How to avoid becoming an identity theft victim

  • Published
  • By Maj. Andrew Krog
  • Air Force Special Operations Command judge advocate office
HURLBURT FIELD, Fla. (AFPN) --  According to the United States Postal Service, identity theft is America’s fastest-growing crime. The Federal Trade Commission estimates up to 10 million Americans become victims of identity theft every year. If you become a victim, you will have to pay about $500-$1000 and spend 30-60 hours of your time trying to fix the financial damage, and it will still take years to fully repair your good credit!

Although newer forms of identity theft such as “phishing” (where thieves send phony email messages trying to trick people into giving up personal information) and “skimming” (using fake credit card readers to steal electronic data) have gotten a lot of attention lately, a recent study found that the most common identity theft cases still occur the old-fashioned way: thieves stealing someone’s wallet or checkbook and running up debt on their accounts.

A distant second are cases where friends, relatives or acquaintances have access to personal information and loot the owner’s account, followed closely by theft of personal information from businesses by employees, stolen mail or a fraudulent post office change of address, computer “spyware” and other viruses, and personal information harvested from people’s garbage.

The last example can sometimes yield a stunning amount of information. During a recent inspection at Moody Air Force Base, Ga., inspector general representatives on a “dumpster dive” found so much personal information on one individual, including her Social Security Number, full signature, and bank account number, that they could have easily stolen her identity!

With all the threats out there to your personal information, the most important thing you can do to avoid becoming an identity theft victim can be summed up in two words: PAY ATTENTION! Identity theft victims who monitor their financial accounts online average only about $500 in losses, compared to almost $4,500 in losses for those who relied on paper statements.

Check your credit report at least once a year to look for changes or errors; a recent Federal law entitles every American to one free credit report annually from each of the “big three” credit reporting agencies (Experian, TransUnion, and Equifax), and by June 1, people living almost everywhere but the Northeastern U.S. (which won’t be phased in until Sept. 1) will be able to get three free reports a year!

Next, protect your personal information. Limit the number of credit cards you carry in your wallet or purse, and avoid carrying Personal Identification Numbers in your wallet. If you must write a PIN down to remember it, try to disguise it as a phone number or anything other than a PIN. Don’t just throw away sensitive information such as bank statements, leave and earnings statements, or those annoying “convenience checks” that keep flooding your mail; these documents should be shredded to keep important account numbers safe.

Finally, be suspicious of Internet traps. By and large, most telephone and online financial transactions are safe and secure, but keep alert for scams. Your bank should never have to call you and ask for your account number, and Bank of America will never send you an email asking you to update your PIN. If you get information saying there is a problem with your account, call the bank or company directly.

If you become a victim, the first thing you should do is contact the Federal Trade Commission. The FTC has a lot of good information in one location to help quickly stop your losses and begin repairing your credit. You can reach the FTC by calling their ID Theft Hotline at 1-877-IDTHEFT or via the Internet at www.consumer.gov.

The next thing to do right away is call one of the three credit reporting agencies and request a “fraud alert” be placed on your credit report. A fraud alert on your account is a 90-day tag, which you can renew as needed for up to seven years, that will prevent changes or new accounts without personal verification that the requester is you. It also gets you a free credit report. The law requires that if one of the “big three” is notified of a fraud alert it must inform the other two, so you only have to call one.

Once you have done that, make sure you have a pad and pen handy, because you will want to make a record of all the calls you will soon be making. You need to call all your creditors immediately to close your accounts and dispute any charges you didn’t make. Take notes of who you called and when, and make sure you get names and work centers too, in case you have to argue with the creditor later. If you actually talk to someone in person, make sure you log that visit as well.

You should also file a police report. Even though many times there is little the police can do to recover your losses, a police report will come in handy when you are trying to convince a credit company that you were an identity theft victim and not just another deadbeat debtor.

There is one last item of special protection that military members can use to avoid becoming an identity theft victim. Congress recently created an “active duty alert” that can be placed on your credit report to give you additional protection while you are away from home. An active duty alert will require creditors to call you (or your designated representative, if you granted a power of attorney) or otherwise positively confirm your identity before extending any credit on your account. It will also restrict creditors from sending you “pre-screened” or “pre-authorized” credit offers. Active duty alerts are created exactly the same way as fraud alerts, will last for 12 months, and can be renewed as often as required. All you need to get an active duty alert is to be on active duty and have TDY orders or be scheduled to deploy.

In an increasingly digital world, the threat of identity theft will likely grow ever larger as thieves and swindlers cook up new ways to part inattentive people from their money. By protecting your personal information and keeping a vigilant eye out for any suspicious activity, you can significantly reduce your odds of becoming a victim.