In the movie “The Net”, Sandra Bullock played the role of an identity theft victim. In fact, she was basically erased from the community. Another woman consumed her identity, taking with her everything the Sandra Bullock character had, including her bank accounts, license and social security number, and even her home. It seems crazy to think that this could happen; after all it’s just a movie. But just as fairy tales can come true, so can your worst nightmare. Identity theft is happening at an alarming rate. More than 100,000 identity theft reports are filed each year.
Identity thieves work in several ways. One of the most common is to open a new credit card in your name, using your date of birth and social security number. They rack up charges, don’t pay the bill, and the delinquent account is reported on your credit report. They can also change the mailing address so your credit card is sent to a fake address, giving them more time to shop until they realize there’s a problem. They may also set up cell phone service and bank accounts in your name, make expensive phone calls and write bad checks.
Today, identity theft is about much more than losing a wallet full of cash. You could lose your entire savings account. Some victims are stuck paying off fake loans and huge credit card debt. At the very least, victims will lose their good credit rating. Most people spend endless hours trying to solve security and financial problems that arise. This can be expensive, time consuming, and cause enormous stress to the victim and her family.
Don’t wait to take steps to prevent identity theft. You can be proactive in reducing your chances of becoming a victim by using a few simple strategies. Don’t put this off, you can do it little by little and it’s easier than you think, and the irony is that other areas of managing your life will also be more organized. Here are some tips that you can do right away.
• Never give your social security number to anyone unless the requesting agency can guarantee confidentiality.
• Remove your social security number from your driver’s license and checks.
• Cancel and cut off unused or “extra” credit cards.
• Check your credit card statements for purchases that seem strange to you. Keep track of what you buy!
• Watch your phone bill, cable bill, Internet bill, etc., for any increase in charges.
• If your credit card bill is overdue or you suspect it has been lost, call your credit card issuer immediately.
• Check with your creditors about their policy on stolen cards or fraudulently accessed accounts. (You could be linkable!)
• Send invoices from the post office or official PO Box instead of your home address.
• Keep important documents (passport, birth certificate, stocks, savings accounts) locked up in a safe or file drawer.
• Shred old bank and credit card statements, making sure account numbers, passwords, and addresses are unreadable before disposing of them.
• THINK about what you are throwing away. Suppose anyone can and will do it after you leave your house!
• Keep a written record or a photocopy (locked) of the contents of your wallet or purse. Do not carry your wallet with you when it is not necessary.
• Create passwords that make sense to you but are not your usual birth date, anniversary, pet, or maiden name.
• Use only websites that are encrypted and secure, and have a privacy policy, before entering your credit card number.
It’s also helpful to review your credit report annually. You should request this information from all three credit bureaus (TransUnion (800) 888-4213; Experian (888) 397-3742; Equifax (800) 685-1111) and verify that the information they provide is correct. Also, ask these agencies to place a “Fraud Alert” on your account so that before anyone can borrow money, they must contact you in person.
Unfortunately, even with the extra effort, identity theft can still happen. We trust strangers with our personal information every day: applying for a car loan or mortgage, writing a check, patient care at a hospital, even stamping it on our children’s backpack! It would be absurd for us not to give this information from time to time, but to know where we give it and to whom it is useful. The key to rapid recovery from such a disaster is quick awareness and immediate action. Here’s what to do if you think you may be a victim of this crime:
• Contact the fraud department of the three credit bureaus (listed above) and report your findings.
• Call your financial institutions or creditors about any accounts that have been accessed or opened fraudulently and close these accounts.
• Report identity theft to the police. Get a copy of the police report to give to your creditors as proof of the crime.
• File a complaint with the Federal Trade Commission 1-877-ID-THEFT, (www.consumer.gov/idtheft.com [http://www.consumer.gov/idtheft.com]).
Staying proactive and organized will pay off in the long run, for life in general and in trying to prevent identity theft in particular. Keeping accurate accounting records, personal files, and paper management is key to a smoother, more secure existence. If you find it difficult to do it on your own, consider hiring a professional organizer who specializes in this experience. Regardless of what stage of life you are in, get your affairs in order. You are a unique individual with your own identity. No one should be able to take that away from you!