PROTECT YOURSELF FROM IDENTITY THEFT

In the last few weeks, Americans and Texans in particular have been reminded of the dangers of identity theft.  In May, the Department of Veterans Affairs revealed that an employee had improperly taken home the personal information of 26.5 million veterans and this information was subsequently stolen.  Just this week, the Texas Guaranteed Student Loan Corporation announced that a similar incident has compromised the personal information of 1.3 million student borrowers.  While these high profile stories garner the headlines, most ID thefts occur in less dramatic ways.

The Federal Trade Commission (FTC) has stated that identity theft is the number one complaint in all fifty states. We live in a day and age in which a series of numbers on your checks, credit cards and Social Security cards tell the tale of your financial health.

If an ID thief can learn your full name, Social Security number and date of birth, he can apply for credit cards, open a cell phone account, or start a new bank account.  Then, the thief runs up huge balances and leaves that person’s credit in tatters and with thousands of dollars in bills.  Moreover, cleaning up one’s credit report requires a tremendous amount of time and energy and can be very stressful.

ID thieves use a variety of methods to get vital, personal information.  They scam, steal, con, or hack information from businesses and institutions.  Additionally, they might steal your mail, which could include credit card statements, offers, bank account information, new checks or tax information.  Another popular means of thievery is ‘dumpster diving,’ meaning going through the trash of a person or business for sensitive personal data. 

They may get personal information from by posing as legitimate companies through email, in a practice known as ‘phishing.’ Or they might lie to you on the phone.

The FTC recommends Deter, Detect and Defend for consumers to protect themselves.  Deter identity thieves by safeguarding your personal information. Detect suspicious activity by routinely monitoring your financial accounts and billing statements. Defend against identity theft as soon as you suspect a problem.
Should you suspect that your personal information has been compromised, it’s vital to take certain steps quickly to minimize the potential damage from identity theft:
• Close compromised credit card accounts immediately
• If someone steals your social security number (SSN), contact one of the three nationwide consumer reporting agencies — Equifax, Experian, or TransUnion — and place an initial fraud alert on your credit reports
• Monitor your credit report. Keep in mind that fraudulent activity may not show up right away
• Consult with your financial institution about handling the effects on bank or brokerage accounts
• Contact relevant government agencies to cancel and replace any stolen drivers licenses or other identification documents, and to “flag” your file
• Watch for signs of identity theft: late or missing bills, receiving credit cards that you didn’t apply for, being denied credit or offered less favorable terms for no apparent reason, or getting contacted by debt collectors or others about purchases you didn’t make
If you monitor your financial information and take precautions when dealing with sensitive personal information, you will significantly decrease the risk of identity theft.