Identity theft is one of the fastest growing forms of crime in the U.S. A March 7, 2007 report by Gartner, a research and advisory company (see hyperlink below), indicates that fraud stemming from identity theft rose more that 50% from 2005 to 2006.
There are steps that you can take to decrease the chances that you will fall in that category of victims. The first is easy and can be completed with one phone call: You may place a fraud alert on your credit records by calling any one of the three major credit reporting agencies, Equifax, TransUnion, or Experian. Their telephone numbers are 1-877-478-7625, 1-800-680-7289, and 1-888-397-3742, respectively.
A call placed to one agency requires it to notify the other two that you are requesting a fraud alert to be placed on your records. The result is that potential creditors cannot issue new credit in your name without obtaining your permission beforehand. If someone has stolen your identity and applies for credit in your name, you will get a call asking whether you are the one asking for the credit. This alert is good for 90 days only and must be renewed by you.
Another way to help reduce the chance of identity theft is to obtain a free copy of your credit report and to review its activity on a regular basis. You can check this out by going to www.annualcreditreport.com. It’s a good idea to request a report once every four months from one of the three credit reporting agencies and, four months later, from the second agency, etc. That way, you are on top of your credit on a regular, rotating basis.
The third way to insure against identity theft comes with a fee. Each of the three credit companies listed above offer services beyond the legally-required free annual credit report.
Go to their web sites (www.equifax.com, www.transunion.com, and www.experian.com), to review the different levels of fee-based credit watch services. TransUnion, for example, offers a 3-bureau credit monitoring service which includes unlimited reports and credit scores, for $14.95 monthly. Check the other two companies to compare prices, monthly/yearly payment, and level of service.
Another form of fee-based service is offered by a company called LifeLock. For $10 monthly it will make sure that your fraud alerts are automatically renewed, get your name removed from pre-approved credit card and junk mail lists, etc., (See www.lifelock.com).
Most of what LifeLock does is something that you could do yourself; but for a fee, it will do them for you. This company claims that, “If your Identity is misused while you are our client, we’ll spend up to $1,000,000 to make it right.”
I hope that you have found these hints helpful. Remember, there are no fool-proof methods.
Notes:
Gartner: http://news.com.com/Study+Identity+theft+keeps+climbing/2100-1029_3-6164765.html)
See http://www.privacy.ca.gov/sheets/cis1english.htm for a discussion of the "Top 10 Tips for Identity Theft Protection.”
1 comment:
There is another option to residents of NJ. That is a credit report freeze. It is the law in NJ that the 3 credit agencies must freeze your accounts for free by a simple request in writing to each one.
Anyone attempting to use your identity to obtain funds in your name will be automatically rebuffed by the agencies.
Should you need credit, you can request a thaw for a specific inquiry or for any inquiries in a set time frame.
PS: I am also a graduate of Northeastern University
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