Identity Theft


According to the Federal Trade Commission (FTC) in 2003, there were nearly 10 million Americans in jeopardy of identity theft. In today's day and technological age it is a lot easier to protect your identity and prevent becoming one of the victims. Not only is it a complete hassle in trying to correct the situation, it can also be damaging to your credit. Secure Credit Solutions has gathered information on what you can do to help prevent this from happening to you.

First it's important to know what Identity theft actually is; there are essentially two kinds of identity theft; 1. Account-take-over: when someone obtains your existing accounts and uses them to make purchases such as credit cards which is usually the most common. 2. Application fraud - when someone obtains your personal information such as your social security number and opens up new accounts in your name. What the criminal looks for in this situation is social security numbers, dates of birth, birth certificates, addresses, phone numbers, drivers license numbers, and many other personal ID's to get a hold of more credit in your name.

There are many ways in which a criminal can obtain your information, its not just as easy as stealing or "finding" someone's wallet or purse. Many often look in trash bins of businesses or apartment buildings, homes, etc. for personal papers with your private information on it like social security numbers, bank account statements with bank numbers, anything they can find to steal your identity. Even in today's technological age, thieves are getting cleverer and use emails to obtain your information. They use what is known as phishing and will send you an email in your banks name for you to enter your account information into. They may also break into your mailboxes; watch you at the ATM for bank codes, crash and search computers, etc. Any means out there they will find a way to obtain your information.


Tips on how to better protect you against Identity Theft:


1. Be careful of what you carry: If you walk around everyday with very important personal papers; social security cards, license, bank book, credit cards, personal papers with account numbers, the more easy it is for someone to assume your identity if you happen to lose your wallet or purse. Instead, limit yourself of what you carry; try taking only 1 credit card if at all, your ATM card and not your debit card. If you must carry your debit card then get into the habit of checking your online banking statement frequently to prevent any unauthorized purchases. Do NOT carry your social security card, birth certificate, personal bank statements, etc. keep those at home in a safe place.

2. Check cards, ATM, & debit cards: As the use of these types of cards gets more and more popular the more you'll begin to use it. A lot of banks will issue credit card-like cards called "check cards" that carry the Visa or Master Card logo in which you can use just like a credit card only the money is directly withdrawn from your checking account without any fees. When you begin using this more and more frequently it is a good idea to keep better track of your checking account. Online banking is one of the fastest ways to check your current balance and any activity up to the minute. So it's easier to spot any unauthorized charges you can report immediately.
NOTE:If you happen to place any orders online, its wiser to use a credit card rather than a check card or debit card for the sake of having more protection against fraud.

3. Discard or safely store your important papers: if you get as many credit card applications in the mail as the next person you may just throw them away with out a thought in mind that someone might sift through your trash looking for it. If you must discard it, shred it, burn it or discard it in another manor in which no one will be able to retrieve any information from it. This applies to any and all personal/private papers tax information (although it is a good idea to store all of your previous tax information for up to 7 years), pay check stubs, credit card receipts and statements, take your bank statement and receipts you receive from check card, debit or credit card charges, etc.
NOTE: To be removed from mass marketing list and to stop receiving the pre-approved credit applications go to www.optoutprescreen.com or call 1-888-5OPTOUT.

4. Keep a detailed list: You always want to keep a detailed track record of all your credit accounts; this includes account numbers, contact information, when you opened it and what the limit was and its also a wise idea to keep a photocopy of the credit cards you obtain. You will also want to keep record of EVERY inquiry you make; if you applied for credit, mark it down this way you can compare your list of inquires to that of the credit bureaus. All of this can be extremely useful if you ever fall victim of a fraud or identity theft and you can report exactly what was against your credit and what wasn't. When you pull your credit report annually (as you should be doing) you can go over all of your records with what the bureaus have reported being on your credit report.

5. Protect your computer and all paperwork: As stated before this is the technological age which it may be easier to help prevent identity theft, but its also the age of clever criminals and where there is a will there is a way. Protect and secure your computer with spyware and virus scanners, if your computer doesn't have one download one now. Make sure that your passwords are unidentifiable or "guessable" to anyone that might attempt to access your information. When creating a password, it might not be the best idea to write it down but to keep a mental record of it instead. You also want to secure all of your paperwork as safely and securely as your computer. You want to keep all of your important papers, statements and documents in a safe out-of-reach area from anyone including your own family. There have been countless reports of family members taking out credit cards, applying for bank loans and damaging the credit of their family. A common occurrence is a "Jr." applying for credit under the "Sr." name. So protect all of your financial information.

6. Limited information on your checks: When you order new checks from your bank you want to make sure that just your name is printed on your checks, not your address and especially not your social security number. If you just have your name on your checks you'll just have to provide ID when using them. Also, schedule a pick up from your bank so that your checks don't accidentally get "lost in the mail" and wind up in the wrong hands.

7. Credit Bureau: order your credit report once a year. Its free so why not, this way you can go back through all of your records and check against anything that may seem out of the ordinary. If you have been keeping a detailed list of all accounts and inquiries you have made in the past year it should be easy to spot anything unauthorized.
NOTE: California residents may now place a "freeze" on your credit report. This way if anyone tries to access your credit information they can't without your permission according to the California Civil Code.

8. Going the extra mile: There is the option of filing a fraud alert on your credit report. You can contact the fraud departments of the three major credit reporting bureaus listed in our credit report section and have them place a fraud alert on your report. What they do is contact you within 24 hour to verify any new activity on your account; however this only applies for 90 days and you'll have to renew your fraud alert there after. To have a fraud alert put on your account contact the following:

Experian: 1-888-397-3742
Equifax: 1-800-525-6285
Trans Union: 1-800-680-7289

9. Social Security: Above all else, you want to make sure that your social security number (SSN) is protected! Some steps to assure your protection may seem common sense but take no chances as it is the primary target of all identity theft criminals. Never give out your SSN to anyone unless absolutely necessary and under no circumstances should it be given out over the phone. Never give your SSN in public places, write it down on checks or any credit card receipts, job applications unless a background check is to be processed, and again never carry your social security card around with you in your wallet or purse.


If you become a victim


If you become a victim of identity theft don't wait until it's too late to do something about it. There have been numerous reports on countless occasions in which a consumer feels it wasn't necessary to take action against identity theft and later down the road has to claim full responsibility for the account, or they didn't know about it until a collection agency started to contact them. Don't become a victim twice, do something about it the moment you find out about it. First and foremost you should keep a detailed record of what you do, this way you can always verify and recall when the time comes.

The first thing you should do is call the police! You may not think to do so right away but believe it or not a crime has been committed and you must report it. This way when you report it to the credit company you can provide the police report along with your fraud report and remember to keep track of who you spoke with and when.

The next thing you want to do is find out if there has been anything else fraudulently taken out in your name; get your credit report. If you find anything else that is on your report, inquires, accounts, etc. file with the credit bureaus to have those removed right way.

If they were credit cards that were lost or stolen, call your credit card company immediately and report them lost or stolen. Try and remember what the latest charge was that YOU are responsible for and most credit card companies will not hold your responsible thereafter losing or having the card stolen. It is important to check this with your credit card companies before it actually happens so you know what to expect. Some card companies simply cancel the account so no more charges can be placed upon the account, but unfortunately you are still responsible for the charges. Also, if this is the case, you want to make sure that they close your account and not issue a new one, make sure that they report it to the bureaus as "account closed at consumers request" and not "card lost or stolen" as it will be better for the credit rating as you show more responsibility.

If your checks were stolen you want to close the accounts right away, don't wait. You want to inquire with your bank the actions they are going to take in reporting the matter to the correct verification companies and make sure you are documenting your efforts in reporting the matter and what their efforts are, this way you can follow up with them later on.

Most importantly, how do you prove that you are the victim? Well, the law states that the companies must provide a copy of the application that was used to apply for the credit and you can prove that it wasn't your signature, however you must submit your request in writing along with a police report to have this provided to you. You can see use a variation of our letter we provide for such occurrences (see letter).

There is also an identity theft hotline in which you can file a report with the FTC; 1-877-438-4338.


FAQ on Identity Theft


If someone gets a hold of my debit/ATM card and wipes out my account, and I responsible for the loss?
Depending on your banking institutions policy and how fast you report the loss you could be reliable, yes. Unfortunately debit card holders, check card holders and of the like are not as protected as credit card holders.

Am I responsible for the entire usage of my credit card if it is stolen?
Usually you are only responsible for 50 dollars of the loss, however in most situations you may not be responsible for any of the loss if you report it quickly enough and report your last purchase. Always, remember to cancel your account when you report the loss.


For your protection: