Identity Theft 

Some of what we will talk about here is scattered throughout the Web site. But given the severity of this problem, we will take those snippets and add to them and give you everything you need to know about identity theft—sadly one of our seriously growing problems. 

What Is ID Theft?

Very simply put, a bad guy gets your personal identity data, uses it to create new credit cards in your name or other financial items, spends a small fortune…and you don’t know anything about it until you start receiving bills. THE most important piece of data the bad guy can obtain is your Social Security number. Following that is your date of birth and driver’s license number. Banks and other places are starting to get smarter and taking extra steps to prevent ID theft, but let’s face it: If a bad guy has all your personal data, there really isn’t much a bank can do to determine it isn’t you. The sad part is that it can take years to repair your credit, and in this day of creditworthiness, that can really hurt you. 

How They Obtain Data

THE most important thing I can ever tell you is to NEVER carry your Social Security card in your wallet. There is no place you are going where you will need that card. If you are going for a job interview, for example, where you know you must provide your Social Security number, write it down on a piece of paper (without your name on it) and put it in your pocket. It’s bad enough if you lose your wallet to replace driver’s license and credit cards, but that one SS number will cause tremendous grief if it’s lost. And remember: By law, no one can ask you for your SS number as identification. 

A very common way to obtain information is from your mailbox or your trash. Think how many credit card offers you get every week and then just throw them out. Two things can happen here. If you don’t shred those items before putting them in the trash, someone could literally take your trash, find those offers, fill them out with their address and get a credit card. Many credit card companies send you what appear to be checks. If you cash them, it’s an automatic application for a credit card. If you don’t shred those also, you will get burned. The other problem is theft from mailboxes, so you should be certain that your mailbox is secure. 

What Can Happen 

It’s pretty obvious. Folks can obtain credit cards in your name and spend thousands of dollars on them before you ever get a bill. By then (especially if there’s more than one phony credit card involved), you already have a serious problem. First, you must convince the credit card company that it isn’t you. That takes some doing. Second, you have to deal with the merchant and the bank, and this is a bureaucratic nightmare. Third, your credit report is going to be thoroughly screwed until this is straightened up. It isn’t pretty! You mess up your credit report, which takes sometimes years to resolve, it can keep you from obtaining legitimate credit when you really need it—such as a mortgage. Remember: If you wallet is lost and someone uses your credit cards, as long as you report them lost or stolen immediately, you are not liable for any charges—and there’s a good chance the bad guy will get caught using a stolen card that has been reported as stolen. That’s one thing. But if people apply and receive credit in your name, that’s entirely different. 

What You Can Do

• Don’t keep your Social Security number on you.
• Be sure your mailbox is secure.
• Shred all credit card applications or “checks.”
• Be sure to always take your receipts home…from credit card purchases or ATM machines.
• Periodically you probably clean out your credit card receipts and such info as bills and the like. SHRED THEM!
• Check your credit report at least every year. Visit www.annualcreditreport.com at least once per year. This site allows you to obtain a copy of your credit report for FREE from each of the three major reporting agencies (Experian, Equifax and TransUnion) every 12 months. Review each report to ensure everything is correct. If there is incorrect information, they make it very easy for you to make it right. The cool thing to do? Go to this Web site every four months and request a copy of one credit report. Over one year,  you have seen all three of your credit reports. Then keep repeating that every year.
• If you have lost your wallet or it’s been stolen, it probably is a good idea to report that to the credit agencies and ask them to put a fraud alert on your records. This basically tells any company who is checking your report for creditworthiness that they must call YOU to ensure you are the person who actually requested credit. It’s a good way to prevent fraud.

Be careful out there. It’s not worth the tremendous amount of work to repair your credit, when simple care and a good shredder can prevent this problem. 

                                                                                                    Blackdog                                                                                                      

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