An Identity Crisis of the Worst Kind

by Boyd Casselman

Identity theft is almost as dreaded in our society as cancer, but it is far more preventable. It occurs when someone obtains your personal information through fraud, deception, or theft and then uses that information to access your money or credit. These thieves use your personal information to obtain credit cards, bank loans, and checking accounts to make big purchases using your established good credit and name. Identity thieves are creative, ingenious, and unscrupulous. Every year, millions of Americans become victims of identity theft; losses total tens of billions of dollars. As seniors, we are especially vulnerable because identity thieves prey on our innate trust, frequent loneliness, and declining health.

The activities of identity thieves will often place negative information on our credit reports, which can make it impossible to borrow money or obtain credit. In extreme cases of identity theft, victims may be arrested and charged with crimes they didn’t commit. However, the most damaging consequence of all is the loss of a good name and reputation. None of us wants to spend weeks, months, or even years trying to unravel the mess and undo the damage done by identity thieves.

The purpose of this article is to outline the most important ways you can protect yourself from becoming a victim of identity theft.

Protection Strategy #1 – Protect Financial and Other Sensitive Information

Let your wallet or purse reflect your current agenda. Carry only the credit cards you plan to use on your specific errands that day. Leave all others at home. Also, if you use your credit card to make a purchase, never leave without your receipt whenever you use your credit card. Finally, unless you absolutely need them, leave your social security card, passport, birth certificate, and any other information-sensitive documents at home in a safe place.

Guard sensitive information carefully. Never give out personal information over the phone, by mail, over the Internet, or by e-mail unless you have an ongoing, trusted relationship with the company with whom you are doing business. Also, initiate the call whenever possible, so you have a better chance of knowing to whom you are speaking. If anyone solicits your personal information in any way, end the conversation, tear up the mailing, delete the e-mail, shut the door, and distance yourself from the solicitor as quickly as possible. Do not worry about being rude or hurting their feelings. Their only goal is to take advantage of you; they act for their own personal gain, without regard for the people they hurt in the process.

Shred any information-sensitive documents or mail. Rather than simply throwing away documents that may contain financial or other personal information, shred them. Paper shredders can be purchased at a low price at any office supply store. Even credit card solicitations and applications received by mail should be destroyed, rather than simply thrown away. Stealing this kind of mail and then applying for a card in your name is another way thieves may use your good credit for their evil purposes.

Protect your computer and e-mail. Install a firewall on your computer to prevent hackers from getting into your hard drive. Also, install and update virus protection software to prevent worms or viruses from invading your computer and transmitting private information to others.

Act—don’t just react. Remove your name from the marketing lists of the three largest credit-reporting bureaus. (See Contact Information at the end of this article.) This will cut down on the number of pre-approved credit offers and other credit solicitations you will receive in your mailbox.

Protection Strategy #2 – Recognize Suspicious Activity

Keep your eyes open. Watch for signs that someone is accessing and misusing your accounts. These signs include bills that don’t arrive as expected, credit cards that arrive in the mail that you weren’t expecting or didn’t apply for, credit denials for no apparent reason, and calls, letters, and e-mails about purchases you didn’t make. Make it a general rule to never respond to any request, by phone or e-mail, to update your account information.

Know your current credit rating. Review and inspect your credit report at least once a year. Look for credit inquiries you did not initiate, accounts you never opened, or unexplained charges on credit accounts you may or may not have opened. By law, the three main credit-reporting agencies are required to provide you with a free credit report every year. You may contact them at www.freecreditreport.com or by calling 1-877-322-8228.

What should you do if you discover that you are the victim of identity theft?

Take immediate steps to defend yourself:

ï Contact one of the major credit agencies and have them place a fraud alert on your file. (See Contact Information below.) This will prevent an identity thief from opening additional credit cards in your name. The agency you call will automatically notify the other two credit bureaus.

ï Close all affected accounts. If a checking account is involved, contact your bank or credit union and ask them to stop payment on the account.

ï If you discover any unauthorized charges on your credit cards, contact the corresponding credit card companies to dispute all fraudulent and suspicious charges.

ï File a police report. This will provide you with additional proof that identity theft actually occurred.

What’s the Bottom Line?

Identity theft is a terrible thing that doesn’t have to happen to you. If you safeguard your information and monitor your accounts, your identity will likely stay where it belongs – with you.

For more information about how to better protect your retirement assets from this and other common threats, contact Boyd Casselman or Daniel Scarlet. (They are Certified Senior Advisors with a combined experience of nearly twenty years of working with Utah seniors.) Call 801-544-5583 or toll free 1-877-544-5583. (Scarlet & Casselman is Utah’s leading retirement planning firm.)

Contact Information

For more information about protecting yourself from identity theft, you may contact any of the following organizations:

Government Agencies

Federal Trade Commission Identity Theft Clearinghouse

1-877-438-4338 or www.consumer.gov/idtheft

FBI/National White Collar Crime Center – Internet Fraud Complaint Center

http://www.ic3.gov

U.S Postal Inspection Service

http://www.usps.com/postalinspectors

Non-Profit Groups

Identity Theft Resource Center

858-693-7935 or www.idtheftcenter.org