Identity Theft Tips

Many have asked questions similar to this:

If I travel internationally, do I have protection from identity theft if I am subscribed to a credit protection service?

Good question, let’s take a closer look.

We will assume that you are not applying for credit on this trip, so the real issue is concern about ID theft when you are out of the country.

Most identity protection services are based on invoking provisions within The FACT Act of 2003 on your behalf. If set up correctly, credit agencies are required to place what amounts to a security warning on your file. In essence you are stating that you have concerns that your credit may be threatened and you want enhanced vigilance.

The credit bureau or bureaus that process the request for credit sees the flag on your account and alerts the potential creditor that you must be called to verify identity before the credit is issued or an account is issued.

Now the ball is in the creditors court, if they issue new credit without actually verifying it’s you then you are free to recover the loss, the creditor is stuck.

The issue with this process is that the credit bureaus are legendary for their apathy. For example; If a minimum wage office worker is having a bad day, some of these credit alerts may not get tripped.

Wait, you say… I thought I was covered?

You are, however the cleanup is always unpredictable, and generally costly in both time and money.

The exception to the rule is our old friend Debix.

The reason is they add another layer of security. Extra layers are always good when it comes to your security, right?

Debix provides a phone number specific to each subscriber in place of your personal number, which other services provide to the credit bureaus. If there is an application for credit you absolutely are going to hear your phone ring because it is Debix calling you. Check out the Debix calling system yourself at their website.

It’s one thing for a lazy creditor to say the bureau never called, it is quite another to know a third part is actively monitoring any potential fraud.

And if you are traveling you will have your phone, right?

Bon Voyage!

Identity theft and identity theft protection is taking center stage at the White House, as well as many homes around the nation. This appears to be good news for all of us in the long-term. Penalties for identity theft will be increased, etc.

Any tangible outcome from this id theft task force is probably years away. However, what this highlights again is the severity and magnitude of the issue. We recommend you buy identity theft protection today for you and your family. It comes at a nominal price of less than $10 per month, and will let you sleep at night knowing your identity is secure.

We recommend either LifeLock or Debix. From fraud alerts and removal from pre-approved credit cards to identity insurance both companies have a lot to offer us consumers. If our friends in Washington solve the problem (don’t hold your breath), you can always cancel.

Details on the Executive Order from the White House:
Identity Theft Task Force

The quote is part of the U.S.P.S Creed, but it could be the creed for identity theft criminals as well. Your junk mail may be just the pot of gold a thief is seeking. In a rural area a thief can quickly scan the items in your mailbox and be gone in seconds. In the city, a trash can near a group of mailboxes or even in a post office is a great find for a thief.

Pre-approved credit card offers are a prime target because they often include most of the private information needed to fraudulently open a new account. One of the best things about LoudSiren (Debix) and LifeLock is that their identity protection services help to greatly reduce the flow of credit card offers to your mailbox in a matter of weeks. This feature alone may be worth the price of their services. (you can also do this yourself for free, but you have to remember to do it often. We’ll explain the process in an upcoming post).

There are a lot of other things that flow through your mailbox every week that could be used to gather little bits of your personal data, add a few of these together, combine them with a few savvy internet searches, and a criminal has all they need.

So nixing the credit card offers is a key step, but only part of the solution. That is why the LifeLock and Debix LoudSiren identity theft protection plans are so popular. These services conveniently handle all the details for you, and keep doing it, month after month.

What other piece of paper has your name, address, signature, bank account information and even your drivers license number? Once a criminal gets their hands on one of your checks, they have all the detail they need to add your name to the list of 9 or so million identity theft victims per year. This can happen in the form of check forgery, or the personal details from your check can be lifted and used in various fraudulent ways.

In our constant research in this area we are seeing an increasing number experts guiding their clients away from check writing and toward the various automated bill paying services. This tends to vary from state to state because each state regulates its own check writing, liability, and fraud rules for forged check and other check abuse.

So if you are still writing checks and licking stamps, it is time to seriously consider a change. If you cant give up checks that make sure you don’t send them in the mail and go to your bank to pick up new ones.

You should also look in to the new identity protection companies that are available. Both LifeLock and LoudSiren are good choices.

 

You may feel that you are being more frugal by using your debit card rather than your credit card. We’ve heard it for years, “Don’t run up your credit card debt!”

However, the risk of using a debit card far outweighs the benefits. In most situations there is much more liability for the debit card user in cases of fraud. In some cases you could lose all the money in your account and even be liable for money withdrawn from your line of credit. Much of the responsibility is squarely placed on the card owner for quickly reporting any fraudulent charges. In most cases it is critical to report any issues within 60 days!

The team at IdentityTheftLabs.com are not financial advisors, but everything we read from nearly all our research indicates that we should really avoid the use of debit cards especially when out of country. Don’t be fooled by the little Visa or MasterCard logo, most debit cards do not offer solid identity theft or identity fraud protection. If you want identity theft protection we compare the best companies, LifeLock and LoudSiren Debix.

For particulars on each identity protection service we have completed LifeLock and Debix reviews that should help you decide who you want protecting your credit, finances, and good name from identity theft.