Identity Theft How to Protect Your Name (22 page)

C H A P T E R 9

haps tax return information. If you just refinanced your home and you read in the paper that your mortgage firm was robbed of its computers, you have something to worry about.

Mortgage firms, banks, brokerages, utilities, merchants and others all hold sensitive personal information. While businesses try to safeguard this data,
it’s impossible to plug all leaks.

So, as a consumer concerned about the information these companies hold, don’t be afraid to ask about how they make sure those documents are secure and won’t end up in the wrong hand. Work with an established, trusted company.
Don’t work with a start-up boutique mortgage firm
you know nothing about.

T E L E M A R K E T I N G F R A U D

We’ve all been haggled into staying on the phone longer than necessary to say “No” to a telemarketer, even a legitimate one. But ID theft schemes have also come through crafty telemarketers who not only get you to stay on the phone longer than you want, but they manage to get you to say “Yes” and pass over private information. You might be giving them the information freely just because you’re sick and tired of being on the phone and you don’t know how to hang up.

When you’re fed up with a telemarketer on the other end of the line,
never hesitate to hang up
—right in
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L I F E S T Y L E C H A N G E S

the middle of their pitch. Take extra precaution when dealing with a telemarketer with the following char-acteristics: •

High-pressure sales tactics.

•

Insistence on an immediate decision.

•

The offer sounds
too good to be true
.

•

A request for your credit card number for any purpose other than to make a purchase.

•

An offer to send someone to your home or office to pick up the money, or some other method such as overnight mail to get your funds more quickly.

•

A statement that something is “free,” followed by a requirement that you pay for something.

•

An investment that is “without risk.”

•

Unwillingness to provide written information or references (such as a bank or names of satisfied customers in your area) that you can contact.

•

A suggestion that you should make a purchase or investment on the basis of “trust.”

•

Unwillingness to provide a phone number or legitimate business address.

Never allow yourself to be bullied into a hurried decision. When in doubt, hang up! To avoid junk mail and telemarketing calls, you can
write to direct marketing associations
and request that your name be
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C H A P T E R 9

removed from any junk mail lists. Be aware that almost every time you call an 800, 888 or 900 number, your name and address are captured by the company you dialed. This information becomes part of your
electronic profile
.

P D A S A N D O T H E R E L E C T R O N I C

D E V I C E S

The world has gone wireless and that means convenience on one level, and a security nightmare on another.

•

Wireless technology can quickly connect computers and broadcast every bit of transmitted information in the meanwhile to anyone with a computer and a $40

wireless networking card. So, a man with a hand-held PDA can walk down a busy street in Manhattan and
tap into your
computer
four floors up a nearby building, or while you’re drinking a latté in the nearby coffee shop, working on your laptop.

•

There are dozens of ways to use these wireless programs on wireless hardware to snatch someone else’s Internet access, IDs, passwords…and peep into the private affairs of individuals and businesses.

Because wireless technology relies on radio signals, a walk-by hacker can reach not only an intended target, but any compatible equipment
within a several-hundred-foot radius
.

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L I F E S T Y L E C H A N G E S

You want to safeguard the information you store on any hand-held device—your Palm Pilot, BlackBerry, PocketPC and the like—from hackers, loss or theft.

Products are finally emerging on the market that safeguard such information, as PDAs are being loaded with increasingly sensitive information—patient records, contact lists, price sheets, financial records and other proprietary information. These applications work on a wide range of devices with multiple layers of security. Users must enter a password to access encrypted data. If you try several times and fail to log on within a given time, the device will dump its files.

Any safeguards loaded onto a PDA cannot be turned off by an individual user. Hewlett-Packard, for example, is preparing a series of iPaq PDAs with a built-in fingerprint scanner and wireless LAN support that will make its PDAs more secure than earlier versions.

Tips for users of wireless technology or PDAs: •

Avoid using a wireless network
when in close proximity to insecure areas where strangers can access your data; this could be in parks, arenas, airports, offices, street corners, coffeehouses, public transpor-tation or any heavily-trafficked public area.

•

Think about limiting your wireless network to home use (unless you have curious neighbors!) •

Consider purchasing
applications for
your PDA
that will safeguard the information you carry on it.

•

Do your homework before making any purchases; don’t sacrifice personal security for dollars.

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D A I L Y D E A L I N G S

Protecting your identity is a daily practice. Shred mail that contains your information, and that is headed for the trash can. Re-evaluate
how many credit cards
you need
and consolidate them down to as few as possible. If you have any that you don’t use, which have open lines of credit, get rid of them.

It’s time to
organize your records
and financial matters. Keep your critical documents (deeds, titles, insurance papers, Social Security card, health information, military discharge documents, mortgage documents, investment documents,
etc.
) in one place and secure. Think about using a safety deposit box or at least a fireproof box at home to store the information safely.

Don’t give away private information at events that
gather lots of people, strangers included (e.g., wed-dings, large parties, awards ceremonies, holiday
gatherings, graduations, etc.) You’d be surprised
by the number of unscrupulous people who like to
hang out at such events (or work them).

Pay attention to opportunities for people to take advantage of your information. Reduce your chances of becoming a victim by
thinking ahead
and making plans accordingly. If, for example, you plan to hit the town and go on a pub crawl with your friends until 4 A.M., leave your wallet at home and carry only one form of ID (a license) and cash. Avoid carrying credit cards that you’ll leave, among other important things, in a bar, taxi cab or the middle of the street.

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L I F E S T Y L E C H A N G E S

C O N C L U S I O N

Think about your privacy every day. You make multiple transactions every day and allow access to your personal information unknowingly more than you’d like to think. This chapter gave you some of the lifestyle changes you need to make to secure your personal identity. None of these changes can guarantee that your identity is safe from abuse. But combined, these practices will give you a suit of armor that might
deflect a potential thief
to another, more vulnerable person.

Coming up, you’ll learn how to survive a stolen identity once it has occurred. There’s a lot you can do to avoid a stolen ID, but there’s more to do once it has happened and you have to clean up the mess. In Chapter 10, you’ll read about dealing with government agencies, law enforcement, the credit bureaus, credit card companies, banks, DMV,
etc.
Dealing with an ID theft is a tough and long process. And it’s best to know what to do
before
it happens.
Just in case….

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10

YOUR STOLEN ID

You know how to prevent an ID theft from occurring—or at least lower your risk of ID theft. But nothing can guarantee that it won’t happen to you, so knowing how to deal with a theft once it has occurred is important. It could be a simple theft of someone joyriding with your credit card or it could be a serious theft involving thousands of dollars, drugs, crime, violence and perhaps terrorists.

You may not even know how the criminal got your information. Worry less about the point of entry when you discover a problem, and focus your attention on
cleaning up the mess
. In this chapter, you’ll get step-by-step advice for what to do the moment you realize someone is impersonating you.

Credit card companies are making so much money
that they encourage banks to give out accounts,
mail cards to everybody and give cards away in
malls. They assume that consumers will accept the
fraud as the cost of doing business. They don’t really look at the cost to the actual victim, you.

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H O W T O S U R V I V E Y O U R S T O L E N I D

According to one PIRG study, the average identity
theft victim spends over two years and at least $800

out of pocket, trying to recover from ID theft.

S T E P O N E : G E T O N T H E P H O N E

Contact the fraud department at each of the major three credit bureaus. Inform them of the basis of your concern and
ask them to “flag” your file
. A flagged file means creditors will have to get your approval before any new account is opened in your name or a change is made to an account.

Confirm your conversation in writing by sending a
letter to each credit bureau stating whom you spoke
to, when, what was discussed and any promises of
follow-up action made by you.

Be clear in your letters about the specific outcome you want, whether it’s a deletion or a correction. Include a copy of the credit report with the disputed item(s) circled or highlighted, as well as a factual explanation for why you’re disputing each item.

If you’re questioning a debt listing, include in your letter a request for copies of any proof that you owe the debt, such as a
signed contract or registered
note
. List the account number and, if possible, include copies of bills and/or payment stubs that prove you’re in the right.

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Make copies of your letters and send copies; keep originals. Send letters via registered or certified mail with return receipt requested. Keep a
log of your
conversations
and retain copies of all correspondence.

Obtain a copy of your credit report from each of the three credit bureaus. (See pages 185-186 in Chapter 8 for this information.) Review each report for peculiar activity; close any account that has been opened in your name that you did not authorize. When you place a fraud alert on your record, ask each credit bureau how long the flag will remain on your file— and when you’d need to renew it. Each bureau works differently. The hotlines for each bureau are:
•

Equifax’s
( www.equifax.com)
hotline
: (800) 525-6285.

•

Experian’s
(
www.experian.com
)
hotline
: (888) 397-3742.

•

TransUnion’s
(
www.tuc.com
)
hotline
: (800) 680-7289; fax: (714) 447-6034.

Contact creditors for accounts that have been tar-nished or opened fraudulently. Speak to the security or fraud investigations department, and follow-up every phone call with a letter in writing.

You may also want to make a
notarized affidavit
of fraud
. This is simply a letter that you write—describing the dates, types and amounts of bogus charges—and have notarized as coming from you. A notarized affidavit of fraud can be used effectively in most legal proceedings—if such proceedings do happen.

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H O W T O S U R V I V E Y O U R S T O L E N I D

Close compromised accounts and
stop payment
, if necessary. Use different personal identification numbers (PINs) and passwords to open new accounts.

Notify your bank(s) of the theft. Cancel your checking and savings accounts, and open new ones with
new numbers and passwords
,
etc.
Obtain new ATM

cards with new passwords. Ask the bank to issue you a secret password that must be used in every transaction. Put stop payments out on any outstanding checks that you are unsure of.

Report stolen checks and fraudulent bank activity to
Telecheck and the National Processing Company
(NPC). These companies will flag your file so that
bogus checks will be turned down. Call Telecheck at
(800) 366-2425. Call NPC at (800) 526-5380.

Notify the Social Security Administration’s Office of the Inspector General if your Social Security number has been used fraudulently.

General Number of SSA: (800) 772-1213.

SSA Fraud Hotline, P.O. Box 17768,
Baltimore MD 21235.

Fax: (410) 597-0118.

Call: (800) 269-0271.

TTY: (866) 501-2101.

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If your number has become associated with bad checks and credit, you may want to have your number changed…but this should only be considered during extreme situations. You must notify all credit grantors and credit reporting bureaus of your new SSN. A
new SSN may not resolve your identity
theft problems
, and may actually create new problems. For example, a new SSN does not necessarily ensure a new credit record because credit bureaus may combine the credit records from your old SSN