Identify Theft

Every day I hear about more issues with identity theft.  It seems that these thieves are incredibly inventive in finding ways to steal.  They are also becoming very accomplished in using the internet to trick us into revealing passwords and other information to assist them in their theft.  It seems that Identity Theft is now the most common cause of consumer fraud complaints in the United States.

WHAT IS THE RISK? - While some identity theft happens on-line, the majority occurs off-line with thieves intercepting an individual's mail or credit card receipts.  These thieves use a victim's personal information to open credit card accounts, access bank accounts, purchase cars (and even houses) and ruin credit ratings for years.

Identity theft is not like a mugging or a burglary, where there is physical evidence of a crime. You have to convince people you're a victim of a crime, and that can take a considerable amount of time and money. Statistics show that the average identity fraud victim spends 175 hours and
more than $1,000 straightening out the problem.

HOW DO I PREVENT IDENTITY THEFT? - While you can't be certain that you won't be the target of identity theft, there are some things you can do to safeguard against it, including:
*    Invest in a shredder for credit card receipts, billing statements and discarded mail.
*    Avoid giving your personal information, account information or Social Security Number to anyone over the phone or on-line particularly when you did not initiate contact.
*    Obtain and review your credit report on a regular basis.
*    Monitor your credit card statements each month and report any suspicious charges immediately.
*    Tear up pre-approved credit card applications.  They are often targeted by identity thieves who easily convert them to fraudulent accounts.
*    Consider identity fraud coverage.  Some insurance companies offer this coverage as part of your homeowner policy, and it can help defray the costs associated with reclaiming your identity.
*    Don't click on those links provided in an email when they ask for passwords or updating your personal information.  Go direct to the website.
*    When you use credit cards in restaurants and retail stores, make sure your credit card number is not listed on the receipts that they maintain.

WHEN PREVENTION DOESN'T WORK - If you are a victim of identity fraud, take these steps immediately:
1.    Place a fraud alert on your name and Social Security Number.  This alert means that any company that checks your credit knows your information has been stolen, and they must contact you to authorize new credit.
2.    File a police report immediately in the jurisdiction where the ID was lost or stolen.
3.    Cancel all of your credit cards immediately.
4.    Check out the following website for additional information: www.identitytheft.org

Thanks to Diahann Lassus, a certified financial planner in New Jersey for this article.

Sincerely,

Michael Haubrich, CFP