Protect Your Identity

Many states have laws that let consumers “freeze” their credit – in other words, letting a consumer restrict access to his or her credit report. If you place a credit freeze, potential creditors and other third parties will not be able to get access to your credit report unless you temporarily lift the freeze.  This means that it’s unlikely that an identity thief would be able to open a new account in your name.  Placing a credit freeze does not affect your credit score – nor does it keep you from getting your free annual credit report, or from buying your credit report or score.

Credit freeze laws vary from state to state.  In some states, anyone can freeze their credit file, while in other states, only identity theft victims can.  The cost of placing, temporarily lifting, and removing a credit freeze also varies.  Many states make credit freezes free for identity theft victims, while other consumers pay a fee – typically $10.  It’s also important to know that these costs are for each of the credit reporting agencies.  If you want to freeze your credit, it would mean placing the freeze with each of three credit reporting agencies, and paying the fee to each one. 

You can find more information about credit freeze laws specific to your state by clicking here, including information on how to place one.

From www.ftc.gov

The best way to find out is to monitor your accounts and bank statements each month, and check your credit report on a regular basis. If you check your credit report regularly, you may be able to limit the damage caused by identity theft. For more information, visit the Detect Identity Theft section.

Unfortunately, many consumers learn that their identity has been stolen after some damage has been done.

• You may find out when bill collection agencies contact you for overdue debts you never incurred.
• You may find out when you apply for a mortgage or car loan and learn that problems with your credit history are holding up the loan.
• You may find out when you get something in the mail about an apartment you never rented, a house you never bought, or a job you never held.

From www.ftc.gov

Stay alert for the signs of identity theft, like:

• accounts you didn’t open and debts on your accounts that you can’t explain.
• fraudulent or inaccurate information on your credit reports, including accounts and personal information, like your Social Security number, address(es), name or initials, and employers.
• failing to receive bills or other mail. Follow up with creditors if your bills don’t arrive on time. A missing bill could mean an identity thief has taken over your account and changed your billing address to cover his tracks. receiving credit cards that you didn’t apply for.
• being denied credit, or being offered less favorable credit terms, like a high interest rate, for no apparent reason.
• getting calls or letters from debt collectors or businesses about merchandise or services you didn’t buy.

From www.ftc.gov

Identity theft starts with the misuse of your personally identifying information such as your name and Social Security number, credit card numbers, or other financial account information. For identity thieves, this information is as good as gold.

Skilled identity thieves may use a variety of methods to get hold of your information, including:

Dumpster Diving. They rummage through trash looking for bills or other paper with your personal information on it.
 
Skimming. They steal credit/debit card numbers by using a special storage device when processing your card.
 
Phishing. They pretend to be financial institutions or companies and send spam or pop-up messages to get you to reveal your personal information.
 
Changing Your Address. They divert your billing statements to another location by completing a change of address form.

Old-Fashioned Stealing. They steal wallets and purses; mail, including bank and credit card statements; pre-approved credit offers; and new checks or tax information. They steal personnel records, or bribe employees who have access.
 
Pretexting.  They use false pretenses to obtain your personal information from financial institutions, telephone companies, and other sources.  For more information about pretexting, click here.

Via www.ftc.gov

Everyone wants to know how does LifeLock work? I know that LifeLock guarantees that they can protect my identity from being stolen, but what is the process? How is it possible that LifeLock can stand behind their identity theft protection service with a $1,000,000 Service Guarantee and only charge $10 per month?

First of all, LifeLock asks the credit bureaus to set fraud alerts on your behalf through their automated systems (the alerts are set within an hour). This allows for immediate protection against identity theft. Then every 90 days or so they ask the credit bureaus to do it again.

Next LifeLock requests that your name be removed from pre-approved credit card and junk mail lists and continues making the requests as they expire.

Getting rid of the pre-approved credit card lists may be worth the money in and of itself. Think about it - if you never received the credit card offers in the mail would you have ever applied for that card? I know I wouldn’t. So I guess LifeLock kind of protects us from ourselves.

For more information visit www.lifelock.com