|
October 2006 |
|||||||
|
This is the first of a three-part series on fighting identity theft. This month Debt Matters focuses on detecting the crime. In November we'll look at prevention, and in December we'll look at the steps to take if you become a victim of identity theft. When Detection Is Protection Fighting Identity Theft Is Largely a Matter of Recognizing It To do his work, a pickpocket probably will get within an arm's length of a victim. A burglar will enter their house. And a mugger will flat-out confront them. But an identity thief can steal us blind from half-way around the world with just strokes of a keyboard, without ever seeing his victim. 
Sounds hopeless doesn't it?The good news is that unlike the more conventional thieves, you've got a good shot at getting your money back AFTER the crime. Identity theft usually comes with a paper trail that you can demonstrate to banks that you were a victim of fraud. And because of that, how soon we discover we've been ripped off matters a lot. According to a 2003 Federal Trade Commission survey (the most recent available) 67 percent of identity theft victims reported no out-of-pocket losses if they discovered the fraud within six months of the crime. After six months passed, only 40 percent of victims avoided taking a financial hit. Your credit report So, how do we detect identity theft? The short answer is by monitoring your financial activity looking for any transaction executed in your name without your consent. The best place to start is with your credit report. Identity thieves attack in different ways and a credit report can show the whole spectrum of financial activity — from renting an apartment to taking out a loan. If anything on the report is unrecognizable to you, it could be the work of an identity thief. The safest path to take is to obtain your credit report from all three credit reporting agencies (TransUnion, Equifax and Experian) every six months. Get in the habit of getting your report each January and July or whichever months work for you. You can get your credit reports online at www.AnnualCreditReport.com Watch your accounts closely Each month, examine your statements for your checking account and credit cards line by line. Recognizing a phony charge could alert you to an identity thief. Also, if you get your statements by mail (instead of e-mail), keep track of when they usually arrive. A late statement could mean it was stolen out of your mailbox. A change in status Has your interest rate drastically increased for no reason? Were you rejected for some financing that you expected to receive? Was a card inexplicably canceled? Have you received a call or letter from a strange creditor? These could all be signs that someone has opened an account in your name or is using an account you've forgotten about. Once that account becomes delinquent, it negatively affects your credit and other creditors react to your change in status. Lost wallet? Understand that if you've lost a wallet or other documents have gone missing, you are especially vulnerable to identity theft. (Close any account in which a card may have been lost.) If your personal information has been compromised in any way, check your credit report more often for awhile afterward. In a very real way, detecting identity theft is a way to protect yourself from the hardships it can cause. |
|
|
|
|
|||
