Prevent Identity Theft

Identity Theft is at an time record high.  Today you have to take the proper steps to prevent someone from causing you great financial harm. 

Shred all pre approved credit offers.  Don't just throw away the unsolicited Junk Mail with credit card or home equity offers.  Identity thieves can take this information to activate a new account and change the billing address so you wont be aware of the fraud until you apply for credit.  One of the best ways to defend against this type of fraud is to "Opt Out" of Prescreened credit offers. 

A Prescreened Credit Offer is based on information in your credit report that indicates you meet criteria set by the offeror.  These "Pre Approved" offers have quite a bit of your important personal financial information.  In the wrong hands this information can be used to commit credit fraud.  By choosing to opt out you can reduce the amount of junk mail and phone calls from various vendors.  There are 2 ways to opt out.  Call 1-888-5-opt-out (1-888-567-8688) or by filling out a form online at www.optoutprescreen.com 

For additional information you can click on the following link that will take you to The Federal Trade Commission http://www.ftc.gov/bcp/conline/pubs/credit/prescreen.shtm

 Check your statements.  Check your billing statements each month for any unusual activity and report anything out of the ordinary right away.  If you are not receiving your statements on time it is possible someone may be using a false change of address to delay your finding fraudulent charges on your account.

Put a password on your credit card accounts.  Use a password that is different from your mothers maiden name. Your mother's maiden name can be found online, sometimes even on your credit report.

Always ask who needs to know.  Always protect your personal financial information when talking with someone.  Even when dealing with merchants, creditors, government agencies, educational institutions and employers, and others- ask yourself if they really have a valid need for the information they are requesting.  Don't always automatically fill in every blank on every form.  Be careful when filling out applications if others can see your answers.

Keep your numbers to yourself.  Don't put your credit card numbers on checks.  Don't give account numbers over the phone unless you made the call.  If being requested to give any financial information in a call or email, call the vendor in question from a phone book listing or your statement.  Don't trust the number the caller is giving it could be a false number 

View your credit report at least one time each year.  Under federal law you are entitled to a free credit report from each of the three main credit bureaus- Equifax, Experian, and TransUnion.  Ask for a copy of your credit report once a year from www.annualcreditreport.com to check for fraudulent information or inaccuracies.

All of my clients are allowed a free credit report once a year so we can go over their accounts looking for inaccuracies, fraudulent inquiries, accounts they did not open as well as ways to increase their credit scores.  Higher credit scores will improve interest rates on credit cards, car loans and most importantly home mortgage interest.

Actions to take if you discover identity theft.

If you do find fraud contact the fraud departments of each of the three major credit bureaus.  Tell them to note your file with a fraud alert so creditors should get your permission before opening any new accounts.  Recheck your report in a few months to make sure the activity has stopped.

Contact your creditors and advise them you are the victim of fraud.  Ask to speak with the fraud or security department, then follow up with a letter to resolve errors on your credit billing statements, including charges that you have not made.

File a report with your local police or the police in the community where the identity theft took place.  Keep a copy in case your creditors need proof of the crime.

File a complaint with the FTC

If you've been a victim of identity theft, file a complaint with the FTC by contacting the FTC's Identity Theft Hotline by telephone: toll-free 1-877-IDTHEFT (438-4338); TDD: 202-326-2502; by mail: Identity Theft Clearinghouse, Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580; or online: http://www.consumer.gov/idtheft. Ask for a copy of ID Theft: When Bad Things Happen to Your Good Name, a free comprehensive consumer guide to help you guard against and recover from identity theft.