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Jordan Goodman is the author of Everyone's Money Book, available at 888-201-6300. This is the third edition of the book. You can also visit his Web site at www.moneyanswers.com. He talks with us on Thursday mornings.
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April 24, 2003
"How To Deal With ID Theft"
 Listen
A recent report from the U.S. Treasury Department's Financial Crimes Enforcement Network said that ID theft is now the most common white-collar crime in the country. More than 750,000 cases were reported just last year -- twice as many as the year before. There are many ways your ID can be stolen. The most common types of ID theft are:
- credit card fraud
- telephone service, where people open accounts for wireless or phone service in your
name
- banking, where others open or gain access to bank accounts with a new name
- fraudulent loans, when people get car loans in your name
- obtaining government documents, like driver licenses or Social Security cards
ID theft can also harm your credit records, your reputation and disrupt your daily life by making you rather attractive to debt collectors and getting you turned down for job offers.
Victims of ID theft have also been denied loans, rejected by credit cards companies, and have been know to bounce checks due to problems with bank accounts.
Identity thieves also leave bad unpaid debt behind and, sometimes, create a criminal record in your name by stealing your identity from trash "dumpster diving," diverting mail on the Internet, and posing as your employer or landlord. They can open credit cards accounts, bank accounts, establish phone service, file for bankruptcy under your name and buys cars, taking out loans in your name.
So, what can you do to prevent ID Theft?
- Guard your Social Security number, PIN code, passwords, address and phone
number very carefully. When you give this information, make sure it is kept
confidential -- and don't give this info. unless you've initiated contact by mail,
phone or Internet.
- Sign up for an Internet service that will tip you off if your identity is being compromised. The best service is from Privista at www.guardmycredit.com, which offers a 30-day free trial and then charges $50 a year, which gives you weekly updates about your credit reports and
immediately notifies you by e-mail of any suspicious activity so you can stop
it right away.
If you've been victimized:
- contact the fraud departments of credit bureaus
- contact creditors for the accounts at credit card companies, or phone companies
or banks
- file a report with your local police and get a copy to send to credit
bureaus, banks, credit card companies, etc.
The Federal Trade Commission has booklet on their Web site, www.ftc.gov, called
"ID Theft -- When Bad Things Happen To Your Good Name." It tells you how to guard
against identity theft, the latest schemes going around, and what to do if your identity
has been stolen. Call the FTC Identity Theft hotline at 877-IDTHEFT for
help.
For More Financial Tips From Jordan Goodman
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