Steer Clear of ID Thieves

What if you woke up one day to find your credit card maxed out, your bank account drained, and voicemails from a collection agency seeking payment for items you never bought?  It may sound like the opening of a Hollywood thriller, but nightmare scenarios like this happen to thousands of real-life Americans every day.  They are victims of identity theft. 
 

Identity theft occurs when someone uses your personal information, such as Social Security number,  financial account numbers or driver’s license number, to commit fraud.  They could write checks against your account and get a loan in your name.  The Federal Trade Commission estimates that as many as 10 million Americans have their identities stolen each year."ID theft can cause a serious headache as you spend hours of valuable time to clear your name," says Tom Shaw, vice president of Enterprise Financial Crimes Management at USAA. "At worst, it could cost you hundreds of dollars and severely damage your credit before you're able to reclaim your life."

Here are some tips on how to minimize your risk of identity theft and how to help defend yourself if you do become a victim.

STAY VIGILANT

Adopting precautionary habits in your everyday life can help safeguard your personal information and block ID thieves.

• At home, keep personal records out of view of strangers who may enter the house. While taking care of personal business, only give out your information — especially your Social Security number — if it's absolutely necessary, and only to trusted merchants or lenders.
• Keep your financial information safe by shredding paper documents before you toss them. And choose complex passwords for your online accounts. Avoid using commonly known words or dates, such as your pet's name or your child's birthday. When you create or change your password at usaa.com, the website provides a visual indicator of the strength of the password. Improve your password by adding characters and complexity until the indicator shows it is "very strong."
• Equip your computer with up-to-date anti-virus, anti-spyware and firewall software. Also, be alert to phishing emails and Web pop-ups, which often pose as your financial institution and ask you to provide your personal information. No reputable financial institution collects information this way.
• Closely monitor your financial statements and check your credit report regularly to catch any suspicious activity. Through AnnualCreditReport.com, you can get a free copy of your credit report once a year from each of the major three reporting agencies, Experian, Equifax, and Trans Union.
• Keep up with your U.S. postal mail, which could contain sensitive information ID thieves would love to get their hands on. If you can't check it regularly, ask a neighbor or friend to do it for you.
• Military members, take extra precautions. If you'll be away on deployment, consider placing an active-duty alert on your credit report, which requires lenders to take additional steps to verify your identity before granting credit. Just call one of the three credit bureaus (Equifax, Experian or Trans Union) to request the active-duty alert; the company you call is required to notify the other two.
• Before deploying, contact your branch's Office of the Judge Advocate General office for help drafting a durable power of attorney. This document will allow a family member or another person you trust to help manage your financial affairs, including responding to identity theft if it occurs during your absence.

FIGHT BACK

If you think your identity has been stolen, take these steps:

• Contact one of the three credit bureaus to place a 90-day fraud alert on your credit report, which tells creditors to contact you before opening any new accounts or making any changes to your existing accounts. The fraud alert also entitles you to free copies of your credit reports.
• Contact financial institutions to close any fraudulent accounts or accounts that have been tampered with. Ask to complete an affidavit or other documentation that can help clear you of responsibility for fraudulent charges.
• File a complaint with the Federal Trade Commission.   Then use your FTC claim information to file a report with your local police department. The police may not catch the crooks, but the report can help creditors trying to verify that you've been victimized.
• As you work to resolve the issue, keep a log of all conversations and correspondence, and track expenses that might be reimbursable.

While it can take months to erase the damage caused by identity theft, it's worth the effort to help protect your money and ID and keep your good name intact.  It is recommended that you regularly check for tools that combat the latest security and privacy threats.  As cybercrime becomes more sophisticated and widespread, it’s critical for individuals to understand that they could be at risk of being hacked or having their identity stolen, and that they need to take the appropriate actions to keep this from happening.   

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