Identity Theft or If You Don't Like Your Name, Just Wait, Somebody May Steal It. 

Dottie was aggravated when she realized that her purse had been stolen, but at that time she didn’t fully understand what it would truly mean to her.  In the coming months, she would be faced with substantial charges on her credit cards that she did not authorize, withdrawals from her bank account via ATM’s, new loans in her name and eventually, rejected credit applications because of her new bad credit history.  The sad thing is that before Dottie’s identity had been stolen, she had worked hard to build her credit because she was saving to buy a new home.  Now it looks like it was all for nothing. 

The above scenario is being played out all over America these days by unsuspecting people who will spend the next few years trying to regain their good credit name.  It is commonly known as identify theft, and you should not only know about, but also understand how to protect yourself from it.  Here are some safety tips that will help you keep your “good name" safe. 

Guard Your Information 

You should always be on guard when anyone asks you for your personal information, and always try to give them the least amount possible.  For example, some people may ask for your social security number in order to process an application, but since that number can do a lot of harm if in the wrong hands, you should try to negotiate and offer other information instead.  In addition, unless you have called a phone number of a reputable company to place an order, never, ever give out any personal information over the phone or the Internet.  It is the number one way that thieves get hold of personal information. 

The Internet has hatched a large number of schemes from thieves who are trying to get you social security number.  A general rule is that you should never type in you number.

Even with mortgage loan applications, send in the application with your SSN and then make them call you to establish credibility.   

Don’t carry a lot of credit cards, bank statements and other personal information with you.  Remember, the more a thief has, the more damage they can do to your name.  Instead, only carry what’s necessary for one day at a time. 

Never write your PIN (personal identify (or identifying) number on your credit card or on any piece of paper that is easy to find.  If you must write you PIN number on something that is in your billfold or purse, encrypt it.  That is, if you use some number that is personal to you (the last four of your social, security number, the last four of your home phone or cell number or your home address number) reverse the order so that a thief who has your identity cannot figure out you PIN by using combinations of number on other documents in your purse or billfold.  Thieves know that PIN numbers are frequently number that are easy to remember by their owners. 

Keep a list of all of your credit card companies, along with their phone numbers and your account numbers, in a safe place.  If they are stolen, you can limit your responsibility by calling the companies as soon as you notice the disappearance.  If you are lucky enough to notify them before any bogus charges are made, you won’t be responsible for anything.  On the other hand, if you fail to report a stolen ATM card, you could lose your entire bank balance! 

Once a year, you should order a copy of your credit report from all three credit reporting agencies.  This will alert you to any financial fraud that is going on, as well as any erroneous errors that need to be corrected.  Federal Law provides for free credit reports once a year.  You can get your free credit reports from the website established by the Federal Trade Commission.  That site is www.annualcreditreport.com.  This site, however, does not provide credit scores.  You can get free credit reports with scores by ordering them from the three repositories individual websites.  The websites are: www.equifax.com, www.transunion.com, and www.experian.com.  

Finally, as silly as it sounds, be sure that you rip any credit card carbons or old bank statements for receipts with financial information on it.  Why?  Because credit identity thieves have figured out that one of the best ways to find financial information is look through people’s trash!