Simple Steps to Avoid Identity Theft

Identity theft—using another person’s personal information to commit unlawful activity—has become a crime epidemic in recent years. The Federal Trade Commission (FTC) reported that 27.3 million Americans have been the victims of identity theft in the past five years (FTC, 2003). Astonishingly seventy percent of the cases involve friends and family. Identity theft can be emotionally and financially devastating. If you fall victim, it could cost you upwards of $1,000 out-of-pocket to rectify any damage caused by this crime.

Before you become a victim, consider the following steps you can take to help keep your good name—and good credit—protected:

Protecting your personal information:

1. If you must give out personal information while making a purchase, be aware of your surroundings and do it discreetly.
2. Do not give out personal information over the phone unless you have made the call yourself. This will help ensure that only the people and businesses you have chosen to contact are privy to your information.
3. Avoid using your Social Security number unless absolutely necessary. This includes replacing it with another number on your driver’s license. Most states now offer the option of choosing an alternate number.
4. Avoid carrying your social security number and drivers license together in your wallet
5. Purchase a paper shredder to properly destroy any documents, receipts, pre-approved credit card offers or pieces of mail that contain information an identity thief might find useful, such as ATM receipts or bank statements.
6. Drop paid bills directly into U.S. Postal mailboxes – not in your home mailbox
7. Collect mail within 2 hours of delivery
8. Don’t ever sign blank forms
9. Verify beneficiary information on a regular basis.

Protecting your electronic information:

1. Create unique passwords with combination of letters and numbers AND store them in a locked drawer
2. Change User Ids and passwords frequently
3. Control access to your computer by setting up a user password
4. Never respond to unsolicited email from banks or credit card companies asking you to verify or update personal and account information. (Phishing)
5. Get a firewall and update virus and spy-ware software
6. Establish a separate e-mail address for online transactions.
7. Secure your personal computer, using firewall programs, anti-virus software, and secure browsers. Minimizing online access to your personal information can help thwart uninvited guests to your computer.

Protecting your finances:

1. Order a copy of your credit report now and check it for accuracy. Remember to do this once a year to stay informed of any significant changes in your credit history. Check out www.freecreditreport.com.
2. Monitor credit card bills and credit reports for mistakes
3. Cancel any credit cards you don’t use
4. Keep on eye on automated billing for double billings
5. Report Fraud Immediately
6. Consider placing a fraud alert on your credit file – credit bureau must contact you before any new credit can be approved
7. Consider purchasing fraud insurance via property & casualty insurance carrier or implementing services such as those available through www.identityfraud.com or www.javelinstrategy.com.

It Happened - What Do I Do?

Even after taking precautions, you may still be susceptible to this damaging crime. If you have become the victim of identity theft, here are some ways you can help ensure the process of clearing your name moves smoothly:

1. Contact the Federal Trade Commission’s Identity Theft Hotline 1-877-IDTHEFT (877-438-4338).
2. Create a list of all the creditors whom you suspect have received fraudulent information. Keep records of all communications with them, including written transcripts of phone conversations and copies of correspondence.
3. Inform the fraud departments of the three major credit bureaus (numbers listed above), and ask that a “fraud alert” be attached to your file. Although the credit bureaus are not required to offer “fraud alerts,” they generally will do so. This temporarily alerts a creditor that fraudulent activity may have been conducted on your accounts.
4. Terminate any accounts you were not responsible for opening, or any existing accounts that were fraudulently used.
5. Report any information you have to the police, and be sure to give them copies of all relevant documents.

Depending on the type of fraud that has been committed, you may need to take some additional steps. For example, if your Social Security number was used under false pretenses, contact your local Social Security office. Or, if an identity thief created a cellular phone account with your billing information, contact the Federal Communications Commission (FCC).

Education and Reaction

Educating yourself on how to avoid becoming a victim, as well as how to react should you become a victim of identity theft are the first steps in the battle to stop this crime. To learn more about identity theft—and ways to protect yourself—visit the Federal Trade Commission online at www.ftc.gov.

And of course, our monthly update would not be complete with a new picture of Christopher. Here is his first time sitting down on a real tractor!