a pain, I know, but nothing compared to the grief of having your identity stolen and your accounts cleaned out!

If you think you’ve been the victim of identity theft, contact the Federal Trade Commission at 877-ID-THEFT (877-438-4338) or use the online ID Theft Affidavit Form.