Protect Your Credit Score
Identity Theft: Protect Your Credit Score
What is Identity Theft?
According to the Federal Trade Commission, approximately 9 million cases of identity theft occur each year. Identity theft is a type of fraud where one person assumes the identity another person. It is a crime punishable by law. Typically, identity theft is perpetrated for monetary gain. This can include draining existing accounts, opening new accounts, applying for loans, or making purchases. A person’s identity is their financial reputation. If tarnished, it may never be completely restored and can effect a person for the remainder of his or her life. Every time credit is applied for, the issue is likely to resurface. The frightening aspect of identity theft is how easily it is accomplished. There are, however, things a person can do to safeguard their identity against potential thieves.
Identity theft has repercussions that can extend into the remaining years of the victim’s life. A person is issued only one social security number, once this number is exposed, it may be forever tied to the perpetrators actions. This is why it is so important to prevent identity theft from occurring initially or take prompt action in detection, reporting, and restoration. In the short term, a stolen identity means that a thief has access to all of your accounts and information. They can, on paper, become you, regardless of their own credit reputation. They do not, however, have the same responsible concerns about preserving their new reputation. The thief’s plan is most likely to drain all of the monetary value out of your credit reputation and then move on to their next victim. In the long term, a stolen identity can effect your ability to sign for loans for a home, a car, an education, for yourself or your children, and can even effect your ability to get a job.
The severity and duration of identity theft should be motivation enough to convince an person to protect their identity. This article will discuss how to prevent identity theft from happening. Or if you are one of the 9 million Americans that has had their identity stolen this year, how to detect it, report it, and restore your reputation.
How to Prevent it?
Identity theft can be prevented. Your goal should be to make your identity extremely difficult to obtain. The way to do this is to be informed. Know the most likely places that identities are obtained. Stay current. Identity thieves are extremely resourceful and are continually coming up with new innovative ways to obtain you information. Keep an eye on your accounts and credit score. Be careful, checking on your credit score too frequently can actually effect it. Don’t give your personal and financial information to just anyone. Make sure that the company has a strong reputation and resources in place to help you restore your credit if they are at fault. Remember, a company will never call or email you and ask for your information. Do not carry your social security card or financial information in your purse or wallet. Keep this information in a secure, preferably locked, location. Safeguard your trash and your mail. Cut up financial and personal information and dispose of it in different bags.
Besides behavior modification, there are other ways to prevent identity theft to consider. There is the option of placing a freeze on your credit file. This will not effect your score but before your credit information can be obtained for credit extensions, this freeze will have to be lifted. Credit freezes are not available in all states, however. Another option to consider is identity theft insurance. Although this will not deter thieves, it will provide adequate compensation if it occurs.
How to Detect it?
One of the best ways to detect identity theft is to closely monitor bank statements and accounts, as well as check credit reports. Because of the modern-day convenience of online banking, monitoring accounts has become quicker and easier and credit reports can be accessed for free or for a fee. There are signs that you should look for. Some common signs are debts to your accounts that you did not make, receiving mail for new accounts that you did not set up or loans that you did not apply for. Another sign of identity theft is receiving calls from debt collectors for balances that you did not make. Many victims only discover that their identity has been stolen after extensive damage has already been incurred to their credit when months or years later when they are unable to get approved for loans, credit, or a mortgage. The sooner identity theft is detected, the sooner it can be reported and restored.
How to Report and Restore it?
Once you become aware that you are a victim of identity theft, time is of the essence. A few days or weeks could irrevocably alter your credit score and save you countless hours of fighting for your reputation. Make sure to keep a detailed record log of all conversations and save all correspondence. You should first place a fraud alert on your credit report, so that the thief is not able to open any additional account in your name, by contacting only one of the following:
Equifax Consumer Credit Reporting Agency
TransUnion Credit Score Report Company
Experian Global Credit Information Group
Restoring your credit after identity theft is a daunting task. There are many steps to take and things to consider. You should request a credit report and highlight all of the credit inquiries from companies that you are not affiliated with, unexplained changes to your current accounts, and new accounts that you did not open. You must file an identity theft report and continually check the accuracy of your information in the future. Contact all financial institutions involved and close all accounts that have been opened by the thief or your current accounts that have been tampered with. File a complaint with the Federal Trade Commission, as well as, the local police in your area and in the thief’s community.
It often takes victims between 175 to 600 hours to restore identity and credit after a theft. Up to a 25% of people who have been victimized by identity theft never fully restore their identity, and have to deal with the occurrence for the remainder of their lives.
Many people believe a new social security number will cure their identity theft issues. You should carefully consider doing this. It is unlikely that a new number will completely solve your credit issues. The Credit Bureaus sometimes combine both social security numbers into one report. And even if this does not happen, the lack of a credit history may cause new credit issues. No credit is often interpreted as bad credit.
Who Can Help?
Identity theft can seem daunting, but with the right resources and dedication, it is possible to restore your credit score. The following resources can provide more information about preventing identity theft and recovering from it, as well as, points of contact. You don’t have to be a victim.
Fighting Back Against Identity Theft: This website from the Federal Trade Commission provides resources for consumers, businesses, law enforcement, military, and the media about identity theft. It also has contact information about reporting identity theft if you are a victim.
US DOJ: Identity Theft: This website from the US Department of Justice offers information explaining identity theft, the common ways it is committed, resources if you are a victim, and what this department is doing to fight it.
FTC and US Consumers: This FTC website provides publications, facts for consumers, and up-to-date consumer alerts about the many aspects of identity theft. You can even get an identity theft kit.
Identity Theft and its Impact on Social Security Numbers: The government’s SSA website provides advice on how Americans can keep their Social Security number safe from theft. It discusses the importance of keeping your number confidential, how it might be stolen, and things to consider if you want to apply for a new number.
Identity Theft Task Force: The federal government website for the President’s Task Force on identity theft, created by George W. Bush, provides information about the task force, reporting instances of identity theft, a strategic plan for combat, and a victim assistance guide.
Facts on Identity Theft: The website from the Attorney General of Washington State provides staggering facts on the costs of identity theft and resources for protecting consumer and the youth and seniors in particular.
Dealing with Identity Theft: This website from the Washington State Department Financial Institutions offers tips on how to handle identity theft if it occurs, what do do if you lose valuable financial information, and how to place a credit freeze.
OnGuard Online: This site encouraged consumers to stop, think, then click. It’s mission it to encourage good computer safety and security habits to discourage online identity theft.
OIG Tips Against Identity Theft: This article from the Office of the Inspector General tells students “Don’t let identity thieves steal your future!” It emphasizes identity theft awareness to college students and explains why they make such enticing targets.
FDIC Anti-Identity Theft Website: A section of the from the FDIC website provides resources for identity theft awareness. Highlighted are a set of humorous videos that relay a practical message about phishing.
Guarding Against Identity Theft: A website from the Police Department of the University of Oklahoma explains to readers why identity theft is the second most reported crime to the federal government and why it is quickly increasing. It then explains how thieves can obtain your information, how they use it, and how to tell if your information is in the hands of these “clowns.”
Identity Theft Program: This program from the School of Criminal Justice of Michigan State University highlights information about this program, technical assistance, resources for victims, and how to prevent identity theft.
Reporting Identity Theft: A website from Merrill Lynch that advises people on how to go about reporting identity theft.
Arming Yourself Against Identity Theft: This University of Baltimore article provides valuable tips about how to protect yourself against identity theft.
Identity Theft Risk Assessment Quiz: Take this quiz from Rutgers New Jersey agricultural Experiment Station and see how much you know about identity theft and if you make a good potential target.
The Facts on Identity Theft: This section from the University of Virginia’s website provides assistance to make sure you are not a victim of identity theft. Discussed is the intensity of this issue, prevention tips, what to do if your information is compromised or your computer is stolen, and some fun games to test your knowledge!
Identity Theft Prevention: Missouri Attorney General, Chris Koster, addresses identity theft in a brief but informative manner.
Defining Identity Theft: Ohio Attorney General, Mike DeWine, defines identity theft and highlights security breach information for businesses, agencies, and individuals, redaction requests, and provides teaching materials.
Tax Records and Identity Theft: The IRS discusses important information about your tax records and identity theft on this website and what you should do if your tax information is effected.
Occurrence of Identity Theft: The state government of Iowa addresses what to do when bad things happen to your good name. This article discusses how identity theft occurs, how to protect yourself, and how the Office of Motor Vehicle Enforcement can help.
Identity Theft in California: This website describes how identity theft has negatively impacted the lives of Californians in particular and consumers as a whole. There are also resources for registering identity theft, applications, and forms.
The Scourge of Identity Theft: This Virginia Attorney General, Kenneth Cuccinelli, provides a FAQ section for victims of identity theft.
Identity Theft Answers: The Department of the Treasury provides steps for victims, as well as, what to do if a company contacts you and you have questions of its legitimacy.
How to Stop Identity Theft: This website of the Attorney General from Texas provides six steps that people can use to fight identity theft. These steps are “Stop,” “Report,” “Fill Out,” “Prevent,” “Monitor,” and “Declare.”
