Identity Theft
While reviewing your credit card statement, you notice a small charge that you do not recognize, from a company you also don’t recognize. Despite the busy day you’ve had, you fight the urge to dismiss the unfamiliar charge and investigate further. Ultimately, your hard work pays off, as you learn that you were a victim of identity theft.
Each year, identity theft claims millions and millions of victims, with the pace showing no sign of letting up. Identity theft can and does wreak emotional havoc with the lives of its victims, who often spend many hours and many dollars trying to correct the situation. In some instances, problems can surface again months or years later, even after the victim cleared up the initial fraud situation. While no one can guarantee you’ll be able to avoid becoming a victim of this crime, there are steps you can take to help minimize the chances, or minimize the damage done if you do find yourself a victim of identity theft.
Safeguard Your Personal Information
First and foremost, be watchful of your personal, financial information. Beyond the basics of not writing down your Personal Identification Numbers (PIN) on your credit or debit card (instead, commit them to memory), be sure to keep your financial statements private and inaccessible to thieves or unexpected visitors to your home or office.
When shopping, have a plan on where you’ll be making your purchases, and bring with you only the cash or cards you’ll need for your trip. Carrying with you only those cards necessary can help minimize the damage if you lose or have stolen your wallet or purse. Make sure you always know where your purse or wallet is, and when conducting transactions, remember to get your card back from the store employee if you need to provide it (as opposed to swiping it through the card reader yourself).
Be wary of unsolicited emails or phone calls asking for such details. If the organization is legit and you have a business relationship with them, they will already have this information on file. There should be no reason you would need to provide your user name, password or account information during a communication you did not initiate.
Review and Shred Unnecessary Documents
When it comes to protecting your financial affairs, it is better to be safe than sorry. Purchase a cross-cut shredder to keep in your home, perhaps in the area where you open your mail – you should be able to buy one for $50 or less. Be sure to shred any unneeded financial documents or other financial statements you don’t need to keep, including any credit card solicitations you don’t plan on applying for. Identity thieves do find ways to retrieve garbage, often looking for documents with any bit of personal information on them. Shredding these financial documents prevents your trash from being used by thieves to piece together information they can use to commit identity theft.
If you are in the habit of reviewing each and every transaction on your credit card, bank and other financial statements before you shred them, congratulations. If not, start doing so immediately. Identity thieves who have access to your credit card or other information may use it to make purchases without your knowing it. Unless you see and question these unauthorized charges on your statements, you may not know about them. Be sure to validate the transaction amounts, merchants and dates of each transaction – and when in doubt, contact your credit card company and explore the transaction further.
While Online
When it comes to your home computer use, there are also precautions to follow. Be sure you are accessing the internet through proper firewalls, and also that your anti-virus software is up-to-date. Ensure that any web site you visit (one that requires you to input your personal information) is legit and uses proper encryption. One indicator a site is likely secured is to look for an “s” in the URL address of the web site you are on, for example, https://. Another method to confirm the authenticity of a site is to look for a padlock or key icon, typically near the browser’s address bar. Finally, be sure to clear any cookies and your browsing history before you logoff. (The menu path to do so can typically be found here: Tools>Internet Options>Browsing History.) A last step of closing the current browser window can also help play a role in safeguarding your finances while online.
Importantly, do not use public computers when conducting your personal, financial transactions. Why leave it to chance that someone is looking over your shoulder, or has found a way to capture the sensitive data you may be inputting onto a public computer?
Finally, the explosion in popularity of social networking has given scammers another way to obtain pieces of information that can be used to commit crimes. Be careful when sharing too much personal information over social networks such as Facebook, MySpace, LinkedIn, Twitter and others. Scammers can and do put together pieces of information over time – helping them build profiles from which they can apply for new credit or loans in someone else’s name.
If You Find Yourself a Victim
Given the number of identity theft incidents occurring each year, you may unfortunately find yourself a victim, no matter how cautiously you safeguard your private information. If you do, there are several steps you should follow.
- Contact one of the three national, credit reporting agencies and have a fraud alert placed on your account. This credit reporting agency is required to pass the alert to the other two agencies. Phone numbers for each of the agencies is noted below:
- Equifax: 800-525-6285
- Experian: 888-397-3742
- TransUnion: 800-680-7289
- File a police report about the incident. Be sure to keep copies of the report, should you need to submit them for any follow-up with creditors, etc.
- Contact the creditors of the accounts that have been stolen or compromised. You may also wish to send each credit a letter about the identity theft incident, along with a copy of the police report.
- File a complaint with the Federal Trade Commission (FTC, at www.ftc.gov). You will then be registered with the FTC as a victim of identity theft. The FTC maintains a database that is used to track and prosecute identity thieves.
Organization Counts
Be sure to keep detailed records of any communication regarding your identity theft case, including the dates and times of calls to credit reporting agencies and creditors, along with the name of the person(s) with whom you spoke. Send any written correspondence via certified mail, return-receipt requested. Send only copies when possible, keeping the original documents for yourself.
Another tip is to keep a list handy (and in a safe location in your home) of all your credit card account numbers, customer service phone numbers, etc., so that it’s easier to find the information quickly if become a victim.
An Ounce of Prevention
There is no guarantee that you will be able to avoid becoming a victim of identity theft. Taking precautions and knowing what to do in the event you do find yourself a victim can help minimize the damage caused by this crime. While identity theft can be a difficult and frustrating crime from which to recover, persistence can pay off, resulting in the clearing of your good name and credit.
