Identity Theft

Identity theft is the fastest growing crime in the United States and it can have a huge impact not only on your credit, but also on your life. If you become a victim of identity theft, your life can slip into turmoil overnight.

We examine this phenomenon further.

Identity theft can occur through a variety of ways. One of the most common methods thieves use to steal a person's identity is aggregation of information. Aggregation of information occurs when someone steals your mail, when they go through your trash, and when personal belongings such as your wallet containing financial information are stolen.

Employees have also been known to steal information from the business they are employed by. In certain instances, they have access to customer credit or debit card information, which they often resell to third parties.

You also must be very careful when changing residences or addresses. When a billing statement arrives in the mail at a locale where you are no longer living, thieves are granted easy access.

Sometimes, thieves will fraudulently pose as a legitimate operation such as an employment agency in order to obtain your personal information. For this reason, you must be very careful to whom you divulge sensitive personal information.

How to Prevent Identity Theft

The threat of identity theft can be highly reduced or eliminated by taking these simple steps:

1. Perform a check on your credit report at least once a year. We recommend you check your credit report twice annually.
   
2. Be sure to check your Social Security benefits statements. IRS problems can arise with false reporting of income.
   
3. If your driver's license number is the same as your social security number, change it! You do not want your social security number to be easily obtainable by anyone, because you never know who is lurking.
   
4. If you are ever solicited online, through sources such as email or chat rooms, do not give up any personal information! You never know who is behind the other screens, and chances are, if they're asking for your personal information, they are a scammer.
   
5. Shred all documents that contain your personal information. You may think this is an unnecessary measure at times, but remember, all it takes is one time and you may lose your identity.
   
6. Secure all documents with sensitive info. Documents such as billing statements and credit cards should be secured at all times. If you leave them laying out on your desk at work, you are asking for trouble.
   
7. When deciding on a PIN number for a bank account or such, be sure to use a secure PIN that is as random as allowed. If you can use a combination of letter, numbers, and characters, it is your best bet; also, be sure to make your PIN at least 7 digits long.
   
8. Do not carry a large amount of personal documents in your wallet. Most importantly, do not carry your Social Security Number with you! Your SSN is the most important document to protect when it comes to protecting against identity theft.

If you are a Victim of Identity Theft

Being a victim of identity theft can often be the most frustrating period of a person's life. Luckily, there are simple steps you can perform in order to minimize the damage. If you are a victim of identity theft, follow the ensuing checklist and you will be doing the most you can in protecting what has not yet been breached.

1. Get a police report IMMEDIATELY! Most damage occurs between the time of theft and the time of detection. When you find out you have been a victim of identity theft, contacting the authorities right away is your number one priority.
   
2. Consult the Federal Trade Commission website at www.ftc.gov. The FTC has the most information regarding identity theft and can help you with what needs to be done.
   
3. Contact the 3 credit reporting bureaus (Equifax, Experian, and TransUnion). With the credit bureaus you may place a fraud alert making it impossible to issue new accounts in your name. You may place an initial alert which will restrict new account openings for 90 days, or an extended fraud alert which can restrict new account openings for 7 years. You may also inform the credit bureaus of identity theft, so the necessary actions may be performed to your account.
   
4. Notify creditors of accounts that may be tampered with. If you inform creditors beforehand, the process of making corrections becomes much easier.
   
5. All correspondence must be in writing. Be sure to keep originals for yourself and use copies in the actual communications.
   
6. Close all the compromised accounts. This step is fairly self explanatory.
   
7. Be aggressive when dealing with creditors, bureaus, and everyone else regarding the incident. Often times, people will stay passive and the issue will take much longer to resolve than if they had gotten to it with passion.

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