5 Ways to Protect Yourself from Identity Theft
Identity theft is one of the top crimes you should be concerned about. It is also one that you can and should take steps to prevent. Identity theft happens when someone takes your personal identity and uses it to obtain credit cards and various types of secured and non-secured loans.
Fixing the problem can be a long and exhausting process. Due to the escalation of identity theft there is a Fair and Accurate Credit Transactions Act (FACTA) that requires the credit bureaus to remove the contested information from your credit reports while the problems are being investigated.
Prevention is the best way to fight identity theft. Here are 5 ways you can do so.
#1. Write, “ask for signature” on the signature line of your credit cards. This will require the store clerks to check for your signature on your driver’s license.
#2. If you do not have a secure mailbox, one that must be accessed with a key, go to the post office and get a P.O. Box. The same goes for your outgoing mail. Never place it in a non secure mailbox.
#3. Never carry your social security number with you. It is better to memorize the number. In addition, never give the number out unless you absolutely have to. If you are asked to give it out, make sure you understand why it is needed and if it is possible to avoid doing so. For instance, health clinics may request this information, however, it is only a formality and in many cases it is not required.
#4. Buy a paper shredder. Shred all documents that may allow someone to acquire more information about your identity. You should shred all invoices from credit companies and anything else that has account numbers that you don’t want anyone else to have. Paper shredders are not that expensive. It is well worth it to take the time to shred documents that could allow someone to steal your identity.
#5. A highly effective way to prevent someone from obtaining your credit report from the credit bureaus is to request each bureau to place a fraud alert on your account. Every time someone requests a credit report on your account, the credit bureaus are required to call you. The good news is, you also will obtain a free credit report. The bad news is, you will no longer receive instant approval regarding any applications for credit.
In addition to taking steps in preventing identity theft, did you know that once you report any credit card missing or stolen or if you report the card missing or stolen within 2 days, you are not liable for any transactions that are made on that card. If you report the card stolen or missing from three days to thirty days after it is stolen you can only be held responsible for $50.00.
Remember, prevention is the best solution to identity theft.
Credit Reporting Myths Busted
#1. Credit Bureaus Have Governmental Authority—FALSE:
Credit Bureaus are a business. They are in it to make money. They are not run by the government. However, they must abide by specific laws and regulations that were formed to protect those of whom they gather information on. Credit bureaus are simply agencies that gather information that we allow them to access.
The truth is, we could keep all of our financial details private if we never applied for a loan or credit. In addition we would have to make sure that the bank where we kept our money did not report to the credit agencies.
Anytime we decide we would like to borrow money, the lender is allowed to share our financial status with the credit reporting agencies. This is something we agree to do when we apply for the loan or a credit line.
Although credit agencies are not run by any governmental system, they are in fact, under strict guidelines as to what they can and cannot report. In recent years, there have been many new laws that are extremely helpful to the credit consumers.
#2. You Can Start Over by Changing Your Social Security Number– FALSE
There are companies that claim they can totally wipe your slate clean by attempting to pull your credit file with a variation in your social security number or by using social security numbers from deceased individuals who have a similar birth date as yours. This is illegal, it is fraud, and you could be fined if you are caught.
If the request made returns stating there is currently “no record” for that social security number, these scam artists can begin building your new credit profile with it.
In addition they may try to use your Federal Employee Identification Number (FEIN) in place of your social security number.
Does it work? Sure. However, in addition to your brand new credit profile, you now have established another new profile. That would be one of a criminal nature. It is a Federal crime to misrepresent your social security number as well as trying use or obtain an FEIN for the purpose of establishing a new credit file.
It is also a crime to falsely represent yourself on any credit application.
#3. You Have No Control as to What is Reported in Your Credit Profile–FALSE
You absolutely have control over your credit report. Any information that cannot be proven to the credit bureau by a creditor must be removed. There are several ways you can improve your credit report. One way is to go directly to the credit bureaus and dispute the negative reports. Another way is to go directly to the creditors and negotiate with them.
What you dispute and how you negotiate is up to you. The point is, you CAN successfully create changes in your credit report on your own. It in only a matter of educating yourself as to what you can and cannot do.