A few months ago Chris Hansen of NBC's
Dateline decided to "
Catch an ID Thief". It was amazing at how complex the network of identity thieves became as they dug deeper into this black market. This particular show was a year in the making. They created a fake ecommerce website to sell goods to track the use of credit card fraud and get face to face with the people purchasing the goods. They were introduced to an online black market of selling and buying credit information through IRC-like mediums. Entire credit files could be purchased within minutes for less than $100, including credit card numbers along with expiration date and the 3-digit CVV number. This network was found to span the globe, using numerous middlemen and even unsuspecting innocent people. These middlemen would receive the packages and re-ship the items overseas. One unsuspecting man believed himself to be working for a South American supermodel whom he was in love with.
With a network of fraud as advanced and widespread as this, how can you prevent identity theft? Much of it is common sense practices and being aware of your surroundings. I've compiled a comprehensive list of ways to help you protect yourself from identity theft.
- ALWAYS burn/shred/blow up/destroy anything that goes into the trash with your personal info on it!
- Use initials on your checks instead of your full name, banks know how you sign and the thieves do not.
- Identity thieves love those "pre-approved" credit offers you receive in the mail. To op-out from receiving these in the mail call 1-888-5OPTOUT.
- This doesn't always help, but it might: don't sign the back of your cards and put SEE ID instead.
- If you ever receive convenience checks from your credit card company, tell them to stop sending them.
- Did you know you're entitled to one free credit report each year, USE IT! Visit www.annualcreditreport.com to get yours.
- There are numerous credit monitoring services out there, find one and use it! I use Bank of America's Privacy Assist Premiere service. It's only $12.99/month and well worth the piece of mind.
- Use card companies that allow you to create temporary card numbers with preset expiration dates and limited amounts that can be charged on them. Bank of America offers this service free with online banking. It creates a temporary card number that is only good for a user-specified time and can only be charged up to the amount the user specifies. This is great for shopping online.
- If planning on big-ticket credit purchases, always check your credit report a month or two in advance. This will prevent embarrassment and allow time to resolve inconsistencies in your report.
- When paying credit card payments with checks, use only the last four digits of your account number. The card issuing company knows the rest.
- Keep all of your 1-800 numbers for you credit cards in a safe, accessible place. If the cards are lost or stolen, you need to quickly cancel them before the damage is inflicted.
- File police reports immediately if your cards are stolen. This proves to your card companies that you're serious.
- Watch for phishing emails and websites! Read Anti-Phishing Working Group's Consumer Advice: How to Avoid Phishing Scams for more information. Be sure to read Zhiro's blog, Phishing: Catch them before they catch you.
- Use the government's Do Not Call Registry, it works most of the time.
- If the Do Not Call Registry fails, hang up on every telemarketing call you receive and do not give out ANY information, not even your birth date.
- Limit the number of open accounts you hold and always go over you statements with a fine-toothed comb.
- If your information is compromised, immediately freeze your accounts with ALL 3 reporting agencies.
- Equifax: 1-800-525-6285
- Experian (formerly TRW): 1-888-397-3742
- Trans Union: 1-800-680-7289
Remember, be cautious and always aware of your surroundings even when in your favorite restaurants. Thieves are everywhere, waiting for the right opportunity to strike. It's not a matter of if, but when. Will you be ready?
