3-Free-Credit-Reports

How to protect yourself against Identity Theft:

Help Prevent Identity Theft By Using PC Magazine's Highest Rated Identity Theft Product - IDENTITY GUARD® Free for 30 Days.

Now that you have worked so hard to maximize your score, you don’t want to see it compromised because you fall victim to identity theft. We don’t want to scare you, but this is a very real problem about which all consumers should be educated. This chapter gives you a crash course in identity theft: what it is, how it happens, and how you can protect yourself and your credit score.

Just a decade ago identity theft was a rare occurrence. Now identity theft affects almost 10 million Americans each year. People take precautions to protect their belongings: installing car alarms, home security systems, and locking doors. However, most people take no action to protect one of their most valuable assets: their credit and their identity.

Thieves can dig through your trash; break into your home; access your bank account via the Internet; pick up a receipt at a point of sale; and even use scan mechanisms in ATM machines to read the magnetic strip on your card. No one is safe from potential identity theft.

If your identity is stolen, immeasurable harm can be caused to your credit, finances and reputation. You can be denied credit, see your insurance rates rise, be pursued by collection agencies, be denied employment, and even find yourself arrested.

Your identity is comprised of numbers, names, addresses, and records, such as your social security number, driver’s license number, phone number, zip code, and date of birth.

This is your financial fingerprint. Identity theft is the illegal act of the acquisition and use of any of this personal identifying information.

There are many methods used by identity thieves, and they are getting more creative daily. Some methods are simple thefts of a purse, wallet, receipt, or your mail while others are far more complex. Becoming aware of these methods is important for your personal defense.

Dumpster Diving : Your mail is valuable to identity thieves. Within hours of stealing credit card statements from your garbage, a thief can buy a cell phone service, order pornography, apply for a new credit card, drain your bank account, and run up your credit limits. A name and current address is all that’s needed to forward your mail to a new location, and this only takes seconds. What you can do to prevent this is to make sure you shred all identifying information in your junk mail before putting it out with the recyclables!

Eavesdropping: Someone standing alongside you at the bank or ATM can often see your PIN number and other private information. ATM transactions at machines outside of banks and casinos are considered high risk. Use common sense when using the ATM, and have your wits about you!

Skimming is another way your personal information can be stolen. Skimming is when your card is run through an electronic storage device connected to an actual credit card scanner. As you check out with your purchases, a thief gets your name and credit card number.

Phishing : This can happen from an email, Internet website, or even over the phone. Often times, the request appears to be a legitimate notice from your bank or another company you do business with. They request personal information and expect you to provide it to them – always be skeptical and call your bank to confirm any request before responding via email!

Smashing : The tactic is relatively new, and most consumers are not yet aware of suspicious text messages to cell phones and hand held devices. This scam begins with a text message, which looks legitimate. The message claims that the consumer will be charged a subscription fee for access to the site and the charges can only be stopped by visiting the website and canceling the subscription. Then your personal data can be collected from the cancellation process, which requires entering personal information. In other cases, Trojan horse software self-installs on your computer to steal pass codes, private files, and much more.

Hacking: Thieves also break into secure databases or personal computers to obtain credit card, bank account, social security numbers or other information. Experienced hackers use bots. Bots are software programs that can steal thousands of identities at once.

Browsing : While social networks are a fun and easy way to communicate with friends and family, many people post identifying information on these public websites. Thieves simply browse these sites collecting personal information. Be careful what you post about yourself!

Searching : Just searching on your name in a search engine like Google can reveal a surprising amount of information. Government registers and public records searches can be a goldmine for identity thieves.

Help Prevent Identity Theft By Using PC Magazine's Highest Rated Identity Theft Product - IDENTITY GUARD®, Free for 30 Days.

What Can Happen to You?

Sometimes thieves do not charge anything to your existing credit cards. They use your name and credit history to get another card in your name. Then payments are not made, and before you even know you have a new account in your name, you have bad credit.

After running up your bills, some criminals even file bankruptcy in your name. Suddenly, your credit is ruined.

Savings and checking accounts can be depleted and if you have overdraft protection, your account can rack up huge overdraft fees. If the thief is stopped by the police, he or she might give the officer a fake I.D. with your name. When the thief is cited and inevitably fails to show up for court, a warrant will be issued for your arrest.

Criminal records, bankruptcy, and even the denial of employment and medical services could result when your identity is stolen.

How Do You Know If Your Identity Has Been Stolen?

The instant panic of losing a wallet or purse can make your heart skip a beat. You know you’ve lost your valuables and begin retracing your steps. Unfortunately, identity theft can sometimes go on for months before you notice a thing.

Some warning signs are obvious, such as purchases that appear on your credit card statement that you did not make, or money missing from your bank account. These are easy to see, but thieves know how to get the most out of your identity before you notice anything. Here are the signs you don’t want to miss.

The 8 Warning Signs

Warning Sign #1: No bills

In this case, no news can be bad news. If your mail is sparse and the bills stop coming, this could be a sign your mail is being stolen from the box or diverted to another address.

Warning Sign #2: Small charges

Even if a small amount is out of place on your credit card statement you need to take action. If you don’t recall the date, location, or dollar amount, something is wrong. Some scam artists begin charging small amounts to test the stolen numbers or your reaction. Once they feel confident they are undetected, they increase the amount of each withdrawal or charge. Question any erroneous charge, no matter how small.

Warning Sign #3: Mysterious deposits

Most people think that when money shows up in their bank accounts, they shouldn’t look a gift horse in the mouth. If money that you never deposited shows up in your account, you need to immediately find out where the funds originated. Identity thieves will make deposits to establish credibility with another company or check their data. While fraudulent charges are suspect, surprise deposits are too.

Warning Sign #4: Strange creditors calling

If you receive a call from a collection agency, take the call seriously. Someone else may have used your good credit. Do not hang up on a creditor just because you think the call is a mistake. Do not provide them with information; just find out what they are trying to collect.

Creditors may send you letters if your mailing address hasn’t been changed, or they might even show up on your step. Listen to what they have to stay; the details they provide about your alleged debt may help you rescue your identity.

Warning Sign #5: Unexpected mail

Don’t toss aside mail about a purchased item or service or a warranty on a new product you didn’t buy. This might be your first sign that you are victim of identity theft.

Warning Sign #6: Credit trouble

If you are turned down for a loan or stalled for credit, find out why. Rejection, especially when you know your credit score is good, can be a sign of trouble.

Warning Sign #7: Rising insurance rates

Identity theft is a possibility if your insurance company claims that premium increases are based on your low credit score.

Warning Sign #8: You are wanted by the police

This would certainly be the most extreme case, but it has happened. If you are suddenly summoned or arrested for an outstanding warrant you know nothing about, do not presume the police have made a mistake. They are doing their job and might be victims of information theft also. Seek legal help immediately and check your credit report. Police may discover that your identity is the hands of more than one criminal. If this is the case you could be in for a long battle.

Help Prevent Identity Theft By Using PC Magazine's Highest Rated Identity Theft Product - IDENTITY GUARD®, Free for 30 Days.

How to Recover From Identity Theft

Successfully recovering from identity theft depends entirely on how quickly you respond. Of course prevention of identity theft is a better tactic, which we will discuss in more detail later. If your information has already been compromised, you must take immediate action. By the time you discover fraudulent activity, a great deal of damage has likely already been done.

Identity rescue is a long process that begins the minute you recognize the trouble. Depending on the circumstances, some steps may be repeated or omitted.

Emergency Steps

Step 1. (In The First Hour) Make the Calls. Inform your bank and/or creditor that you suspect fraud. Because financial companies require that they be notified in writing, you should call and then write a letter containing the facts of your case and your complaint. Calling and submitting your case by mail are both necessary to back up your information and reinforce the need for immediate action.

Close your accounts immediately and create new ones with very different passwords. If an identification card or license is missing, call the issuing agency and have the document cancelled. New cards with new numbers should be supplied as soon as possible.

Your social security number cannot be easily or quickly changed, but all three national consumer reporting agencies provide a toll free fraud alert number. As soon as the credit bureaus are notified, your credit report is flagged to prevent someone from establishing new cards.

Most utility companies and retail creditors are reluctant to help fraud victims. They view writing off the loss as much easier than helping you. You should contact every company that sends you a bill, even if you don’t expect much cooperation. You may get lucky, and alerting the provider to fraud just makes good sense.

Step 2. (In the First Day) File a Report. An official identity theft complaint must be lodged with the Federal Trade Commission right away. This can be done online, and should be printed for your records. The FTC does not resolve identity theft issues, but a copy of an official complaint is required to file a police report. Having a copy of the complaint form with you when you go to the police station will help back up your information and make sure the correct details are included in the police report.

There are several advantages to filing a police report when your identity has been stolen. A police identity theft report is needed to guarantee legal protection. Having one entitles the victim to certain protective rights. For example, a fraud alert is placed on your credit report and creditors are banned from attempting to collect payment on current fraudulent debts. Falsified information such as address and account numbers are blocked from appearing on your credit report. The debt amassed by the thief cannot be sold to a different agency for collection, and any debts that are successfully removed from your credit report are certain not to reappear.

Rescuing your identity is much easier when there is a police report to support your claims. The facts of your case are recorded in detail, which advances the investigation. Also, information about the thief’s transactions and copies of any credit card applications cannot be released without a written request that includes an official police identity theft report.

A thief can wreak havoc on your finances and your life within moments of assuming your identity. Responding quickly can slow down the criminal. Responding thoroughly can immobilize the entire operation.

After the dust has settled, you will have some decisions to make about the long term protection of your credit. An initial or extended fraud alert can be placed on your credit report by contacting the credit agencies, or you can opt to freeze your account.

Initial Fraud Alert

Pros: This kind of alert can be placed on your credit report whether you are a victim of identity theft or suspect that you may be victimized. Lenders and creditors must appropriately verify information before issuing credit to anyone who claims to be the rightful owner of your identity. Additionally, you are allowed one free copy of your credit report from each of the three major consumer reporting agencies.

Cons: Initial alerts remain in place for only ninety days, which is not necessarily enough time to be certain that your credit is safe. Also, the policies creditors follow to confirm your identity are not infallible. Identity thieves easily slip through security measures.

Extended Fraud Alert

Pros: An extended alert stays in place for seven years. Before lending any money, creditors must contact you to verify your identity. One of best advantages of an extended fraud alert is that your name is temporarily removed from credit card marketing lists. That means you get five years without pre-approved card applications crowding your mailbox. Also, an extended alert guarantees you two free credit reports within a year.

Cons: An extended fraud alert can only be placed on your credit report if you have already become a victim of identity theft. To obtain the alert you must provide an identity theft police report or a completed identity theft complaint form from the Federal Trade Commission .

Credit Freeze

Pros: You gain complete control of your credit report without negatively affecting your score. A credit freeze eliminates any opportunity for a thief to open new accounts in your name. Except for the companies you have previously worked with, all new lenders or other parties must receive clearance from you before being allowed to access to your information. This restriction provides slightly even more protection than a fraud alert. Most importantly, you will still be allowed to view your credit report no matter what level of protection you choose.

Cons - Freezing your credit report is not available in all states. In the states that allow consumers to freeze their accounts, some restrictions apply. Freezes may be limited to actual victims. In some states, placing a freeze on your account may not be a free service as opposed to fraud alerts. If freezing a report does come at a price, keep in mind that price has to be paid to all three consumer reporting agencies. Temporarily lifting and then reinstating a freeze may also cost consumers a fee. To freeze your account, you will need to contact each of the three credit agencies to initiate a freeze and find out more about costs and other questions.

Creditors will still be able to send you pre-approved credit applications, and in some states non-lending institutions like employers and insurance companies can still access your credit report.

The Best Solution is Prevention

Fraud alerts and credit freezes are effective in stopping identity thieves from opening new accounts in your name. They increase the amount of security used to protect your credit report from criminals and allow you to more closely monitor any activity. They are not, however, a solution to identity theft.

Any fraud that was taking place at the time you placed a fraud alert or credit freeze on your credit report may continue. New accounts cannot be opened if they require a credit check, but existing cards and lines of credit can still be used.

Finally, neither a fraud alert nor a credit freeze will prevent an identity thief from establishing accounts that do not require a credit check. Even with a fraud alert or credit report freeze, an identity thief can establish telephone services, obtain medical care, or open a bank account.

Help Prevent Identity Theft By Using PC Magazine's Highest Rated Identity Theft Product - IDGUARD, Free for 30 Days.

Tips for Prevention

Your number one defense against identity theft is knowledge. When you know why and how thieves steal your identity and what they do with your personal information, you’ve increased your ability to protect yourself.

The Three Steps to Prevention

Step 1: Monitor

Early detection will help you minimize the damage to your financial life, but prevention should be your primary objective. Watch your credit report and be aware of changes in your bank and credit accounts. Check for unusual credits and charges often.

Note in your calendar when you expect bills to arrive, and call customer service if they’re late. Inspect your mail carefully, and never haphazardly throw out unwanted advertisements, especially ones for pre-approved credit cards. Shred, shred, shred! Be proactive in your search for suspicious activity, and never assume fraud will be blatantly obvious. Bank statements do not come marked with little red flags.

Step 2: Minimize

Defend your assets from criminals by minimizing their opportunities to steal your information. Always do the following:

Be discreet when conducting business at your bank, when making purchases, or at an ATM.
Do not share your personal information with anyone you do not know. Never carry your social security card or a written copy of your number on your person.
Clean out the glove compartment of your car. This could be an easy target for a criminal if you keep personal information there.
Get your mail out of your mailbox as soon as possible each day. If possible, get a secure post office drop box.
Shred anything with personal information that is going to the trash can.
Do not sign the back of your credit cards. Signatures can be forged, and do little in terms of security. Instead, write, “Request Photo I.D.” on the signature box.

Step 3: Multiply

When you have the knowledge of detection and prevention, help the people around you protect themselves. When more people are taking prevention measures, thieves will become discouraged.

Identity Theft Protection Services