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Identity Theft

Take Charge of Your Own Security

Are you concerned about Identity theft? Have you been frightened by stories of mass security breaches where personal information has been stolen, lost, or unwittingly sold to Identity thieves? Do you think you need to pay someone to ensure you’ll not become a victim too? The answer is no. There’s no need to pay a third party who ironically will need your personal data to guarantee your security. Laws have been enacted to favor you, the consumer, and non-profit consumer organizations are equipped to support and guide you through Identity theft restoration. There’s plenty you can do for yourself.

Safeguard Your Information

A good offense begins with a good defense. Invest in a crosscut shredder and shred financial documents and paperwork with personal information before you discard. What ID thieves want most: your name, address, phone, date of birth, SS #, driver’s license #, credit card information, bank account information, your mother’s maiden name.

Monitor Financial Accounts and Billing Statements

Watch for bills that do not arrive as expected, unexpected credit cards or account statements, denials of credit for no apparent reason, calls or letters about purchases you did not make. Take advantage of the Fair Credit Reporting Act which allows you a free copy of your credit report once a year.

Defend Against ID Theft

If you find fraudulent activity, place a Fraud Alert on your credit reports, close accounts that have been tampered with or established fraudulently, file a police report, and report theft to the Federal Trade Commission.

Credit Monitoring

You should monitor your credit reports after placing a Fraud Alert. If you find this too time consuming, you may want to hire a credit monitoring service. In her book, The Wall Street Journal Complete Identity Theft Guidebook, Terri Cullen recommends three multiple-report companies that will monitor all three bureaus: Citi, Identity Guard, and TrueCredit.

Credit Freeze

If you become a victim of fraud, you may also want to place a security freeze on your credit report. This will stop thieves from getting credit in your name. Keep in mind, though, that you will need a PIN and have to wait a few days to temporarily lift the freeze and obtain credit for yourself.

Identity Theft Resolution Services

After placing a fraud alert with the credit bureaus and filing a report with the police and the FTC, you’ll need to start cleaning up your credit. The average time spent recovering from credit fraud is 28 hours, at a median out-of-pocket cost of $750, according to a January 2005 survey by Javelin Strategy & Research and the Better Business Bureau. Expenses associated with ID theft recovery include time off from work, attorney expenses, telephone and mailing costs and notary public charges. Help is available with two types of identity theft resolution services. For-profit companies, including those hired by financial companies such as American Express or Fireman’s Fund Insurance, do much of the paperwork and fact checking involved in helping victims resolve cases of identity theft. Fees can range up to $1,000, depending on the company and severity of the case.

You may also choose among national non-profit organizations such as Identity Theft Resource Center and Privacy Rights Clearinghouse that provide information, guidance and support so victims can resolve cases on their own.

Some for-profit companies ask you to sign a limited power of attorney for finances. Identity Theft 911 doesn’t ask for this and will conference in victims on calls to creditors or federal agencies.

You need to thoroughly check any ID theft monitoring or restoration service. Confirm that the company is registered to do business in your state and check your local Better Business Bureau.

Identity Theft Insurance

Check your homeowner’s insurance policy; it may include ID theft coverage. If not, you may be able to add it to your policy for a small fee. Also, check your bank or credit-card policies; some offer ID theft assistance for free. Know, however, that you already have protection in place through the Fair Credit Billing Act which ensures that you cannot be held liable for more than $50 in fraudulent card purchases. But if you still think a low cost policy is worth the peace of mind, you should look for these features: a low deductible, reimbursement for lost wages, coverage of attorney’s fees, and cost of denied credit. Also, check the company with your local better business bureau, your local consumer-protection agency, or the state attorney general’s office to see whether there are complaints on file.

You Can Do This. The Law Is On Your Side.

The key to recovering from credit fraud is patience and organization. Take advantage of toolkits that are available, and be encouraged by consumer laws and organizations that allow you to advocate for yourself. But first, go out and buy a crosscut shredder, a good investment for your financial security.

Additional Resources

FTC's ID Theft Site
FTC's Credit & Loans Page