Avoiding Identity Theft

Your identity is one of your most valuable assets. Protect yourself by knowing where your identity is exposed and how to defend it against identity thieves. A small effort on your part to change key habits and practices could keep you from becoming a victim.

Identity theft (also known as identity fraud) is the misappropriation of another person's identifying information in order to:
• obtain credit fraudulently from banks and retailers;
• steal money from the victim's existing accounts;
• apply for loans;
• establish accounts with utility companies;
• rent an apartment;
• file for bankruptcy;
• obtain a job; or
• achieve other financial gain using the victim's name.

In true identity theft, an identity thief uses another person's Social Security number and other identifying information to fraudulently open new accounts for financial gain. Victims may be unaware of the fraud for an extended period of time, which can allow the criminal to continue the ruse for months or even years.

How your identity can be stolen
An identity thief needs only a few strategic bits of information — your Social Security number, your birth date, perhaps your address and phone number — to commit fraud. With this and a fake driver's license (with the criminal's picture where yours should be), the thief can often get instant credit in your name. The criminal may provide his or her own address, claiming to have moved, and thus keep you in the dark. The more accounts the criminals are able to open, the more "evidence" they have that your identity belongs to them.

Anything you can do to keep criminals away from the following personal data helps to reduce your risk of identity theft. Here are some recommendations; (Ignore them at your own peril):

Your SSN
Your Social Security number is the key to cloning your identity. Therefore:
• Do not carry your Social Security card in your wallet. Avoid carrying cards that display your SSN — notably health insurance cards, unless needed to receive care.
• Never give your SSN, credit card number, or other personal data by phone unless you have an existing relationship with the business or agency AND you initiated the call using a verified phone number. Always verify the other party's authenticity.

Your bank accounts
• Frequent monitoring of your bank accounts will help to detect and stop fraud. Research indicates that the risk and size of fraud loss for consumers who frequently monitor their accounts online is lower than those who don't monitor accounts regularly online.
• Monitor and reconcile your check activity by viewing check images online. Many financial institutions offering checking accounts provide you with the ability to view the check images online. Regularly viewing these check images online helps stop check fraud.

Reduce paper transactions
• Use online bill pay and e-bills to remove confidential information from the mail and improve tracking of payments. Many financial institutions now offer free online bill pay.
• For all your financial accounts, enroll in online statements and choose to receive your monthly account statements online instead of receiving a monthly paper statement. Research indicates greater than 10% of identity theft is caused by stolen mail or trash.

Mail and marketing lists
• Never place outbound mail (at work or at home) in an open, unlocked mailbox.
• Never leave mail in your car. During long absences, have mail held at the post office or have a trusted neighbor pick it up.
• Investigate immediately if expected bills or statements from financial institutions do not arrive on time. Be especially watchful in January and April when tax documents are sent.
• Never simply discard "pre-approved" credit offers you receive in the mail. Always shred them.
• To keep pre-approved credit offers from being sent to you, remove your name permanently from the mail offer lists by visiting www.optoutprescreen.com. You can also opt out by calling 1.888.5OPT.OUT (1.888.567.8688). But you'll need to call again in 5 years.
• Add your name to the National Do-Not-Call Registry at www.fcc.gov/cgb/donotcall. Add your name to name-deletion lists used by nationwide marketers at www.dmaconsumers.org/consumerassistance.html.
• Whenever possible, say "No" to the sharing of your data by financial institutions, credit card companies, and insurance or investment firms.

Trash and shredding
• Shred anything that contains your name, address, or other sensitive data before discarding, using a crosscut shredder — including invoices, receipts, statements, personalized pitch letters and envelopes, catalogs, and pre-approved credit offers.
• Don't discard sensitive documents at work unless you're sure they'll be shredded properly.
• Take your trash out immediately before it is due to be collected. Don't give identity thieves time to go through your trash.

Your checks
• Never let merchants write your SSN on your checks. It's illegal in many states, and it puts you at risk.
• Do not have your SSN, driver's license number, or home phone number printed on your checks. If you have a P.O. Box, use that instead of your home address.
• Don't leave outbound envelopes containing payments in a home or office mailbox for pickup, in a car, or in any other place where they might be stolen. Checks can be altered and cashed, and provide the thief with your account information.

Credit, debit, and ATM cards
• If a new or reissued credit card that's been mailed to you does not arrive on time, contact the issuer immediately.
• Minimize the number of credit cards you use, and carry only one or two at a time. Cancel unused accounts to reduce your exposure. However, be aware that canceling credit cards may affect your credit score adversely.
• Review your credit card statements, bank statements, and phone bills (including mobile phones) carefully each month for unauthorized use.
• Keep a list or photocopies of credit cards, bank accounts, and investments in a secure place (not your wallet or purse). Include account numbers, expiration dates, and phone numbers for customer service and fraud departments, so you can contact them quickly.

Credit reports and credit files
• Check your credit reports as frequently as possible, at least twice a year. Under the FACT Act, U.S. consumers are entitled to one free credit report each year from each of the three major credit bureaus. For details, visit www.annualcreditreport.com.
• Enroll in credit monitoring to track changes to your credit file. Enroll in fraud monitoring (non-credit database monitoring) to be warned of attempts to alter or acquire your identity data.
• Check your Social Security Statement each year for signs of fraud. The Social Security Administration mails this statement to adult SSN holders about three months before their birthdays.

Shopping and application forms
• Never toss credit card receipts into a public trash container. Always take them with you and shred them at home. Carry receipts in your wallet, not in the bag, so you don't mistakenly throw them out.
• When signing a credit card receipt, note whether your entire account number is displayed, or merely the last four digits. If the entire number shows, cross it out before leaving the signed receipt behind
• When paying a bill with a credit or debit card, always keep the waiter, cashier, or bartender in view. Pocket-sized "skimming" devices can capture your credit card information for later use.

Web sites and email
• Do not provide credit card numbers or personal information on any web site if you aren't sure the site is authentic. Choose companies with secure transactions and strong privacy and security policies.
• Never open spam and other email from unknown sources — it may contain viruses or other programs that make your computer vulnerable to intrusion.
• Never click on a link in an email claiming to come from a financial institution or business, and never provide personal or account data in response. The email may be a fake sent by "phishing" scammers.
• When entering personal information online, even on well-known web sites, watch for signs that you've been redirected to a "cloned" replica site where your data can be captured without your knowledge (a fraud technique called "pharming"). Such signs include odd error messages, unexpected page design or content, or other strange site behavior.

Computers and networks
• Install a firewall on your home computer to keep hackers out — especially if you connect to the Internet by DSL or cable modem. Install virus protection and keep it updated. Some viruses are designed to send sensitive data to identity thieves from your computer.
• Before disposing of a computer or hard drive, remove data using a strong "wipe" utility program. Do not rely on the "delete" function to remove files containing sensitive information.
• If possible, encrypt sensitive data that is sent or stored in digital form.
• Always store personal files and data securely in your home, especially if you have roommates, employ outside help, or have service work done in your home. (This applies to paper as well.)

Passwords and PINs
• Never use the last four digits of your SSN, your mother's maiden name, your birth date, your middle name, your child's name, your pet's name, or anything else that's easily discovered or guessed. If your financial institution uses the last four digits of your SSN as your default PIN, change it.
• Memorize all your passwords. Combine letters and numbers and change your passwords frequently. Don't record them on anything you carry in a wallet or purse. Ask financial institutions to add extra security to your account by requiring an additional code or password.
• Password-protect computer files that contain sensitive personal or account data.
• Shield your hand at an ATM or when making long distance calls with a phone card. Shoulder surfers may be nearby with binoculars or cameras. Avoid giving personal data by phone in a public place.

If You Do Become a Victim
While you can take all the precautions to reduce your risk of identity theft, the fact remains, anyone can become a victim. If this should happen to you, immediately contact key parties and file a police report.