Joyce Dugan
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How to Avoid Identity Theft

The Federal Trade Commission lists identity theft as their number one complaint. And the number is increasing rapidly.

The damage can be overwhelming - your credit rating is destroyed, your emotional health stressed, and the amount of time you have to spend to fix the problem can easily reach hundreds of hours. It can consume your life for years because it can take two to five years to recover. Since your credit history spans seven years, you should monitor your credit for that long.

A sobering thought – when your credit card is stolen or used fraudulently, you’re presumed innocent. If someone steals your identity and runs up debt in your name, you’re assumed guilty. You have to prove yourself innocent, and that can be difficult to do.

One of the most common ways people find out they are a victim is when they are denied credit. By then, you are in deep trouble. Like a routine physical to detect cancer and other health problems, you should do routine checks of your credit. Besides, even if you’re not a victim of identity theft, there can be errors on your credit reports. So, even if you stop reading now, take this one step.

You cannot prevent identity theft. The most you can hope for is to minimize the risk. Then, if you are a victim, you will catch it early and be prepared to recover as quickly as possible. The best way to minimize your risk is to make it harder for thieves to find you.

A major misconception is that identity theft has gotten so much worse because of online shopping and other Internet activity. The reality is that identity theft still begins in the real world. The Internet just has made it much easier to do a lot more damage once someone’s identity has been stolen. So, to minimize your risk, look at your habits at home, at work, and when you’re out and about. Take some basic precautions online as well.

Where Does It Start
Believe it or not, your trash is probably the main place identity thieves find what they need to ruin your life (and that’s about as real world as it gets). That means you should be careful of what you put out in the trash. Buy yourself a shredder and use it. If you buy a new computer, just don’t put your old one in the trash. Make sure you securely wipe all the files off the hard disk first. That is becoming a favorite way for people to steal your information. (For more on getting rid of an old pc, go to http://www.triciasantos.com/news-200402-1.htm.)

Another common way is a lost or stolen wallet. While you can’t help having some identifying information in there, you can take out anything with your social security number on it (or black it out if it’s on your insurance card or elsewhere). The other thing you can do is know what is in your wallet and call everyone the minute you discover it’s missing. You should also file a report with the police (even if it’s lost) because you will need that documentation if someone starts using your credit. Every once in a while, I just photocopy everything in my wallet.

How to Protect Yourself
The first step in protecting yourself is knowing what information you need to safeguard:

• SSN, drivers license (and other identifying numbers)
• Account numbers
• Passwords, PINs
• Mother’s maiden name (banks use this to confirm your identity)

Here are some very basic things you should do to make sure you’re not the slowest gazelle:

• Stay on top of your credit
  • Check credit reports at least annually (I get weekly email alerts)
  • Review statements promptly
  • Be aware of missing or late mail
  • Activate new credit cards immediately and fill in the signature block (instead of signing, I put “please ask for ID”)
• If someone contacts you (via phone or email), just say “I never discuss anything financial if I haven’t initiated the contact.”
• Clean out your wallet and photocopy the contents; never put your SSN or drivers license number on your checks
• Be stingy with your personal information (don’t give any more than is necessary for the transaction)
• Protect your mail
  • Don’t leave it out overnight, stop it if you’re going out of town
  • Put outgoing mail in a secure box

These steps should help you minimize your risk of being a victim of identity theft. And, if you are a victim, they will help you recover more quickly. For more information, links to credit reporting agencies, online resources and more, go to www.triciasantos.com/identitytheft.htm.