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Consolidation Guide
Avoiding Identity Theft
By Kenneth Long
According to the Federal Trade Commission,
nearly ten million Americans found that their identity was
stolen during the year 2003 alone. With all of the news of fraud
and security breaches, is it possible to avoid becoming a
victim? No one can be 100% safe, but following these tips can
reduce the likelihood that you will fall victim to identity
theft:
1.
Keep all private
documents safe and secure.
Never keep your birth certificate or social security card in a
wallet or other place where it could be stolen. A secure file at
home or a bank safety deposit box could offer much protection.
If your health insurance card is imprinted with your social
security number, contact your provider to request a card with a
new identifier to prevent identity theft.
2.
Shred all
personalized documents before throwing away. A
shredder may be obtained for as little as $25-40 at many office
supply stores. A confetti cut shredder offers greater protection
if you are willing to pay more. Any credit card solicitation,
bank statement or other item with your name, address, account
number or other important information should be shredded before
trashing to ensure it doesn't become a tool for identity theft. You should especially shred any unused convenience
checks from your credit card company.
3.
Only shop online
through well-known sites that are encrypted.
When entering a credit card number, the beginning of the
web address should change from http to https to signal a secure
transaction. If it doesn’t, your transaction may be viewed by
others who could steal your credit card information.
4.
Always type in a
bank or credit card web address to access your account.
To protect against identity theft never follow a link, especially from an email. Such “phishing”
emails may look genuine, but often direct you to false websites
that prompt you to enter a login and password among other
sensitive identifiers so that thieves may exploit your
information. Remember, your bank or credit card company will
never send you an email requesting you to confirm confidential
information.
5.
Exercise caution
when a telemarketer or service provider asks for credit card or
bank account information. Is that a legitimate
telephone solicitor, or is it a thief using an over-the-counter
cell phone from Canada? Even thieves can sound trustworthy, so
be sure to check out their story with the Better Business
Bureau, your state’s Attorney General Office, or the Direct
Marketing Association. Don’t take their word for it!
6.
Limit personal
information printed on your checks. Thieves who steal
your checkbook can easily sign your name and cash checks on your
account. To protect against this, consider listing only your
first initial and your last name (K. Smith). Also, thieves need
only your routing number and account number (across the bottom
of each check) in order to print checks to draw on your account.
For this reason, electronic payments are now becoming more
secure than check payments. Most importantly, never include your
social security number or driver’s license number on a check to
avoid identity theft.
7.
Make sure sensitive
information is not visible through envelopes.
Many utility companies accept credit cards for payment.
When writing in this information, make sure that it cannot be
viewed through the envelope when sealed. Using security lined
envelopes can provide some protection against identity theft.
8.
Conceal your
keystrokes when entering a card PIN. Many thieves
will go to great efforts to find out your PIN, including
surveillance and hidden cameras. Ensure that no one is watching
you and use your body as well as your other hand to hide what
you are punching in. If you are using a debit card at the
grocery store, insist on using it as a credit card to avoid
entering in your PIN in front of other customers who may be
looking to steal your information.
9.
Check your bank and
credit account statements often. Look for any charges
that you do not recognize, or that appear to be for the wrong
amount. Make sure you contact the bank or creditor immediately
if unauthorized activity or credit card fraud is suspected. You should also put a
fraud alert on your credit profile at the first sign of
fraudulent activity.
10.
Obtain an annual
credit report. The Fair and Accurate Credit
Transaction Act of 2003 (FACT Act) was enacted by Congress to
help you avoid becoming a victim of identity theft. Effective September 2005, all
Americans may obtain one free copy of their credit profile
annually, or anytime fraud is suspected. The only source for
obtaining this free credit report is visiting
www.annualcreditreport.com, calling toll-free (877)
322-8228, or by writing to:
Annual
Credit Report Request Service
PO Box 105283
Atlanta, GA 30348-5283.
Follow up with the
Service to resolve any fraudulent or unknown items. This source
is mandated by Congress and is served by Equifax, TransUnion and
Experian. Other sites frequently require subscription to a
related service for a fee.
11.
Exercise due
diligence. Keep an eye on those you hand a credit
card to that process your transaction. Warning signs include
writing down information from your card, using an object to
imprint the information and taking a picture of your card with a
cellular phone camera. If you suspect credit card fraud, notify the manager
and then contact your credit card company. The police can also
provide some assistance. You should also consider filing a
complaint with the Fair Trade Commission by calling (877)
ID-THEFT. Remember that it only takes a moment to protect
yourself, but it may take months to restore the damage caused by
identity thieves. The average victim spends 30 hours repairing
identity theft damage.
You will likely be the target of identity
theft at some point in your life. Thieves frequently look for
easy victims. By taking a few basic steps of protection against
identity theft now, you just might be
able to avoid an identity theft nightmare later.
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