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How to Avoid Identity Theft
A popular advertising campaign asks, “What’s in your
wallet?’ A more important question might be, “Who’s
seen what’s in your wallet?”
Identity thieves co-opt pieces of your personal information and
use it to commit fraud or theft. Your Social Security number, driver’s
license, credit card number, passwords, and other information are
all a thief needs to go on a shopping spree with your money and ruin
your good credit. You can spend months – and thousands of dollars – trying
to straighten out the mess with financial institutions, credit bureaus,
government agencies, employers, police, and even the FBI.
Here are some of the ways you can protect yourself, according to
the U. S. Federal Trade Commission:
- Get your latest credit report from each of the three reporting
bureaus at least once a year. Make sure it includes only those activities
you’ve authorized.
- Place passwords on your credit card, bank,
and telephone accounts. Don’t use information that’s
easy to obtain like your mother’s maiden name or the last
four digits of your SSN.
- Don’t give out personal information
on the phone, through the mail, or over the Internet unless you
have initiated the contact
or know whom you’re dealing with.
Identity thieves often pose as representatives of legitimate
organizations to get you to reveal personal data.
- Don’t
put outgoing mail where anyone can steal it. Tear up or shred
bills or unsolicited credit card mailings before putting
them in the trash. Thieves go through such trash to retrieve
account information.
- Don’t leave personal information visible
at home or where you work.
SAFEGUARD YOUR COMPUTER
These days thieves don’t even have to come in contact with
you to steal your identity. They can do it by hacking into your computer.
If you’re connected to the Internet (especially through a DSL
or T-1 line), you need the protection of a firewall and a secure
browser. Be careful not to open spam emails that may contain “worms” that
let cyber thieves monitor your Internet transactions. When you upgrade
your computer, don’t dispose of the old one without using a “wipe” utility
program to erase the entire hard drive. Just deleting files doesn’t
make them unrecoverable to a clever techno thief. WHAT TO DO IF
YOU ARE A VICTIM
If suspicious charges appear in your credit card statement, or your
bank statement shows debits or ATM withdrawals you don’t remember
making, or you’re turned down for credit without reason, you
may be a victim of identity theft. Sometimes the amounts may be small
so as not to arouse your suspicion. You decide to wait until next
month to see if the “errors” are corrected. Take action
immediately. Any delay could be deadly.
Authorities recommend you take these three steps:
Contact the three major credit bureaus and request a “fraud
alert” be placed in your file. Also submit a statement requesting
creditors to call you before opening any new accounts or making changes
in existing accounts. The credit bureaus may suggest other steps
to take to prevent fraudulent accounts from being opened.
You have the right under federal laws to correct credit report
and billing errors and stop debt collectors from contacting you about
fraudulent debts. For more details, read How to Dispute Credit Report
Errors, a brochure available from the FTC or visit www.consumer.gov/idtheft. -
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any accounts that you know or suspect have been tampered with,
including credit accounts, bank accounts, utilities, and ISPs.
When those accounts are replaced, use new PINs and passwords.
If
fraudulent charges have already been made, ask the company representatives
to send you their fraud dispute form (make sure they send it
to your real address). Follow up calls in writing by certified
mail, return
receipt requested. Keep copies in your files.
-
Report thefts
to the police and get a copy of the report to show to service
providers who need proof of the crime. If the police say
they can’t take a report, be persistent. As a last resort,
use the ID Theft Affidavit, available from the FTC.
HOW TO FILE COMPLAINTS
The Fair Credit Reporting Act (FCRA) allows you to correct mistakes
that appear on your credit record. First, call the credit bureau
and follow up in writing. Identify each item that you dispute, explain
why you dispute the item, and request deletion or correction. Include
copies of documents that support your position. Send your letter
by certified mail, return receipt requested. A similar written notice
should also be sent to the creditor along with any copies of documentation.
Fraudulent credit card charges are covered by the federal Truth
in Lending Act and Fair Credit Billing Act (FCBA). To take advantage
of these laws you must:
- Write to the creditor at the address given for “billing
inquiries” on
your statement. Include your name, address, account number, and a
description of the billing error.
- Send your letter by certified mail,
return receipt requested. Your complaint must be acknowledged
within 30 days of receipt, and the
creditor must resolve the dispute within two billing cycles after
receiving your letter.
Report lost or stolen ATM and debit cards immediately because the
amount you can be held responsible for depends on how quickly you
notify the bank or issuer. If you report within two business days
of discovering the loss or theft, your losses are limited to $50.
After two business days, but within 60 days, you can be liable for
up to $500. After more than 60 days you could lose all the money
taken before you report your card missing. In most instances VISA
and MasterCard voluntarily limit losses to $50 per card no matter
how much time has elapsed.
CONTACT INFORMATION
Credit Bureaus:
Equifax
To order your report call: 1-800-685-1111
or write: P.O. Box 740241, Atlanta, GA 30374-0241.
To report fraud call: 1-800-525-6285
and write to same address.
Experian
To order your report call: 1-888-EXPERIAN (397-3742)
or write: P.O. Box 2104, Allen, TX 75013.
To report fraud call same number
and write: P.O. Box 9532, Allen, TX 75013
TransUnion
To order your report call: 1-800-916-8800
or write: P.O. Box 1000, Chester, PA 19022.
To report fraud call: 1-800-680-7289
and write: Fraud Victim Assistance Division,
P.O. Box 6790, Fullerton, CA 92834-6790
Federal Trade Commission
Identity Theft Hotline: toll free 1-877-IDTHEFT
or write: Identity Theft Clearinghouse, Federal
Trade Commission, 600 Pennsylvania Avenue, NW,
Washington, DC 20580. Online: www.consumer.gov/idtheft.
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Copyright 2004 by Financial
Marketing Associates, P.O. Box 284, Deltaville, VA 23043. Personal
Money Management and To Help You Get The Most Out Of Your Money are
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