Beat a growing crime by being identity smart

Identity theft and credit fraud are now America’s fastest growing fraud crimes.

Identity thieves steal bits of your personal information — your Social Security number, birth date or credit card numbers — and use them to open credit accounts or get a job in your name without your knowledge. And identity theft is not just a crime committed by a stranger.

A Family Target

Studies show it’s becoming more common for persons stealing an identity to be closely acquainted with their target.

In a TransUnion study, 32 percent of identity theft victims discovered a family member or relative was responsible for stealing their identity. That same study found 18 percent were victimized by a friend, neighbor or in-home employee.

If a family member has used your Social Security number to obtain employment, make purchases or open accounts, you still need to dispute that information, even if the bills were paid on time.

Inaccurate information on credit reports can limit your ability to open credit accounts or make major purchases such as a car or a home.

In most cases, you’ll probably be protected financially with the current liability laws in place, but there is no compensation for the time it takes to sort out the mess.

If you find that your personal information has been misused, you can take steps to help remedy the problem.

Recovering from Fraud, Identify Theft

If a credit card or banking account has been tampered with, immediately call the security or fraud department with the bank or credit card and close the account. When you do establish a new account, select a new password or PIN, and it’s recommended to change the passwords on all unaffected accounts as well.

- Contact the fraud department at each of the three major credit bureaus to request that they place a “fraud alert” on your credit report. You should also order a copy of your credit report and review it for any unauthorized changes or accounts.

- Check your reports quarterly until the problem is resolved and at least yearly afterward. You are entitled to a free credit report if you have been a victim of fraud, but you must request the report in writing.

- Contact the Federal Trade Commission (FTC), which maintains the Identity Theft Data Clearinghouse and fill out an affidavit. Once you file a complaint with the FTC, take that FTC affidavit to your local police and file a report with them. Your FTC Identity Theft Affidavit and your police report make an Identity Theft Report.

- Finally, create a filing system to include all originals, send copies of your documents and reports — not originals — when creditors request them. Also, when sending information to creditors, send by certified mail and ask for a return receipt.

Check your credit reports at least once a year, install firewalls and keep virus-detection software updated on your home computer and tear up or shred personal information no longer needed.

Have a financial question? Submit financial questions to [email protected] and include “Money Talk Question” in the subject line.