Protect Yourself From Identity Theft

by Lomit Patel


Identity theft is one of the fastest-growing crimes in the United States. More than 100 million United States residents have had personal information stolen since early 2005, according to a Privacy Rights Clearinghouse (PRC) survey.

While not all data breaches result in identity theft, approximately ten million people fall victim to identity thieves every year. In 2007, identity theft will continue to grow unless consumers become more aware and proactive.

The good news is that there are many things you can do protect your identity in the New Year. Making and keeping our recommended resolutions will help ensure that 2007 will be a fraud-free year for you.





Resolution #1: Educate Yourself

While most people know the basic rules for protecting their physical well-being and possessions, too many do not know the basics of protecting their identity.

Identity theft occurs when a criminal uses your personal information-such as your name, Social Security number, bank account number-to commit fraud. With stolen information, identity thieves can obtain credit cards, utilities services, loans, medical services, and even jobs.

Identity thieves use many methods, including:

• dumpster diving
• stealing wallets
• posing as legitimate companies in e-mails and on phone calls to entice you into sharing sensitive data
• hacking into corporate databases

A thief can steal your identity with as little information as your name and social security number. Once you've been victimized, it can take years to restore your credit and name.

However, if you know what to look for and how it happens, you can detect identity theft before it happens, minimizing losses.

To find out if your personal information has been compromised, conduct a search on StolenID Search, a free service that scans more than two million pieces of compromised personal information. Your search results will tell you if your credit card, driver's license, Social Security, or bank account numbers have been used inappropriately.

Resolution #2: Check Your Credit

Checking your credit report regularly is the best way to detect new, unauthorized account activity. Resolve to keep an up-to-date watch on your credit throughout the year and report any suspicious activity as soon as you see it.

The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies -- Equifax, Experian, and TransUnion -- to provide you with a free copy of your credit report once every 12 months.

Since your credit report impacts everything from loans to job offers, take advantage of this opportunity to make sure your report is accurate.

Resolution #3: Exercise Your Right to Opt-Out

A significant amount of stolen personal information comes from "pre-approved" credit and insurance offers. Thieves often steal these applications to apply for credit in your name.

Exercise your right to "opt-out" of receiving these offers by calling (888) 5-OPT-OUT or opting out online at www.optoutprescreen.com.

Resolution #4: Transact Safely

Identity theft is often associated with online buying and unsecured Web sites that compromise your personal information. Even if shopping sites are secure, Web sites often leave personal information and financial data on a computer's hard drive after a purchase is made.

Viruses and spyware -- software that covertly gathers your information over the Internet connection without your knowledge -- can be used to steal passwords and account numbers from your computer.

Safeguard your online transactions by following these simple tips:

• Protect your computer with essential security software, including a software firewall and antivirus protection.

• Enable your browser's privacy settings.

• Never give out your personal information in response to an e-mail, a Web site you've come to through an external link, or a pop-up screen.

• Don't get pressured into providing personal information. Online scams often use scare tactics, and may threaten to disable an account until you update your account information. Be sure to contact the organization directly to confirm the authenticity of their request.

Resolution #5: Invest in Proactive Protection

The best way to avoid identity theft is to stop it before it happens. Adding a "Credit Freeze" or "Fraud Alert" on your credit report at the three major credit bureaus can help you avoid identity theft.

This stops identity thieves in their tracks by locking your credit down and preventing lenders from offering new credit in your name unless they verify your identity via phone or e-mail.

By knowing the basics of identity theft, you can go a long way towards fighting fraud. However, no matter how good your knowledge, maximum benefits will only be achieved if you make prevention a life-long habit.