Identity theft, including the misuse of Social Security numbers,
names, driver’s licenses, bank accounts, PIN numbers and
credit/debit card numbers, is one of the fastest-growing crimes for
all Americans, young or old. The Federal Trade Commission (FTC)
received 246,570 identity theft complaints just last year.
Identity theft, including the misuse of Social Security numbers, names, driver’s licenses, bank accounts, PIN numbers and credit/debit card numbers, is one of the fastest-growing crimes for all Americans, young or old. The Federal Trade Commission (FTC) received 246,570 identity theft complaints just last year.
According to an FTC survey, an average of one in every 30 Americans became a victim of identity theft in a one year period, beginning in spring 2002.
The total cost of this crime approaches $50 billion per year, with the average loss from the misuse of a victim’s personal information being $4,800, according to the FTC. It can take years of frustrating effort to set the record straight. The potential toll on retirees with vulnerable income sources can be severe.
Arizona, Nevada, California and Texas had the highest rates of identity theft in 2004. Arizona had 142.5 fraud cases per 100,000 people. Regardless of where you live, take precautions. It happens everywhere. With just your name, Social Security number and birthday, identity thieves can clean out your bank accounts, apply for health insurance, get a driver’s license in your name, open credit accounts or go on a shopping spree using your existing credit cards.
So what can you do? Identity theft is still primarily a crime of opportunity, so make yourself a hard target. Protect yourself by taking preventive measures to block the theft of your identity and your financial security. Here are some things you can do:
1. Guard your Social Security number. Don’t give it out, don’t carry it in your wallet or purse and definitely do not have it printed on your checks. If your number is stolen, contact the Social Security Administration fraud line (800-269-0271) immediately to place a fraud alert on your name and Social Security number.
2. Buy a paper shredder. Don’t just throw your personal information into the trash where a thief can retrieve it. Shred all documents that have your name, Social Security number, birthday or other personal information, including bank statements, insurance forms and even those annoying credit card offers that come in the mail.
3. If you carry a wallet or purse, photocopy the contents. Copy both sides of each license, credit card, insurance card, etc. Put the photocopy away in a safe place. If your wallet should be stolen, you will have a record of everything that was in it, including account numbers and the phone numbers needed to call and cancel them.
4. Immediately cancel any credit cards that are lost or stolen. Most importantly, call the three national credit-reporting organizations, Equifax (800-525-6285), Experian (888-397-3742) and TransUnion (800-680-7289), as well as the Social Security fraud line. The alert will indicate to any company that checks your credit that your information was stolen. Also, file a police report immediately in the jurisdiction where the theft or loss occurred. This will prove your diligence to the credit card company.
5. Check your credit report regularly. Review your credit report at least once a year. Be alert for credit activity that you have not authorized. False transactions can be disputed and removed.
According to the FTC, identity theft is significantly smaller if the misuse of personal information is discovered quickly. It will be even less of a hassle if you take the necessary steps to guard your identity from thieves. If you believe your identity has been stolen, report the crime to authorities and the FTC (1-877-IDTHEFT). It can help save what you work your whole life for – your assets.
man is president of Heckman Financial & Ins. Services, Inc. Eric is a CFP®, ChFC, CLU brings a wealth of knowledge and over 13 years of experience to the field of financial planning. You can contact Eric at www.WealthCreator.com or 408-297-9800.
Eric Heckman is president of Heckman Financial & Ins. Contact him at www.WealthCreator.com or 297-9800.
