How do I guard against identity theft?
In recent years, one of the more common crimes is that of stolen identity. Although criminals have found various methods of obtaining a victim’s identity, individuals can arm themselves with information to prevent this misfortune from befalling them. Some of the more common methods of preventing identity theft are as follows:
• Never reveal passwords or pin numbers.
• Prevent onlookers from standing nearby while using an ATM machine.
• Regularly review credit reports and pay attention for unauthorized activity.
• Whenever possible, avoid using a Social Security number as identification.
• Never send credit card information via email or unencrypted Web sites.
• Never reveal personal information to telemarketers without first researching the organization.
• Do not allow mail to pile up in the mailbox; have it placed on hold at the post office if traveling.
What are some common types of fraud?
• Identity Theft: Identity thieves gain access to somebody else’s accounts or open new accounts by posing as the victim. These thieves generally steal mail or other personal belongings from unsuspecting victims and use the information to commit fraud.
• Social Security Fraud: Criminals frequently use a victim’s social security number to steal identities or commit fraud. Perpetrators most commonly commit this type of fraud against retirees by stealing their Social Security checks and using the personal information on the checks to defraud them.
• Credit Card Fraud: Criminals gain access to credit card information being sent online or by hacking into databases. They then use the credit card information to make illicit purchases.
• Phishing: Criminals send out fraudulent emails under the guise of a legitimate company requesting security information as part of an online offer. Victims of this type of fraud then unwittingly reveal sensitive information to criminals, believing they are performing a routine online transaction. The perpetrators use this information to commit further fraud.
How do credit monitoring services work?
Research indicates that victims of identity theft typically take up to a year before realizing somebody has fraudulently used their identity. This is largely because consumers of credit generally don’t make a habit of routinely checking their credit reports. Credit monitoring services assist in this by monitoring individuals’ credit reports for suspicious activity. In essence, credit monitoring services are the alarm system of the credit industry.
Credit monitoring services can be a great asset in minimizing the impact of identity theft. Subscribers receive credit alerts on a daily or weekly basis depending upon which monitoring service they belong to. By reviewing credit alerts, individuals are much better equipped to stop fraudulent activity before incurring any expenses. While it is unfortunate that identity theft has become so commonplace, the responsibility lies on the credit holder to ensure personal information is not misused. Responsible individuals can partner with a credit monitoring service to proactively protect against identity theft.
What do I do if my identity is stolen?
The Federal Trade Commission suggests four ways in which consumers who have their identity stolen should respond:
1. Victims of identity theft should immediately contact a credit reporting agency and place a fraud alert on their credit report. Consumers who have posted fraud alerts are entitled to free copies of their credit reports, and should request one for review. If any illicit activity is noticed, the victim should have it removed to prevent future complications. Any one of the three nationwide consumer reporting companies can be contacted in the event of identity theft:
• TransUnion: (800) 680-7289
• Equifax: (800) 525-6285
• Experian: (888) 397-3742
2. Victims of identity theft should close each account that may have been tampered with by speaking directly with the fraud department of each company. Follow up correspondence should be sent and copies of all writing should be retained for personal records. Upon opening new accounts, victims need to use new usernames and passwords to prevent future fraudulence.
3. Victims of identity theft should file a police report and retain a copy of the report for use in dealing with creditors.
4. Victims of identity theft should file a complaint with the Federal Trade Commission online. By filing a complaint with the FTC, the commission can work with the government and law enforcement agencies to locate criminals and prevent any future unauthorized activity.
If a victim of identity theft catches the fraudulent activity early on and goes through the appropriate channels to handle the matter, it is quite possible to reverse any damage. Keep in mind, however, that with identity theft time is of the essence; with each passing moment criminals can commit further perpetrations. Legal counsel is of great assistance in expediting the recovery process, thereby minimizing potentially irreversible damage. A qualified attorney is adept at handling the variety of complications that arise when dealing with banks, creditors and lending institutions. Accordingly, victims of identity theft would be wise to seek professional legal help.
How do I repair my credit if my identity was stolen?
There are a few simple steps one must take to repair credit damage caused from identity theft:
• Order a credit report and look it over for any unauthorized activity.
• Itemize any illicit activity.
• Write a letter disputing the illicit activity and send it to the credit bureaus.
After sending dispute letters, allow some time for the bureaus to review the claims. If the claim is not handled satisfactorily, a request for reinvestigation can be made. Although it is not necessary to retain legal counsel for a reinvestigation, a qualified attorney could be quite helpful in ensuring an agreeable resolution.
What if the victim of identity theft is a senior citizen?
Generally speaking, senior citizens must take the same precautionary measures against identity theft as any other demographic group. Likewise, if a senior citizen has his or her identity stolen, the same steps need to be taken for recovery. There is one area in which seniors are more susceptible to identity theft than other demographic groups, however, and that is as it pertains to Medicare cards. Medicare generally uses Social Security numbers as a means of identification, thus printing the numbers directly on Medicare cards. As such, seniors should take particular care to prevent Medicare cards from falling into the wrong hands. A suggestion would be to photocopy the card, then black out the Social Security number on the copy and carry that around instead of the original.
More often, unassuming seniors become the victims of financial exploitation. Please read this newsletter for more information on senior financial exploitation and how to prevent it from happening to someone you know and love.
