| Imagine having your bank account drained,
being unable to use your credit cards and seeing your credit rating
trashed. Imagine then spending hour after hour trying to clear
your good name and get your life back together.
Identity theft is the No. 1 consumer complaint reported to the Federal Trade
Commission’s Consumer Sentinel Database. An estimated 500,000 to 700,000
people a year become victims, according to the U.S. Department of Justice.
The scope of the problem may be even worse than this, with the number of consumers
who have fallen prey to identity thieves being significantly underreported, according
to a new study by market research firm Gartner Inc. It estimated 3.4 percent
of U.S. consumers became victims over the previous year.
It’s not just individuals but also organized groups who commit identity
theft, including international terrorist cells, said Jonathan J. Rusch, a lawyer
with the U.S. Department of Justice who specializes in fraud prevention, in a
phone interview. “They’re using more and more sophisticated techniques
to entice people to grant them access to their personal information and more
and more sophisticated technology to access it behind their backs,” he
said.
PHISHING ONLINE
Now that you’ve gotten the daylights scared out of you, rest assured that
by the very fact you’re reading this right now, chances are less that you’ll
become victimized. Identity thieves are more successful against those who don’t
stay on top of things.
This is particularly so online, where identity thieves can have an easier time
finding information about you and profiting from it, if you’re not careful.
The fastest-growing technique is phishing, a practice of using spoofed, or fake,
e-mails and Web sites to trick you into revealing your Web site password, Social
Security number, checking account information, credit card data, mother’s
maiden name and other personal information.
Typically, you receive an e-mail that appears to be from the customer service
department of America Online or an Internet service provider, the online auction
company eBay, the online payment service PayPal or a Web retailer you’ve
done business with. The e-mail contends there’s a problem with your account
and indicates you need to update your billing information. You’re then
directed to a Web site that appears to be from the same company, but actually
has been set up only to steal your identity.
WHAT YOU CAN DO
Federal law and the laws of many states stipulate harsh penalties for identity
theft, though reports indicate that such penalties are seldom meted out. Even
if they were, legislation by itself won’t protect you. You need to cover
your own assets.
Internet service provider EarthLink has been especially active in trying to fight
the problem. It suggests these guidelines, suggestions that others have made
as well:
•
Whenever updating your information online, access the particular Web site through
your “Favorites” or “Bookmarks” menu or by typing in
its address manually. Don’t follow a link in an e-mail you receive.
•
Most legitimate companies store your personal information on a secure Web page,
which will be indicated by a lock symbol at the bottom of your browser window
and the letters “https” in front of the page’s address.
•
If you have any doubts, phone or e-mail the company first, using a number or
address you’ve used before.
You also should use anti-virus software and, if you connect to the Internet using
a cable or DSL modem, firewall software. When creating passwords, make them difficult
to crack: use a combination of letters and numbers. Keep up to date with Microsoft
security patches. If you donate an old computer, shred sensitive files on its
hard disk with a program such as the free AbsoluteShield File Shredder
(www.internet-track-eraser.com).
Identity thieves also can get information about you the old-fashioned way, sorting
through a trash bin or jotting down credit card information at a store. So don’t
neglect low-tech safeguards such as shredding financial statements, checking
your credit card bill every month and reviewing your credit rating every year
or so.
Two well-regarded sites for checking your own credit rating online are Qspace
(qspace.iplace.com), and TrueCredit (www.truecredit.com).
If you do become a victim of identity theft, report it to law enforcement as
soon as possible. You can use the FTC’s toll-free number ([877] ID-THEFT)
or online complaint form. Prompt reporting will help the authorities pursue leads
and find the bad guys.
ARE YOU AT RISK? |
by Judy McKenna
The Denver District Attorney’s Office recently sponsored a conference dealing
with the issue of identity fraud. One of the speakers was a former methamphetamine
user who was a genius at stealing people’s identities. If you’ve
seen the movie “Catch Me If You Can,” you know how someone can produce
false identity cards, checks and other documents, then run away with your money.
Are you at risk for identity theft? Answer the following questions developed
by the Denver District Attorney’s Office and add up your score.
1. I use checks for shopping and carry my checkbook with me in public (10 points).
2. I pay bills with checks and place them in my mailbox or in a corner postal
box (10 points).
3. I do not use direct deposit or electronic transfer for paychecks, refund or
insurance claim checks (10 points).
4. I have new boxes of checks mailed to my home (10 points).
5. I have not “opted out” of my credit card issuers’ marketing
programs and receive “convenience” checks on my card account in the
mail (10 points).
6. I carry a purse or keep my wallet in my back pocket (10 points).
7. I have at least one item in my wallet with my Social Security number printed
on it (10 points).
8. I carry more than two credit cards with me and/or have not copied the front
and back of each card—and know where the copies are (5 points).
9. I do not shred banking/credit/tax information before trashing them (10 points).
10. I used a shredder, but it is not a cross-cut shredder (5 points).
11. I have not called the credit card reporting agencies’ “opt-out
line” to be removed from credit card application mailings ([888] 567-8688)
(5 points).
12. I have not ordered copies of my credit report in two years (10 points).
Scoring
•
100+ points: You are at high risk—more than one million people will become
victims of identity theft this year.
•
50-100 points: Your odds of being victimized are about average.
•
Below 50 points: Congratulations, you have low vulnerability.
One of the most important steps you can take to avoid identity theft is to use
a cross-cut shredder to destroy all documents you wouldn’t want a thief
to get. That Colorado con told the conference attendees, “The number one
way I get identity information is sifting through people’s trash.”
Judy McKenna, Ph.D., CFP, is a family economics specialist at Colorado State
University Cooperative Extension. |
TIPS
ON AVOIDING IDENTITY THEFT
|
by Judy McKenna
Perhaps you’ve always thought that identify theft would never happen to
you. A Federal Trade Commission (FTC) study released in September says that 9.9
million people had problems with identity theft last year that cost them $5 billion.
Financial institutions lost another $48 billion.
Individuals collectively spent 297 million hours trying to get untangled from
losses due to bad checks, fraudulent use of credit cards, stolen Social Security
numbers and more. Nearly half of these consumers had no idea how these problems
occurred.
Here are some tips from the Denver District Attorney’s Office on how to
avoid identity theft. This is a complicated and stressful problem, so do all
you can to avoid being taken advantage of.
•
Reduce the items you carry such as extra credit cards, your Social Security card
and checkbooks.
•
Make sure none of the cards you carry has your Social Security number printed
on it.
•
Cut up, tear into small pieces or use a shredder to destroy all mail and other
documents with your Social Security, bank and credit card numbers.
•
Place mail with checks in a secure post office box or at the post office.
•
Keep a list of contact numbers for your credit and debit cards in an easy-to-find
place. Call immediately when you discover a problem.
•
If you have a problem, contact the three credit reporting agencies:
Equifax: (800) 525-6285
Experian: (800) 311-4769
Trans Union: (800) 680-7289.
•
For more information about identity fraud, go to the FTC’s Web site (www.consumer.gov/idtheft/).
There are a number of brochures available by clicking on “Publications.”
•
Contact Call for Action, (866) 434-6854, for instructions on how to deal with
identity fraud. You can check out its brochure, “Identity Theft Resources,” at
www.callforaction.org.
•
To stop credit card offers, call the Opt Out Line at (888) 567-8688.
•
Remove your name from mailing lists by sending a letter with your name and mailing
address to:
Mail Preference Service
P.O. Box 9008
Farmingdale, NY 11735
•
Check out the information at the nonprofit Identify Theft Resource Center at
www.idtheftcenter.org/index.shtml.
Judy McKenna, Ph.D., CFP, is a family economics specialist at Colorado State
University Cooperative Extension. |
Reid Goldsborough is a syndicated columnist and author of the
book Straight Talk About the Information Superhighway. He can
be reached at reidgold@netaxs.comor http://www.netaxs.com/~reidgold/column.
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