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Financial Tips

Consumer Credit : Arm Yourself Against Identity Theft


Arm Yourself Against Identity Theft

At Credit Counselors, we're often asked about identity theft. Because we've worked one-on-one with more than one million individuals and families, we've talked with a surprising number of consumers who have fallen victim to this widespread crime.

Sadly, having your identity compromised is more common than you might think. According to the Federal Trade Commission, identity theft affects up to 9 million Americans each year.

The Information That Thieves Want from You

Arming yourself against identity theft begins with understanding what information these criminals are after. In brief, they want your:

  • credit card numbers
  • Social Security number
  • account numbers
  • driver's license number
  • passwords or PINs
  • mother's maiden name or similar private information (useful to "prove" they're you when calling places that might ask for this information)

How They Obtain This Information

You should also be aware of some of their methods for stealing this information. We say "some of" their methods because criminals have proven increasingly imaginative and resourceful in recent years, making it difficult to completely avoid attempts to steal your information. However, we do know many of their tactics and advise using caution to guard against the following situations:

  • Some thieves call you directly. They may pose as a pollster, bank official, credit card rep, or some other business person. This practice, called pretexting, is highly illegal.
  • They may trick you with a fake web site or lure you in with an email scam. This is known as phishing and has grown much more common over the last few years.
  • They may steal your wallet, purse, or mail and then use the information inside to establish credit cards or make purchases in your name.
  • They may try to retrieve sensitive information (old bills, tax returns, health care forms -- anything that might bear personal information as listed above) from your trash.
  • They may employ high-tech means, such as hacking into ecommerce web sites to steal customer data.

What They Do With Your Information

Here is a sampling of the typical kinds of things thieves might do with the above information:

  • obtain a driver's license or photo ID (with which they could do considerable harm, limited only by their imaginations)
  • open new credit card accounts in your name and never pay the bill
  • make online purchases in your name
  • open cell phone accounts
  • open bank accounts and write bad checks
  • take out loans in your name
  • rent apartments in your name
  • drain your bank accounts
  • give your name to the police when they're arrested (and never pay the fine or show up for court).

Steps You Can Take to Prevent Identity Theft

Here are a few things you can do to protect yourself from falling victim to this crime:

  • Don't divulge private information to anyone who calls you. If you need to discuss your credit account, you should initiate the call. Check your statement or your card for the customer service telephone number.
  • Unless you're absolutely sure of the legitimacy, don't respond to emailed requests asking you to visit your credit card or bank account. Often, the sites you're asked to visit look virtually identical to the actual web site.
  • Safeguard your wallet and/or purse when out. Also, never carry your PINs or passwords along with your credit and debit cards.
  • Write "SEE I.D." on the signature line of your credit cards. This will usually force cashiers to ask for additional identification.
  • Don't carry your Social Security card. You should make every effort to protect this number. If it's requested when writing a check, ask if you can use another form of identification.
  • Shred your bills and other financial information before throwing it into the trash.
  • Use extreme caution while shopping online, shopping from only reputable retailers that can be verified by the Better Business Bureau.
  • Send bills via mailboxes or in-person at the post office only. Never leave sensitive information in your home's mailbox where any thief might snatch the envelopes.
  • Use complex passwords instead of common terms or names of family members. It's best to use a mix of numbers and letters.
  • Review your credit reports annually for any suspicious information. You may obtain one report from each of the three major credit reporting agencies annually for free online at www.AnnualCreditReport.com.
  • Keep your home computers safe with firewalls and anti-spyware software.

If you follow the above guidelines and approach your financial and business affairs with caution and common sense, you'll likely avoid falling victim to identity thieves. Yet, it's impossible to completely isolate yourself from potential harm. If you fear you've been victimized, contact us at Credit Counselors for in-depth advice and guidance on restoring your good name.