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Identity theft has become a growing problem with the advent of online shopping and the internet.  It is the fastest growing crime in America today.  One big myth people fail to know is that identity theft can affect more than just your credit.  There are several other types of identity theft that don’t necessarily affect your credit.
One type is character identity theft.  This is when someone impersonates you and commits a crime under your name.  In doing so, the impersonator could accumulate warrants issued in your name, arrests, and even time spent in jail.  Background checks on you from potential employers could affect your ability to acquire a new job.  Once crimes are associated with your name it can never come off.  All it takes is for someone to steal your wallet and then commit crimes.  They might even make large purchases under your name.

Another type of identity theft is when your Social Security Number (SSN) is stolen.  If someone stole your SSN, they could potentially acquire a job under your name.  In doing so, you would have to pay for the income tax based on the earnings of the imposter.  The IRS will ask you to pay even though you never earned the extra income.  Failing to pay your taxes could result in a poor credit score.

If you are earning benefits from the government like unemployment benefits, these benefits could be lost because someone may be earning a salary under your name.
Medical identity theft is when someone obtains medical insurance under your name or even worse, uses your current medical insurance policy to aid them with treatments or prescriptions.  Failure to notice these problems could lead to you being denied health coverage because of falsifying information in your medical record.
It is also possible to be a victim of identity theft when your driver’s license is stolen.  Traffic fines will be placed in your name, as well as warrants and your failure to appear in court.

Finally there is credit identity theft.  Someone may use your information to obtain loans, credit cards, goods, and services.  Doing so would accumulate a huge debt under your name, which would prevent you from getting loans for yourself.  Your credit score would be ruined.

Be sure to protect your identity by reporting to your credit card companies that your wallet has been stolen.  If your SSN was left in your wallet, make sure you report to the government that your SSN was stolen.  An identity thief with someone’s SSN could do a lot of damage to their name.  Make sure you shred any unwanted mail and never carry your SSN card with you.  Checking your free annual credit report can let you know if anyone has been applying for new credit cards under your name.

Have you thought about identity theft?  You have certainly heard a great deal about it.  You have likely read about people who have been victims, and you have also heard the importance of protecting your social security number and other information. The problem is, as criminals become smarter, it has become more difficult than ever to protect against identity theft.  However, there are measures you can take in order to lessen the impact of identity theft.  When you lessen the impact, you can control the damage that identity theft will cause.  You want to protect your credit, and reducing the impact of identity theft is one way to do that.

First, you want to make sure you keep good records.  Good records are a great way to fight against identity theft.  It is much harder to steal the identity of someone who is organized than someone that is disorganized.  When you keep good records, you are more likely to become aware of the fact that someone has stolen your identity.  You can then fight against the identity theft and protect your credit.  You need to keep records of every credit card you have, along with the purchases you have made.  This will make it much easier to prove your case if something were to happen.

Next, you need to go to www.annualcreditreport.com and order your free credit reports from the three major credit reporting bureaus.  By ordering the three free credit reports, you will be able to see if there has been any activity on your credit that you did not know about.  For example, you can see if there were cards opened up in your name that you did not apply for.  If there are, that is a red flag that you have been a victim of identity theft.  At that point, you can start to take measures to protect your identity.  If you feel you have been a victim of identity theft, you can place a fraud alert on your credit file.  When you do this, you will only have to place the fraud alert with one of the credit bureaus.  They will then notify the other agencies.  The fraud alert will make it more difficult to obtain credit.  Credit will not be able to be obtained quickly. Instead, the information will need to be verified. While it might take longer to get credit, that is in order to protect you from identity theft.  The credit bureaus will ensure that you are the only person who is obtaining credit on your credit file.

Identity theft is a serious crime, and you must make sure you protect yourself.  In some cases, identity theft cannot be prevented, but it can be detected quickly.  Once it is detected, the authorities can be alerted and you can get the negative information wiped clean from your file.  However, it is important to detect the fraudulent activity quickly in order to get the item removed from your file.  In order to protect yourself from identity theft, you must know what is going on in your credit file.

Identity theft happens when someone uses your personal information to pose as you while committing fraud. It’s typically done for economic gain. A thief will use your social security number, drivers license, credit cards and other details about your life in many ways. For example, they may open new credit card accounts or loans in your name. They can steal money from your bank account. They may rent a home using your credit standing.

There are many methods through which identity thieves can use your confidential information for their benefit. Unfortunately, they can severely damage your credit and have long-lasting financial impacts on your life. In this article, you’ll discover how thieves can get their hands on your information, the potential damage they can cause and how to prevent having your identity stolen.

How Thieves Steal Your Identity

There are dozens of ways that would-be identity thieves can swipe your sensitive information. Some rummage through your garbage. They look for bank statements and discarded credit card applications. Other thieves simply steal wallets and purses hoping to find social security cards and credit card information. Still others steal your mail and change the billing address for your credit cards and bank statements.

What is Identity Theft?

A growing problem involves a tactic called “phishing.” Thieves use spam email to masquerade as your financial institution. By making up a story about security breaches or necessary account verifications, they coax unsuspecting consumers into providing their account numbers and passwords.

Potential Damage

The damage that results from having your identity stolen can be severe. Thieves will use your information to open credit card accounts in your name. Within days, they’ll charge thousands of dollars in purchases, leaving you to pay the bill. Often, they’ll purchase a new wireless phone in your name. They’ll make hundreds of calls that accrue charges that you’ll have to pay.

Other ways thieves use your information include opening loans based upon your credit. When they fail to make payments, your credit is tarnished. Alternatively, they’ll gain access to your bank account and begin writing a series of fraudulent checks. Some thieves will use your identity (and credit) to rent houses, get jobs and even receive medical procedures. Each of these things can harm your credit and siphon money from your accounts.

How To Protect Your Identity

Identity theft protection involves constant monitoring of your financial details. For example, you need to review your free annual credit report on a regular basis. You need to analyze your bank and credit card statements monthly (though weekly might alert you to fraudulent activity more quickly). You should be shredding documents that you throw away. Also, try to have your name and mailing address removed from junk mail lists. If you notice unfamiliar activity in one of your accounts, you need to establish fraud alerts at the 3 primary credit bureaus. Taking these steps (among others) is a critical part of securing your identity from thieves.

Living Without Fear

Everyone is vulnerable to identity theft. It can literally happen to anyone. Celebrities such as Steven Spielberg and Oprah Winfrey have had their identities stolen. The key is taking the necessary steps to ensure that your identity is safe. Many people diligently scan their statements and review their credit reports regularly. They proactively opt out of junk mailing lists to reduce the number of pre-approved credit card applications they receive.

Other people prefer to spend their limited free time with their families and friends. For them, hiring the services of companies such as LifeLock or Identity Truth is a better option. Those companies take care of the small details that can make the difference between a secure credit standing and devastating financial loss. Consider your options. Whichever you choose, the security of your identity is in your hands.

The threat of having your identity stolen grows each year. As a result, the problem receives constant media attention. Consumers are becoming more aware of the hazards of being lax with their personal information. Ironically, millions of people continue to inadvertently throw open the doors to their financial lives. They don’t take steps to erect safeguards against would-be thieves. So, let’s correct that problem. Below, we’ll give you 6 simple measures that you can take (starting today) to prevent becoming a victim to ID theft and keep your free annual credit report secure.

#1 – Keep Car-Related Information Secure

Identity thieves are savvy. They can use documents such as vehicle registration forms and insurance papers to pry the door open to your credit. Keep these papers in a secure place. If you keep them in your car, you need to lock your car.

#2 – Stop Receiving Snail Mail Statements

The criminals who want to steal your identity love pilfering mailboxes. It’s easy to do and allows them to get their hands on your bank and credit card statements. Call your bank and card companies (department stores, too) and request that they stop sending statements to you in the mail. Instead, pay your bills and review your accounts online.

#3 – Leave Your SSN At Home

Even though the Social Security Administration tells people to never carry their social security card in their wallet, many do so. Identity thieves pick pockets and purses. If they gain access to your social security number, they can unleash a trail of credit carnage that can take months from which to recover. Keep your card at home in a safe place.

#4 – Limit Data In Your Cell Phone

Millions of people spend hours on their cell phones every day. It’s how they manage a large part of their lives. So, it seems natural to put sensitive information (credit card numbers, passwords to bank websites, etc.) on their phones for easy access. Don’t do it. Thieves who want to swipe your identity consider cell phones a treasure trove of confidential information.

#5 – Your Computer Is Not A Safe Deposit Box

Don’t store personal information on your computer’s hard drive. Millions of people put their credit card numbers, bank information and even tax return documents on their hard drive. That information is vulnerable to viruses downloaded from the internet. Some thieves use computer viruses to gain remote access to people’s computers.

#6 – Never Email Your Information

Email is supposed to be a private channel of communication. Unfortunately, identity thieves use email to trick consumers into providing confidential information. Millions of people have been duped into offering their usernames and passwords to strangers through email. Never send sensitive data in email.

When It’s Too Much To Handle On Your Own

The harder you make it for thieves to steal your identity, the less likely you’ll become a victim of identity theft. That said, there are dozens of measures you should be taking regularly to prevent your ID from being stolen. You should be watching your statements for irregular activity, analyzing your credit report, approaching junk mail warily, establishing fraud alerts with the major credit agencies and many other things.

For some people, taking these measures can be a grueling chore. Their free time is better spent with their families. Identity theft protection services (i.e. companies such as LifeLock and IdentityTruth) offer to take care of the “heavy lifting” for you. They’ll help ensure that your finances and credit are secure from thieves. Remember, ID theft prevention is about watching the small details. If you don’t want to spend the time doing it on your own, there are dependable services that will take care of it for you. The key is making sure somebody is locking the door to your identity and your credit.

Imagine waking up one morning, logging onto to your bank’s website and discovering that thousands of dollars have mysteriously disappeared. As your mind reels, your phone begins to ring. You answer to hear the gruff voice of a creditor demanding the money you owe his company (surprising since you pay all of your bills in a timely manner). Over the next several days, your mailbox begins to fill with creditors’ letters. Your annual credit report starts to reflect negatively as your credit score and FICO score decline. Your phone rings during all hours as creditors relentless follow up.

Preventing Identity Theft

It begins to dawn on you. Someone has stolen your identity. Somebody has used your credit. They’ve begun to destroy the financial stability you’ve worked hard to build.

The nightmare described above is similar to what happens to thousands of people every single day. By taking the right actions, you can avoid having the same things happen to you. You can prevent your identity from being stolen. Identity theft protection requires a level of vigilance. Below, we’ll give you a few quick, easy-to-do-today steps to prevent your identity from being stolen.

Prevention Begins At Home

Most of us can’t imagine others going through our trash. In reality, identity thieves find a massive amount of sensitive information in dumpsters and trash cans. To prevent them from getting their hands on your social security number and other confidential data, shred the papers that you discard. You can purchase a small shredder for your home for under $50 (a small investment for peace of mind).

Being Savvy With Your Passwords

While managing our banking, free credit reports and credit card accounts is convenient online, it presents a potential breach of security. That breach is something we can easily prevent. Most people choose passwords for their accounts that are easy to remember. A birthday, pet’s name, or even the city in which they live are often used because they’re easy to recall. That makes your passwords easy for a thief to guess. Identities are often stolen by those whom we know. If somebody knows your child’s name, using that name as a password is foolish. Instead, use random strings of characters. They’re practically impossible for an identity thief to guess.

Phishing: Don’t Be Lured

Email and spam have caused millions of people to unwittingly provide their passwords to identity thieves. Here’s how it works (there are many variations): you receive an email that appears to have been sent by your bank. The email describes a security breach. It requests that you change your password. You click the link in the email and arrive at a website that looks like your bank’s website. In order to change your password, you’re requested to first enter your current password.

Once you do, you’ll have been “phished.” The email wasn’t sent from your bank. The link that you clicked didn’t deliver you to your bank’s website. Instead, you’ve given your password for your account at your bank to an identity thief.

When You Need Help

Reviewing your credit report and the statements you receive from your bank, credit cards, and other businesses can be time-intensive. Plus, the busier our lives become, the less inclined we’re willing to spend our free time analyzing our financial lives. You can prevent your becoming an identity theft victim. However, if you prefer to spend your free time with your family, there are other options. Companies such as LifeLock exist to take the laborious chore of securing your identity off your plate. For thousands of people, this option provides them with the free time they need and the peace of mind they desire.

Each day, we struggle to provide for our families and strive for a better life. We toil at our jobs and try to be fiscally responsible in order to preserve our credit scores. Ideally, our hard work yields dividends. With a strong credit score and savings tucked safely away, we rest more easily each night. But, for most people, the security they feel is more vulnerable than they imagine. The comfort they feel with their finances and credit score can be ripped away from them.

Identity theft is on the rise. Every day, innocent people discover that their financial lives are all but ruined due to someone gaining access to their sensitive information. Fortunately, you can protect yourself from exposure. Identity theft protection is largely a matter of proactively taking measures to keep thieves away. Below, we’ll give you 4 ways that you can help protect your identity and your financial life.

Identity Theft Protection

#1 – Shred Credit Card Offers

Credit card companies want your business. They send millions of offers to consumers each week. The problem is that thieves can use these offers to help them gain access to your identity. They can combine the information on these “pre-approved” card offers with other data collected from your trash to build a fake profile. Once they’ve done this, they can easily open credit cards under your name. Before you discard credit card offers, shred them.

#2 – Review Your Credit Report

This is one of the easiest (and most effective) things you can do to protect your identity. Sadly, most people neglect to do it. You should review your credit report at least once a year. You’ll be able to identify new credit card accounts, loans and other obligations that have been opened in your name. If you notice unfamiliar items, it’s possible that someone has been trying to steal your identity. Request a credit report once a year. It takes very little time to review and doing so doesn’t cost anything.

#3 – Use Strong Passwords

Today, thieves can use resources online to steal your identity. It’s critical that you use strong passwords for your online accounts. Most people are lazy when it comes to choosing their passwords. As a result, they’ll use the same password for their bank accounts, online profiles, brokerage accounts, car insurance and more. Use passwords that are at least 8 characters long and choose a different one for each account. Don’t use names. Instead, use strings of alphanumeric values. Strong passwords discourage identity thieves.

#4 – Review Your Statements

Most identity thieves rely on the fact that the majority of people don’t check their monthly statements. So, criminals can gain access to your checking account or existing credit card accounts, knowing that most fraudulent activity will likely go unnoticed. Get into the habit of reviewing your bank and credit card statements every month. If something looks unfamiliar, investigate it immediately.

Identity Theft Protection And Peace Of Mind

Having your identity stolen and your financial life ripped apart in front of you can be devastating. The things you worked so hard to attain or provide for others can be more vulnerable than you imagine. But, protecting your identity is mostly a matter of being proactive. Use the tips above to prevent thieves from gaining access to your personal information. Investing a little time can help prevent your becoming a victim to identity theft.

How many of you have received emails from your supposed bank prompting you to give them personal information in order to restore access to one of your accounts? How about a message from Paypal letting you know that someone has accessed your account and that you need to reenter your password to authenticate? If you have, you are not alone. These are not legit emails and are instead phishing schemes designed to aid identity thieves in stealing your identity. While more and more people are becoming away of what phishing is and how to protect against phishing, identity thieves are finding new ways to trick you into handing over your personal information.

Phishing

One way that you can protect against phishing is to call the bank or institution that supposedly send you the email and verify that the claims is indeed correct. Banks tell you that they will never ask for personal information over email, so this quick call can protect your identity. If for some reason the bank did email you, then you should visit the local branch in person rather than disclosing your personal information over email correspondence.

But what if you receive an email from your bank asking you to call them back? You may think this is safe and actually call back the number provided in the email. However, this is another phishing scam that identity thieves use to trick consumers. Phishers know that more and more people are becoming aware of phishing schemes and therefore attempt to trick them by making them think its safe to call a phone number. However, the phone number provided in the email is actually the number that the phisher controls and not the number to your bank. They will most likely answer the phone with ‘Thank you for calling [insert bank name here]. How may I help you?’ and then proceed to swindle you out of your personal and banking information.

So what can you do to protect yourself from phishing attacks? We advise you to never call numbers sent in an email especially if its an email that relates to your personal or financial history. If you do receive an email from a bank or credit card company asking for a call, call the number in the phone book or the one listed on the back of your credit card. This will ensure that you are actually talking to the bank and not a phishing identity thief looking to rob you of your identity!

If you do ever fall victim of phishing or identity theft, we recommend that you purchase an identity theft protection package and take the steps necessary to rebuild your financial life. Identity theft and phishing are both serious crimes and the best way to protect yourself is by being informed!

While browsing up on some of the latest posts over the Get Rich Slowly blog, I came across this post where JD (the blog’s author) talks about a recent theft of his mail and possible identity theft concerns.

Some of JD’s suggestions with dealing with Identity Theft include The 3 Ds:

Deter
The first step is to deter identity thieves by safeguarding your information.

…

Detect
Detect suspicious activity by routinely monitoring your financial accounts and billing statements. Be alert to signs that require immediate attention.

…

Regularly inspect your credit report. Credit reports contain information about you, including what accounts you have and your bill paying history.

The law requires each of the three major nationwide consumer reporting companies — Equifax, Experian, and TransUnion — to give you a free copy of your credit report every year. But you have to ask for it.

Defend
If you suspect that you may have been (or may become) a victim of identity theft, you can file a “fraud alert” on your credit reports.

Placing a fraud alert entitles you to free copies of your credit reports. Look for inquiries from companies you haven’t contacted, accounts you didn’t open, and debts on your accounts that you can’t explain.

Read the Rest of JD’s Article Here

This just goes to show you that Identity Theft can happen to anyone, even those who are knowledgeable about it and the ways to stop identity theft.

If you are worried about becoming a victim of Identity Theft yourself, be sure to get a copy of your free annual credit report to ensure that all of your information is accurate and free of errors.

Credit Monitoring Services

In the US, millions of people fall prey to identity theft crimes each year. In fact, nearly 10 million Americans are a victim of identity theft crimes committed, but nearly half of those victims either realize that they are victims are have realized it too late. There are many credit monitoring products on the market in today’s era and there are companies out there who claim that they will monitor your credit score, free annual credit report, and they will even alert you if anything major happens that is suspicious activity. These companies actually do a lot of business throughout the year and they prevent many identity theft and errors to credit reports every day.

However, is credit monitoring necessary and are those who are paying for it truly benefiting from the company monitoring their credit report and credit score each day or is it simply not necessary to have these luxuries? Many people who have used these types of credit monitoring services will actually tell you that there is nothing better than feeling safe that you are protected from the identity theft cases that happen each year. But let’s look at the reasons that you may want to get credit monitoring services and the reasons that you may not need it.

1. The very first thing that you should consider, and perhaps the most obvious one, is that you may be safer with credit monitoring services. When individuals fall prey to identity theft crimes sometimes the crime goes unnoticed for a year or more at a time. These are the individuals who are at a loss. Credit card and other credit line companies will sometimes have no recourse for those individuals who have been a victim simply because they let it go for more than a year at a time! But those who have credit monitoring and error prevention companies checking on their credit report daily will more than likely catch the damage in time!

2. Another thing that you should consider when thinking about obtaining credit monitoring services is whether or not you’ll like having someone else or some other company scrutinizing your credit report on a daily basis. Many people prefer to look at their credit reports themselves, and for those people credit monitoring services are simply not needed! Also, who is to say that the credit monitoring companies will know if you are the one who made a change to your credit report or if it was someone else. For the sake of being completely and 100% protected against identity theft crimes, the absolute best thing to do would be to look at your credit report by yourself!

Altogether, whether you obtain credit monitoring services that detect errors and identity theft crimes in your credit report is a matter of choice and no one should force you into the decision! There are many positive aspects about these types of companies, but some of the downsides with these types of services are also very evident! There is simply no fool-proof way to prevent identity theft crimes without being very cautious; the most a credit monitoring agency could do is to alert you to the situation and stop the crime in its tracks, but you are equally capable of doing just that!

The best way to stay on top of your credit report is by checking it frequently. At Free Annual Credit Reports, we give you instant access to your free annual credit report and credit score.