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Identity Theft Victims Pay a Price on their Credit Report: Take Precautions!

Respected research firms disagree whether identity theft is climbing or on the decline. There’s no dispute however over the fact that millions of Americans continue to be victimized each year by identity fraud.

Identity theft occurs when a person's personal data and financial information is wrongfully obtained to commit fraud. The thief can open new accounts or take out new loans, or misuse existing accounts. He or she may use the victim’s name to get a job, rent a house, file for bankruptcy, or give it to police during an arrest.

When left undetected, identity theft can rob victims of their peace of mind, their good name and precious hours of their time. Some victims report being harassed by collections agents, having their utilities cut off, or being subject to a criminal investigation or civil suit.

All age groups, professions and income levels are impacted. Even the chair of the Federal Trade Commission, Deborah Platt Majoras, is not immune. Her credit card information was stolen when a hacker broke into a merchant’s computer database.

Too often, identity theft remains undetected until the victim applies for new credit, employment, insurance or housing and their credit report reveals damaging information. This does not have to be the case.

The easiest way to gain protection from identity theft is to act in your own defense. Experts at ClearPoint Credit Counseling Solutions offer the following tips to help consumers prevent their personal data from falling into the wrong hands.

• Safeguard your paper data. Don’t make it easy for others to find your financial accounts and other personal information (Social Security number, date of birth, mother’s maiden name, etc.). Store your financial statements and personal documents in a safe, locked location. Protect your accounts by adding hard-to-guess PINs and passwords. Routinely check your financial and credit card statements for any errors.
• You may know the thief. Identity theft is not always committed by strangers! Family members, household workers, neighbors and coworkers can be perpetrators. Don’t leave your wallet lying around at home or at work and don’t share your passwords or PINs. Never give out account information over the phone, unless you know the person and you initiated the call.
• Use credit with care, and stay alert. When using credit and debit cards in public places, hide your account information from preying eyes. Camera phones and not-so-innocent bystanders can capture your PIN, credit card information or bankcard data. Make certain that store clerks and restaurant servers return your credit card along with your receipt.
• Protect your data online. Personal data can be stolen via computer, so take precautions when banking or shopping online. Arm your computer with anti-spam, anti-virus and secure firewall protection. Never reveal your account information to unknown e-mail senders. Don’t post PINs or passwords on your computer screen. Only shop at trusted merchant Web sites and use a secure Web browser when transmitting credit card information or other personal data.
• Don’t throw identity in the trash. Before discarding any personal or financial documents, shred the paper! This includes purchase receipts, bank transaction records, mortgage statements, insurance documents, utility bills and even junk mail credit card offers. An inexpensive paper shredder might save you from a costly and stressful identity theft clean-up.
• Monitor your credit report. Those who regularly check their credit report have a better chance of maintaining control over their personal information. Every consumer is entitled to one free report each year from the major credit bureaus (Equifax, Experian and TransUnion). Take full advantage of this consumer right. To obtain a free credit report, visit www.annualcreditreport.com.
  
  Request a credit report from one of the bureaus every four months. By checking throughout the year, you will be more likely to flag a problem early on. Be particularly alert to new landline or wireless telephone service accounts, two of the most common types of accounts opened by identity thieves.
• If you suspect wrongdoing, take immediate action. Act quickly if you suspect that someone is using your identity or your personal financial information without your permission. File a police report and immediately notify your bank and credit card companies. Close the accounts that you believe have been hijacked or opened fraudulently. Contact all three credit bureaus and ask that a fraud alert be placed on your credit report. When a business sees the alert on your credit report, they must verify your identity before issuing new credit. Finally, file a complaint with the Federal Trade Commission at www.ftc.gov/idtheft.

Recovering from identity theft can be a daunting task. That’s why it is so important to protect your personal financial information. Above all else, check your credit report on a regular basis!

If you have trouble understanding your credit report, contact ClearPoint Credit Counseling Solutions. ClearPoint’s Credit Report Solutions™ can assist you in identifying credit-reporting errors, disputing inaccuracies and re-establishing a strong credit history for the future. For additional information, call 1-877-422-9045.