How to Avoid Identity Theft and What to do If You’re a Victim
It’s time to stop talking about identity theft and
do something to protect yourself.
My bank just sent a new set of Visa cards with the
explanation that hackers had compromised a retailer
where I had used the card, ergo - new cards.
Doesn’t sound too bad, does it? What it means is
that I now have to contact all of my “automatic”
payment vendors and give them the new number. We
were lucky that we didn’t get any financial damage
on the way through.
A close relative told me this week about her
experience in trying to clean up behind an
identity thief who tried to open several different
cell phone accounts and some other monkey
business.
A attorney friend tells me it took him almost
eight years to clean up after someone stole his
identity and wrecked his credit.
How does this ID theft work? Bad guys get your
name, social security number, or credit card
number and start charging purchases or opening
lines of credit.
Some of these thieves get info from your mail box,
but there are easier ways for the more
sophisticated. Phishing is on the rise, and this
isn’t the kind of fishing where you use a rod and
reel. Instead, these illigitimate Phishers lure
unsuspecting email recipients into giving up their
personal info by making them think you’re working
with a bona fide agent of a company with whom
they normally do business.
“Pretexting” is just as phony as thieves pretend
to conduct surveys or other seemingly official
reasons to get information from you.
My e-mail brings me five or more phishing lures
every day - eBay, CitiBank, utility companies, and
so on. I also receive more than twenty emails every
day telling me of some joker in Nigeria or Netherlands
who has come into millions of dollars that they’ll
share with me if I send them my bank account
information to help them smuggle this cash out of
their country.
The sad part is that some people bite these lures
and lose a lot. A young friend from Eastern
Europe recently asked me if such an offer was for
real!
Typically, the thieves collecting the information
are not the ones who use it. Your personal
information is often sold to others who are expert
in hiding their trail after wrecking your
finances. It’s hard to tell whose hand is in your
pocket and who’s spending your money.
Here are some stats on this subject from CFO-IT
magazine:
ID Theft by Fraud Type
32% - Credit-card Fraud
19% - Phone or utilities
17% - Bank
11% - Employment-related
8% - Gov’mt documents or benefits
5% - Loan
19% - Other
*** What are we going to do about all of this
fraud?
We already have some stiff laws on the books, but
only the biggest of criminals are going to be
tracked down across international borders. About
the only way the law can protect us is to
establish secrecy requirements for retailers and
others who use our credit card numbers.
Several agencies have discontinued using social
security numbers as identifiers. Be sure to
challenge the necessity of giving this information
to anyone.
Some people espouse using cash only. They say to
throw away those ATM cards and check books. Don’t
do business with anyone who won’t take cash. The
rub is that some companies don’t even know how to
deal with cash any longer. Have you tried to rent
a car or check in a hotel with cash only?
One recent article told of German grocers
installing equipment to read your finger prints to
activate charge accounts. Don’t leave home
without your prints!
The FTC web site advises the following steps to
avoid credit card identity theft:
1. Sign your cards as soon as they arrive. Others
advise us to write “Picture ID Required” on the
back of our cards instead of signing them to
prevent a thief from knowing just how we sign our
name.
2. Carry your cards separately from your wallet,
in a zippered compartment, a business card holder,
or another small pouch.
3. Keep a record of your account numbers, their
expiration dates, and the phone number and address
of each company in a secure place.
4. Keep an eye on your card during the
transaction, and get it back as quickly as
possible.
5. Void incorrect receipts.
6. Destroy carbons.
7. Save receipts to compare with billing
statements.
8. Open bills promptly and reconcile accounts
monthly, just as you would your checking account.
9. Report any questionable charges promptly and
in writing to the card issuer.
10. Notify card companies in advance of a change
in address.
*** How do we know that our identity has been
compromised?
Check your credit report at least annually. Many
people recommend checking quarterly. You can pay
the credit reporting companies a fee and get your
reports anytime you want.
However, the FTC advises us to “order a free
annual report from one or all the national
consumer reporting companies by visiting
www.annualcreditreport.com.
Or you can call toll-free 877-322-8228, or
complete the Annual Credit Report Request Form and
mail it to: Annual Credit Report Request Service,
P.O. Box 105281, Atlanta, GA 30348-5281.
You can print the request form from
www.ftc.gov/credit.
The credit reporting companies only send free
reports requested through the Report Request
Service.
The FTC gives a lot more information on their
site. Go to
http://www.consumer.gov/idtheft/recovering_idt.html#9
to find out things such as:
What to do if someone steals your identity?
How do you prove you’re a victim of identity theft?
When should I provide my social security number?
Should I buy identity theft insurance?
How do I get money back that was stolen through
electronic transfers, e.g. debit cards, credit
cards?
Answers to these questions and more than 50 others
are given at the link above. You can get the
forms you need to initiate your claim of identity
theft at this site, and the FTC has more than 25
publications on this subject that are free for the
asking.
Here’s the bottom line. As always, people are
trying to get your money. In the past, thieves
had to corner you and get the money out of your
pocket. Today, your pockets are much bigger, and
it’s much easier to reach in.
If you don’t take action to prevent the theft,
you’re basically inviting the thieves to take as
much as they want - of course, they want it all!
Find out more about identity theft and other
stressors at WWW.CourageBuilders.com
Copyright 2005 - Dale Collie
Title: Whose Hand is in Your Pocket
Length: 1153 Words
Author: Dale Collie
Email: MailTo:collie@couragebuilders.com
Category: Business/Stress/Finance/personal
Web Address: http://www.couragebuilders.com
You may publish this article electronically or in print
free of charge. Edit article for space and audience if
needed. Include full byline. Add a hyperlink for web
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or email to MailTo:Collie@CourageBuilders.com
Dale Collie speaker, author, and former US
Army Ranger, corporate president, and professor at
West Point. Selected by “Fast Company” as one of
America’s Fast 50 innovative leaders. Author of
“Frontline Leadership: From War Room to Boardroom,”
and “Winning Under Fire: Turn Stress into Success the
US Army Way” (McGraw-Hill) http://www.couragebuilders.com
