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.

---

How To Read Your Credit Report

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

Rebuild & Keep Good Credit Ratings by Understanding Your Credit Cards

Secured Credit Card is similar to a prepaid credit card... Read More

Watch Out For Credit Repairs

It is very easy to find a site that is... Read More

ChexSystems: Alternative Options for People Whove Been Checking Accounts

Individual banks elect to become members of ChexSystems, and to... Read More

Tips For Getting Your First Credit Card

Most of us get a credit card on our name... Read More

What Is A FICO Score?

A credit score is most commonly known as a FICO... Read More

Which Business Credit Cards with Reward are the Best?

Thinking of applying for a credit card with a reward... Read More

Credit Report Disaster Through Mistaken Identity

I've got some very important info I want you to... Read More

Read and Understand Your Credit Card Statement

Have you ever looked at your credit card statement and... Read More

Always Avoid Payment Holidays

Once you've been paying off a credit card for a... Read More

Credit Cards - The Basics

How Lenders Operate ? And How They'll Make a Tidy... Read More

Choosing the Right Credit Counseling Agency for You ? Some Tips Part 2

Credit counseling companies come in all shapes and sizes. Whether... Read More

Credit Counseling: Is it Really Necessary?

Not everyone has a positive experience with credit counseling. Potential... Read More

Bounced Checks - Straight Talk On Dealing With Bad Checks (NSF)

A check can be considered bad if it is bogus... Read More

Like It Or Not, You Have A Score To Settle!

Like It Or Not, You Have A Score To Settle!... Read More

Common Credit Score Myths

A lot of credit score myths about fico score ratings... Read More

Credit Card Expenses Are Killing Your Budget!

Do you know the costs associated with your credit card?... Read More

Commercial Collections And Credit Granting

It is estimated that billions of dollars in delinquent commercial... Read More

FREE Credit Report Offer - Careful, It Might Carry Hidden Charges

FREE credit checks or free credit reports. What are they... Read More

Beat Credit Card Companies at Their Own Game!

Have you ever wondered how much money a credit card... Read More

How A Prepaid Debit Card Can Help You Rebuild Your Credit

Consumers today are up to their eyeballs in debt. And... Read More

How To Use Your Credit Card For Ultimate Financial Advantage

Using a credit card wisely is an important step in... Read More

Dont Trade Your Future for Todays DooDads

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

Five Debt Negotiation Facts

These five debt negotiation facts along with a few debt... Read More

The Three Largest Factors In Your Interest Rate

There are three major factors that affect how much you... Read More

Free Credit Reports Now Available From the FTC

The Federal Trade Commission (FTC) has set up a new... Read More

The Hitchhiker?s Guide To Insanity

A new sickness is plaguing the UK called Denial. Denial... Read More

Credit Report ? Look Out for Your Debit Report, Too

Most consumers are aware that there are companies that keep... Read More

What Does Your Credit Score Tell You?

When you apply for a loan or a mortgage, the... Read More

Tips for Choosing a Credit Card Company

Credit Cards are essential for any consumer today. However, when... Read More

How To Choose Your Credit Card Application

The articles and tips provided on this site are intended... Read More

New Credit Advice: Dont Pay off Those Credit Cards!

Credit needed for real estate mortgage financing differs from credit... Read More

Is Your Credit Score Costing You Money?

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