 Identity theft has become a huge problem for many Americans. The Federal Trade Commission issued information in 2007 about the topic.
Here are just a few of their findings.
- Fraud cases accounted for a loss of $1.2 billion.
- Eighty-nine percent of the consumers reporting fraud also reported an amount paid (in other words they paid a bill they didn’t charge before they actually reported the problem).
- 64% of fraud complaints came from Internet solicitations.
- Credit cards are the most common form of identity theft.
- The metropolitan areas with the highest rates of reported identity theft per capita were Napa, California; Madera, California; and Greeley, Colorado.
- The FTC ranked identity theft as their most common complaint. They receive four times the complaints for this problem than the next complaint – home shopping.
- 65% of all fraud victims do not report the fraud to police.
It is critical that consumers work to protect their identity. By being overly protective in this area you are also protecting your present and future credit history.
How exactly do you protect your Identity?
Social Security Card. Be very careful about who you give your Social Security Number (SSN) to. You will need it when you accept a new job and you will need it for many loan types, but you shouldn’t pass it along to someone on the phone indicating it is needed to confirm your identity. If you don’t know the person asking for the number or you feel they don’t need the number then you should not give it to them. Anyone who may print your SSN on a document should be asked if only the last four numbers can be printed instead. Many will accommodate. Do not pass along your SSN over the Internet if at all possible.
Become friends with a shredder. Many documents you may want to dispose of now or in the future may have information a thief can use to steal your identity and set up accounts in your name. Use a shredder on all personal documents. Make it difficult enough for the thief that they leave the harder target alone. Thieves always go for the easy mark.
Ask for a free report. www.annualcreditreport.com is connected with a government mandate that allows consumers to gain one credit report each year at no cost. Other sites exist, but this is the only one that is absolutely free with no strings attached. If you find incorrect information on your report you should call the credit-reporting agency and work with them to have the information corrected or removed. This can even alert you to the potential of identity theft.
Passwords are your friend. Many accounts can be password protected. What this means is that in order to gain access to the account an individual will need a password. A well-chosen password can allow you to resist the affections of a would be identity thief.
Get your creditors involved. You can ask your creditors to call you whenever a credit transaction is pending to ensure that this is something you are charging or using a debit card for. This is often used in situations where identity theft has been discovered or is suspected. I had a creditor call me once when I purchased furniture using a card because it was not a typical purchase for me. It’s good to have the creditor looking out for your interest while they look out for their own.
No one likes to be the target of identity theft, which makes it important to safeguard your identity before someone decides you would make a great target. Use the tips above to help you protect your credit and identity.
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