Sushi Money

ID theft is a growing problem.  I’ve never experienced it first hand (knock on wood), yet work very hard to minimize the likelihood of it happening.  But you never know exactly how it could happen, and all we can really do is manage the risk.   Financial risk takes many forms, and for me fraudulent use of my identity is a very real risk.  There are stories everyday of how someone’s ID is stolen… and although true liability in terms of money may seem small, the problem is more about the time spent resolving fraudulent issues as well as future administrative burdens to prove yourself to a potential creditor, and possibly making it difficult to receive necessary health care at a critical time.  Consider this story, DOUBLE TROUBLE FOR ID THEFT VICTIM,  from MSNBC’s Red Tape Chronicles.  It took the individual over 6 weeks to resolve the initial financial problems, all the while having very little money to use while Bank of America sorted it out.  I was surprised that the bank didn’t simply “lock” the account when she notified them… and she was a former Bank of America teller!  So what can we do?  For me “managing the risk” means modifying my behavior and thinking about how I use ID relevant information.  Let me know if you disagree or do other things to manage your ID theft risk… I’m always interested in learning new things!

1.  Use the Post Office:  If I am going to mail anything with personal information on it, including checks with bills, etc, I take them to the post office (or a big blue mailbox) and mail them myself.  I don’t place personally identifiable mail in our household mailbox.  My neighbor a couple years ago had several bills stolen from her mailbox.  The thief “erased” her checks and changed the “pay to” line and the amount, stealing hundreds of dollars from her checking account.  Supposedly the gel-based ink pens will prevent this kind of theft, but she no longer mailed bills from her home’s mailbox.  It only takes one time, so I simply don’t use our mailbox more than we have to.

2.  Paper checks:  We pay most of our bills online, direct from the bank to the payees.  This not only saves time, but I don’t have to write out a check and mail it in the first place.  I actually feel more secure this way, and have been doing so since 1998 without a problem (knock on wood again!).  I write very few checks locally, even at the grocery store.  Instead we use our ATM/Debit/Credit cards.  When we use these cards, we always select the “credit” option.  Sometimes you have to tell the cashier to use “credit” or modify the entry on the keypad swipe device.  If it automatically comes up asking for your pin, just push “cancel” and then select “credit” or tell the cashier to do so.  The liability for using the credit function is greatly reduced from that of debit.  Debit cards have their own problems, and I don’t want to stand there and enter a pin anyway.  There have been some ID theft reports of where theives watch from a distance for PIN entries, even at gas stations.  With the PIN the thief can then make a card that works and empty your bank account.  But paper checks?  I just don’t like using them.  They can be easily duplicated by a determined thief… from Bob Sullivan’s article above:

“A little known truth about paper checks: Anyone can take the account number and routing number off the bottom of a check and create new, bogus checks with them.  The name and account number don’t even have to match.”

3.  Credit History:  When was the last time you checked your credit history?  I have used a credit monitoring service for a couple of years, recently stopping to find a service at a lower price.  I started well before we purchased our latest home in order to monitor my credit scores.  I’ll start again when I find the right company/service based on the cost.  But it was very useful during that time.  I had monthly access to all three major credit reports, and I received email notification whenever something changed officially on my credit report.  Checking your credit reports can show you if anyone else has opened credit in your name, as well as a host of other information that you may be surprised to see if you’ve never looked at it before.  Most credit-monitoring services cost between $9 to $20 per month, so it can be expensive.  But it is peace of mind, and if you plan to purchase a home or some other major expenditure involving financing in the next 1-2 years, it may be worth it to verify where you stand.  If you are surprised by some information you didn’t know was in your credit report, you will now have time to correct it before applying for a loan.

4.  Shred paperwork at home:  I try not to throw anything in the trash with personally identifiable information on it.  I don’t know if anyone would rumage through my trash, but it is an easy way for a thief to gather personal data.  Instead we shred everything that we no longer need.

5.  Driver’s licenses:  Some states automatically ask to use your Social Security Number for the driver’s license.  But most also give you the option of selecting a different number, which is the best solution.  Some stores or businesses want to make a copy or record the number of your driver’s license at times… why give them your SSN to do so? 

6.  Social Security Numbers:  I try to never give it out.  Yet many institutions, schools and other business routinely require it.  Yes, they may not be able to force you to give it to them, but often they won’t let you do business with them otherwise.  I bought a large piece of machinery a while ago, financing it with the company.  Once I received the payment booklets I was shocked to see that my account number was primarily made up of my SSN, with just one or two extra characters!  Poor business practice in my book, and the company wouldn’t change it.  I don’t mail payment stubs back to them… instead I pay them online, but yes, including the SSN-based account number.   Many schools and colleges require the SSN for records and accounting.  But many will also let you select a different student ID number.  I was attending a school a few years ago that used the SSN for everything… and they had tons of paperwork for data entry.  Piles of paper just sat around with countless students’ SSNs on them.  Shopping for a car?  Never give the salesman your SSN unless you are ready for them to conduct a credit check.  They don’t need to see your credit history unless you are serious about buying, and financing, a car from them.  If you are using your own bank, then they don’t even need to know it.  And how many people still write their SSN on paper checks?  Too many… the people often doing so are older and it has been a long habit.  Not a good idea anymore.  I once tried to open a movie rental account at local branch of a major rental company.  They wouldn’t do so without my SSN, so I said “fine” and found a different rental place.

7.  Passwords and Internet use:   In short, make sure your passwords are “strong” passwords.  That means at least eight (8) characters, including numbers, special characters and some capitol letters.  Why make it easier for someone to gain access to an internet account because you want an easy to remember password?  You can make up a strong password with an easy to remember key sequence, or one that means something special.     Where do you keep your password list?  Many people just write it down in the calendar book, or a notepad.  But you can use special encryption software that “holds” your passwords for you- many varieties exist, just make sure the one you choose has excellent encryption technology.  It’s easy to do, and you can use one “strong” password for the data file.  That data file can usually be exported so you can back-it-up, and if your computer crashes you still have the list.

8.  WiFi and other wireless internet:  If you are using wireless internet, then take advantage of the password capabilities that come with it.  There are several forms, but surprisingly many people don’t use any of them.  At a minimum you can use the WEP password protocols, but I recommend at least using WPA with a passphrase that you can always remember.  The likelihood of someone snooping on and using your wireless internet access is small, but in more populated metropolitan areas the odds are higher.  My concern for access to my wireless internet is more for potential criminal activity that could occur using my internet services, and possibly access to my computer systems.

9.  Virus protection:  A must for your computer these days.  My favorite is the AVG series of virus protection and utilities.  They have a great free product that I believe is as good as Symantec or McAffee, with less impact on the computer system itself. 

10.  Email and Browser use:  We read countless stories of “phishing” and hijacked web browsers.  We just need to be alert to the fact that the interent is loaded with malcontents and thieves who are trying to get your passwords and to get you to give them your personal information.  It’s not so hard to do with a moment’s inattention.  My rule is that I never open email unless I know who it’s from, or I know it’s from a trusted company or source. I’ve received tons of “official” looking email from companies I do business with- and I’ve opened them… often to read that they are asking me to click a link and re-enter some type of personal information.  That’s when I know they are phishing attempts or fake emails.   Just don’t do it!  If I ever receive paper mail, a phone call, or an email that asks for personal information- I will contact the company I do business with and ask them myself if there is a problem.  Don’t give anyone your personal information unless you contact them first and verify why they need it!  Hi-jacked web browsers can often be a subtle form of manipulation.  Try to always look closely at the web site and ensure it’s the real one… make sure the security “lock” is seen in the corner of your web browser.  If in doubt, don’t use it.

11.  Medical ID theft:  This is an ever increasing area of ID theft where someone steals your persona information to use for gaining access to health care services.  Most of the companies use special secondary companies to process claims and codes for health care services, and all that paperwork has our personal information on it.  What can you do?  At my last visit to my primary care hospital, they verified my ID, and made a scan of my ID card, driver’s license, etc. at the time of service.  That was their way to verify identity, and I was pleased they did so.  I try to minimize the personal information I give out when using health care services unless absolutely necessary.  But often, thieves steal someone’s ID in another manner, and then use that information for gaining access to health care services.  If you receive strange claims or paperwork from your health care provider, you may want to check it out and ensure no one is using your ID.

12.  Your Wallet or Purse:  Do you really need to carry your Social Security card in your wallet?  What other forms of ID do you have in there?  Fortunately I’ve only lost my wallet once before, and found it in a trash can with everything, except the cash, still inside.  I hope it doesn’t happen again, but if it does, I will have very little personal information in it.  But there is enough for a thief to do some serious damage if I don’t respond right away.  My plan of action is to contact every creditor and company that my wallet reflected I may have an account with, and make sure they know it was stolen, and then have new cards re-issued.  Come to think of it, I better make a list of just what those cards and retailer names are… so I won’t have to try and remember what I was carrying with me!

13.  Your Auto / Vehicle:  What forms of ID or other information do you carry in your glove box or trunk?  I try to carry only what is absolutely necessary… sometimes when I go through my glove box I find more stuff than I realized, like bank statements.   If someone steals or breaks into my car, I don’t want to give them all my personal information along with it.

Practically speaking we may not be able to prevent evey possibility that will lead to ID theft.  But we can do our best to minimize the risk of ID theft happening.  There are also various insurance programs that will “pay” to help defray the costs of ID theft for a victim.  I have yet to read of any of this type of insurance actually helping anyone- for now it seems somewhat of a gimmick since most of the hassle with ID theft is an administrative one over time.  The statistics indicate that it is most often someone in your local area, or a relative, that will commit ID theft in the first place.  Wikipedia has a decent overview of the issues involving Identity Theft, and here are a few other resources and information you might find helpful:

• Federal Trade Commission:  Fighting Back Against ID Theft
• ITRC:  Identity Theft Resource Center 
• Better Business Bureau Online:  Identity Theft
• Privacy Rights Clearinghouse

1 comment - Post a comment

« 10 Ways to Save Money at Home! | Saving Receipts… The Sales Tax Deduction »