Complete Credit Repair Kit (+CD-ROM)

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Excerpted from Complete Credit Repair Kit by Brette McWhorter Sember ©2005

Identity theft occurs when someone else uses your personal information, such as date of birth, name, or Social Security number as his or her own. Identity thieves use this information to obtain new credit or use your existing credit and make purchases leaving you responsible for them. They sometimes open new credit or phone accounts or take out loans using your name and Social Security number. Identity thieves sometimes complete change of address forms to divert your mail to them. They also have been known to file for bankruptcy in your name to avoid creditors or eviction. It can be hard to immediately recognize when identity theft is happening to you, so it is important to learn to spot the signals. Identity theft is a federal crime, under the federal Identity Theft and Assumption Deterrence Act.

When identity theft happens you may not be aware of it. Many people find out when they receive a call from a creditor about a charge or balance they did not create. You might also notice unknown charges on a credit card bill. Getting your credit report every year will help make sure no one is using your identity or accounts.

Preventing Identity Theft To prevent identity theft, you need to pay attention to how you give out your personal information and how you dispose of garbage that contains your personal information. Before giving out any personal information ask why it is needed and how it will be used.

Also ask how your personal information is kept at work and what safety measures are in place to protect it. Ask if you can request that your information be kept confidential and notshared in any way.

Keep your purse or wallet with you at all times and do not leave it in your desk at work or on a chair. When you are in the hospital, have a family member take it home and never leave it unattended in a hospital room or doctor's waiting room. Do not leave your purse in a shopping cart or in an unlocked car.

Social Security Number Avoid giving out your Social Security number. There are times when it is necessary-when applying for a loan, opening a bank account, and so on. However, there is no reason to give out this information if you are making a purchase or filling out a background information form for a dentist. Your best line of defense is to keep this information to yourself except when it is absolutely necessary. Always ask why it is being requested and do not give it out unless there is a valid reason. Do not carry your Social Security card in your wallet or purse. You will hardly ever need it, so keep it in a safe place at home. Never give out your Social Security number using email.

Passwords and Account Numbers Do not give your passwords, PIN numbers, or account numbers to anyone. Use different passwords for different accounts. Choose passwords and PINs that are not easy to guess and use a combination of letters and numbers. Avoid your birth date, anniversary, or middle name. Do not write your passwords down or carry them in your purse or wallet. If you find you need to keep a written record of them, keep it at home and do not label it clearly as such. Keep it in a hard to find place.

Credit and ATM Cards Carry only those cards that you use on a regular basis. Leave the rest at home in a secure location. Close accounts that you do not use. Before discarding credit card receipts, make sure you tear them up or shed them so the account number and expiration date are not readable. Cut up credit cards you are discarding.

Some credit cards offer you the option of including a small photo of yourself on the card. This can help reduce identity theft, or at least prevent that particular card from being used.

Keep track of when your credit card bills are supposed to arrive in the mail. If they are more than two days late, call and ask if the statement has been sent and ask that another be sent to you. You can also monitor your account activity online.

Online Activities When you make online purchases or apply for loans online, make sure the site you are dealing with is using a secure server. Never give out account numbers or Social Security numbers via email since it could possibly be intercepted. If you must give an account number or Social Security number to a merchant who does not use a secure server, fax the information to them.

Be aware that one scam identity thieves use is sending you email pretending to be from your Internet Service Provider telling you that you need to update your account information or reverify your credit card information.

Telephone Sales Never give out your account numbers, Social Security information, or other personal information to a person over the phone. If someone contacts you by phone with a special offer or service for sale that you are interested in, ask for the information in writing.

Garbage Disposal You also need to be careful about how you dispose of garbage that contains account numbers or other personal information. Buy a shredder or rip things up before throwing them out. Cut up old credit cards before discarding them. Rip or shred credit card convenience checks before throwing them out. Shred account statements, deposit receipts, withdrawal receipts, and other documents with numbers on them that could be copied.

Home Security Consider purchasing a small fireproof safe to keep at home. Some of these are the size of a shoebox and cost under $40. Keep birth certificates, Social Security cards, marriage licenses, bonds, and other valuable items in it. It is also a good idea to maintain a list of your credit cards, account numbers, and contact information here so that if your purse or wallet is stolen, you can easily contact the credit card companies about the theft.

Protecting Your Mail If your mail box is a roadside box (or a box attached to the house when no one is home all day), make sure that you remove mail as soon as it is delivered. If you are unable to do so or are concerned about your mail sitting in the box all day, consider using a post office box for all mail. Do not leave outgoing mail sitting in a roadside box. Deposit it in a post office drop box. Mail that sits in boxes is easily stolen. Do not take your personal mail to work to be sent out with your employer's mail. Someone else in the office could open it and obtain your account numbers.

If you notice that some of your mail has been opened or tampered with, report it to your local post office.

Online Scams There are many online scams now and it is important to be aware of them so that you can avoid them. Any email that seems to come from a bank or financial institution that you deal with that asks you to verify, update, or validate personal information is probably a scam. Thieves spoof email, making it appear to come from a legitimate source, but then use the information you provide for illegitimate purposes. Sometimes these emails include links to what appear to be real web pages belonging to the financial institutions they are spoofing. Never give our personal or financial information by email or on a web page in this way. If you are concerned that this might be a real request, close your browser and email, and type in the company's real web address and check your account, or call them and ask. Look to see that the web address begins with "https" (the 's' means it is a secure site).