Understanding and Avoiding Identity Theft

Identity theft - the assumption of our identity - is one of the least understood and most frightening problems. It is a complicated issue and let me tell you how it works: A scamster manages to get my name, address, social security number and credit card or other information. Assuming my identity, the person runs up huge bills and skips without paying, leaving me with a ruined credit and creditors baying for my blood.

Our wallet contains so much information about ourselves, which we normally do not realize. A thief can make use of the information and pretend to be us.

Reducing Exposure to Identity Theft

* We cannot prevent identity theft with a 100% certainty, but we can certainly try to reduce our exposure to it.

* We must carry only the information we need to carry out our daily dealings. We should not carry all our credit cards in our wallet. We must avoid putting our Social Security number on our checks.

* Stolen mail is one of the easiest ways to get personal statistics. Do not leave your mailbox full. If out of town, arrange to have your mail picked up by friends or family members, or arrange to leave it at the post office.

* Do we get alert if our credit card bill is late? I always call up my credit card issuer to ask why. Identity thieves can arrange to change my billing address and run up huge bills before I can realize.

* Employers, merchants, proprietors, etc may have legitimate reasons to ask for my personal information. I always find out why they want the information and provide only that which is required for that particular transaction.

* One of the oldest frauds is being asked to update out of date credit card information, over phone. I never give out any information to strangers. You too should not.

In the next article, let us learn how to avoid becoming a victim of identity theft.

Jon Sterling tries to help you overcome Personal Financial problems through informative articles to help you reach your personal financial goals.

Jon publishes articles and ebooks to help individuals with their personal finance needs and goals.

Preventing Identity Theft

What is Identity Theft? It is the theft of your personal information, such as social security number, driver's license number, credit card and bank account numbers, mother's maiden name, and more, with the intent to obtain credit and credit cards from banks and retailers, steal money from the victim's existing accounts, apply for loans, establish accounts with utility companies, rent an apartment, file bankruptcy or obtain a job using the victim's name.

Did you know that in some states Identity Theft is not even against the law? The victim has to prove their innocence. This shocks most Identity Theft Victims, as it should. It shocks me. Law Enforcement and Credit Card Services should be there to help, but in many cases they don't.

Being prepared, just in case someone steals your identity is a must. It may be inconvenient, but unless you want to go out and try to use your credit card one day, just to find that someone else has been using your identity to make purchases and your card is no longer accepted, then you need to take steps to prevent your identity from being stolen. It can take years to clear this up if it happens to you, so a little prevention now is the answer.

Facts about Identity Theft;

? It is considered by law enforcement to be an absolute epidemic, the fastest growing crime in the United States at this time.

? For the criminal, identity theft is a relatively low-risk, high-reward endeavor. Credit card issuers often don't prosecute thieves who are apprehended. Why? The firms figure it's not cost efficient. They can afford to write off a certain amount of fraud as a cost of doing business.

? Recently criminals have been using the victim's identity to commit crimes ranging form traffic infractions to felonies. How would you like to find out you are wanted for a crime you know nothing about? It has happened.

? All that is needed is your social security number, your birth date and other identifying information such as your address and phone number and whatever else they can find out about you. With this information, and a false driver's license with their own picture, they can begin the crime.

? If you wait until it happens to you, it's a nightmare. You won't know until you are denied credit or a creditor contacts you about a charge you know nothing about.

How do I prevent Identity Theft?

At Home;

? If you have roommates, employ outside help, or are having work done in your home, make sure your personal information is not readily available to them.

? Deposit your outgoing mail in post office collection boxes or at your local post office, rather than in an unsecured mailbox. Promptly remove mail from your mailbox. If you're planning to be away from home and can't pick up your mail, call the U.S. Postal Service at 1-800-275-8777 to request a vacation hold. The Postal Service will hold your mail at your local post office until you can pick it up or are home to receive it.

? Tear or shred your charge receipts, copies of credit applications, insurance forms, physician statements, checks and bank statements, expired charge cards that you're discarding, and credit offers you get in the mail. To opt out of receiving offers of credit in the mail, call: 1-888-5-OPTOUT (1-888-567-8688).

? Give your Social Security number only when absolutely necessary, and ask to use other types of identifiers. If your state uses your Social Security number as your driver's license number, ask to substitute another number. Do the same if your health insurance company uses your Social Security number as your policy number.

At Work;

? Ask about information security procedures in your workplace or at businesses, doctor's offices or other institutions that collect your personally identifying information. Find out who has access to your personal information and verify that it is handled securely. Ask about the disposal procedures for those records as well. Find out if your information will be shared with anyone else. If so, ask how your information can be kept confidential. Keep your purse or wallet in a safe place at work; do the same with copies of administrative forms that have your sensitive personal information.

Online;

? If you do financial transactions over the Internet, read their privacy and or security statements. You want to know who they share your personal information with. You want to know they use a "secure server" for transactions. You want to know how they store your personal information. If you don't like what you hear, don't do your business at that website. There are always alternatives.

? Use PayPal. You can transfer a limited number of funds into your paypal account and use it to buy merchandise online instead of your credit card.

? Don't give out personal information on the phone, through the mail, or on the Internet unless you've initiated the contact or are sure you know who you're dealing with.

? Before you share any personal information, confirm that you are dealing with a legitimate organization. Check an organization's website by typing its URL in the address line, rather than cutting and pasting it. Be cautious when responding to promotions. Identity thieves may create phony promotional offers to get you to give them your personal information.

Going Out;

? Carry only the identification information and the credit and debit cards that you'll actually need when you go out. Don't carry your social security card with you unless you expect to need it.

Should I buy identity theft insurance?

Some companies offer insurance or similar products that claim to give you protection against the costs associated with resolving an identity theft case. Be aware that most creditors will only deal with you to resolve problems, so the insurance company in most cases will not be able to reduce that burden. As with any product or service, make sure you understand what you're getting before you buy. If you decide to buy an identity theft insurance product, check out the company with your local Better Business Bureau, consumer protection agency and state Attorney General to see if they have any complaints on file.

Conclusion: Be smart. If someone is asking for your personal information, anyone, including friends, acquaintances, companies, stores, websites, or anyone else, ask questions. Find out why they need this information, what they are going to do with it, how long do they keep it stored, who they share it with, and how can you be sure it is going to be kept secure.

For more information on how to obtain credit cards, reduce credit card debt, or prevent Identity Theft, go to http://creditcards.youngparentsmagazine.com Jennifer also has a lot of information at http://www.youngparentsmagazine.com for young parents. Chris McElroy runs a missing children?s organization at http://www.kidsearchnetwork.org

Home Loans Identity Theft Protection Could Hurt Home Sales

Identity theft has been a hot topic in the news during the last few years. Just a month or so ago, forty million credit card numbers were compromised due to a computer attack on a credit card processor. Consumers are rightly concerned, as it can take years to unravel the problems created when someones identity is stolen. New legislation in Texas and California, also proposed elsewhere, is designed to protect consumers by letting them put a freeze on their credit reports. Those in the real estate industry are worried, however, that doing so may make it difficult for some people to buy homes.

The concept of freezing credit reports is a simple one. Every time someone applies for credit, the lender contacts on of the three main credit bureaus and requests a copy of his or her credit report, which contains the applicants FICO score. The score, a number ranging from 300 to 850, indicates how worthy the applicant is to qualify for the loan or credit. The new laws allow consumers to freeze their credit reports, effectively blocking any attempts by anyone to view his or her credit score. If the score cant be viewed, then credit cant be issued, thus protecting the consumer from fraudulent activity.

The process is a simple one, and can be initiated or canceled with a simple transaction on the Internet. The problem, according to those in the real estate industry, is that this simple security precaution may make it difficult for a consumer who has blocked their credit to buy a home. In many markets, homes put up for sale sell in a few hours or days, and the process of unfreezing a credit report can take longer than that. If a home seller or lender cannot assess a potential buyers credit rating, then the home sale may be lost to another buyer. True, it is a simple process to unfreeze a credit report, but some consumers may forget that they froze their reports in the first place, or they may forget or misplace their username or password for the Website that allows them to unfreeze their report.

On the surface, the new laws to protect consumers seem to be a good idea, and those in the real estate industry who are concerned may find that their worries are unjustified. This is a case where all parties would benefit from taking the time to see if the laws are effective, and whether or not they actually hurt the real estate industry. In the meantime, anyone considering purchasing a home should be made aware of the ramifications of freezing their credit, as doing so may make it more difficult to purchase the house of his or her dreams.

debt consolidation and credit counseling information and HomeEquityHelp.net, a site devoted to information on mortgages and home equity loans.

Own your own online business? You might be a Target for Identity Theft

Own your own online business? You may be a target for ID Theft.

QUESTION: What day of the week do you put your garbage can out on the
street?

ANSWER: That is the day you are MOST vulnerable to Identity Theft.

Why?

Think about what you put into your garbage can.

If you are like most people, you have tossed a lot of "junk mail" into
the garbage (usually tied up in a neat plastic bag). Things like
"pre-approved" credit card applications, just waiting for a signature
and returning them back to the bankwith your NAME on the application
form.

Other items include canceled checks, medical bills (usually with your
social security number), phone bills utility bills, and charge card
account information.

Armed with the critical few bits of information you provided in your
garbage can, criminals can hijack your credit reputation and go on
hundred-thousand-dollar shopping sprees using new credit cards issued
in your name.

They can run up large phone charges to 900 numbers, make long distance
phone calls, and using your cancelled checks, make Automatic Check
Transactions on-line to buy what ever their heart desires.

Do you want some more bad news? The government can't stop them.

The U.S. Supreme Court, in effect overturning the 1974 Privacy Act,
stated that: "garbage left at a curb for pick-up is public domain and
subject to inspection and seizure by anyone".

This means "anyone" including criminals and your corporate competitors
are free to check your garbage can or dumpster, anytime they are so
inclined.

So what is a person supposed to do to protect themselves and their
family?

The simple answer is to buy a paper shredder and use it every day.

"Shredding makes your personal information unavailable for the taking"
states Tony Storrie, director of marketing for Fellowes, the world's
leading manufacturer of shredders. "Shredding junk mail, credit card
receipts and any other form of personal information means it is
thoroughly destroyed, useless to criminals looking to profit at the
expense of unsuspecting people."

The Privacy Rights Clearing-house (PRC), a non-profit education and
research program administered by the University of San Diego's Center
for Public Interest Law, also suggests shredding, claiming it can
protect citizens against having their sensitive information stolen
by Identity Thieves.

Start Shredding TODAY!

Merritt Tumanis
Permission is granted to reprint the following article as long as no
changes are made and the byline, copyright information, and the
resource box is included. Please let me know if you use this article
by sending an email to mailto:mtumanis@iserv.net

"Credit Alert, Learn how to reduce your risks for Identity Theft"
found at http://www.wmce.net/idtheft/sales.html

P R O F O U N D K N O W L E D G EPeter Andersen

Profound Knowledge by FocusedImpact.com

We all are on a quest for knowledge. Whether it is information that will make our lives easier or just small packets of data that in a trivial way allows us to sort out "why things are the way they are on this planet." As intelligent beings we are constantly receiving and sorting information, in most instances, we are overwhelmed. Therefore, when relevant information arrives that is meaningful, concise and thought provoking, we have a tendency to reflect on this data for the principles and guidance that it offers. Here are seven insights that are worthy of the title Profound Knowledge.

1. LEADERSHIP PRINCIPLES: R.E.S.P.E.C.T.
Respect is essential for effective leadership. Lack of respect will require a leader to work twice as hard to realize their objectives. Furthermore, leaders can't be successful as disconnected individuals, no matter how great their individual expertise or potential is. To be an effective leader, you must have the support and respect of those you lead.

2. PARADIGMS: BREAKING THE MOLD
Paradigms are sets of rules and regs that establish the boundaries of what is currently believed to be possible within a given field. Therefore, our perceptions of reality, based on our paradigms, dramatically effect our business decisions. Likewise, we try to make future decisions by basing them on our current paradigms. Case in point, in 1968 Swiss watch makers had over 60% of the world's marketshare. By 1978, their dominance shrank to a mere 10%. What happened? The current paradigm had shifted and a new paradigm was born... It was the Swiss that first developed the quartz watch however they did nothing to protect their ideas and freely displayed the new quartz at world watch conferences. Seiko quickly capitalized on this new method of watch design and significantly enhanced their marketshare to become a world leader.

3. THE NEED FOR LONG-TERM VISION: THE PELICAN BRIEF
The pelican catches fish by flying high over their unsuspecting victims then diving at a high rate of speed into the water to forcefully overcome their prey. Although a successful method, this process eventually leads to their demise. You see, diving from high altitudes damages their eyes and slowly breaks down other vital functions that allow for their success. Eventually, the pelican goes blind and is unable to fish at all.

4. WORD OF MOUTH MARKETING
Businesses have used word of mouth marketing for years. In the case of the liquor industry, it was not uncommon to have paid agents visit trendy bars, order the brand of choice (normally an unknown import) and strike up conversations with both barkeeps and customers in order to establish or talk up a cool image. In many cases it worked!

5. SUCCESS
Studies by Harvard, Stanford and the Carnegie Foundation suggest that success on the job depends 85 percent on people skills and only 15 percent on technical knowledge.

6. ORGANIZATIONS AND GEESE
Geese fly in a V-formation where each bird must take a turn at fighting the wind and being the leader. Each must know the common destination and choose the right course and speed. At any given moment each bird must be capable of leading all the others.

7. CREATIVITY
Creativity does not come from inspiration. Creativity comes from knowledge.

Focused Impact Media specializes in strategic and tactical marketing through brand development, positioning and new media communications. Discover more Profound Knowledge at http://www.focusedimpact.com

The Identity Theft Epidemic : What The "

Jonathan Kraft Picture yourself walking down the street, all alone. It's late at night. It's a bit brisk, and the wind is blowing through the tall buildings on both sides of you. Suddenly, from out of nowhere, someone runs by you, knocks you over, grabs your wallet, and takes off.

It sounds like a scene from a movie, and there may come a time in the future where this type of person-to-person crime is only found in movies. Why would anyone rob a bank, or rob an individual, when they could simply use a person's information to obtain employment, credit cards, and lines of credit?

By now, everyone knows what Identity Theft is. Identity Theft has been showing up in the news for several years, and there has been a large public awareness campaign since the FTC Report in September 2003.

In their report, the FTC shared that the average Identity Theft victim spends over $1,400.00, and more than 200 hours, just to clear their good name. Reports now are saying that victims can end up spending much, much more in terms of time, money, and frustration.

Other people may be willing to spend that kind of time and money, but if you don't have an extra $1400 or 200 hours, read on!

What is Identity Theft?

Identity Theft couldn't happen to me, right?

What can I do to protect myself?

There is good news.

Identity Theft Insurance?

What is Identity Theft?

ID Theft happens when someone takes any piece of your personal information, and fraudulently uses it to obtain access to your credit, bank accounts, or to obtain employment.

How can it happen?

There are literally thousands of ways your information can be stolen, and, as Harris County district attorney Chuck Rosenthal knows, if it can happen to him, it is proof that identity theft and fraud can happen to anyone. "Rosenthal said nearly $8,000 was stolen from his account before it was discovered [] He said that he still has problems because of the crime -- his check was refused when he tried to buy supplies for his daughter."

There are thousands of stories like this one, which you have already been hearing about in your local or national news.

What can you do to protect yourself?

To be proactive, here are what the "experts" are telling you to do. Read this list carefully, and while you do, think about what it would mean in added time and frustration for your life:

Avoid giving out your Social Security numberShred or destroy bank and/or credit card informationShred or destroy any credit card or other direct mail offersCreate passwords containing numbers and lettersAvoid buying or making donations via the phoneBuy goods online only from a reputable Web siteInstall a computer firewall at home Read the privacy statements for all your accounts and your bank's liability clausesCheck your credit report more frequently Use only one credit card for purchases Avoid shopping online Update your computer virus protection daily Install Spyware software on your computer to be sure that you're not accidentally having your keystrokes recorded Drop your mail in the blue post boxes, not in your mailbox Don't leave mail in your mailbox overnight or on weekends... While you're at it, sign up for a locked mailbox, because you can't trust that your mail will stay in your mailbox The list goes on...and on...and on...

The "experts" are telling you to rearrange your entire life to proactively defend yourself against Identity Theft. However, what no one is telling you is this:

There is no 100% guarantee that your information won't be used. No matter what you do, you are as likely a target for Identity Theft as any other person you know.

Approximately 2,500 Washington County (Maryland) Board of Education employees discovered this when their Social Security numbers, names, birth dates and other private information were accidentally posted on the school system's web site for up to 45 days during 2004.

Consumer Reports states, "It is an equal-opportunity crime, affecting victims of all races, incomes, and ages. Overall, more than 33 million Americans, about 1 in 6 adults, say they have had their identities used by someone else sometime since 1990."

There is good news

If you become a victim of Identity Theft, you basically have two choices. You can try to handle it on your own, or you can let a professional help you.

If you try to handle it on your own, you might try to contact the Better Business Bureau (BBB). A visit to the BBB's web site reveals this statement:

"If your complaint is against the identity thief, it is unlikely that the BBB can assist you. We urge you to report the identity theft to the Federal Trade Commission.

So you visit the Federal Trade Commission's (FTC) web site, where you read the statement: "The FTC serves as the federal clearinghouse for complaints by victims of Identity Theft. While the FTC does not resolve individual consumer problems, your complaint helps us investigate fraud, and can lead to law enforcement action."

In other words, the BBB and FTC will give you information on how to spend 200 hours and $1400, and will let you report information to them which can "lead to law enforcement action."

Beyond that, you're on your own, because they will not work to restore your individual credit. But they will send you a 25 page book with some very helpful information. Good luck.

This is not to fault the BBB or FTC. It's only to say that they do not have the resources to, on a daily basis, help over 27,000 people restore their good name and credit. Clearly, Americans need a different kind of help to resolve this issue.

Identity Theft Insurance?

Several companies, including Citibank and the three credit repositories, are offering different kinds of credit monitoring services. You have probably seen the very funny Citibank ads, promoting the protection of your information from thieves, and as a result of the ID Theft epidemic, Citibank now offers protection for their credit cards. This is an excellent idea, but credit card fraud only accounts for approximately 40% of Identity Theft cases.

What about the other 60% of identity theft cases? Well, most often, they happen when someone is using your name to obtain credit or employment. The three credit bureaus have stepped in to offer you credit monitoring services, which will let you track what is going on with your credit on a daily, weekly, or monthly basis. This way, if your information is being used by someone you don't know, you will know about it the day it happens and, ideally, you'll be able to do something about it. The cost ranges from $4.95/month to $19.95/month. With these services, you're generally still on your own to get the issue resolved, but hopefully the early detection will help you be able to resolve the issue in less than 200 hours, and with less than $1,400.00.

Another company has stepped in, because they have seen this trend, and the need that consumers have for protection from identity theft. Kroll Worldwide is the world's foremost risk consulting company. They've been responsible for things like:

Tracking Saddam Hussein's money after the first Gulf War, creating an evacuation plan for the Sears Tower and many of the world's tallest buildings, and handling high profile cases such as the Enron debacle.

Kroll has created a product which not only monitors credit on a daily basis, and (like the credit repositories) gives you credit reports in a way that you can understand them, but they also assign a personal licensed investigator to you, who will do the work along side of you, to get your credit and identity restored and to track down the thief who committed the crime. This saves you time and money

Identity Theft shows no signs of slowing down. In fact, many state and federal law enforcement agencies are predicting that the problem will get worse before it gets better. Other companies are sure to follow the lead of Kroll in providing Identity Theft solutions. Probably no other company will be able to match the background and experience of a company like Kroll, but they will create similar products to help consumers, and within the next 3-5 years, Identity Theft protection will become an important part of the insurance-type products we use to protect ourselves on a daily basis.

In short, what the experts aren't telling you is this:

There is no guaranteed way to protect your information,

In an advanced age of rapid and electronic banking and communication, your information is publicly available to anyone who wants to find it,

If you've been a victim before, you're more likely to become a victim again, and

Identity Theft, as a crime, is here to stay.

Changing the way that you do things reduces the likelihood that you will become a victim, but you have no way of being sure that your information will stay your information.

The real state of affairs today is that you are walking down that dark street on a windy night, and someone robs you, but you don't know it, or feel it, for days, weeks, or months.

Having Identity Theft protection with highly qualified companies like Kroll is like walking down that street, knowing that you have a highly trained personal bodyguard watching your back and walking by your side.

Jonathan Kraft is a specialist in computer-related Identity Theft and options within the legal system. For more information on how you can protect yourself and make sure that your information stays your information, visit www.consumerfairplay.com/idtheft.html