Protecting Yourself from Identity Theft
Watching over your finances can prevent big problems
by Ellie Kay
Due to new federal consumer protection laws, everyone is allowed to receive one free copy of their credit report per year from each of the three credit report agencies—Equifax, Experian and TransUnion. Since there are three, it means you can get a free copy every four months. Remind yourself to order one of the three free credit report copies every four months. This tiny tip can save you big bucks and/or a major migraine when it comes to identity theft or other credit-related headaches.
What else can you do to keep yourself safe from the ever-growing threat of identity theft? Learn to identify the latest scams:
PHISHING
Never give your social security number, account numbers, date of birth or other personal information via e-mail or on the phone unless you initiated the contact. Most major Internet sites and financial institutions have been targeted, including Citibank, PayPal, eBay, Bank of America, Wells Fargo, the Internal Revenue Service and America Online. These scams usually show up in your inbox with a message from the “System Administrator” telling you to perform some urgent maintenance on your account.
NIGERIAN EMAIL
This attempt to obtain your information has been around for at least 10 years and is sent out to victims via letter, fax or e-mail. The message states the sender has millions of dollars and needs help to transfer it out of Nigeria or other African countries.
AUCTION FRAUD
This is the second-most reported consumer fraud complaint to the FTC, totaling 51,000 auction complaints in 2005. The fraud is simple—put up a fake ad on eBay, let someone “win” the bid and send in their money, but never send out the merchandise. To avoid such scams, make sure the seller has an established history before you click “buy.”
IDENTITY THEFT OR CREDIT REPAIR
The FTC has warned that some companies that claim to be identity-theft prevention companies are scam artists trying to get your driver’s license number, mother’s maiden name, Social Security number and credit and bank account numbers. If you are unsure about a firm, check it out with the Better Business Bureau at BBB.org
PRIZES
If someone calls you on the telephone and offers you the chance to receive a major prize but insists on gathering personal data first, ask them to send a written application in the mail. If they refuse, then hang up.
CREDIT CARD APPLICATIONS
Consider getting a secure mailbox (key access), since many identity thieves like to take your mail directly from the box (or from the trash), fill out your credit card applications and put their address in the information box. Always shred credit card applications and contact your credit card companies to never release this information to other companies.