Isn’t it Time to Protect Yourself from Identity Theft?

A sad but true reality is that many people do not find out that their financial identity has been compromised until beginning the process to buy a major item, such as a home. Then, when credit reports are ordered, often there are items on them that lower the scores, but that the consumer does not recognize.

Identity theft starts with the misuse of your personal identifying information, including your name, Social Security number, credit card numbers, or financial account information.


Sometimes Identify Theft Starts At Home. Though there are several ways this information may be stolen, look first on the home front. A relative or a roommate might pick up the information to rob your identity inside your home. Sometimes victims do not press charges against family members...and when this happens, no police report is filed and it becomes very difficult to refute the untrue credit information on your report when you are trying to transact a major purchase.

How ID Thieves Operate. Once they have your information, skilled identity thieves may use it in a variety of ways. For example, they may start new credit card accounts in your name, use the cards but don’t pay the bills, and the late accounts appear on your credit report. You’d never receive bills on such accounts because the address was changed.

Thieves also might try to open a new account—phone, internet utilities, even a bank account, and then write bad checks, in your name.

Skilled ID robbers could clone your ATM or debit card and make electronic withdrawals in your name, draining your accounts. They might use your name and Social Security number to get government benefits.

They could file a false tax return, get a job, rent a house, get medical services, or even give your information to the police during an arrest.


What To Do. First, obtain your credit report. Remember you are entitled to a free one every year. Start at this website: www.annualcreditreport.com. Carefully check the report over and if there are discrepancies, contact the credit agency and begin the process of tracking and correcting.

Credit Freeze. One of the newest, and most effective, ways to fight identity theft is to freeze your credit. A credit freeze allows you to have the credit bureaus, lock up your file. Anyone applying for a credit card or a loan in your name couldn’t get it, because the a credit score could not be obtained, and the application is denied.


A fee may be charged, both to freeze your credit and to “unfreeze” it. Remember you’ll have to unfreeze the credit when you want to make a major purchase. Currently, unfreezing takes a few business days which could pose an inconvenience to you.

This inconvenience may not be a bad thing...for example, it would not be possible to pick up credit cards instantly while shopping, and “impulse” purchasing might not be so easy.

Not a Cure All. Credit freezes are not a cure-all. Check fraud and “existing account fraud” which is draining money through existing credit card or checking accounts, can still happen. Don’t forget to check your statements carefully.

For more information on identity theft, a good place to look is the Federal Trade Commission’s website on this topic:
www.ftc.gov/bcp/edu/microsites/idtheft