10 Things to Know About Identity Theft
Lisa Rogak, CreditCards.com
Identity theft is often in the news, but there are a lot of
misconceptions swirling around about how to best protect yourself.
While some identity thieves focus on getting your credit cards and
maxing them out before you even realize they're missing, an increasing
number are using one piece of information about you -- often a credit
card number -- in order to steal your entire identity.
Though many folks worry about keeping their credit card information
secure when shopping online, the top methods that identity thieves use
to steal personal data are still low-tech, according to Justin Yurek,
president of ID Watchdog, an identity theft-monitoring firm. "Watch
your personal documents, be careful to whom you give out your data
over the phone, and be careful of mail theft," he says.
Indeed, a recent study by Javelin Strategy & Research found that of
the 9.9 million identity-theft cases reported in 2008 -- resulting in
a loss of $48 billion -- online theft only accounted for 11 percent of
incidents. Stolen wallets, checkbooks, and credit and debit cards made
up almost half.
No one is immune to identity theft, but armed with a little knowledge
about how identity thieves operate -- and a little common sense -- you
can stay one step ahead of them.
1. Thieves don't need your credit card number in order to steal it.
Conversely, they don't need your credit card in order to steal your
identity. Identity thieves are crafty; sometimes all they need is one
piece of information about you and they can easily gain access to the
rest. As a result, says Heather Wells, recovery manager at ID Experts,
an identity protection company, today it's crucial to lock up
important documents at home. "Secure birth certificates, Social
Security cards, passports, in a safe deposit box or in a safe hidden
at home," she says. "And that includes credit cards when not in use."
2. The non-financial personal information you reveal online is often
enough for a thief. Beware of seemingly innocent personal facts that a
thief could use to steal your identity. For example, never list your
full birthdate on Facebook or any other social-networking Web sites.
And don't list your home address or telephone number on any Web site
you use for personal or business reasons, including job-search sites.
Has it Happened to You?
* Surely, it's one of everyone's worst nightmares: ID theft. Has
it happened to you? Share with us your worst ID theft horror story and
we may pick your tale of woe to include in of our next features. Share
Your Nightmare Story
3. Be careful with your snail mail. "Follow your billing cycles
closely," says Lucy Duni, vice president of consumer education at
TrueCredit.com. "If a credit card or other bill hasn't arrived, it may
mean that an identity thief has gotten hold of your account and
changed your billing address." Al Marcella, professor at Webster
University's School of Business and Technology in St. Louis, and an
expert on identity theft, suggests when you order new checks, you pick
them up at the bank instead of shipping them to your home. "Stolen
checks can be altered and cashed by fraudsters," says Duni. And never
place outgoing mail in your post office box or door slot for a carrier
to pick up. Anyone can grab it and get your credit card numbers and
other financial information. Bring it to the post office yourself.
4. Review all bank and credit card statements each month, preferably
once a week. Watch for charges for less than a dollar or two from
unfamiliar companies or individuals. Thieves who are planning to
purchase a block of stolen credit card numbers often first test to
check that the accounts haven't been cancelled by aware customers by
sending a small charge through, sometimes for only a few pennies. If
the first charge succeeds, they'll buy the stolen data and make a much
larger charge or purchase. They're guessing -- often correctly -- that
most cardholders won't notice such a tiny charge. In addition, many of
the fraud alerts you can set on your accounts aren't triggered by
small dollar amounts. Reviewing your credit report on a regular basis
is also a good idea, but usually by the time a fraudulent transaction
reaches your credit report, it's too late.
5. If an ATM or store terminal looks funny, don't use it. "Make sure
there is no device attached to any ATM card slot you use," says Wells.
"As a general rule, the mouth of a card receptacle on an ATM machine
should be flush with the machine or have only a very slight lip." If
it looks or feels different when you swipe your card, or has an extra
piece of plastic sticking out from the card slot, it may be a skimmer,
an electronic device placed there by thieves that captures your credit
card information when you swipe it. If you notice it after you've
already inserted your card, you should alert your bank so they can
watch for any fraudulent charges to your account.
Four Red Flags
* One of the scariest things about identity theft is that you
could be a victim and not even know it.
Top Signs You've Been a Victim
6. Identity thieves love travelers and tourists. Scott Stevenson,
founder and CEO of Eliminate ID Theft, an ID theft protection company,
cautions travelers to be alert to strangers hovering around whenever
you use a credit card at an ATM or phone, and to avoid public wireless
Internet connections unless your laptop or PDA has beefed-up security
protection. However, he also suggests watching for little-known
methods of lifting your identity. "Cut up your used hotel key cards
when you check out," Stevenson advises, since these keys contain
important information about you and your finances, including your
name, address, phone, and the credit card you used to pay for your
room. "When you toss them out or leave them lying in the hotel room,
anyone can pick them up and use them to steal your identity," he adds.
7. Identity thieves are sneaky; you need to be sneaky, too. There are
a few simple things you can do to protect your credit card in case it
falls into the wrong hands. "Sign your credit card with a Sharpie so
your signature can't be erased and written over," suggests Echo
Montgomery Garrett, a writer in Marietta, Ga. Consultant Sarah Browne
of Carmel, Calif., had all but one credit card stolen from a hotel
room. The card that was spared still had the "Please Activate" sticker
on it. Though Browne had activated the card, she forgot to remove the
sticker. "The thieves must have known that you have to activate a new
card from the phone number listed with the credit card company, so
they didn't bother with it," she said, and since then, she leaves the
activation stickers on all of her cards. Indeed, when a thief struck a
second time at a public function, Browne's stickered cards were again
left untouched.
8. Pay attention at the checkout line. If a cashier or salesperson
takes your card and either turns away from you or takes too long to
conduct what is usually a normal transaction, she may be scanning your
card into a handheld skimming terminal to harvest the information. But
they don't need a handheld scanner to capture your information.
According to Mark Cravens, the Anti-Scam Doctor and author of "The Ten
Commandments of Investing," they can take a picture of the front and
back of your card with a cell phone or merely swap out cards. "Look at
your card when they hand it back and make sure it's yours, and not
another gold, silver, or blue card that looks like yours," he says.
"You may not notice they swapped your card for days."
9. Go paperless in as many ways as possible. Sandy Shore, training
manager with Novadebt, a nonprofit, New Jersey-based credit-counseling
agency, suggests clients cut back on the mail they receive from banks
and financial institutions by discontinuing paper bills and
statements. "Access your financial statements at the issuer's Web site
instead," she says. This strategy has the added bonus of an
environmental benefit. Similarly, Vaclav Vincalek, president of
Pacific Coast Information Systems, an IT security firm, recommends
that whatever paper receipts and financial statements you do receive
go through the shredder instead of into the wastebasket. "Never throw
away a credit card slip," he says. "Instead, shred anything that has
any number, name, address on it."
10. Identity theft insurance can pay off, but you need to read the
fine print. Several companies offer identity theft insurance, which
covers the money you shell out to repair your identity. This includes
whatever you spend on phone calls, making copies of documents and
mailing them, hiring an attorney, and in some cases, lost wages.
However, the insurance -- which costs about $50 a year -- does not
reimburse you for funds you lost. Your current homeowner policy may
include identity theft insurance in your package, so check first
before signing up with an outside company. Also, some companies are
starting to offer identity theft insurance as an employee benefit.
