Identity Theft

Sometimes people disagree on what constitutes a risk of identity theft. Consider the following story and decide where you stand on the issue. A former county election auditor in Washington State is upset with the current auditor’s decision to implement a cost saving measure on mail-in ballots. This measure requires voters to place their ballots in a supplied envelope and sign and date the envelope on the outside of it. The former auditor is concerned that people’s signatures will be made public. The current auditor sees this opinion as an overreaction.

In the past, voters were able to sign the envelope in an area that was covered by a paper flap after it was sealed. This prevented their signatures from being exposed to the outdoors, so to speak, and to prying eyes. According to the new auditor, the change saves paper and saves the auditor’s office about five cents per envelope.

So what can an identity thief do with a signature? It depends on what other information he has at his disposal. Obviously, he will have your name, and he will be able to forge it on documents and potentially match the signature on the back of your credit card. However, it’s difficult to do if he doesn’t have said credit card or any other identifying documents. It is all the easier, though, if the thief can check out your signature without even removing an envelope from the pile of mail or arousing any suspicion.

The new auditor made the argument that she was only one of many auditors who decided to cut back on the mailing’s costs. The former auditor had this to say in reaction. “What about any potential liability to the county in the event it could be proven that the information [used in an identity theft] was in part obtained by scanning the voter’s return envelope before it got to the courthouse?”

Whether you believe that this action equates to a large risk for identity theft or not, it does present a real life example of why you should always send out your mail in a locked box, preferably at the post office. By leaving a piece of mail such as this ballot in an unlocked box for pickup, you are basically inviting any individual to take it. That doesn’t mean that someone will, or that it will result in your identity being stolen, but it does mean that the risk is there.

The key for everyone is to start thinking about identity theft prevention. Americans need to start considering what actions they are currently taking or lack of action is putting them at risk and change that behavior. Identity theft has grown too quickly and costs our economy far too much not to make this change.

Stay safe everyone.

If you’ve been keeping up with this blog at all, you know that identity thieves love Social Security numbers. The SSN alone is considered by thieves to be the Golden Key to the Palace. They can use them to open accounts, get passports, and even obtain a drivers license. How wonderful! But did you know why this number has become so versatile, and that it was never intended to be this way?

How the SSN became the universal number to use to identify people was simply because it was a cost saving measure. It began simply as a way to track a person’s earnings and Social Security benefits when the program started in the 1930s. It was a no brainer for the IRS to start using it as an identifier to track how much money a person made. Since the number was tied to salary statistics, employers began using it to easily keep track of employees. Then the military caught on and started using it too, and so on and so forth. Now you need it for everything from job applications to daycare registration sheets. Or do you?

In a lot of cases, you can refuse to give out your SSN and insist that the person asking for it accepts another type of identification. First, ask the individual why he or she needs the information. A lot of times, another item will be just as good, such as a passport or a driver’s license. If you’re starting your own business, you don’t even need to use your SSN. You can instead apply for an Employer Identification Number, or EIN. That way, if you end up hiring people, your Social Security number will not come up on your payroll records.

When anyone asks for your SSN, you are within your rights to question it. It could save you from being a victim of identity theft – whether it is the intention of the organization or it is due to a data breach. Guard that golden number closely. It is only your vigilance that will truly protect you from identity theft.

All cases of medical identity theft are quite serious, but a recent one takes the cake. It could have been a matter of life or death, literally. A so-called doctor in Toms River, NJ, allegedly set up a company called Visiting Doctors of New Jersey. The premise was to provide medical professionals to people who were not able to leave their homes. Good idea indeed but as you probably guessed this one comes with a twist, a horrifying twist.

While legitimate medical doctors were hired, the so-called doctor, Patrick Lynch, neglected to pay them for their services, which resulted in a mass exodus. Instead of closing down the business, Lynch stole the identities of said providers, i.e. legitimate doctors, and kept running the practice by himself using their names and credentials. He allegedly prescribed drugs, treating patients and ordered procedures while posing as a licensed physician – which, of course, he wasn’t.

The good doctor: Patrick Lynch, was charged with aggravated identity theft, which means identity theft that is associated with another crime; in this case, healthcare fraud. He could receive 12 or more years in prison.

What this case brings to light is the abundance of fraudulent job ads that are out there; either they are for companies that don’t actually exist – or in this case – companies that have no intention of actually paying their employees. While this is a severe case, obviously, it is quite common for a scammer to post a job ad to gain applicants’ personal information and simply add that individual to a spam mailing list or something of that sort.

To avoid this type of fraud, look for three things in a job ad: the name of the company; a contact phone number or email; and a contact name. If at least one of these is present, it’s likely the job is legitimate, but it’s always a good idea to do some further research. For example, see if the company has an official website, and apply directly through that channel if possible.

You have to remember to be vigilant to protect yourself from identity theft and to always be the one to initiate contact before passing over personal and private information. In other words, regardless if its an email, ad or phone call don’t trust it as legitimate until you have proven to yourself that it is. Keep your guard up and stay safe!

Which is Riskier Debit Cards or Credit Cards?

A lot has been reported about the debate between debit cards and credit cards in terms of which puts you at a higher risk for identity theft. This is especially important debate these days, as debit cards become more and more prominent.

In 2009, debit cards were used for over 50 percent of noncash financial transactions, up from 1 percent just 15 years prior. The most popular of the debit cards, the Visa debit card, is in the pockets of over 350 million Americans today. To decide which card is riskier for yourself, take a look at the following facts.

Credit Cards
*You pay using money belonging to the creditor and receive a monthly bill.
*You can dispute charges with a vendor before having to pay for them out of your own pocket.
*You usually have 100% fraud protection if you report the fraud within 60 days of when it occurred.
*The maximum liability you can be held responsible for, if you report fraud in a timely manner, is $50.
*You are usually credited back the amount under investigation until the investigation is resolved.

Debit Cards
*You pay using money already in your savings account.
*You use a personal identification as added security when paying in person.
*The cash you use to pay can be immediately deducted from your account.
*There is no way to stop a payment once it has been processed.
*You can dispute charges, but you can be held responsible for up to $500 in fraudulent purchases unless you report the fraud within two business days.
*Disputes must be investigated within 10 business days.
*If you don’t report the dispute within 60 days, you could lose all of the money in the linked bank account.

The biggest risk with using debit cards comes if you have your savings and checking accounts linked together so that your savings can cover any overdrafts. If a thief starts using your card and doesn’t get caught right away, it’s possible that he can drain the money out of both of these accounts.

It’s recommended that you set up an account just to use for debit purchases and that you keep it completely separate from other financial accounts. We absolutely love this tip, read it again and then make sure you take action on it. Also, keep the balance relatively low, putting only the money you need for your monthly purchases in it.

Whether you use a credit card or a debit card, watch out for shoulder surfers and skimmers. Shoulder surfers peer over your shoulder trying to get a glimpse of your card number. They may also try to watch you type in your personal identification number or security code. Skimmers are electronic devices that record your card number. They are sometimes present on ATMs. Try to stick to familiar ATMs so that you will be able to quickly recognize if they have been tampered with.

For more information on this subject please see http://www.idtheftcenter.org/artman2/publish/c_guide/Fact_Sheet_131.shtml . To protect yourself from identity theft visit our comparison chart or read our professional reviews of the best identity protection companies.

If you’re in the military, you could find yourself at special risk for identity theft, especially if you are deployed overseas. Since you’re not around to visit your financial institution or check mail at your home address, you could become a prime target for fraud. You’re also more likely to not learn about this fraud until significant damage has been done to your credit. The military is aware of this and people are speaking out. In fact, DOD personal finance office director, Dave Julian, said of identity theft protection, “We equate it to service readiness.”

There are some things you can do to protect yourself from identity theft while deployed overseas.

1. Sign up for online banking. Since you can get online from pretty much anywhere in the world, nowadays, there is really no excuse for not managing your accounts over the Web. Even if you’re not making any transactions, it’s important to check your balances at least monthly, if not more often. If you really can’t do it yourself, perhaps due to security concerns, recruit a friend or relative to help you.

2. Place an active duty alert on your credit report, if you can. This alert, which can stay on your report for one calendar year, with the option to renew, tells creditors that you are on active duty and are not likely to be trying to open any new credit. Creditors are asked to contact you before opening new accounts or increasing credit lines. If you are out of contact, you can appoint someone else.

To set up an active duty alert, send a letter to each of the credit bureaus including copies of your driver’s license, Social Security card, military ID, orders of deployment and proof of home address. Simply state that you would like to set up an active duty fraud alert. You don’t have to pay any money for this service.

3. Consider granting a person power of attorney managing your financial affairs while you are deployed. That way, this individual can keep a close watch on your accounts. Just make sure you choose the person wisely. It has to be someone you trust completely. Many military members have been burned in the past, arriving home to find their account balances gone. Talk to your attorney as well, we are not lawyers nor is this legal advice.

4. Get identity theft protection. This is a super important thing to do if you’re not going to have the time or resources to monitor your credit properly. While relying on a friend or relative is a good backup system, you’ll have more peace of mind with an official identity theft protection plan in place.

5. Make plans for your mail. Whether you are forwarding it, holding it or having it taken care of by a loved one be sure to have a plan in place as it can be dangerous in the wrong hands.

6. Be aware and stay as safe as you can while overseas. Just make sure you come home….. your family and friends will appreciate it.