The Federal Trade Commission estimates nine million Americans have their identities stolen every year. Identity theft occurs when an unauthorized person uses your personal identifying information, such as your name, Social Security number, credit-card number or financial account information, without permission. The most alarming aspect of this crime is that you may not realize you are a victim until reviewing your financial statements, or worse yet, you are contacted by a debt collector.
Identity theft has serious implications, such as:
• loss of money and time spent to repair damage to your name and credit record;
• loss of job opportunities;
• denied loans for housing, cars or education; and
• possible arrest for crimes you did not commit.
How does it happen?
Headlines citing this crime appear often. How are thieves accessing confidential information? Identity theft happens when thieves:
• obtain bills or other paperwork with your personal information such as bank or credit-card statements, pre-approved credit offers, new checks or tax information from your trash or mailbox;
• use special storage devices when processing your credit, debit or ATM card or break into merchants’ credit-card electronic databases;
• unprotected information sent on a laptop or smartphone while using Wi-Fi;
• trick you into revealing your personal information through spam (unsolicited emails) or pop-up messages, known as phishing;
• contact you claiming they are someone else (i.e., research firm) and obtain your personal information under false pretenses;
• pose as a landlord, employer or someone else who may have a legal right to your credit report;
• divert your billing statements to another location by submitting a change of address with the firm;
• steal wallets and purses;
• steal personnel records from employers or bribe employees who have access to them; or
• listen in on phone conversations in which you provide your credit-card number.
How do I avoid becoming a victim?
So, what can you do about it? Reduce the risk and protect yourself by employing these measures:
• Shred all documents with personal information, including pre-approved credit offers, before discarding.
• Review financial account and billing statements closely for charges you did not make.
• Deposit mail in U.S. Postal Service collection boxes and never leave mail in your mailbox overnight or on weekends.
• Use fire walls, anti-spyware and anti-virus software and keep it updated.
• Do not respond to spam, pop-ups or unsolicited emails; go directly to the trusted website and make sure it is fully encrypted before providing personal and financial information.
• Do not use personal identifying information for passwords, such as a birth date, mother’s maiden name, Social Security number or phone number.
• Never provide personal information over the phone, through the mail or Internet unless you know the firm or person.
• Never carry your Social Security card in your wallet or write your number on a check.
• Annually, obtain your free credit report from each of the three major credit bureaus by calling (877) 322-8228 or going to www.annualcreditreport.com.
Do not go directly to the bureaus, as they will charge you. Also, request each of the three bureau reports at different times to monitor your information throughout the year.
• If you are an active-duty military member and away from your usual duty station, place an active-duty alert on your credit reports to minimize the risk while deployed. This will remove your information for prescreened credit-card offers for two years.
• Be careful when responding to promotions. Identity thieves can use promotional offers to get your personal information.
• If you prefer not to receive prescreened credit and insurance offers by mail, you can opt out for five years or permanently by calling toll-free 1-888-5-OPTOUT (1-888-567-8688) or visiting www.optoutprescreen.com.
• Don’t buy credit card “loss protection” insurance—according to the FTC, your liability for unauthorized charges is limited to $50. Telephone scam artists will often use this pitch.
• Carry identity-theft insurance. This coverage can provide reimbursement for expenses resulting from the crime, such as phone bills, lost wages, notary and certified-mailing costs and attorney fees. It is inexpensive and may be endorsed to your homeowners or renters insurance policies. Ask Penny Hanley & Howley Insurance more about this coverage, we can provide more details on this coverage for you.
Helpful contact information
The three major credit bureaus:
• Equifax: (800) 525-6285 or www.equifax.com
• Experian: (888) 397-3742 or www.experian.com
• TransUnion: (800) 680-7289 or www.transunion.com
• FTC Identity Th eft Hot Line: (877) 438-4338 or www.ftc.gov/idtheft
• Social Security Administration: (800) 269-0271 or www.ssa.gov
Source Info: PIA.org
For more information on obtaining Identity Theft Insurance give Penny Hanley & Howley Insurance a call.
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