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IDENTITY PROTECTION
According to recent figures from
the U.S. Federal Trade Commission (FTC), instances
of identity theft nearly doubled in the year 2002.
In fact, ID theft made up 43% of the agency's fraud
reports, placing it at the top of the FTC's list
of consumer complaints for the third year in a row.
Consumer groups now estimate that as many as 750,000
people a year will be victimized by identity theft.
PROTECTING YOUR
IDENTITY
How can someone steal your identity?
By co-opting your name, Social Security number, credit
card number, or some other piece of your personal information
for their own use. In short, identity theft occurs
when someone steals your personal information without
your knowledge to commit fraud or theft.
There are several ways that identity
thieves work:
- They open a new credit card account
using your name, date of birth, and Social Security
number. When they use the credit card and don't pay
the bills, the delinquent account is reported on
your credit report.
- They call your credit card issuer
and, pretending to be you, change the mailing address
on your credit card account. Then, your imposter
runs up charges on your account. Because your bills
are being sent to the new address, you may not immediately
realize there's a problem.
- They establish cellular phone
service in your name.
- They open a bank account in your
name and write bad checks on that account.
- They tap into electronic
files and crack Internet databases of credit card
companies, state Social Security offices, and banks
to obtain confidential customer information and use
it to defraud unsuspecting customers.
MINIMIZING YOUR RISK
In the course of a busy day, you
may write a check at the grocery store, charge tickets
to a ball game, order something off the Internet,
rent a car, mail your tax returns, call home on your
cell phone, order new checks, or apply for a credit
card. Everyday transactions that you may never give
a second thought to are an identity thief's bread
and butter. All of these transactions requires the
sharing of personal information: your name, address,
phone numbers, Social Security number, bank and credit
card account numbers, to name a few. While you can't
always prevent identity theft, you can minimize your
risk by managing your personal information wisely.
CATCHING ID THEFT EARLY
Sometimes an ID thief can strike
even when you've been very careful. One of the best
ways to catch identity theft is to regularly check
your credit record. Order your credit report from
each of the three major credit bureaus every year
and make sure all the information is correct. Be
sure to follow up with creditors if your bills do
not arrive on time. A missing credit card bill could
mean an identity thief has taken over your credit
card account and changed your billing address to
cover his tracks. And, when you're ordering off the
Internet, make sure it's a secured site. Another
important thing to guard is your social security
number. Do not give it out to every business that
requests it. According to the FTC, your social security
number should only be required by an employer, government
agency, lender or credit bureau. If possible, insist
on using an alternative means of identification.
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