My wife and I were victims of identity fraud this summer. While on vacation we were alerted by a phone message from a national department store regarding an online purchase we didn’t make. Without going into all the details, we were able to take corrective action and close any illegally accessed accounts and are currently working with the local police to pursue the criminals. We were not responsible for any unauthorized charges.
Thus far, we have been impressed by how quickly we were able to closes accounts down and get the various credit card companies and banks to take corrective action. Based upon my personal experience, I asked Toan Nguyen, IIA’s Director of Operations, to give you some information that may allow you to monitor and protect your credit.
Best regards,
Tony Moeller
Credit Fraud and Identity Theft
What does your credit mean to you?
You probably use your credit every day and don’t even realize it. Your credit history affects everything from your access to credit cards, home loans, car loans, student loans, and the interest rates you pay on them. The better your credit rating, then the lower the interest rates you’ll be charged. Also, insurance companies and potential employers may review your credit history, which can affect your insurance rates and potential job opportunities. Account history and transactions can stay on your credit history for up to seven years. That’s why it’s crucial to verify its accuracy.
What is identity theft?
Identity theft is when someone uses your information such as your name, social security number, credit card number, etc. to commit fraud and other crimes. Identity thieves can open up credit cards, mortgages, car loans, etc. under your name and then disappear, which leaves you with a credit disaster to clean up. According to the Federal Trade Commission (FTC), as many as 9 million Americans are victims of identity theft every year. Repairing your credit can take months, if not years to clear up your name and credit.
Prevention / Being proactive
- The best offense is a great defense. You need the attitude that if you don’t protect your credit, you’ll lose it.
- Guard your private information – social security number, account numbers, etc. carefully. Shred documents that contain your private information that you do not intend to keep.
- Opt out of pre-screened credit card offers by going to optoutprescreen.com. The less your information is out there, the less likely it will get stolen.
- Always review your monthly account statements and/or your online account histories for unauthorized transactions.
- Check your credit report from all three credit reporting bureaus at least once a year. Annualcreditreport.com is the government-sponsored website and unlike the ones with the catchy songs on TV, this one is free. One good strategy to use is to stagger your credit reports requests every four months, so you have complete coverage throughout the year. For example: request Transunion reports in January, Equifax reports in May and Experian reports in September and then repeat every year.
Places identity theft can occur
Your purchase behavior:
- Don’t let your credit card out of your sight. Be aware of where you lay your credit card or when you lend it to a cashier. Camera phones are the norm now, and they could easily photograph your card number.
At home:
- One person’s trash is another one’s treasure; shred your documents before you throw them away, this includes credit card offers and account statements.
- Sometimes you may never know it happened. Thieves will resort to stealing your mail, or even changing your mailing address at the post office. If you haven’t received your statements for a while; call and ask why?
On the computer:
- If you conduct financial transactions online, it’s always a good idea to make sure you have antivirus software installed and it’s up to date. Some antivirus software is even available for free (such as AVG Free). Also, be wary of any unfamiliar emails. You could be opening up a potentially harmful virus in disguise.
- Phishing is a popular form of identity theft. Phishing is where an identity thief masquerades as a trustworthy entity and requests sensitive information such as usernames, passwords, credit card numbers, etc. Phishing can be done via a disguised email or a bogus website. Always verify the email address or supposedly trustworthy website address before you give out any information. Legitimate companies do not request sensitive information via e-mail. Therefore, never give out your information via email.
Vendors:
- Sometimes credit fraud and identity theft is completely out of your control. Credit card companies are susceptible to hackers, as well as other businesses that you pay using your credit card. Remember – monitor your statements and review your charges.
Recovery Mode – What happens if I’m a victim of identity theft?
Fraud Alerts
Once you have realized your credit has been breached, fraud alerts can be placed on your credit report to help prevent thieves from opening up new accounts under your name. If a business sees a fraud alert on your credit, they must verify your identity before issuing credit.
- Two Types of Fraud alerts
Initial Fraud Alert:
Initial fraud alerts stay on your report of 90 days and can be made as a preventative measure if you suspect your credit has been breached.
Extended Fraud Alert:
Extended alerts stay on your record for 7 years. If you place an extended alert, consumer reporting agencies remove your name from marketing lists and prescreened offers for up to 5 years.
- Credit Freeze
A credit freeze means that your credit file is not shared with potential creditors. Most creditors will not extend new credit without a credit record. Once a freeze is in place, you are still able to access your credit; however the process may take a little planning and patience.
- Close all accounts that were breached or opened fraudulently. Call the companies of the accounts you think were accessed illegally and speak with their fraud departments. Let them know that your accounts were illegally accessed and dispute any unauthorized charges.
- File a police report with your local police. By filing a police report, you are creating a record of the event.
- File a complaint with the FTC at https://www.ftccomplaintassistant.gov/
When you file a complaint with the FTC, it helps provide information to law enforcement agencies across the nation and assists in tracking down identity thieves.
3rd Party Services
Credit Monitoring Services
- Those catchy songs on TV for free credit reports really aren’t free. However, you may consider them if you wish to have an outside party monitor your credit versus doing it yourself. For a monthly fee, these companies can monitor your credit and alert you as soon as there is a change to your credit report such as, inquiries, new accounts, etc.
- Lifelock monitors your credit and alerts you anytime someone tries to access your credit. It is proactive, as it searches for your information in the public arena and when necessary, assists you in removing it. Also, in the event you lose your wallet or purse, they help call all your credit card providers, banks, and other companies and assist you in closing your accounts. They also request annual credit reports from each reporting bureau on your behalf so you don’t forget. The company touts that they will repair any fraudulent credit problems via their $1 million guarantee. If you are a victim of identity theft as a result of a failure of their service, they will spend up to $1 million to repair any damage to your credit. This includes lawyers, investigators, accountants, etc.
The purpose of all the above is informational only and not an endorsement of any company or service.
Sincerely,
Toan Nguyen
Director of Operations
