Personal Finance Essentials

Protecting Your Identity

41% of Americans Have Lost Money to Fraud

Are You Next?

Credit Identity Theft

Identity theft is a growing problem. Thieves steal wallets and mail, overhear conversations in public places and sift through trash to find sensitive information. They trick people into giving up information over the phone or online. Once they have what they need, they open bank accounts, credit cards and loans in your name. By the time you discover the theft, months or even years may have passed – and your credit history may be in serious disrepair.

Steps to Reduce Your Risk

Shred any document that contains personal information – credit card numbers, account numbers, Social Security numbers, birth dates, passwords and driver’s license numbers. That means bills, bank statements, credit card receipts, expired ID cards and financial junk mail should all be shredded rather than discarded.

Additional steps that reduce your exposure:

1

Review your credit report at least once a year and close any accounts you no longer use.
2

Use a locked mailbox or a post office box, or manage your mail online through a secure website.
3

When shopping online, confirm the site displays a padlock symbol and that the address begins with https://.
4

Never give out personal information to someone who contacts you by phone or online – only provide it if you initiated the contact.
5

When choosing a PIN, avoid your birth date, address or any part of your Social Security Number. Never write your PIN anywhere.
6

Your Social Security Number is the most important number to protect. With it, thieves can open bank accounts and credit cards in your name.
7

Carry no more than two credit cards. Sign the back of any new card immediately using permanent ink. Always take your card receipts and check them against your monthly statement.
8

Keep important documents – your Social Security card, pay stubs, bank and tax records – in a bank safe deposit box or a home safe.
9

Remember that identity thieves are not always strangers. They can be coworkers, friends, relatives, or caregivers.

Monitoring for Signs of Theft

Hacker Identity TheftPrevention is important, but it is not enough on its own. You must also monitor regularly. Check your bank and credit card balances often – by the time you discover a bounced check or an exceeded credit limit caused by fraud, the damage is already done. Know your billing and statement cycles; a statement that doesn’t arrive on time may have been stolen. Review your credit report at least annually to check for accounts opened without your knowledge.

What to Do If Your Identity Is Stolen

If you discover your identity has been stolen, act immediately. Contact the fraud division of every affected financial institution. Keep a detailed log of every call – the date, time, phone number and the name of the person you spoke with. Follow each call with a certified letter, return receipt requested, confirming the conversation. Keep all records for at least seven years after the last problem has been resolved.

Additional steps to take:

Close all affected credit card, investment and bank accounts and open new ones.
Issue stop-payment requests on all missing or outstanding checks.
Change passwords, PINs and security questions for affected accounts.
Place a fraud alert on your file by contacting any of the three credit reporting agencies: TransUnion, Equifax or Experian. The agency you contact must notify the other two.
Consider placing a credit freeze with each of the three major credit bureaus.
Report the theft at IdentityTheft.gov. The Federal Trade Commission will help you create an Identity Theft Report and recovery plan.
File a police report if a financial institution requests one, if you know who stole your identity or if the theft involved a local crime.
Review your credit reports and dispute any accounts, inquiries or addresses you do not recognize.
Continue monitoring your credit reports, bank accounts, credit cards and investment accounts for additional suspicious activity.

If someone forges a check on your account, laws in most states hold banks responsible for any resulting loss. If someone illegally uses your credit card, your maximum liability is $50 per account if you report it within 50 days. Debit cards carry stricter timelines: $50 liability for the first two days, $500 for the next 58 days and unlimited liability after 60 days. Report a missing debit card immediately.