Identity Theft Prevention

Identity theft is a crime that takes on many variations. It can go beyond cardholder’s finding bogus charges on their credit card. Many victims have been denied a car or a home loan, or even worse, lost potential job opportunities. Some consumers are not made aware of the problem until they receive a phone call from a collection agency. By that time, the damage has already been done.

It has never been easier for criminals to obtain your personal information than it is today. Long gone are the days when thieves simply went dumpster diving, or just physically stole your wallet. With the advancement of online technologies identity theft has gotten more sophisticated, and so have the criminals who commit these crimes.

While controlling every aspect of identity theft may be virtually impossible, there are preventive alternatives available. While no single alternative by itself will guarantee 100 percent identity theft protection, these options can help you decide which method(s) can provide the best value and fit for your needs.

Fraud alerts

Fraud alerts can be established to notify you immediately when suspicious activity occurs against your financial accounts. These alerts can be filed with your financial institutions as well as with the three credit bureaus. Depending upon what delivery options are available, these notifications can be sent either electronically via e-mail, by regular mail or by phone.

Fraud alert notifications can vary. With specific parameters, banks, credit unions or other organizations can arrange a fraud alert notification to be released based upon specific criteria. For example you may choose to be notified if a change of address or a withdrawal of $500 or more has been made against your account. While some financial institutions may require a fee to arrange these alerts, others may be offered for free. Just like the alerts offered, charges and fees will vary greatly.

Ultimately, fraud alerts are only as effective as the individual’s response to the notification. Using this method to combat identity theft requires a certain degree of diligence on the part of the consumer. Once notified, it is the responsibility of the account holder to file a complaint reporting the suspicious activity.

Need more information? Learn how to file a fraud alert with credit bureaus.

Credit freeze

A credit freeze assists with identifying thieves who attempt to open new accounts in your name. This prevention method places a “hold” on your credit report. Before credit bureaus can release any information to creditors they must obtain your permission. You can request a freeze on your credit file by contacting each of the three credit bureaus.

Learn how a credit freeze can assist you with Identity Theft Prevention.

Online protection

According to a recent survey conducted by ITRC (Identity Theft Resource Center), a non-profit organization, more than 87 percent of consumers who have made a purchase or bank transaction online are concerned about identity theft.

As consumers increase their dependence on Internet technology to conduct business, hackers or thieves have become more adept at illegally obtaining personal information online. From social networking sites to blogs, it has never been more important to secure your online personal identity.

Learn how to protect your identity from theft when using social networking sites.
Learn how to protect your identity when shopping online.
Learn how to protect your computer and networking devices.
Identity theft products & services

Every day the media is overwhelmed with headlines regarding data breaches and personal information losses. Perhaps to date, the biggest known breach was with the retail giant TJX Companies, Inc. whose brands include T.J. Maxx and Marshall’s. In 2007, the company released an announcement that someone had illegally obtained access to one of its payment systems. Over 45 million credit and debit card accounts within a period of 18 months were compromised.

Fast forward three years and along with the increase in identity theft is a rise in the number of companies promoting identity theft prevention products and services. But how do you know which service to pick? How do you decide which products or services will meet your current needs?

We’ve given highlights of some of the identity theft protection products and services offered by these organizations:

• Credit monitoring services
• Credit freeze products
• Data sweep services
• Identity theft insurance
• Secure Payment Agents (SPAs)

As with any major purchase or decision, verify the company with the Better Business Bureau or the State Attorneys General office, read all contracts thoroughly before signing and review the organization’s privacy policies.