CREDIT CARD FRAUD AND IDENTITY THEFT

Whenever you order your next set of checks, put only your initials and last name. No first name. If someone gets your check book, they will not know how you sign your name, but your bank will know.

Whenever you write checks to pay your credit card bill, never put the entire number on the check. Put only the last 4 digits. The credit card company will know the rest of your number.

Photocopy the front and back of all your credit cards, plus your driver license, and keep these in a safe place. If they are stolen, you will have all the numbers and phones to call. We are told to cancel the cards quickly, but the key is to have the information readily available.

Do not put your phone number on your checks. Use your work number or no number at all. Do not put your address. If you have a PO box, use that. Never -ever-ever put your Social Security number on a check.

Report to the police immediately wherever you happen to be. This proves to the credit card companies you are diligent.

Last but not least. Call all three credit reporting companies and place a fraud alert on your accounts and your S.S. number. Here are the numbers:
Equifax 1-800-525-6285
Experian 1-888-397-3742
TransUnion 1-800-680-7289

If you think your credit is safe, take this brief Theft Quiz. The answers are worth 1 to 5 points. You can tally up your score at the end to see how well your identity is really protected.

1) How do you dispose of personal finance information?
A) I always tear the information up, and then dispose of it.
B) I tear up some of the information and shred some of it .
C) I use a shredder to destroy my documents every time.

2) How do you dispose of unsolicited, pre-approved credit card direct mailing information?
A) I simply throw them in the garbage can.
B) I always destroy them in - either I tear them up, or I shred them.
C) I use a cross-cut paper shredder before I dispose of them.

3) How do you dispose of other personal information like bank statements, pay stubs, credit
card bills, cancelled checks or utility bills?
A) I generally tear the information up then dispose of it
B) Sometimes I tear the information up, and sometimes I shred it.
C) I always use a paper shredder to dispose of any of these materials.

4) When do you check your credit report by any of the major credit bureaus?
A) I never checked my credit report
B) I have checked my credit card before, but over a year
C) In the past year, I have checked my credit report.

5) Upon receiving financial statements of any kind (credit card bills, checking accounts,
utility bills), do you thoroughly review these statements for any errors?
A) I hardly review my financial statements regularly at all.
B) I review my financial statements whenever I can get to it, but not monthly.
C) I review my financial statements as soon as I receive them, every month.

6) Where do you get you own personal mail?
A) I have unlocked mailbox in front of my house.
B) My mailbox is lockable, but I don't always lock it.
C) I have a locked or secure mailbox for all my mail.

7) What method do you use to send outgoing mail?
A) I always leave my mail in my own, unlocked home mailbox
B) Leave it in an unlocked mailbox with the flag up and sometimes in a secured box.
C) I only drop my mail in a locked mailbox, or US Mail collection box.

8) Do you ever carry your Social Security card in your purse or wallet?
A) I do carry my Social Security card with me.
B) I don't always carry my Social Security card, but sometimes I travel with it.
C) I never have my Social Security card with me. I store it in a safe place.

9) Is your Social Security number included on any personal information you carry with you?
(Checks, ID cards, health-insurance or prescription drug cards)
A) I really couldn't say. I haven't noticed.
B) My social security number is on several of my ID or insurance cards.
C) No, I have no social security number on anything that can be found on my person.

Calculate your score using the following key: A=1, B=3, C=5. A score of less than 20 means that you might be at real risk for identity theft.

A score of 20-37 means that you have begun taking the right steps but you can still improve. A score of 38-45 means that you are doing the right things to protect your identity.

However, you still need to be careful because it only takes one piece of information to end up the wrong hands to result in your identity being stolen.

This module defines what identity theft is, explains how the thieves might obtain your details and explains how you can protect yourself.

It occurs when a thief steals your personal data to take over your credit accounts and credit cards. When they take out loans in your name. When they access your bank accounts and commit other crimes in your name and at your expense.

When identity theft strikes the effects can be a disaster and because it often involves no physical theft, it may not be noticed by its victims until significant financial loss has already occurred.

Ways in which your identity can be stolen. They steal information from you wallet or purse. They could redirect mail for their own use by a change-or-address form. They can go through your trash looking for personal information. They can pose as a landlord or someone else who has a lawful right to your information.

They can obtain personal information from websites which lack Internet Security. They can buy the information from an inside source such as a store employee by "skimming" your credit card information. They can get your personal data from where you work.

One study said that identity theft cost U.S. businesses and consumers more than $60 billion last year. This works out to about one new victim every few seconds or so.

Victims often spent hundreds of hours recovering from this crime. They often spread over a number of years. Even long after the thief stops using the information, victims struggle with the impact. Including increased insurance or credit card fees, inability to find a job, and high interest rates. They even battle collection agencies and issuers who refuse to clear records despite substantiating evidence of the crime.

How can you protect yourself? You cannot totally prevent yourself from becoming a victim of identity theft. However, by managing your personal information carefully you can substantially reduce the likelihood that it will happen to you. The following tips should help you reduce your risk.

Whether on the phone, by mail, or on the Internet, never give anyone your credit card number or other personal information for a purpose you don't understand. Ask them to use other identifiers if possible.

Shred all rubbish containing any personal information. Check everything that goes into the trash. If it contains any personal information, name, address, credit card numbers for example on your receipts, bank details etc. then ideally shred them with a cross cut shredder.

Minimize the number of cards you carry in your wallet or bag. If you lose a card, contact the fraud division of the credit card company immediately. Also if you apply for a new credit card and it doesn't arrive in a reasonable period, contact the issuer. Someone may have changed your address and had the card sent to someone else.
Watch cashiers when you give them your card for a purchase.

When you receive a new card, sign it in permanent ink and activate it immediately. Keep any credit cards that you leave at home in a very safe place. Don't forget to use them from time to time to ensure they are active. You will want to use these cards if your other cards are lost or stolen, until replacement cards are obtained.

Reduce the amount of information you carry on your person. Minimize the information you carry in your wallet or bag. If your keys are lost or stolen get your locks changed. Contact the creditor if your bill is late arriving, as this could mean an identity thief has taken over your credit card account and changed your billing address.

Safeguard personal information in your home. If you are going to have any non-family people in your home such as service engineers, plumbers, cleaners, then ensure your personal information is safeguarded. Also if you share your home or room with room mates.

You must memorize your passwords and personal identification numbers instead of carrying them with you. Don't use easily available information like your mother's maiden name, your birth date, your phone number, or a series of consecutive numbers.

Check your credit report. You can check your own credit report and doing so can help you catch mistakes and fraud before they have a large impact on your personal finances. Make sure your report is accurate and includes only those activities you've authorized.

It's also a good idea to review your credit report from each of the three major credit reference agencies every year as it is possible that information is reported to one but not the others.

Regularly checking your credit report for changes you did not make is one of the best ways to combat identity theft. I hope this Squidoo helps you.