Preventing Identity Theft
The best defense against identity theft is a strong offense. Check your credit reports annually with all three major reporting agencies, Equifax, Experian, and TransUnion. Consider a “credit freeze,” if your state allows it. Because any lender, business, or utility needs a credit report to approve new credit, the freeze keeps thieves from opening accounts and securing loans in your name. California, Texas, Louisiana and Vermont currently have versions of the credit freeze law. You will have to contact the credit bureaus and pay a small fee (unless you have already been the victim of ID theft – then the freeze is free).
Don’t help the thieves. Shred important papers before you toss or recycle them. Rather than keep that wallet-sized Social Security card in your wallet, stash it in a safety deposit box, home safe or prowler-proof hiding place. And don’t put your social security number – or your driver’s license number – on checks.
Prevent mail theft and the theft of pre-approved credit card offers by getting a locking mailbox. Even then, you might want to cut down on risky propositions altogether by opting out of pre-screened credit and insurance offers. One phone call alerts the major credit bureaus that your name is not for sale: 1-888-5OPTOUT (1-888-567-8688).
Be suspicious of solicitors. On the phone, only provide information if you’ve initiated the call. Make that call in private, where others cannot overhear you. As for email solicitation, play it safe and delete suspicious email requests without replying.
When dealing with businesses that use your personal information, ask if they truly need that data. It is not rude or unprofessional to ask for assurances: Is the method of acquiring the information safe? Is the personal data encrypted? Who has access to it? Does the company do employee background checks? Are security systems audited? Finally, just as you should at home, the businesses that use your personal data should have a secure method for disposing of electronic and paper documents.
Ultimately, an ounce of prevention is worth the seemingly endless pounds of cure that accompany identity theft. If you have a lot to lose, you might even consider employing a company to help. For a fee, the services will search for the personal information about you that is available in public records and on the Internet. Often, the information can be corrected or removed. Perhaps most importantly, the services can help track the changes to your personal records, which often red-flag fraud. Unfortunately, the irony of using such a service is that you have to disclose to them some of your most personal, personal data, so choose wisely.
One final thought: though it is not clear that the benefits outweigh the investment, consider purchasing ID theft insurance. Several insurers offer it as part of their business or homeowners’ policies. With ID theft on the rise every year, insurance is an increasingly attractive option.
