Industry Trends

Identity Theft, Caught On the Internet

Okay, ladies, watch out. Identity theft is at epidemic proportions, particularly with the growth of eCommerce. But, you don't have to be high tech to get caught in the net. Most of us get caught on rather low level action. Take myself for instance. I almost became a victim last week when, unknowingly, I dropped my wallet in a restaurant after treating my girlfriend to dinner. Fortunately for me, someone found it and turned it in.

I was lucky, but we've all heard horror stories about fraud that's been committed using someone's name, address, SS#, credit, etc. Every week, nearly 2,000 people contact the Federal Trade Commission reporting that they have been victims of identify theft.

Here's a horror story I heard that I hope can benefit you about a person whose wallet was stolen. She said that before a week passed, thieves ordered an expensive monthly cell phone package, applied for a VISA credit card, had a credit line approved to buy a Gateway computer, received a PIN number from DMV to change her driving record information online, and more.

Just in case this ever happens to you or someone you know, here's some critical information to limit the damage. First, as everyone always advises, cancel your credit cards immediately, but the key is having the toll free numbers and your card numbers handy so you know whom to call. Keep them where you can find them easily. Having to hunt for them is additional stress you WON'T need at that point!

Next, file a police report immediately in the jurisdiction where it was stolen. This proves to credit providers you were diligent, and is a first step toward an investigation (if there ever is one).

But here's what is most important. Call the three national credit-reporting organizations immediately to place a fraud alert on your name and SS#. My friend had never heard of doing that until her friend told her that her bank called to tell her an application for credit had been made over the Internet in her name, and she was able to stop it.

The alert means any company that checks your credit knows your information was stolen and they have to contact you by phone to authorize new credit. By the time the friend was advised to contact the credit reporting organizations - almost 2 weeks after the theft - all the damage had been done - and there are records of all the credit checks initiated by the thieves' purchases, none of which she knew about before placing the alert.

And, she was lucky. It typically takes 14 months before a victim discovers identify theft; then it can take years to resolve, according to a survey by the Privacy Rights Clearinghouse and California Public Interest Research Group.

Several companies offer services that automatically let you know when there is a change in your credit report that could be the result of fraud. However, be aware that not all types of identity theft will be reflected on a credit report. Also, before you sign up for a service that claims to help fight identity theft, be sure you know something about the company. Check a few of them out at these web sites: www.privista.com, www.equifax.com, www.privacyguard.com.

Industry Trends