What is Identity Theft & How do I Prevent/Fix It?

Identity Theft is one of the hottest topics and fastest rising crimes in America. Their are many statistics flying around giving how many Americans are affected by ID Theft on a daily basis etc. I don't want to focus on this portion of ID Theft, but I would like to give a clear definition as to what this crime involves and then later detail things you can do to prevent it from happening to you.

Identity Theft is a faceless crime that is not only hurtful, and time consuming to recover from it is one of the most lucrative crimes out there if perpetrated correctly. The toll that ID Theft takes on your personal finances can vary, but ultimately in the end if not rectified, it will destroy your credit.

The MOST important step in helping to prevent & protect yourself from ID Theft is pulling your free credit reports every time you are eligible to do so. Visit www.AnnualCreditReport.com as this is the ONLY true & totally free site that will let you request copies of your Credit Bureau . If you mark your calendar and pull only 1 Credit Bureau every 4 months then you will be able to continually see a new one when you need to. Even if you do this as you should, there are still more steps you can take to ensure that you are not a victim of ID Theft.

• Pull each of your Credit Reports every 4 months.
• Shred Mailers with your information instead of throwing them away.
  
• Don't compromise your own information.
• Do not give out personal information to people calling you or when you call numbers they provide you.
  
• NEVER click on links to log into your bank account.
• Do not carry your Social Security card in your purse or wallet.
• Do not let your Local DMV put your SSN on your Drivers Liscense as your DL number.
• Use Anti-Virus, Spyware and Firewall software on your PC, especially the PC with your finances on them.
  

The Two Basic Types of Identity Theft

There are two basic types of Id Theft: Account Takeover or Fraudulent Application.

Account Takeover happens when the perpetrator uses your information that they have obtained from a variety of sources & ways to use your existing credit to make purchases. If you are a homeowner, then you are even more likely to be a victim of identity theft due to the information that is publicly available about your home & you.

Signs you may be a Victim of Account Takeover

• Not receiving your mail or financial statements (ie Credit Cards, Bank Accounts, Investments etc)
• Letters from the US Post Office or your Financial Institutions congratulating you on your recent move.
  
• Receiving new Credit Cards when yours are at least 1+ years away from expiration.
  
• Addresses on your Credit Bureau that you do not recognize.

Fraudulent Application happens when the perpetrator uses either all or part of your personal information to apply for credit. The most common form is using your Name, Social Security Number (SSN) & Date of Birth (DOB) to apply for a credit card with your name etc but with an address of their choosing. Once the perpetrator has the account open they use it up or use it and make false payments on it in quick succession in order to inflate the credit line prior to walking away from it. As if Fraud App wasn't damaging enough, it is usually done in multiples all at once so the perpetrator may apply for 10-15 credit cards at once in order to do the most damage in the least amount of time.

Signs that you may be a Victim of Fraudulent Application

• Suddenly receiving Statements for Credit Cards you do not have.
  
• Receiving credit decline notices when you did not apply for credit.
  
• Receiving Cards that you did not apply for.
  
• Unsolicited calls from any banks looking for verification.
  

If you suspect you may be a victim of Identity Theft or if you are a victim or Identity Theft don't panic! Keep your cool and follow these simple steps.

• Pull all 3 of your Credit Reports! This may cost you a small fee if you are not within your free Bureau time frame, but its well worth it.
• Place a FREE alert on all 3 of your Credit Bureaus. Call each Credit Bureau and place a free Consumer Alert on there so that when anyone pulls your Credit Report they will see this alert and TRUE contact information.
• Contact your Post Master General to ensure that the correct address for you is in the USPS system.
• Contact each and everyone of your Creditor's to verify that they have the correct information on your account. Also update your Mothers Maiden Name (MMN) to a password.
• Update all of your passwords to your online profile's for your Financial Institutions.
• Be sure that your Anti-Virus, Spyware & Firewall are all up to date and functioning correctly.

Other Forms of Identity Theft

Through there are many forms of the above two basic types of ID Theft, they both have a basic format which makes them what they are, Fraud for Profit. Fraud for Living or Social Security theft is becoming more and more common lately. There are 20 Million Illegal Immigrants in the United States at this moment and for any of them to work they have to have a Social Security Number (SSN) which means that each and everyone Illegal Immigrant that works is violating Federal Law and your Privacy.

The stealing of your SSN is fraud not for profit, but for living. In my job I run into this daily where people want to replace the SSN on their Credit Card with their true SSN now that they have one. I find it quite comical that people think a Bank will have no issues about knowing you have just admitted to breaking Federal Law and lied to the bank in the process. Unfortunately the only real way to find out if someone has been using your SSN for work purposes is usually by accident. The Social Security Administration (SSA) will send out for more information is multiple people are reporting as employed with the same SSN as will the IRS if by chance the person using your SSN files for taxes. In both of these cases though, it may take many years for either agency to become wise and alert you. If you receive a statement of earnings from either of these agencies and it does not match what you should be earning be sure to contact both agencies and let them know that you suspect you may be the victim of identity theft so that the proper investigation may begin.