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Identity theft has quickly become one of the most prevalent crimes of the 21st century. An estimated 7 million people were victims of identity theft in 2003, reports the Identity Theft Resource Center* . Identity theft is defined as "a crime in which an imposter obtains key pieces of personal information -- such as Social Security and driver's license numbers -- to obtain credit, merchandise and services in the name of the victim." So what can you do to protect yourself from becoming a victim of identity theft?
Criminals today have gotten quite creative in the methods they use to steal personal information and commit identity theft. They include things like:
- "Shoulder surfing" at retail checkout lines or videotaping transactions at ATMs to capture PINs.
- Stealing bill payments, bank and credit card statements and newly issued credit cards from mailboxes.
- "Dumpster diving" in trash bins for discarded bank statements and other paperwork.
Protecting Yourself
Identity Theft victims are often left not only with a financial loss but also with a ruined credit history and the time-consuming, complicated task of piecing their financial life back together.
So what can you do to protect yourself from becoming a victim of identity theft? Frank Abagnale - one of the world's most respected authorities on forgery, embezzlement and secure documents and the subject of last year's hit movie "Catch Me If You Can" - offers the following tips for reducing your exposure to identity theft:
- Guard your Social Security number zealously - it is the key to your credit
report and bank accounts and the prime target of criminals.
- Review your credit reports at least once a year. Identity theft victims should contact one of the following credit reporting agencies to report the fraud and request a fraud alert be put on your record:
- Trans Union - 1-800-680-7289
- Equifax - 1-800-525-6285
- Experian - 1-888-397-3742
- Shred (rather than simply discard or cut in half) all old bank and credit card
statements and unsolicited credit card offers before throwing them away.
- Only carry extra credit cards or other important identity documents with
you if you'll need them. Be sure to cancel any credit cards you no longer use.
- Photocopy the contents of your wallet, including both sides of your driver's
license and all credit cards, and keep this photocopy in a secure place.
- Mail bill payments and checks from the post office. Bills mailed from
your home can easily be stolen from your mailbox.
- Only give out your Social Security or credit card numbers over the phone
when you initiated the call and only to businesses that you trust.
- Use PINs or other passwords that are difficult to guess. Do not use birth dates,
part of your Social Security Number, address or family or pet names.
- Only share your personal information to individuals in person, over the
telephone or over the Internet if you have a very good reason to trust them.
If You're a Victim
If you find out that you're a victim of fraud or identity theft, take the following steps:
- Report it to each of the three major credit bureaus. They'll place a fraud alert and victim's statement in your file. The fraud alert lets creditors know that you're a fraud victim, and the victim's statement requests that they not open additional accounts without contacting you first.
- If you feel your credit reports may be inaccurate because of fraud, you may receive free copies by making requests in writing to the credit bureaus.
- Contact any bank or other creditor where you have an account that you think may be subject to identity theft and advise them of the theft.
- File a report of the identity theft with your local police department.
- In addition, file a report of the theft with the Federal Trade Commission* online or call their hotline at 1-877-ID-THEFT (438-4338).
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