I read this week about the indictment of three men accused of stealing more than 130 million credit and debit card numbers from customers of stores including Hannaford Brothers and 7-Eleven stores. 130 million? Written another way, we are talking about 130,000,000 identities stolen in one case. That is a lot of people who are affected.
What are the odds that you will become a victim of identity theft? Well, the 2006 Federal Trade Commission Identity Thrft Survey Report documents 8.3M reported victims of identity theft in 2005 alone. Predictions indicate that these numbers are rising each year.
What can you do to protect yourself against identity fraud? The FTC recommends the following steps:
1) Protect your Social Security number - Provide this information only when necessary. It is appropriate for your employer and financial institutions to obtain your SSN for tax purposes. Other potential appropriate uses are when you apply for a loan, rent an apartment or sign up for utilities. If you are asked to provide your SSN for a business transaction, it is appropriate to ask the following questions:
- Why do you need my SSN?
- How will you use my SSN?
- How do you protect my SSN form being stolen?
- What if I do not provide my SSN to you?
It is important for you to feel comfortable in disseminating this information. You need to feel comfortable that your personal information will be used in an proper manner.
2) Dispose of personal information properly – Always shred important documents and mail that contains personal information. This includes credit applications, bank statements, credit card statements, medical invoices and expired credit and debit cards.
3) Protect your identity online – Internet fraud is rampant so be sure to only provide personal information and credit/debit card information while using secure and encrypted websites. The federal government has a useful website set up to educate consumers on online safety. Visit On-Guard Online for more valuable tips. If you’re shopping online, look for the Trust-e symbol or a Better Business Bureau online seal. These indicate the seller has been independently audited and deemed trustworthy.
4) Monitor your credit reports frequently – I recently discussed the importance of this in a previous blog post. Check it out again for all of the details.
5) Know your surroundings – When you are at the store, bank or ATM, beware of people larking over your shoulder close enough to obtain your PIN number.
If you determine that your identity has been compromised, there are several important steps you must follow as soon as possible:
- Place a fraud alert on your credit report and obtain a new copy of your credit report. A fraud alert will prevent anyone from opening new accounts in your name.
- Close any accounts that you believe may have been compromised or opened fraudulently.
- File a complaint with the Federal Trade Commission online or by phone (1-877-ID-THEFT).
- File a police report with your local police or in the community where the theft took place. Provide a copy of your FTC complaint and any supporting documentation as part of the police report.
Some people are deciding to purchase Identity Theft Protection. This service varies by provider and offers assistance to consumers as the untangle the mess left behind from their stolen identity. This process typically involves 100+ hours of documentation and phone calls to financial institutions, credit companies and reporting agencies. These agencies typically charge between $10-$20 per month. Some of the leaders in this field are Lifelock and IdentityGuard. Other alternatives include Zander Insurance.
There is not much you can do to protect yourself 100% against having your identity stolen. The best alternative is to minimize this risk as much as possible. By following the steps above and remain diligent in handling your personal information, you can successfully reduce your chances of becoming a statistic in the FTC identity theft report.
photo credits: Andres Rueda and DWZ
Filed under: Identity Theft | Tagged: credit cards, credit report, debit cards, fraud, FTC, Identity Theft
