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| Identity Theft: When You Are the Target |
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One of the drawbacks of today's paperless age is the potential for having your identity stolen. In fact, the Federal Trade Commission estimates that as many as nine million Americans are subject to identity theft each year. Once you are targeted, you are lucky if the costs are limited to the time it takes to correct your credibility. If you are unlucky, you could face tremendous financial bills.
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What is Identity Theft?
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Identity theft occurs when someone uses your personal identifying information, like your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes.
Identity theft includes, but is not limited to:
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Establishing credit card accounts in your name. |
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Changing your mailing address on an existing credit card account. |
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Accessing your telephone or wireless phone service. |
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Counterfeiting checks or debit cards to drain your bank account. |
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Opening a fraudulent bank account with the purpose writing bad checks on your account. |
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Taking out a loan under your name. |
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Filing for bankruptcy under your name to avoid paying debts. |
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Giving your name to the police during an arrest. |
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How Does Identity Theft Occur?
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Most identity theft occurs when someone illegally obtains the pertinent data of another individual, such as a Social Security number, driver's license, or credit card. Some of the more common practices used by thieves to obtain this data include:
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Dumpster Diving. Rummaging through trash looking for bills or other paper with personal information. |
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Skimming. Stealing credit/debit card numbers by using a special storage device when processing a card. |
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Phishing. Pretending to be a financial institution or company and sending spam or pop-up messages to get an individual to reveal personal information. |
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Pretexting. Using false pretenses to obtain personal information. |
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Shoulder-surfing. Standing close enough to see PIN numbers punched in at ATMs. |
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Address Changing. Diverting billing statements to another location by falsely completing a change of address form. |
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Old-Fashioned Stealing. Stealing wallets and purses, mail, pre-approved credit offers, new checks, or tax information and personnel records. This could involve bribing employees from financial institutions, telephone companies, and other sources who have access to this information. |
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How Can You Protect Yourself?
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One way to find out if your identity has been compromised is to monitor your accounts and bank statements each month, and check your credit report on a regular basis. If you check your credit report regularly, you may be able to limit the damage caused by identity theft. Here are some tips to help you safeguard your good name and credit reputation:
Social Security Number
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Never carry your Social Security card and driver license together in your wallet. |
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Only give your Social Security number when absolutely necessary. |
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Avoid using it as your user name or PIN. |
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Do not print it on your checks. |
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Do not provide it to anyone who contacts you through telephone solicitation. |
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If merchants demand it, ask if they will accept an alternate number or take your business elsewhere. |
Applying for a Credit or Debit Card
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Fill in all credit and loan applications using your full name, including first, middle, and last. |
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When opening new accounts, use new Personal Identification Numbers (PINs) and passwords. |
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Avoid using information such as your mother's maiden name, your birth date, the last four digits of your Social Security number, or your phone number. |
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Limit the number of credit cards you carry. |
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Instead of signing the back of your credit/debit card, write "check photo id" in the signature block. |
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Make copies of the front and back of all your credit and debit cards and place the copies in a secure location. If your cards are stolen or lost, you'll have all the relevant information you need to contact the card issuers and report the lost or stolen items. |
Managing Credit or Debit Cards
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Do not give your credit card number to anyone who contacts you through telephone solicitation. |
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Guard credit card receipts. Put receipts in a safe spot until your credit card bills arrive. |
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Monitor your credit accounts carefully, so you'll know if a bill is missing or unauthorized purchases have been made. |
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Close out unused credit cards. Cutting them up is not enough. |
Shopping With Credit or Debit Cards
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If you're shopping with an online merchant, look for the Trust-e symbol or a Better Business Bureau online seal. These indicate the seller has been independently audited and deemed trustworthy. |
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Make sure any online credit card charges are handled through a secure site or in an encrypted mode. |
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Shop only on web sites that offer a privacy policy, so you know how your personal information will be handled. |
Additional Safe Practices for Credit or Debit Cards
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Buy a shredder. Shred everything, including credit card receipts, old bank statements, medical statements, everyday bills, and pre-approved credit card offers. |
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Get a credit report at least once a year and clean up any errors. |
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Never leave paid bills in your mailbox for the mail carrier to pick up. Drop them off at a post office box. |
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Don't simply throw away the "pre-approved credit" offers you receive in the mail. If a thief accesses these cards, he or she could easily establish a credit card in your name. Shred them. |
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If you're moving, contact all your creditors and update your address immediately. You don't want credit information and new credit cards being delivered to the wrong address. |
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If your credit card expires and you don't receive a new one, call your creditor immediately. |
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Identity Theft in the Virtual World
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Don't give personal information over the Internet unless the site is secure. When it comes to giving personal information, you should only do so on a secure server. On a secure server, your information is encrypted as it is being transmitted. That way, others can't read it if they should intercept it.
Mind Your Passwords
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Use unique passwords whenever you can. |
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Change passwords regularly. |
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Use fewer passwords and change them frequently. |
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Avoid setting your computer to "Remember My Password."Wherever possible, disable these features. |
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Remember passwords—don't write them down. |
Protect Your Computer
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Purchase Anti-Virus Software. Next to password protection, nothing is more important than having good anti-virus software and keeping it up-to-date. |
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Keep Your Operating System Software Updated. As soon as a new vulnerability is discovered, your system vendor makes a "patch" to fix it. Patches don't do any good if you don't install them in a timely manner. |
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Install a Firewall. A firewall is a hardware or software "barrier" that helps separate your computer from those who would do you harm. |
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Take Precautions With Wireless Networks (Wi-Fi). Using a wireless network at home, in airports, coffee houses, bookstores, and other locations requires special precautions. |
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Know the Pitfalls of File Sharing. File-sharing programs allow you to share your files with others on the Internet—and vice versa. If you can get files from others, they may be able to get files from you—maybe files you didn't intend them to have. |
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Be Wary When Using Public Internet Kiosks. Don't use an unknown computer to access accounts that require logins or passwords. When you surf the Internet, you leave a trail in the computer you are using. When many people use the same computer terminal, it may mean that others can see the sites you have visited. And if you haven't "logged off" a password-protected account, your personal information may be accessible to others. |
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What to do if You Become a Victim of Identity Theft
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If you are a victim of identity theft, take the following steps as soon as possible. Be sure to keep a record with the details of your conversations and copies of all correspondence.
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Place a fraud alert on your credit reports. Fraud alerts can help prevent an identity thief from opening any more accounts in your name. Contact a consumer reporting company to place a fraud alert on your credit report. |
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Close the accounts that you know, or believe, have been tampered with or opened fraudulently. |
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Call and speak with someone in the security or fraud department of each company for which you may have a questionable account. |
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Follow up in writing, and include copies (NOT originals) of supporting documents. It's important to notify credit card companies and banks in writing. |
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Send letters by certified mail, return receipt requested, so you can document what each company received and when. |
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If the identity thief has made charges or debits on your accounts, or has fraudulently opened accounts, ask each company for the forms required to dispute those transactions. |
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Ask for a letter stating that each company has closed the disputed accounts and has discharged the fraudulent debts. |
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File a report with your local police or the police in the community where the identity theft took place. |
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If the police are reluctant to take your report, file a "Miscellaneous Incident" report, or try another jurisdiction. |
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Check with your state Attorney General's office to find out if state law requires the police to take reports for identity theft. |
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File a complaint with the Federal Trade Commission. |
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Helpful Resources
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Identity Theft Clearinghouse
Federal Trade Commission
600 Pennsylvania Avenue, NW
Washington, DC 20580
1-877-ID-THEFT (438-4338)
The FTC can refer victims' complaints to other government agencies and companies for further action, as well as investigate companies for violations of the laws the agency enforces. By sharing your identity theft complaint with the FTC, you will provide important information that can help law enforcement officials across the nation track down identity thieves and stop them.
Identity Theft Resource Center
www.idtheftcenter.com
Privacy Rights Clearinghouse
www.privacyrights.org
GetNetWise
www.getnetwise.org
National Association of Attorney Generals
www.naag.org
Consumer Reporting Companies
Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
1-800-525-6285
www.equifax.com
Experian
P.O. Box 9532
Allen, TX 75013
1-888-EXPERIAN (397-3742)
www.experian.com
TransUnion Fraud Victim Assistance Division
P.O. Box 6790
Fullerton, CA 92834-6790
1-800-680-7289
www.transunion.com
You only need to contact one of the three companies to place an alert. The company you call is required to contact the other two, which will place an alert on their versions of your report. If you do not receive a confirmation from the other two companies, you should then contact them directly to ensure fraud alert has been enacted.
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The preceding information has been provided for informational purposes only. Neither New York Life Investment Management nor its representatives provide legal, tax, or accounting advice. Please contact your own advisors.
Securities are distributed by NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, New Jersey 07054.
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