The realization that identity theft was a real problem was brought to my attention when the son of a close friend went to purchase a car. When he applied for the car loan he was told that he had a credit problem and his loan request was denied. This was a complete surprise to him. As far as he knew his credit record was outstanding. He discovered he was a victim of identity theft!

Identity Fraud

by Emily Rippe

Credit Advisors Foundation offers some amazing identity fraud statistics and offers tips on ways to avoid becoming a victim. Credit Advisors is a national credit counseling organization offering debt management and credit counseling services as well as financial education to improve personal fiscal practices.

(PRWEB) February 19, 2005 -- A bit over four percent of the U.S. population was a victim of identity fraud last year. That means 9.3 million of you experienced the costs, both the monetary and emotional, of this crime. And don’t doubt for a minute, identity fraud is a crime.

Three-fourths of the victims are uncertain of the “who” or “how” of the crime. Unfortunately, the longer it takes to detect identity fraud the higher the cost to the victim. Meanwhile, those victims that have determined the ‘who’ involved, have found identity fraud to be a very personal crime. As difficult as it may be to hear, family and friends are high on the list of identity fraud perpetrators. Sadly, when the thief is a family member or a friend, records show they most often open new credit accounts; thus, detection of the crime takes longer and the costs to the victims are higher, averaging $12,646 per incident.

So what about the “how” of identity fraud? Much attention recently has focused on the online aspect, yet a recent study sponsored by the Better Business Bureau warns us not to neglect “the old fashion ways”. Lost or stolen wallets and theft of paper mail were cited for almost 36 percent within known methods of fraudulently obtaining personal information.

The research also suggested that this is one problem that won’t go away if you ignore it. Of those reporting an incident of identity fraud, most demonstrated prevention behaviors below average prior to the theft. In addition, post theft, these same folks responded by increasing their prevention behaviors, suggesting that minor adjustments in how we deal with the security of our personal information can make an impact.

Some recommendations from a BBB study you have heard before, but here they are again, along with some new ideas as well.

-Retrieve paper mail promptly from your mailbox and when sending mail with sensitive information (including name, address, date of birth, social security number, account numbers of any kind, etc.), make use of a secure outgoing mailbox. Shred documents containing sensitive information before discarding.

-Avoid carrying unnecessary information in your wallet or purse, such as account PIN-numbers, passwords, Social Security number or card.

-Store sensitive information in a secure location, away from where others, including family members, friends, neighbors, domestic help or repairmen, could possibly access it. Such items would be bank statements, passwords, PIN-numbers, paper checks, social security cards or numbers, as well as, your wallet or purse.

-Cancel your paper bills or statements whenever possible and pay bills and check your statements on line.

-As always don’t forget, ignore Internet links when responding to emails from financial institutions and type the known address instead.

http://www.creditadvisors.org

My friend, who unfortunately discovered that he was a victim of identity theft, soon found that correcting the record was a major hassle. The lesson he learned was that it is better to prevent identity theft then to try and correct the record later. So with that mind, I present this information to you so that hopefully you will not become another identity theft victim.

We often take our liberties for granted. What you know life to be can suddenly change if you've been a victim of identity theft.

While you've been busy with your day-to-day life someone could have stolen your personal information and racked up debts or committed fraud - all with your name on it. What happens then can be anything from being denied employment, credit or even being arrested for a crime you didn't commit.

Identity theft is that serious.

Victims of identity theft can spend years paying back debts or fighting to restore their credit as well as their reputation. Finding out you are a victim of identity theft can be frightening and a source of anxiety even after you've resolved the issue.

Don't be complacent, learn about identity theft and what you can do to lessen your changes of becoming another identity theft victim.

See several phishing email examples here.

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