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| Protect Yourself Against Identity Theft |
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| LOREN UNDSETH |
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4/7/2009 - Most people think that identify theft has to do with someone stealing and using their credit cards or checks. However, the Federal Trade Commission estimates that financial fraud only accounts for 28 percent of identity theft. The other 72 percent consists of different kinds of identity theft.
According to Jean Faber, a security specialist with Pre-Paid Legal Services, there are six kinds of identity theft. Faber explained that everyone is vulnerable to a certain extent because of the personal information that is collected by employers, on job applications, credit card applications, by schools, insurance companies, banks, as well as by the state and federal governments. If any of those organizations lose information to data thieves, the individuals affected could be left with huge debts, exhausted medical insurance, even by having properties bought in their names.
What individuals can control is how their identifying information in handled on a personal and local level. It may not be a complete safeguard, but employing caution may help prevent identify theft.
Here are the six different kinds of identity theft, and some ways to try avoid them.
•A stolen drivers license can be used as ID by someone who has been arrested for a crime or by someone who has lost their license. It could be used to get auto insurance and to file false insurance claims. It could also be used to get employment. There have been cases of individuals stealing CDLs and then getting truck driving jobs with them, even though they did not know how to drive a semi.
To protect a driver’s license number, it should never be printed on checks and does not need to be given as ID when writing a check; showing a photo ID or using a debit card or cash are alternatives. If a drivers license is stolen or lost, get a new number issued on the new one.
•Social Security Numbers (SSN) are primarily stolen so people without ID or who have a criminal record can get jobs. A stolen SSN can also be used to open a business that runs up debts or that is illegal in nature.
Faber stated that although there are many situations where SSNs are collected, such as when getting hunting and fishing licenses, individuals should try to avoid giving them out in as many situations as possible. They should never be printed on check, nor should they be given out to verify an ID. Individuals should not carry their SS card or anything with their SSN on it, in the event that it could be stolen.
•Most people are not aware of the possibility of Medical ID theft. Once someone has a stolen insurance number, they can get medical or dental care almost anywhere. Faber points out that most medical facilities don’t ask for personal ID, especially once they have client information. A person could go into a clinic, give someone else’s name, and just agree when asked if they still have the same insurance coverage. This kind of theft is often not found until the person’s insurance is exhausted or until the insurance bills go to the insurance holder, which could be months later.
An insurance number should be given the same protection that is given a SSN or drivers license number. Most people don’t need to carry it with them, and if it is lost or stolen, they should try to get a replacement ID number from the insurance carrier.
•Character/Criminal ID theft usually involves the use of a stolen or found SSN or drivers license and the use of that ID by someone once they have been arrested for a crime. This is a technique often used by drug traffickers.
Financial ID theft can involve additional credit cards, mortgages, or loans being obtained with someone else’s ID. Faber pointed out that as of 2008, there is no longer zero fraud liability for consumers. A fraudulent consumer loan must be challenged within 60 days of issuance; if not challenged within that time, the person who is named in the loan holds liability for it whether or not they actually applied for it.
The best protection is to run credit checks on a regular basis, and to purchase a credit monitoring service. Credit cards offer some protections and a consumer should know what types of protection their cards offer and the level of that protection; every account should have both financial and legal protection.
•Synthetic ID theft is fairly new and involves one person using pieces of many people’s IDs to essentially create a “new” or composite person. This is proving to be a very difficult type of ID theft to resolve and identify.
Other
Some other steps to take to protect personal identity:
•In the event of someone’s death, make sure all credits cards, insurance, loans and everything financial in nature is cancelled.
•A credit check on the SSN of minor children should be done at least once a year.
•Opt-out of credit card offers, this will help prevent a card pre-authorization getting into the wrong hands.
•Don’t have blank checks sent to an unsecured mailbox; arrange to pick them up at the financial institution.
•Pay attention to details on bills when they come, and immediately act on any wrong charges.
•If possible, get bills online rather than through the mail. If bills stop coming immediately notify the billing companies; the bill could be being forwarded to a fraudulent address.
•Don’t leave a checkbook lying open in a public place.
•Don’t let anyone walk away with credit cards. Hand them to the person that processes them, and be sure to get them back.
If someone experiences identify theft, their first step is to file an Identity Theft Report with their local police. There are also forms of identity theft insurance available. Many cases of identity theft require hiring an attorney and can cost tens of thousands of dollars to resolve.
For more information on identify theft, go to www.ftc.gov. The Federal Trade Commission is the primary government agency that deals with identify theft.
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