Identity Theft Articles

If the term identity theft brings to mind images of ‘bad guys’ rummaging through your garbage looking for an account number or spying eyes ready to memorize your PIN numbers and passwords - think again. It could be as simple as someone signing into a forum using your account or as serious as having a mortgage taken out in your name.

Not protecting your sensitive information makes you a prime target for identity theft. The consequences could be an unnoticed $20 charge on your credit card or credit agencies knocking on your door.

What Is Identity Theft?

Identity theft or identity fraud is any inappropriate use of your personal and financial information. The misuse of your Social Security number, credit card, bank accounts, passwords or any data specific to you is a crime.

Um…So What Is It Really?

Identity theft is hours wasted trying clear your name of something YOU didn’t do or say.

What’s in a name?

You decide to take out a mortgage, a college loan or buy a car and you realize that your credit is not up to par. It’s not only your credit that’s affected, but the name associated with every other account under that name.

Is It Really the End of the World?

In order for you to clear your name as a victim, you’ll need to file a police report, put a freeze on your accounts and fill out a fraud complaint with the FTC…And wait…And wait some more…

Victims spend an average of 330 hours recovering from identity theft. Wouldn’t you rather be doing something else with that time?

Still Not Convinced?

Take a look at these stats. In 2005:

• 2.2 million - car accidents
• 2.2 million - burglaries
• 1.2 million - stolen cars

All these incidents added up don’t even amount to half of the amount of victims of identity theft in that same year

• 15 million - victims of identity theft.

Some statistics go as far as to claim that every 79 seconds a thief steals someone’s identity, opens accounts in the victim’s name and goes on a buying spree.

An Identity Is Only As Strong As Its Weakest Link

The very basics of security starts with you - never reuse a password!

Nowadays everything can be done online - working from home, shopping, paying a bill. In order to protect your identity, you need to protect it online. Start with your weakest link: passwords.

Makeshift or do-it-yourself solutions are not enough. You need to use an application designed specifically for the task, online password managers. This online vault should be using fundamental online security like anti-phishing, AES encryption and host-proof hosting.

And Remember

Reusing the same password across accounts is like using a hypodermic needle - all you need is for it to be compromised once and everything else associated to it is at risk.

It seems like everything has a password these days. Though it may be difficult to keep them all straight, curb the idea of making them all the same. Granted, life would be much easier if your online banking, telephone banking, home email and work email passwords all correlated with Fluffy, the family bunny rabbit, but it’s just not safe. In fact, not using your kids names or anything that is relevant to you at all is the type of password that is the least likely to be hacked into.

Ever been in line behind a high maintenance woman at the grocery store? She whips out her wallet to pay for groceries and oh my– look at all those credit cards. Not saying that there aren’t some high maintenance men out there with a lot of credit cards too but statistics show that women tend to carry more cards than men. Point being–only carry what cards you need. Also, it’s not a good idea to carry your social security card with you daily. If that were to get in the wrong hands you’d really be up a creek without a paddle.

I cannot stress enough the importance of requesting your credit report a couple of times a year. My advice is to obtain a copy every 4 months. You are allowed one free report from each of the major credit bureaus every year via the annual credit report website or by calling 1-877-322-8228. The faster you find out someone has made a move on your credit, the more likely you are of stopping them before they strike again. Think you don’t have time to go over the credit report that often? It’s going to take a lot longer to fix the damage once it’s been done, so take this preventative measure.

Ever wonder what happens to your information if you switch insurance companies or apply for a loan that you later decide against? Those places are required to keep your information on file for a certain amount of time. Where do they keep it and for how long? When they do get rid of it–what is the manner in which they discard of it? These are important questions to ask before you decide to give them your business.

This one sounds silly but you’d be surprised how many people fall prey. Don’t give your personal information out over the telephone or online unless the website is secure. You can tell if a website is secure if the web address begins with “https.” I received a call one day from a lady claiming she was with my bank. She said she just wanted to confirm the last four digits of my social security number before telling me the reason for her call. I can understand where she was coming from but being in the financial services industry, she must have realized that she was putting me in a compromising situation. Needless to say, I did not oblige.

Remember that predators will say just about anything to get you to give them information that will gain them access and send your life spiraling out of control before you know it. Proceed with caution whether it’s on the phone, online, or paying for your groceries.

In the year 2004 alone, more than 11 million people fell prey to identity theft. Since then the problem has continued to grow, especially given the economic desperation many are facing during the current recession.

That means you need to learn all you can about different ways to protect your identity before you become a victim, as well as what to do to fix the mess if you do happen to become the next victim.

When a thief steals your identity, he or she can open bank accounts in your name, apply for credit cards and jobs in your name, file bankruptcy in your name, and do many more things that can jeopardize your finances and your credit rating, but that’s not all - there are some identity thieves who will even kill in your name.

The way they operate is that they will change the addresses on your accounts so that they are able to receive the statements from those accounts at those new addresses. They do this to confuse law enforcement officials, who then have a more difficult time discovering and prosecuting identity thieves. Criminals can open phone accounts, either cellular or land line, and start utility services in your name. They often open bank accounts in your name and write checks on them, draining the accounts leaving you to face the penalty.

Thieves who commit crimes in your name will gladly let you take the fall if they are caught. This means that if the thief is caught and fails to appear in court, you may then be summoned to court by law officials who think you are the perpetrator. For example, a criminal can obtain a driver’s license in your name so that you are called to account if they are arrested for drunk or otherwise dangerous driving.

If you find you have become a victim of identity theft, you must aggressively fight to get your good name back. There is a great deal of information available online to help you fight the long battle that begins when you become a victim of identity theft. Online discussion boards also exist where victims can discuss their situation freely and gain a support network of people who have been through it and know how to help, all without disclosing any personal information.

One of the most valuable tools you can use to fight this type of identity theft is to make sure that wherever you are, you have witnesses who can vouch for your whereabouts at a particular time. They can testify in court on your behalf. Purchase receipts stamped with the date and time are helpful, too, as ways to show where you were and when. Protection of your identity is crucial in today’s digital age.

If you become the victim of an identity thief, realize that no one will work harder than you to restore your good name and put the criminal behind bars. Sad to say, the law will probably put the captured identity thief out of commission for less time than it will take you to recover your identity, and society as a whole will pay more to address the ongoing threat and fallout of identity theft than the thief will ever be charged for his offense if caught. Still, there is justice in knowing that you can, with a great deal of effort, see the light at the end of the tunnel caused by identity theft.