Identity Theft and Protection
by Karl Hart
Identity theft occurs when someone takes someone else's personal information and uses it for an unlawful purpose. It is a serious crime with serious consequences. More than 8,000,000 U.S. residents were victims of identity theft in 2006. That represents about 4% of adults, including more than a million Californians.
In 2006, the average victim spent $531 repairing the damage done by an identity thief. This includes costs such as postage for certified mail letters to creditors and credit bureaus, photocopying, and legal fees. It took 25 hours, on average, for a victim to clear up his or her situation.
The total cost of identity theft in the U.S. in 2006 was $49 billion. Victims paid about $4.5 billion of this, and the rest was paid by merchants and financial institutions. Because consumers ultimately pay the business costs through higher prices for goods and services, we all pay for identity theft.
Taking your personal information and using it without your knowledge, an identity thief may run up debts or even commit crimes in your name. The following tips can help you reduce your risk of becoming a victim.
Protect your Social Security Number: Don’t carry your Social Security card in your wallet.
Fight “phishing” – don’t take the bait: Scam artists “phish” for victims by pretending to be banks, stores, or government agencies. They do this over the phone, in e-mail and through regular mail. Don’t give out your personal information – unless you made the contact.
Shred confidential documents: Keep your identity from getting trashed. Shred papers with personal information before you throw them away. Shred credit card offers and “convenience checks” that you don’t use.
Shield your computer from viruses and spies: Protect your personal information on your home computer. Use strong passwords with at least eight characters, including a combination of letters, numbers, and symbols. Choose a password that is easy for you to remember, but difficult for others to guess. Use firewall, virus, and spyware protection software that you update regularly. Steer clear of spyware. Download free software only from sites you know and trust. Don’t install software without knowing what it is. Set Internet Explorer browser security to at least “medium.” Don’t click on links in pop-up windows or in spam e-mail.
Click with caution: When shopping online, check out a web site before entering your credit card number or other personal information.
Check your bills and bank statements: Open your credit card bills and bank statements right away. Check carefully for any unauthorized charges or withdrawals and report them immediately. Call if bills don’t arrive on time. It may mean that someone has changed contact information to hide fraudulent charges.
Stop pre-approved credit offers: Stop most pre-approved credit card offers. Have your name removed from credit bureau marketing lists. Call toll-free 888-5OPTOUT (888-567-8688).
Ask questions: Ask questions whenever you are asked for personal information that seems inappropriate for the transaction. Ask how the information will be used and if it
Check your credit reports – for free: One of the best ways to protect yourself from identity theft is to monitor your credit history. You can get one free credit report every year from each of the three national credit bureaus: Equifax, Experian, and TransUnion. Request all three reports at once, or be your own no-cost credit-monitoring service. Just spread out your requests, ordering from a different bureau every four months. Order your free annual credit reports by phone, toll-free, at 1-877-322-8228, or online at https://www.annualcreditreport.com/.
If you think you identity has been stolen seek help immediately and take the following steps.
- Report the fraud to the three major credit bureaus.
- Report the crime to police
- Call your creditors
- Request information on fraudulent accounts
- Review your credit reports carefully
For more information on identity theft and how to protect yourself or what you need to do if your identity is stolen, please see http://www.consumer.gob/idtheft or http://www.ftc.gov/bcp/edu/microsites/idtheft/index.html. Remember that your ID is yours forever and this information never goes bad, so just because someone is not using your identity now does not mean that they will not use it ten years from now. Always be on alert and pay attention to your credit report.
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