Identity Theft - How to Protect Yourself

"Like the tan? I got tons of sun on that Caribbean cruise. First class tickets to Florida and back! Nope, not an airline upgrade. 5-star service all the way, baby! Hotels, restaurants, theme parks?you name it! Look?I took pics with my new cell phone! Hey, let me know when you're free to take a spin in the car ? it's a 2005 sports model, fully loaded! Yours truly, Chad E. Charlatan, is going to the top! Nope, no job. But I didn't pay for anything myself. I don't care who Ms. Donna Knowe-Bedter is, but it's not my fault if she doesn't keep tabs on her credit card statements. One day I'll thank her for being so rich!"

In a perfect world, everyone is honest, with good intentions.

We don't live in a perfect world.

ID thieves are supreme opportunists. Read the news? Hackers can break into corporate computer systems and steal information on clients and customers. "Skimmers" can be attached to credit card readers, and used to store credit- and bank-card numbers. Identity thieves may pose as employers, landlords or even utility company representatives to get at your personal and financial info. Other thieves may use their employers' authorized access to obtain credit reports or other information. Databases and other records can be stolen from employers; thieves may bribe fellow employees who may have access to important data. They may steal your mail and take credit card offers, tax information and other documents. "Dumpster diving" involves digging through garbage to find information such as bank statements, or credit card information. And there's always the age-old method of simply stealing your wallet or purse.

New ways of stealing your identity pop up frequently. "Phishing" became prominent in 2003 and 2004: well-designed emails and websites convince victims to provide information. Emails look legit, but release any information and the nightmare begins. The cost? Damages now top $1 billion per year. How's that for a nightmare?

Thieves get new phone services, auto loans and credit cards using stolen information. Victims may find their mailing addresses changed, and their credit ruined. ID thieves can file for bankruptcy in the victims' name to escape debt, and drain accounts by counterfeiting checks and debit cards. They can also open bank and credit card accounts using their victims' names.

Your name may be given to the police during an arrest. If the real thief is released, and fails to arrive for a court date, you may be arrested. And out-of-pocket costs to clean up the mess can be staggering.

Be savvy, capiche? Thoughtful planning can prevent the pain of a stolen ID.

* Buy a shredder. Shred documents with your name, personal information such as social security numbers, phone numbers, addresses, birthdates, credit applications, financial documents, and medical and insurance information. Whole documents can be used against you. Confetti can't.

* Get your credit report. Verify it. Manage this tool carefully, and use it for protection. It's worth it.

* Secure your computer against online theft. Your PC is a gateway to private information. NEVER leave an online connection open if you are away from your computer. Use a firewall.

* Change passwords often. Use passwords with numbers and symbols that are easy for you to remember, but hard for someone to figure out.

* Some programs allow the PC to fill out forms automatically. Convenient, but your PC may be hacked for info. Disable this feature.

* Call your credit card companies and make sure there are no surprises on any of your credit cards, then request that restrictions be placed on each card. Example: you can request for no phone charges, or limits on single purchases. Violating these restrictions stops the transaction. Nightmare avoided.

* Mailbox secure? Stealing mail is one of the easiest ways to steal your ID. Get a lockable USPS-approved mailbox.

* Be extremely picky about giving out your Social Security Number. Resist giving out that very personal piece of information. Check the privacy act of 1974. Homework: go to http://www.faqs.org/faqs/privacy/ssn-faq/ on the web for more information.

* Other information, like your mother's maiden name, seems harmless; those items are often used as verification of ID. Don't give it out. Keep yourself to yourself, and stay educated.

Having your ID stolen is a terrible experience, and consumes much time, finance and energy. For your own sake, the sake of your sanity and your safety, set aside a few minutes to follow the advice above. Protect yourself the next time someone says, "?and your name is?.?"

To send comments or to learn more about Scott Pearson's Investment Management services, visit http://www.valueview.net

Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide variety of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally, and in the U.S.

---

Credit and Loan Help for Mortgage Loans

Mortgage loans are some of the most difficult loans to... Read More

Myths and Truth about Credit Scoring

Credit score is the key factor determining approval of almost... Read More

Credit Card Balance Transfers Can Help You Stop Putting Money Down The Drain

As you probably know, interest rates are at all time... Read More

Balance Transfers Can Help You Stop Putting Money Down The Drain!

As you probably know, interest rates are at all time... Read More

Getting Your Credit Report and Understanding Whats On It

If you intend to apply for a loan, you need... Read More

Bank Robbery Growing In U.S.

Bank robbery has grown to become a huge problem in... Read More

Warning: Free Credit Report Imposter Websites Springing Up on the Web

A recent amendment to the federal Fair Credit Reporting Act... Read More

7 Compelling Reasons Why A Prepaid Debit Card May Be Just The Financial Tool You Need

Prepaid debit cards are great financial tools and may be... Read More

Small Business Credit Cards

So what do you look for when applying for a... Read More

Credit cards

If gold medals were awarded for marketing consistency, the credit... Read More

Building Business Credit

Most businesses want to be able to borrow money when... Read More

Credit Cards or Store Cards - Which Is Better?

Introduction In this article, a presentation is made of the... Read More

Have You Ever Opened a Checking Account?

Maybe some of you are saving it in your trusty... Read More

Compare Credit Card Offers and Reward Yourself

Here's a simple system on how to pay zero interest... Read More

Is Plastic Making You Happier?

If you're like most people, you probably own at least... Read More

Do you Know the Benefits of Checking your Credit Report?

Do you know why you should check your credit report?Of... Read More

Dont Trade Your Future for Todays DooDads

"Easy Low Down Monthly Payment," "Buy Now Pay Later," "You... Read More

My Student Credit Card Adventure

And some practical advice too!My first credit card?I remember my... Read More

Free Credit Reports - How to Maintain Your Credit Profile

Maintaining your Credit ProfileEvery consumer should be maintaining their credit... Read More

Identity Theft ? Additional Protection for Soldiers on Active Duty

Congress passed the Fair Credit Reporting Act several years ago... Read More

How To Read Your Credit Report

The Fair and Accurate Credit Transactions Act, signed into law... Read More

Is Your Credit Score Costing You Money?

Most of us want a good credit report to obtain... Read More

Credit Report ? Check Yours Regularly - and for Free

In the twenty-first century, there are few documents that have... Read More

Rebuild Your Credit the Right Way the First Time

If you are one of the millions of people out... Read More

Addressing Bad Credit Card Debt

Spending HabitsSo you've just got your credit card. The first... Read More

How To Get Out Of Credit Card Debt

If you're like the average person, let me warn you... Read More

Cutting Credit Card Costs

What are the APRs charged by the credit cards in... Read More

How To Start A Second SEPERATE Credit File!

Your personal credit file is separated from those with the... Read More

Annual Credit Report and Free Annual Credit Report

Getting an annual credit report review has been the advice... Read More

Credit Card Debt: One Way To Avoid It

One of the biggest problems people have in these modern... Read More

Teaching Students To Keep Out Of Credit Card Debt - The Parents Role

Parents have the full responsibility for their children and their... Read More

Is Your Credit Score Being Held Against You?

Credit Scores That HurtIs your credit score being held against... Read More

Beware of Falling Minimum Payments

If you opened a credit card statement recently and were... Read More