More Than Money: Identity Theft – How to Stop Being Easy Prey

Leonard Raskin

Identity theft is among the fastest growing crimes in the U.S.(1)  It occurs when thieves access your personal information in order to commit fraud or other crimes. The losses from identity theft total over $50 billion annually with an average loss of $3,500 per victim. While precise statistics are difficult to obtain, recent studies indicate that unauthorized access to checking accounts is the fastest growing form of identity theft. (2)

Last week, we covered the 10 red flags that signal your identity is in danger, and this week, we’re going to show you how to avoid being easy prey for those seeking to steel your identity.

Before we get into the specifics, though, it helps to know the most common ways identity thieves get your information. They include:

• Stealing your wallet or credit cards
• Stealing documents or receipts from your trash
• Conducting a phone or email scam
• Hacking into your computer via an unsecured wireless network

Once an identity thief has your personal information, they can purchase items on your credit card, open new credit cards or even file a fraudulent tax return in your name.

Here are our 6 Ways to Stop Being Easy Prey for Identity Thieves – plus a few additional tips to consider:

1. Create Strong Passwords and Update them Frequently. Avoid common or easy-to-guess passwords, including a birth date, a pet’s name, a mother’s maiden name or a the name of someone’s school or work. A safer password usually includes a few capital letters and at least one numeric or non-letter character. From time to time, change the passwords to those accounts you access most.
2. Be Aware of What You Share. With the increasing numbers of social networks available, a significant amount of personal information is being shared online, and it’s information that can be used to authenticate your identity. Don’t share personal information online, including your address, phone numbers, Social Security number, birth date or birth place.
3. Keep Sensitive Personal and Financial Documents Secure. Most people store personal and financial information on their computer. If you do, it’s important to protect your computer by installing a firewall, using anti-virus and anti-spyware software, keeping your browser updated and securing your wireless network. If you’re disposing of physical financial or tax documents, make sure you shred them and make sure you store any hard copies in a safe location. Never carry your Social Security card with you.
4. Protect Your Mobile Device. There are great apps that let you manage your banking and track your finances on your phone. You can even do your taxes on a mobile device. Make sure the apps you use come from a reputable company and check the ratings and comments so you’re aware of what the app does and what information it may access on your mobile device. You should also secure your device with a strong password and use your phone’s auto-lock feature to protect personal information.
5. Check Your Credit Report. You are entitled to one free credit report each year and should use it to catch any errors. If you find that information has been compromised, set up a fraud alert with the three major credit bureaus. They will put a security freeze on your files and information.
6. Don’t Fall for Phishing Scams. These email scams look like emails from a trustworthy entity, like your bank. Typically, they ask you to click on a link and confirm personal details including your address, account numbers and even your Social Security number. Trustworthy companies would never ask you to provide personal or sensitive information without first signing into your account behind a secure firewall. The IRS in particular will never communicate or request personal information via unsolicited email. Do not open emails claiming to be from the IRS. Instead, forward them to [email protected].

If possible, also:

1. Cancel paper bills and statements and manage your accounts online instead. Then, monitor your account balances and activity at least once per week. Review any remaining paper bank and credit card statements monthly and monitor your billing cycles for missing bills or statements.
2. Use email-based account alerts to monitor transfers, payments, low balances and withdrawals.

If you believe your identity has been stolen, put a hold on bank and credit accounts, change commonly used passwords and file a complaint with the Federal Trade Commission (FTC).

Providing the FTC with an overview of the information that’s been compromised allows them to build a case for wrongdoing. Unfortunately, the FTC can’t retrieve lost money, but it can help safeguard you against further fraudulent activity.

Additionally, if you think a fraudulent tax return has been filed with your Social Security number, or if you think you might be at risk of identity theft thanks to a lost or stolen wallet or any of the red flags we covered last week, contact the IRS Identity Protection Unit immediately at 1-800-908-4490.

To getting wiser,

Leonard Raskin
Women Getting Wise on Wealth from Raskin Global
443-212-1122

Sources:

(¹)  2011, http://www.articlesbase.com/answers
(²)  2012, Answerbag, www.answerbag.com

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Leonard P. Raskin, Registered Representative and Financial Advisor of Park Avenue Securities, LLC (PAS), 954 Ridgebrook Road, Suite 300, Sparks, MD 21152.  Securities products/services and advisory services are offered through PAS, a registered broker-dealer and investment advisor, (410)828-5400.  Field Representative, The Guardian Life Insurance Company of America (Guardian), New York, New York. PAS is an indirect, wholly-owned subsidiary of Guardian.  Raskin Global is not an affiliate or subsidiary of PAS or Guardian. PAS is a member of FINRA, SIPC.