Protecting yourself from ID theft

How many times do you go to the mall with a fistful of personal identification including your social security number, credit card numbers, home mailing address, and bank account information? When you’re at the mall, do you post all of them on the bulletin board for everyone to see before spending the afternoon shopping? Probably not.

Instead, you probably try to keep all that information hidden in your pocket or purse. You know that if all of those cards were stolen, you’d have a hard time proving who you were, and someone might be able to steal your identity. The same is true online. If you’re not protecting your personal information, you are putting yourself at risk. See below for more information on how you can improve your chances against these criminals.

There are many strategies you can implement quickly and easily to protect your identity both online and offline:

1. Do you really need all those cards in your wallet? Check whether you really need to be carrying all of the cards you have in your wallet around with you everywhere – do you need to have your social security number (SSN) with you? Are you carrying your passport around? If you don’t need it, don’t carry it. Find somewhere safer for the cards you don’t need. That way if your wallet is stolen, at least you’ll have some identification cards to be able to identify yourself.
2. Do you carry your personal identification numbers (PINS) in your wallet? You know you shouldn’t, so try to memorize these, and throw out the little reminders! Little notes with PIN numbers can give criminals easy access to your accounts – and some banks aren’t very sympathetic if they hear that you gave the criminal your pin.
3. Do you have photocopies of important identification cards? It’s a good idea to take photocopies of important identification cards when you get them and keep these photocopies in a safety deposit box, or hidden at home. That way, if your identity is stolen, at least you will have some proof of who you are. These can help you re-establish your identity a little bit faster. If you don’t have access to a photocopier, you can just write down all of the numbers on these cards. Be sure to store this information in a very safe place.
4. Do you pay by cash? Using cash to pay for items instead of using credit or debit cards helps to keep your identity safe. By leaving your credit and debit card numbers in your wallet instead of on receipts and registers, you reduce the chances that someone will see these numbers and try to take advantage of you. Paying by cash also helps with money management. Use a service like eBillme when you are shopping online – this service allows you to shop online and pay by cash.
5. Do you shred papers that contain your personal information? The average home shredding machine costs under 50$ (eBillme recommends: Buy.com Shredders). Shredding old credit card statements or receipts that contain credit card numbers is easy and ensures that criminals won’t be able to gain access to your identity by rooting through your garbage (AKA dumpster diving).
6. Do you know your card company’s policies on identity theft? Check with your credit or debit card company – Some good questions to ask are:
   • Who is liable if your card is stolen?
   • What sort of policies do they have in place to protect you?
   • Will they call you if they suspect someone has stolen your card and is putting unauthorized transactions on it?

   Make sure that you are comfortable with your credit or debit card company’s policies. If you aren’t, it may be a good time to start shopping around for a new credit card.

 

7. Are all of your cards signed?

   Sign all important identification and credit/debit cards on the back as soon as you get them. If you notice that your signature has worn off, get the card replaced as soon as possible.

 

8. Do you reveal important numbers over the phone?

   A popular new scam is for thieves to call you posing as your credit card company. They often have some information about you, but not all, and they ask if you can fill them in on the rest. You should know that no legitimate credit card company will ask you to reveal the 3-digit security code on the back of your card – if someone calls asking you for this, you should hang up and report the phone call to the police.

 

9. Do you have identity theft insurance?

   Identity theft insurance attempts to protect you from the financial difficulties incurred while re-instating your identity. It generally costs between $20 and $100 per year. According to consumer reports though, identity theft insurance is generally not worth the cost because there’s really not much these insurance companies can actually do for you if your identity has been compromised. You need to do most of the work to reclaim your identity yourself.

   Some credit card companies include this type of service for free – ask yours how they will help you if your identity is stolen.

 

10. Do you shop only at secure web sites?

    You can tell if a web site is secure by:

    • Looking at the top of the screen where you see https. The “s” means that the site is secure. You might not see it until you actually get to the page where you make your online purchase though.
    • Look for a closed padlock at the bottom of the screen. If the lock is open, the site isn’t secure. If the lock is closed, the site is secure.
    • If you see an unbroken key at the bottom of your screen, that also indicates a secure site.
    • Do you use a personal firewall?

    If you’re shopping online without anything to block the rest of the world from seeing your personal information, you are opening yourself up to becoming a victim of identity theft. There are all kinds of software programs available at different costs designed to prevent identity theft by putting up a “wall” or a “firewall” as it’s called. When someone tries to hack into your computer, the software program identifies the problem and blocks it from happening.

    If you don’t use one of these programs, you might not be protected against the latest Internet identity theft threats. That’s the same as leaving your back door wide open and all of your personal information on the back porch. People can then come and go as they please, using your information for whatever they want.

 

11. Do you know what a phishing email is and do you know what to do if you get one?

    Everyone has heard of fishing, but have you heard of phishing? People are really creative and can, unfortunately, create emails that look just like letters or notifications from your banking institutions, government agencies, or legitimate businesses.

    They’re called phishing emails and they’re usually written in a way that alerts you to a possible problem with your account. What they want you to do is click on a certain link where you’ll be asked to type in your account information. It’s like taking candy from babies.

    As soon as you hit “send” some criminal has instant access to your bank account. The next thing you know, you’ve become a victim of identity theft. There are ways to protect yourself from this kind of email scam though. It’s easy - if you receive an email from a bank you don’t even use, delete it.

    If you receive an email that seems to be from a company you’ve recently used or your bank, don’t respond to the email in any way. To protect yourself from identity theft, contact the company or your bank to find out if the email is real.

    If it isn’t, banks usually provide a dedicated customer service phone number or email address where you can send fraudulent emails. If you suspect that you have a fraud email, cut and paste the email and send it to the bank.

    The best secure socket layer certificate, or SSL, in the world can’t protect you from this type of fraud. Just remember that any legitimate bank or company won’t ask for you to send them personal information through email.

    You can also report phishing emails here: AntiPhishing.Org.

    If you think you or someone you know has fallen prey to a phishing scheme, you should always report identity theft to your local authorities.

    For more information about identity theft, and in particular identity theft when you’re traveling overseas, see AboutIdentityTheft.co.uk.

• Check your wallet and if you don’t need all those cards, don’t carry them. Find somewhere safer to store them like a safe in your home or at your bank. If your wallet is stolen, you will still have some pieces of identification to help prove who you are.
• Check your wallet and remove any notes containing personal identification numbers (PINS).
• Photocopy important identification cards when you get them. Keep the photocopies in a safety deposit box or hidden at home (if you don’t have a photocopier available you can just write down the numbers).
• Pay by cash. Paying with cash (and leaving your credit and debit cards at home) is a great way to assure your privacy. It also helps with money management.
• Know your credit card or debit card company’s policies on identity theft.
• Sign all of your cards. If you notice that your signature has worn off, get the card replaced as soon as possible.
• Don’t reveal important numbers over the phone. No legitimate credit card company will ask you to reveal the 3-digit security code on the back of your card – if someone calls asking you for this, you should hang up or report the phone call to the police.
• Shred papers that contain your personal information before throwing them out.
• Investigate whether identity theft insurance is right for you.
• Shop only at secure web sites.
• Use a personal firewall.
• Don’t reply to or click on links in emails asking for bank account or credit card numbers. Delete them instead.

The short answer is NO. Identity theft can happen offline as well.

While you probably get many pop-up windows while surfing the Internet with offers of rewards, gifts or extra-special deals on 5-star vacations, you probably also get several phone calls offering you “the deal of a lifetime” - How often do you find out that you have to provide personal and financial information in order to receive the deal?

Don’t fall for it.

Most people have heard the saying, “If you think it’s too good to be true, it probably is.” Yes, good deals will come your way, but usually not through an Internet pop-up window or telemarketer. Identity theft isn’t always about a hacker lurking in the background of your computer information, secretly tucking away information about you.

Identity theft can occur in any number of ways and it takes a person with good information on identity theft to prevent it from happening. Think of identity theft protection as more than just something you need to be aware of on the computer. Think of it every time you’re asked for personal information from a stranger, business, company, or organization you’re not familiar with. Learning about identity theft is your key to protecting yourself against identity theft in a variety of situations.

Identity Theft is one of the most difficult things to have to go through. Hopefully you will never have to deal with having your identity stolen and to help with that, there are a few things you can do.

  1. Instead of signing the back of your Credit or Debit card write SEE ID. That way if you’re card is ever lost or stolen it will be more difficult for thieves and strangers to know your signature and use the card without your ID.
  2. When shopping online be careful about what online stores you give your information to. Be sure it’s a company you trust and never send important information over public WiFi.
  3. To be 100% sure you’re information is safe when shopping online, use eBillme to pay. eBillme never asks for your personal financial information and it keeps you from having to send any information to the merchant you are purchasing from.
  4. Finally, when shopping in stores, it’s best to pay with cash so there’s no chance for anyone to see or copy private banking information.

Bottom line, be smart with your bank information. The last thing you want is someone taking your identity and ruining your life because of it. Check out this article by Miriam Caldwell about Dealing with Identity Theft from About.com.

Banks, credit unions and financial institutions spend a great deal of time and money to ensure your safety while banking online. That being said, fraudsters can also spend a lot of time and money trying to hack into these systems.  I’ve felt safe enough with online banking, something I’ve been doing over the past 8 years or more because I’m hooked on the convenience.  I avoid phishing scams by ignoring any unsolicited emails that claim to be from my bank (usually they are from a bank I’ve never heard of), and am completely paranoid about releasing any sensitive financial information online.  I am also careful where I click. Is it enough?

According to a recent article on MSN Finance, we also need to be careful of accidentally releasing a virus or other malevolent software, like the one known as Sinowal Trojan.  This is a program that injects what seem like legitimate pages on someone’s browser, then steals the user’s log-in credentials.  According to a study published by California’s RSA Fraudaction Research Lab, it compromised over 300,000 online bank accounts and about 250,000 credit and debit card accounts over the past three years.

Online banking is considered safe, but you should take steps to protect yourself from fraudsters who may be trying to steal your identity while you’re banking online.  The MSN article quotes, ‘”When you’re online, even though you have a lot of risks, you’re more in control because you can do something about the risk — you can monitor your accounts, and you can say no to the malicious junk,” Javelin President James Van Dyke said. “In the old-fashioned world, such as the paper and mail world, you can’t do much to keep prying eyes from looking at those paper cheques and paper statements.”  Anything, however, is suspect once you’ve been a victim.  Nothing is perfect.

Avoid Being a Victim

Taking steps to protect yourself from identity theft are not difficult, and there are plenty of tips as well as support you can get from your financial institution.  Here are ideas from eBillme that will make a big difference.

  * Protect your online banking information (don’t share your login and password with anyone, even another service provider!)
  * Be sure that you are visiting a legitimate website by carefully checking the URL and matching it up with the real site character by character for the domain name
  * Only login directly to your online banking web site (don’t follow links to it)
  * Be sure to log off the online bank site when you are finished
  * Install a firewall
  * Install anti-virus software and keep it up to date
  * Learn how to spot a phishing email and what to do if you find one

For more information on banking online safely, see GetSafeOnline.org.  For more information, see these tips from eBillme on protecting your identity.

Identity theft is the fraudulent use of your identity by a criminal who knows (or steals) enough information about you to impersonate you for his own gain. Unfortunately it’s easy to become a victim of identity theft. In fact, identity theft has become one of the fastest growing crimes in North America.

The Identity Theft Resource Center is a non-profit organization dedicated to the understanding and prevention of identity theft. Every year the Identity Theft Resource Center (ITRC) shares its thoughts for the upcoming year. If you’re lucky and have never been a victim, there are some simple steps you can take to prevent identity theft, both online and offline. It includes information on how to report identity theft and how to get identity theft insurance. People spend an average of 4 hours reclaiming their identities once they’re stolen (but it can take upwards of 55 hours!), so it’s well worth taking a few minutes now to hone your identity theft prevention skills.

Read the entire list of predictions from the ITRC: What’s Hot! ITRC’s list for 2009, and check back with us for 2010 predictions.

Secure online shopping is possible! Look for a secure shopping cart – To tell if a web site’s shopping cart is secure:

1. When you look at the url of the site, you should see https:// instead of http://. The “s” means that the site is secure. (Note: Some sites only move you over to a secure server on pages where you are giving them sensitive information – so you might not see https:// until you actually get to the page where you make your online purchase).
2. Look for a closed padlock at the bottom of the screen. If the lock is open, the site isn’t secure. If the lock is closed, the site is secure.
3. If you see a key at the bottom of your screen, that also indicates a secure site. The key needs to be complete (with no breaks in it).
4. Some sites may have logos that show you which SSL (secure-socket layer) provider the site uses. These logos often contain today’s date (to let you know that the ssl is current) and when you click the logo, a screen should appear giving you more information about the ssl provider. One example of this is Verisign.
5. There are also newer tools to help you identify sites that take your privacy and security seriously. If you see a current Hackersafe logo on a site, it means that Hackersafe thinks that the site you are on is doing a good job of protecting your information.

If you’re shopping online without anything to block the rest of the world from seeing your personal information, you are opening yourself up to becoming a victim of identity theft. There are all kinds of software programs available at different costs designed to prevent identity theft by putting up a “wall” or a “firewall” as it’s called. When someone tries to hack into your computer, the software program identifies the problem and blocks it from happening.

If you don’t use one of these programs, you might not be protected against the latest Internet identity theft threats. That’s the same as leaving your back door wide open and all of your personal information on the back porch. People can then come and go as they please, using your information for whatever they want. Personal firewall software can be purchased from many online vendors including TigerDirect.com.

Banks, merchants, and payment processors work hard to ensure that online shopping is safe. Yes, there are identity theft statistics that show an increase in identity theft over the years, but there are really simple ways to protect yourself against identity theft including:

• Only provide the minimum information required to complete an online purchase. Chances are you only need to provide your name, mailing address and phone number to complete an order. Why would that company need your date of birth, social security number, or bank account information?
• Use a third party company like eBillme to pay cash online. When you use these methods, you don’t have to provide any personal or financial information to a merchant you don’t know. It’s a bit like a more secure form of online debit.
• Never give out your computer password to anybody.

When shopping online from a shared computer (such as one used at a library, school, or Internet café) try to make purchases from stores that offer alternative payment options like eBillme. With eBillme, you can place your order now, but pay cash for these purchases later from a computer that is not shared.

If the store will only accept credit card payments online, look for their customer service phone number. Give them a call and see if they’ll accept a check payment. It will take longer to receive your order, but at least you won’t have to enter credit card information into a shared computer. The risks of making an online credit card payment using a shared public computer include:

• The risk of someone looking over your shoulder to get your personal and financial information.
• Forgetting to completely log off. We’re a busy society and in a rushed world, it’s really easy to jump up from the computer terminal and head out the door without completely logging off. The next person to sit down could easily log in as you and take advantage of your credit card information.
• When using your own computer, you probably have a good idea of the security installed on it. When using a public computer, unless you take the time to search the system, you may not be as well protected as you are at home.

A phishing email is an email that has been made to look just like a letter or notification from your bank, government agency, or some other business. They are usually written in a way that alerts you to a possible problem with your account. The email says that they want you to click on a link where you’ll be asked to type in your account information. As soon as you hit “send” some criminal has instant access to your bank account. The next thing you know, you’ve become a victim of identity theft.

There are ways to protect yourself from this kind of email scam. It’s easy - if you receive an email from a bank you don’t even use, delete it. If you receive an email that seems to be from a company you’ve recently used or your bank, don’t respond to the email in any way. To protect yourself from identity theft, contact the company or your bank to find out if the email is real.

If it isn’t, banks usually provide a dedicated customer service phone number or email address where you can send fraudulent emails. If you suspect that you have a fraud email, cut and paste the email and send it to the bank. You can also report phishing emails at AntiPhishing.org.

Any legitimate bank or company won’t ask for you to send them personal information through email. If you think you or someone you know has fallen prey to a phishing scheme, you should always report identity theft to your local authorities.

Typical indicators that your identity has been compromised include:

• A creditor informs you that an application for credit was received with your name and address, but you never applied for it.
• Telephone calls or letters state that you have been approved or denied by a creditor that you never applied to.
• You receive credit card statements or other bills in your name, which you did not apply for.
• You no longer receive credit card statements or you notice that not all of your mail is delivered.
• A collection agency informs you they are collecting for a defaulted account established with your identity and you never opened the account.

If your wallet has been stolen you should take all the same precautions you would if you’ve been a victim of identity theft. There are a few things you should do right away. The faster you take action, the more you can limit the damage this criminal does to your life and your credit rating.

1. The first thing you need to do is report identity theft. Contact your local police and complete an identity theft police report. From there, you can contact a fraud department or agency. They will probably want to see a copy of the identity theft police report you’ve filed. When you complete an identity theft police report, you’re entitled to a 7 year fraud alert, to a credit freeze (in some states), to having fraudulent information blocked from your credit report, and to a copy of any records that are obviously fraudulent in your name. After you have a copy of your completed report, make several photocopies and always keep the original on hand. Unfortunately, as an identity theft victim, you’re going to have to prove that you’ve been victimized. That means you’re probably going to have to send copies of that police report to several businesses and agencies while you go about clearing your name.
2. Contact your credit card companies. Hopefully, you get to them before the criminal has racked up huge bills on your account. Notify them that your identity has been compromised and that you would like to block all further transactions on your outstanding credit cards and that you would like them to issue you new cards sent to your home address (Don’t forget to contact companies who issued you credit cards like specialty stores, department stores, or online retailers). Some credit card companies have services that will email you whenever someone tries to get a loan in your name. If your company offers such a service it might be a good idea to sign up for it (depending on the cost). That way you’ll be notified if this criminal tries to get a car loan, boat loan or even a mortgage using your identity. These can be some of the hardest types of fraudsters to fight, and the toughest types of loans to know about, so if your credit card company doesn’t offer this type of service, you may want to contact a credit reporting agency and sign up for a similar service with them.
3. Contact your bank, credit union or other financial institutions. Let them know that your identity has been compromised. Ask them for their procedures. Some banks will issue new debit cards, others may go as far as issuing you new account numbers.
4. If your license, passport, or social security card has been stolen, you’ll need to contact the appropriate government agency to have these re-issued. Unfortunately if you don’t have your passport, you need to apply for a new one in person at the Closest Passport Office. Social security provides information on what to do if your identity has been stolen at the Social Security Web Site.
5. If you have an identity theft insurance policy, refer to it to find out how the insurance company will help you through this challenging time. One of the worst things about identity theft is the feeling of loss. Suddenly you have no control and you feel helpless while a criminal is out there pretending to be you, ruining your credit and taking over your life. Hopefully, as you work to reclaim your identity, you will have a great deal of help from others who have gone through the same difficult experience. Remember, it takes an average of 4 hours (and up to 55 hours!) to clear your name and your credit rating.

 

When I received my first phishing email a few years ago, I was confused. I wondered for a moment if it was real, thinking that perhaps the banks did know everything, including personal email addresses I’d never shared.  It looked quite official at the time, and it was a company that I knew.  I decided not to click the link however, and definitely didn’t want to share any of my banking information.  After all, I thought, shouldn’t that be something they already have?  Hundreds of phishing emails later, from Paypal (have never used them) and various banks I’ve never heard of, I don’t bat an eye though I do wonder where they get my email address from.

A phishing email is an email that has been made to look just like a letter or notification from your bank, government agency, or some other business.

Usually, they are written in a way that alerts you to a possible problem with your account. Many say that they have an “urgent” request. The email will likely say that they want you to click on a link where you’ll be asked to type in your account information.  As soon as you hit “send” some criminal has instant access to your bank account. The next thing you know, you’ve become a victim of identity theft.  Criminals use the information obtained to empty the victims’ bank accounts, run up credit card charges and apply for loans or credit in the victims’ names.

There are ways to protect yourself from this kind of email scam. For example – if you receive an email from a bank you don’t even use, delete it.

If you receive an email that seems to be from a company you’ve recently used or your bank, don’t respond to the email in any way. To protect yourself from identity theft, contact the company or your bank to find out if the email is real.

If it isn’t, banks usually provide a dedicated customer service phone number or email address where you can send fraudulent emails. If you suspect that you have a fraud email, cut and paste the email and send it to the bank. You can also report phishing emails at AntiPhishing.org

Any legitimate bank or company won’t ask for you to send them personal information through email. If you think you or someone you know has fallen prey to a phishing scheme, you should always report identity theft to your local authorities. To date, taxpayers have forwarded more than 33,000 of these scam e-mails, reflecting more than 1,500 different schemes, to the Internal Revenue Service (IRS).  Note that the IRS never uses email to contact taxpayers about their tax issues.  You can find out more about scams reported to the IRS.

You can find the latest resources on how to avoid phishing scams at AntiPhishing.org’s consumer resource page.

According to data recorded by the Identity Theft Resource Center in 2006 about 28 people in the United States became victims of identity theft every minute.
Once a person realizes they’ve become a victim and reports identity theft, it can take years to recover from the blow. Because of someone else’s criminal activity, the victim could find themselves with increased insurance costs, difficulty finding a job, being pursued by collection agencies – all of these even after it’s been proven that you were a victim of identity theft.

The FTC reports that it takes an average of 4 hours to clear your name from identity theft. In 10% of cases, victims report spending upwards of 55 hours! These identity theft statistics speak for themselves. With a little information on identity theft you can go a long way towards protecting yourself against identity theft.

There are many different ways that criminals and fraudsters can steal your identity.

The most common forms of identity theft are:

• 58.9% of all victims experienced the misuse of an existing credit card
• 48.6% of all victims experienced the misuse of existing accounts other than existing credit card accounts
• 21.9% of victims had their personal information used to open a new account or commit some other kind of fraud - for the victims, this type of identity theft can be the hardest to recover from.
• For 38.1% of all victims, the misuse of an existing credit card was the only form of ID theft suffered.

According to surveys by the Federal Trade Commission, a total of 3.7 percent of survey participants indicated that they had discovered they were victims of identity theft in 2005. That translates to approximately 8.3 million U.S. adults who were victims of some form of identity theft in 2005.

A 2006 survey revealed that the average loss for victims of identity theft was $371. The median value of goods and services obtained by the identity thieves was $500. Ten percent of victims reported that the thief obtained $6,000 or more, while 5 percent reported that the thief obtained at least $13,000 in goods and services.

In more than 50% of identity theft cases, victims incurred no out-of-pocket expenses. Out-of-pocket expenses include any lost wages, legal fees, payment of fraudulent debts, and miscellaneous expenses such as notarization, copying, and postage.

10% of all victims reported out-of-pocket expenses of $1,200 or more.

37% of victims reported experiencing problems other than out-of-pocket expenses or the expenditure of time resolving issues as a result of having their personal information misused. The problems they reported include, among other things, being harassed by collections agents, being denied new credit, being unable to use existing credit cards, being unable to obtain loans, having their utilities cut off, being subject to a criminal investigation or civil suit, being arrested, and having difficulties obtaining or accessing bank accounts.

It is estimated that the total losses from identity theft in 2006 was approximately $15.6 billion.
The following breakdown shows the median amounts lost to the different kinds of identity theft:

• New Accounts & Other Frauds: $1,350 (victims in this category were 3 times as likely to report that thieves obtained more than $5,000 when compared to victims in the other two categories of ID theft)
• Existing Non-Credit Card Accounts: $457
• Existing Credit Cards Only: $350

The majority of victims (56%) of identity theft did not know how their information was stolen. 43% of victims were aware of who took their information or how it was taken. Among those who knew how their information was taken, the most common factor (16%) was that their information was stolen by someone they personally knew.