Stealing is against the law, no matter what form it takes. Theft threatens individual freedom and corporate security. Thankfully, there are laws to protect us from identity theft and related fraud.
People are becoming more aware of identity theft, but not many of us understand what it is and how it happens. In a 2003 study, the Federal Bureau of Investigation found at as many as 9 million people fall prey to identity theft every year. The impacts on personal financial security and business in general are huge. That same year, the Federal Trade Commission reported over $48 billion is losses to business and financial institutions and $5 billion out-of-pocket losses to American consumers as a direct result of identity theft.
Identity theft isn’t just a local or national problem. Ever-improving technology and communications has promoted identity theft to a worldwide problem. As we depend more and more on computers and online transactions, we become more vulnerable to the unscrupulous actions of identity theft.
What is Identity Theft?
Identity theft is a crime that occurs when someone steals your personal information, usually your full name, home address, social security number, or bank or credit account numbers. Once identity thieves have this information, they can apply for credit using your credit rating and ruin your credit score, not to mention your personal financial reputation. And the saddest part of it all is that a person doesn’t usually know it’s happening until his or her credit is already in jeopardy.
And with the miracle of the worldwide web comes the risk of having your personal information leaked through non-secure websites or tricked out of you by sly e-mail “company representatives” who want to “verify” your information. Some internet hackers have even stolen personal information for thousands of clients of a single company.
What Can I do to Protect My Personal Credit?
It’s not easy to protect yourself from identity theft. Most of it is intended to occur without your knowledge or consent. And there are many avenues for identity theft that are outside your control. But there are some things you can do to lessen the chances for identity theft.
- Secure your personal information at all times. Don’t leave lists of account numbers unlocked, and don’t share your user IDs or passwords with ANYone. Maintain as much control over your personal financial information as you can.
- Don’t throw mail away if in contains any personal information, including your full name and address. Shred these documents before putting them in the garbage.
- Educate yourself about the techniques and tactics used in identity theft and protect yourself accordingly.
- Don’t share personal account information with anyone, including co-workers, friends, and roommates. Unless they are also responsible for paying your bills, they have no reason to have this information. And don’t give them your passwords without a very good reason. If you do share your passwords, change them as soon as possible.
- Shred unwanted and pre-approved credit applications, and have your name removed from those mailing lists.
- Be careful when you make purchases online to use only secure servers and to carefully guard your information. Do not keep a written list of passwords, and use passwords that are difficult to figure out (rather than something simple like your phone number).
How Do I know if Someone is Using my Personal Information?
Many victims of identity theft are not aware of the problem until they are refused credit or receive a bill for purchases they did not make. There are a few ways to catch identity theft early on:
- Request your credit report from one or all of the three major credit reporting companies (Experian, TransUnion, and Equifax). Review the reports carefully to assure you are aware of and agree with the status on all accounts. Make sure there are no accounts you don’t know about listed there. And check all recent credit inquiries. Companies from which you have not asked for an account should not be making inquiries. This is a sure sign that someone is out there using your name and information.
- When you review your credit report, immediately contact the reporting company and your creditor about any errors. Make sure individual account information is accurate and up-to-date, and be very persistent in getting errors corrected. You may have to provide documentation for corrections, and you will most likely have to contact the companies several times before the corrections show up in your report.
- Review your account statements immediately when your receive them. Be sure you are aware and approve of all transactions. Check to be sure recent payments are reflected. Make sure they have the correct address. If you find errors on bank or credit card statements, contact the company immediately and continue to communicate with them until the corrections are reflected in your statements.
What if I Am Already a Victim of Identity Theft?
If you think someone else is using your identity or personal financial information inappropriately, contact the nearest office of the U.S. Department of Justice. Contact your creditors to alert them to the fraud. Also inform your bank of the activity and secure their agreement to help protect your information. You may want to revisit the names of people authorized to access your personal financial information and limit it to essential parties only.
Find out as much as you can about the accounts, purchases, and applications the identity thief has made using your name. Then contact those companies directly and immediately to make sure they close the accounts and notify law enforcement when they become aware of any additional transactions.
