Free Money Finance

What to Do if Your Laptop is Stolen

Imagine that your laptop computer is stolen. Think it has anything of use on it to identity thieves? Yeah, probably -- like EVERYTHING!!!!! So, what should you do if your computer is taken? Here's what Yahoo suggests:

• Change every password you can think of. If you have a copy of your bookmarks file (hopefully you've made a backup), go through and systematically change every login password on the list. Remember it's not just banks and email accounts that will need the update, but also shopping sites like eBay and Amazon.com and even social networking sites, too.

• Cancel and replace your credit cards, at least any that you've ever used online.

• Add a fraud alert message to your credit report, which can help protect you in case someone tries to open a new account under your name.

• File a police report and get a copy of it (critical if you're filing an insurance claim).

• Keep an eye on Craigslist and eBay for your laptop. You'd be shocked how many stolen laptops are unloaded here, and often very quickly.

I don't have a home laptop, but I have a work one. I take it with me when I travel, and while I'm not a freak about it, I do keep it close at all times while traveling from one place to another. If it was ever stolen, my goose would be cooked!

For more thoughts on identity theft, see these links:

• How to Keep Your Child's Identity Safe

• Keep Identity Thieves at Bay during the 2008 Tax Season

• A Consumer’s Guide to ID Theft Awareness and Avoidance

How to Keep Your Child's Identity Safe

Here's a guest post from Family Secure, a service from Experian that alerts parents of key changes in their credit file and their children’s that could be a sign of identity theft.  The product has a $2 million guarantee. They had asked me to review their site and instead I asked them to provide a guest post that would tell Free Money Finance readers what they should do about protecting their child from identity theft. Here's what they had to say:

Identity theft has become an increasingly common problem in the last few years.  A recent survey conducted last year by the Federal Trade Commission reported that there were 8.3 million victims of identity theft in 2005.

What many people do not know is that child identity theft – stealing a minor’s personal information and establishing lines of credit in his/her name – is also increasing at an alarming rate.  Some sources estimate that up to 500,000 children per year become victims of identity theft. In many instances, parents and children don’t realize that the child’s identity has been stolen until he or she applies for credit much later in life. By this time, the child’s credit history is already tarnished. 

A 2007 Experian-Gallup poll showed that while 72 percent of the respondents felt it would be “very easy” or “somewhat easy” to steal a child’s identity, 68 percent knew “only a little” to “nothing at all” about child identity theft.

Instances of child identity theft will likely continue to grow as minors become more active online and on other information sharing platforms. Parents should consider the following precautions to help protect their children from becoming victims of identity theft.

• Educate children about the importance of keeping personal information private. Teach them to come to you should any person or organization ask for their social security number and address.

• Closely monitor a child’s online activity.  Many sites ask for personal information such as last name, address, etc., which can open the door for identity thieves. 

• Monitor the type of mail a child receives. Credit card advertisements, unexplained merchandise or collection notices could all be indications of identity theft.  Also, the more mailing lists a child’s name is on, the more exposed he or she is to identity theft. Whenever possible, sign up for items like magazine subscriptions under your own name rather than your child’s name.   

• Think twice before giving out a child’s social security number.  Giving a child’s social security number is voluntary even when directly requested. When signing children up for programs such as daycare, basketball camp, etc or filling out medical forms at a doctor’s office, parents do not need to provide social security numbers. If someone insists he needs a child’s social security number, parents can ask why the number is needed, how the number will be used, what law requires them to provide a social security number and what the consequences are if you refuse.

• Don’t give out even the last four digits of a child’s social security number. These last four numbers can be easily used to obtain the full social security number, creating numerous opportunities for a child’s identity to be stolen. 

• Do not let children carry their social security card in their wallet.  Keeping their card locked in a deposit box ensures that their social security number will not be compromised if their wallet is misplaced or stolen.

Keep Identity Thieves at Bay during the 2008 Tax Season

The following is a guest post from Brian Lapidus, chief operating officer of Kroll’s Fraud Solutions.

The U.S. economy may not be the only beneficiary of the recently passed federal economic stimulus package – identity thieves are getting a boost, too. Why?  In the wake of the recent IRS announcement that more than 130 million Americans will receive tax rebates this year, identity thieves are using the promise of extra cash to lure Americans into disclosing their sensitive personal information. 

These “phishing” schemes can take a variety of forms, the most common of which involves an identity thief who calls or e-mails a consumer pretending to be an IRS employee.  The consumer is promised a sizable rebate if they file their taxes early.  All the caller needs in exchange is the consumer’s bank account number to deposit the check. 

The bad news is that schemes like the one described above are common; the good news is that falling victim to one is avoidable – as long as consumers get smart on the facts and follow the proper precautions.

Preparing Your Taxes

• Beware of phishing schemes.  The IRS never contacts consumers by e-mail or phone to request sensitive personal information (SSN, checking account information, etc.).  If you receive a phone call or e-mail that you suspect may be a “phishing” scam, file a complaint with the Anti-Phishing Working Group and contact the IRS immediately.

• Avoid shopping mall kiosks or pop-up preparers who offer to assist you with tax preparation.   Considering the amount of sensitive personal information involved in the tax preparation process, you probably don’t want to hand over your files to someone whose experience and background are unfamiliar to you.  Ask a trusted friend to introduce you to his/her tax preparer or consult a local CPA association for trustworthy members.

Filing Electronically

• Avoid using wireless networks.  Use of wireless networks means your data is being transmitted over open airwaves, similar to a radio transmission. If not properly secured, data can easily be picked up by an uninvited party.

• Don't prepare your taxes on a public computer.  Public computers can contain “keylogger” spyware, which records every keystroke including passwords and account information.  Keyloggers make it possible for an identity thief to steal any information entered into the computer during your session.  Preparing your taxes on a public computer also increases your vulnerability to “shoulder surfers” – individuals who look over your shoulder to observe what you are doing and, more importantly, collect the sensitive data you’re entering. 

• Only keep a record of your tax claims as long as necessary.  Thieves can't steal what you don't have. Purge the data once the need for it has expired. Suggested guidelines for individual recordkeeping are available online through the IRS.

Filing by Mail 

• Don't put your completed claim in an unlocked mailbox for pick-up.  Instead, deposit outgoing mail at a post office. 

• Take it one step further and opt for delivery tracking.  That way you can be certain that your information has gotten to the IRS safely.

• Waiting for your tax rebate? Promptly remove mail from your mailbox after delivery.  The longer your mail sits in an unsecured mailbox, the greater your chances of it falling into the wrong hands. 

• You may also choose to have the IRS deposit your tax rebate directly into your bank account, further minimizing the risk of theft.

A Consumer’s Guide to ID Theft Awareness and Avoidance

The following appears courtesy of Kroll Fraud Solutions.

The FTC estimates that as many as nine million Americans have their identities stolen each year, so chances are high that you or someone you know has fallen victim to what has become one of America’s fastest-growing crimes.  While there are no guarantees as far as prevention, there are certain steps every consumer can and should be taking – before and after the fact – to greatly reduce their potential risk. 

ID theft expert Brian Lapidus, chief operating officer of Kroll’s Fraud Solutions, has unique frontline experience helping today’s businesses and consumers safeguard against and respond to data breaches.   

Below he offers some important advice that every consumer should know about protecting themselves from the damages of fraud.   At Kroll, Lapidus oversees a highly-skilled team that includes veteran licensed investigators specializing in supporting breach victims and restoring individuals' identities to pre-theft status. 

1. Beware the word ‘prevent.’ No person and no product can prevent identity theft. As long as criminals can benefit from stealing, there will be theft. Sensitive personal information (SPI) is everywhere, housed and archived in a mind-boggling variety of ways. Individuals and companies can reduce access to SPI and improve safeguards around it by working to change how we share, collect, store and dispose of information. 

2. There are no ‘guarantees.’  This mantra holds true for a lot of things in life and dealing with identity theft is no exception. While a number of instances of fraud can be restored to pre-theft status, some identity dilemmas simply can’t be fixed. If you’re on the ‘no fly list’ thanks to an imposter or an error, you’ll stay there. A third-party solution cannot deliver a remedy.

3. Watch for ‘shoulder surfers’ and ‘skimmers.’ Shield the entry of personal identification numbers (PINs), and be aware of people standing entirely too close by when using your credit or debit card in public. Especially with the advent of cell phone cameras, a sneaky, shoulder surfing thief can get your private information pretty easily, if you’re not careful. It’s also advisable to use teller machines that are familiar to you, so you are in a better position to identify when the equipment looks different or doesn’t “feel right.” Your increased awareness may reveal a skimmer’s attempt to steal PINs and banking details at that site.

4. Keep your Social Security card safe at home. Unless you’re on your way to fill out a job application, there are very few reasons to carry around the crown jewel of SPI. At lunch a few weeks ago, the woman beside me opened her wallet for a credit card and there was her Social Security card, too. Remember, ID theft and fraud are not exclusively credit-related – thieves can use a clean Social Security number to construct a whole new life.

5. Destroy before you dump that old computer. Erasing data just enables the computer to write over that space again; it doesn’t actually eliminate the original bits and bytes. Physically remove the hard-drive to ensure you’re not tossing out or passing along your personal details. Our company is often called upon to recover data from an erased or damaged drive; we’re very good at it – and so are some professional thieves.

6. Choose ‘forget me’ instead of ‘remember me.’  How many Web sites do you frequent that invite you to enable an automatic log on the next time you visit? Don’t check that box! When convenience trumps confidentiality, you’re asking for trouble. The harder you make it for hackers to follow your trail into an online store or bank account, the better.

7. Don’t rely on fraud alerts or credit freezes alone. Fraud alerts are meant to stop an identity thief from opening new accounts in your name. Credit freezes let you restrict access to your credit report, which would also make it hard for someone else to open new accounts. But, neither one will stop a thief from trading your SPI for cash, or using it for tax fraud or in any of the countless other ways fraudsters exploit stolen identities.

8. Practice prudent posting.  Social networking sites on the internet enable individuals around the world to chat, share photos, recruit employees, date, post resumes, auction property, and more. Because the Web makes it possible for any posted document to link with another, any data you put out online have the potential to stay there for what amounts to electronic eternity.

9. Keep that key. When you check out of a hotel where you were issued a card-key to unlock the door to your room, don’t leave the card-key behind. Hold on to it until you’re safely home and can shred or otherwise discard it safely. Some say it’s an urban myth that the card-keys hold vital details like credit card numbers, while others report having tested and confirmed the presence of private data coded into the magnetic strip. Even if there’s no definitive answer, why risk it?

10. What’s in your wallet? Make photocopies of the personal material in your wallet: Driver’s license, credit cards, insurance cards, all of it – front and back. Should your wallet be lost or stolen, you won’t be left wondering what was actually taken, and you’ll be able to quickly notify the appropriate agencies about what has taken place.

Identity Theft/Stolen Credit Card in the Middle of an Airport

Ok, maybe I'm hyper-sensitive. Then again, maybe I'm just more aware of what can happen to a person these days when it comes to credit card/identity theft. Either way, here's an interesting situation I found myself in recently.

A couple weeks ago I detailed my three-day travel nightmare courtesy (at least in part) of Midwest Airlines. Around noon on the second day when it became clear that ALL flights were canceled to almost everywhere you can imagine what happened. After all, what is the first thing you'd think of (other than "I have to spend another day in these same clothes") when you found out you weren't going anywhere until the next day? Right -- "where am I going to spend the night tonight?"

So a mad rush ensued to see who could get into the hotels first before they booked up. The hotel I had stayed in the previous night (the night Midwest put me up because it had a plane with a flat tire) was the one I wanted to stay in again for several reasons:

1. I knew it was acceptable to my taste.

2. It was close to the airport (4 minutes.) I had a 6:50 am flight the next day and I didn't want to get up too early. Plus there was a huge snowstorm going on and I didn't want to drive (or even ride in a shuttle) when a 15-minute ride under normal circumstances could be an hour or more in the weather chaos.

3. The hotel had a full-scale restaurant, so I didn't have to go outside to eat. I was in Nashville, after all, the previous day, so let's just say I wasn't dressed for a snowstorm.

4. The hotel had free wireless internet -- so at least I could get some work done while I hunkered down.

So I raced to the hotel information section of the airport and saw that my hotel charged $199 to $249 a night for rooms. Yikes! I knew that these were the "retail prices" but I wasn't sure how far they would come down -- especially in the midst of a storm. If there was ever a time to only take customers at retail price, this was it.

I called the hotel on my cell phone while others jockeyed for the courtesy phones. I asked if they had any rooms for the night and what their prices were. They said they did and linked me through to their reservations desk. Ian came on the phone and said they had rooms available for $199. Just great.  Now I was going to have to price shop in the middle of a snowstorm. Then he said, "Oh wait, I'm sorry, I mis-spoke. The rates are $99 a night." Sold! I told him I'd take one for tonight and he started to process my request.

At the end of the transaction, he said, "All I need to reserve this room is a major credit card." Yep, that's normal. What was not normal was that I'm usually not in a crowd of people reading my credit card information ALOUD for all to hear when I reserve a room. In a split second, I thought, "I'm going to have to read my credit card information out loud for all to hear in order to reserve this room. What if someone is listening and wants to steal my information?"

I glanced around. There was sufficient commotion to take most people out of the "card stealing" realm, but I saw a few people looking at me (by this time, I had my card out.) Were they just curious or looking to take my information? Is it a legitimate concern or am I taking all this way too seriously.

I didn't have much time to think about it -- Ian needed the name of my card, my number, and my expiration date. And he wasn't going to wait 10 minutes while I figured out what to do.

I decided that it was better to be safe than sorry, so here's what I did:

1. I started walking to the least crowded section of the airport. Fewer people there plus someone trying to steal my info had to be walking/following me -- they couldn't be stationary or they would miss part of it as I walked away.

2. As I was giving the number, I spoke as lowly as I could.

3. While walking/talking, I turned around a couple times (casually) so my voice was not projected in any one direction for the entire reading of the card number. It would make taking the information much more difficult.

4. I put the card away as soon as Ian had all the information.

I got the reservation completed, caught the shuttle, and was in the hotel a few minutes later. And so far, my credit card appears to be fine. ;-)

Like I said, maybe I'm just hyper-sensitive, but if nothing else, it was interesting that the issue came into my mind and did so very quickly -- and at a time that I had plenty of other things to think about.

So, what do you think? Did I react the right way? What would you have done? Would you have even thought about it?

How to Protect Yourself from Identity Theft

Here are some handy tips on how to protect yourself from identity theft from USA Today:

• Monitor bank and credit card accounts regularly by phone, ATM or over the Internet.

• Reduce the amount of paper in your life. Mailboxes containing credit card bills and other sensitive financial information are prime targets for thieves. Shredding sensitive documents is a good idea, but "it's not enough just to shred," Van Dyke says. "Most criminals go to your mailbox, not your trash." His advice: Arrange for electronic delivery of bank statements and bills.

• Lighten your wallet. Nearly 40% of identity theft stems from lost or stolen wallets, checkbooks or credit cards, according to Javelin's survey of victims who know how their information was stolen. Rid your billfold of credit cards you don't use, along with other documents, such as your Social Security card, that you don't need on a regular basis.

• Secure online accounts with difficult-to-guess personal identification numbers and passwords. Keep PINs and passwords in a safe place and change them often. Update your anti-virus programs and firewalls frequently.

• Take advantage of your right to obtain free credit reports.

Here's how we handle each of these:

1. I do monitor our bank account via the web, but not our credit cards. On the cards, I reconcile them through Quicken every month to make sure what we think we have spent matches what the credit card company says we've spent.

2. We shred like fiends, only put mail in our box the day of delivery (never overnight), and we pick up our mail with an hour or two of delivery. We have a fairly active street, so it's not like someone could easily take mail without anyone noticing. That said, we may need to be a bit more aggressive in this area.

3. I carry two credit cards, my driver's license, my Costco card, and some cash. That's it.

4. What? You mean a pin of "1234" isn't good enough? ;-)

5. I get one free credit report a year. I should do at least two.

Over-the-Web Tax Returns – Are they Secure?

Here are some thoughts on taxes/ID security courtesy of ARA Content:

Most Americans view their tax return as a document that represents all things financial to them -- containing both personal and financial information for all household members. As the Internal Revenue Service (IRS) attempts to motivate Americans to electronically file their tax returns, the future can seem a little scary for the millions of taxpayers who have continued to prepare their tax returns manually. Of those taxpayers who have decided to take the plunge and use Web-based tax preparation software this year, many wonder, “How secure are my tax records?”

There are several things you should know to help keep your information safe as it relates to using a computer to prepare and e-file a tax return.

1. Update your computer’s virus protection software -- install patches for its operating system and software programs to defend against intruders, viruses and spyware that can compromise files and passwords. While doing this, you may even want to consider scheduling automatic virus scan updates.

2. Only store financial information on your computer that is necessary; and, protect access to your programs by using something called a “strong” password -- a combination of letters and numbers (upper and lower case) to ward off possible identity thieves. A good way to create a strong password is to come up with a memorable phrase. For example, “I ward off danger, by practicing safety first, becomes 1W0DBPSf.

3. Never use an automatic login feature to populate user name and password fields -- features such as these help thieves gain access to your personal information.

4. Use a firewall program if you use a high-speed Internet connection like cable, DSL or T-1 that leaves your computer connected to the Internet 24 hours a day. Without it, hackers can take over your computer, access the personal information stored on it, or use it for other fraudulent purposes.

5. Never open files, click on hyperlinks or download programs from people or companies you don’t know. Also, be aware that some popular file-sharing programs can make your computer vulnerable -- enabling others the ability to capture passwords and other information you type from your keyboard.

6. Prior to sharing information or making a purchase, look for indicators that the site is secure. For example, at the bottom of the data entry screen, check to make sure a lock icon appears on the browser’s status bar (usually located at the lower right-hand portion of your screen) or the URL for a Web site is displayed as “https:” (the “s” stands for secure).

7. Always type the URL of the Web site you want to visit into your browser -- don’t click on links that are sent to you. Another precaution is to click a site’s VeriSign Seal. By following these two guidelines, you can be confident you are trafficking an authentic site -- not the work of some imposter trying to deceive you into divulging your confidential passwords or other information.

Stephanie Behrends, spokesperson for 2nd Story Software, Inc., makers of the popular TaxACT tax preparation software and Web-based services advises, “Before you share any information or make a purchase online, take time to read that company’s privacy and safeguard policies. A Web site should answer questions regarding: security, how information collected will be used and maintained, if information will be shared with third parties, as well as who controls and has access to information collected by the site. If you find a site’s policies to be confusing or it fails to specify information upfront, follow-up is necessary or consider doing business online elsewhere.”

The IRS warns taxpayers to be on the lookout for fraudsters who use the agency’s name to further their schemes. If you receive an e-mail that appears to have been sent by the IRS, think again. The IRS does not ask people for PIN numbers, passwords or similar secret access information for their credit card, bank or other financial accounts -- by phone or e-mail. The bottom line: The IRS does not solicit this information -- don’t share it!

So, what should you do if you suspect your identity has been stolen? Visit the Federal Trade Commission’s Web site for detailed instructions about how to handle the aftermath of identity theft.

Tax Season Leads to Increased Risk for Identity Theft - Tips for Storing and Destroying Sensitive Documents

Here are some tips for keeping your ID safe during tax season courtesy of ARA Content:

Each year consumers spend many hours preparing taxes hoping they don’t owe the government money. But what many fail to realize is that the government isn’t the only one who may collect their hard earned cash -- so may identity thieves.

In a time where one man’s trash is another man’s treasure, it’s important to ensure that the multitude of documents used to prepare taxes are appropriately stored or destroyed. In 2005, consumers lost nearly $57 billion to criminals who stole their identities. Although this statistic is alarming, there are ways to protect yourself from the crime, especially during tax season.

While it may appear easier to file everything, paper trails are still an identity thief’s dream. Recent research conducted by Fellowes, Inc., the leading shredder manufacturer; shows nearly 40 percent of Americans believe identity theft is most likely to occur through online exchanges. In reality, Internet fraud represents only nine percent of the crime. The majority of identity theft crimes occur through paper documents and stolen information, making it crucial to properly store or destroy the sensitive documents used during tax season.

“Tax season can leave consumers with mountains of paperwork, which makes them more vulnerable to identity theft," says Kristen Gehrig, director, global marketing for Fellowes, Inc. “Shredding is one of the easiest ways to ensure your information doesn’t end up in the wrong hands, but you also need to be conscious about what documents are important to keep.”

Simply knowing what needs to be filed or shredded will quickly alleviate potential problems.

• Tax returns: The IRS has three years to challenge information in your return and six years to conduct an audit based on unreported income. Keep tax returns and supporting records, like W-2s and 1099s for at least seven years.

• Investment statements for taxable accounts: Most brokerage firms and mutual fund companies send annual statements summarizing the year’s transactions. Once you have these, you should shred your monthly and/or quarterly statements.

• Bank statements: Keep statements that back up information on your tax returns for up to seven years. Other bank statements can be shredded after reviewing for errors.

• Credit card statements: Keep statements for big purchases like jewelry or large appliances. You might need them for warranties. If you put charitable contributions on your credit card, keep the statement for your tax records. Other monthly statements can be shredded once you’ve reviewed them for errors or unauthorized purchases.

• Pay stubs: While many people say to save these, it’s a huge mistake. They contain everything an identity thief needs to open an account. Keep three months of history only if you are applying for a mortgage.

• ATM receipts: Shred all receipts after you balance your bank statement.

• Canceled checks: With no significance for tax or other purposes, these should be destroyed after one year.

• Retirement plan contributions: Keep records of contributions to non-deductible individual retirement accounts, such as a Roth IRA, indefinitely. Without them, you may find yourself paying taxes again when the money is withdrawn. Some financial institutions keep records of IRA contributions, but it’s best not to count on it.

• Insurance policies, wills and other legal documents: These documents should be kept indefinitely.

For documents you need to keep, consider storing them in a safe and accessible place, such as a fireproof box that is well hidden in your home. When destroying records, it’s best to use a shredder that can slice credit cards and CDs and has confetti-cut capabilities, such as the Fellowes PS-77Cs. Confetti-cut shredders ensure that private information is reduced to small, unidentifiable pieces, making it nearly impossible for a would-be identity thief to piece the information back together.

As shredders become a necessary household product, it’s important to choose a shredder that not only protects your family’s identity, but also its safety. The Fellowes PS-77Cs alleviates shredder safety concerns with its SafeSense technology, which shuts down the shredder when it senses that hands are too close to the paper opening.

Additionally, a few more protective measures against identity theft should be taken during tax season. If you’re filing your tax returns over the Internet, make sure your computer has updated anti-virus, anti-spyware and firewall software. It is also imperative to shred all paperwork used to calculate taxes such as receipts, bank records and various forms. Finally, pay particular attention to W-2 or 1099 forms because they contain your Social Security number, which is a would-be thief’s dream. A missing form may leave you vulnerable to the crime.

For additional identity theft prevention tips and information on how long to keep financial records, visit www.IDconfidence.org or check with your tax professional.

Defend Your Data, Protect Your Identity

Here's some advice courtesy of ARA Content on how to protect your identity:

The Information Age has produced extensive benefits for society. We can now shop online for everything from groceries to insurance policies. Students can instantly access a wealth of information that used to take weeks to find in the library, and banking is easier than ever. Unfortunately, criminals continue to find new ways to leverage technology, such as hacking into online databases and phishing in an effort to commit identity theft.

Chances are good that either you or someone you know has fallen victim to what is now the fastest growing crime in America. The Javelin 2006 Identity Fraud Survey Report estimates that 28.3 million, or around 13 percent of adults in the U.S., have been targeted by identity thieves in the last three years.

The National Crime Prevention Council deems the problem so significant that the focus of its Crime Prevention Month this October is “Crime Prevention in the Information Age.” Its Web site www.ncpc.org offers resources addressing identity theft and how to prevent it. You can also find useful educational materials at the Federal Trade Commission Web site, www.ftc.gov, and Equifax’s site at www.equifax.com.

One of the most important steps you can take to prevent identity theft is to protect the valuable data that criminals seek. Here are some suggestions from the resources mentioned above:

• Do not give out personal information over the phone, through the mail, or over the Internet unless you have initiated the contact. Identity thieves will pose as bank representatives, Internet service providers, and even government officials to get you to reveal identifying information.

• Guard your Social Security number. Ask to use other types of identifiers when possible, and don't carry your SSN card. Be sure to keep it in a secure place. Do not put your Social Security number on your checks.

• Minimize the identification information and the number of cards you carry. Take only what you will need.

• Safeguard personal information in your home, especially if you are having service work done in your home, employ outside help, or have a roommate.

• Protect your mail. Deposit outgoing mail in post office collection boxes or at your local post office. Promptly remove mail from your mailbox after it's delivered. If you plan to go away, contact the U.S. Postal Service and request a vacation hold.

• Shred all documents you are discarding, including pre-approved credit applications received in your name, insurance forms, bank checks and statements, and other financial information.

You can also take advantage of some high-tech ways to fight identity theft. Consider monitoring your credit file for potentially fraudulent activity by signing up for one of Equifax’s Credit Watch programs. Take steps to detect identity theft early – which helps minimize its impact – for only $4.95 a month to $12.95 a month depending on the features you select. To learn more about the tools Equifax offers to help protect people from identity theft, log on to www.equifax.com.

Respond Quickly When Your Personal Data is Exposed

Here's some advice courtesy of ARA Content on what to do when your personal data is exposed and potentially stolen:

It seems like there’s a new headline every day about another stolen laptop, a hacker attack or a lost data tape. And the impact of these incidents is widespread. One organization estimates that over 91 million data records of U.S. residents have been exposed due to security breaches since February 2005.

You may have received a notification letter, in which an organization alerts you to the fact that your personal information has been exposed. After reading the letter, you may still have some questions about what it means for you and what steps you should take.

Identity theft is the most significant risk you face following a data breach, and the severity of the risk is determined by how the data is stored and what kind of data it is. When stolen data is encrypted – or stored in a scrambled fashion that requires a “key” for someone to unscramble – it is much more difficult for the criminal to access. Identity thieves can use your Social Security number, credit card numbers and bank account numbers to make purchases or to open new credit accounts. Your name, address and date of birth are also valuable pieces of information to criminals.

The safest course of action is to take precautions if you suspect that your personal data is likely to be misused. Studies have shown that acting quickly can minimize the financial impact and time to recover from identity theft. Place a fraud alert on your credit file before the criminal has a chance to apply for credit in your name. It can save you a lot of hassle down the road.

A temporary fraud alert, placed on your credit file for 90 days, lets credit grantors know that you may have been a victim of fraud and that they should take extra steps to verify your identity before extending credit in your name. To place a fraud alert on your credit file, contact one of the three national credit reporting companies:

• Equifax: (800) 525-6285
• Experian: (888) 397-3742
• TransUnion: (800) 680-7289

You will need to provide personal information for authentication purposes. The company you contact will notify the other two credit reporting companies, who will add a fraud alert to their files. Your confirmation will include instructions for requesting a copy of your credit report.

Often organizations provide assistance to their customers or employees who have been impacted by a data breach. In fact, many companies have offered their customers and employees free credit monitoring, which alerts them to key changes in their credit file. For example, the addition of a new credit account or a significant increase in the balance on an existing card might signal that an identity thief has struck. The sooner you contact creditors to alert them to any fraudulent activity, the easier it is to resolve.

When a company offers you free credit monitoring after a data breach, you will be given a promotional code and directions for online enrollment. You will need to provide identification information, including your Social Security number, for authentication purposes. If the free monitoring is provided through Equifax, you will not be asked to enter a credit card number to enroll for the free offer.

If your data has been improperly accessed but you have not been offered free credit monitoring, consider purchasing Equifax Credit Watch Gold with 3-in-1 Monitoring to protect yourself. It provides comprehensive credit file monitoring and automated alerts of key changes to your credit files at all three national credit reporting companies.

Don’t Let Identity Thieves Tarnish Your Golden Years

Here are some good thoughts on protecting yourself from identity theft courtesy of ARA Content:

The image of retirement and retirees has changed a lot during recent years. Today’s retirees are taking advantage of being free of day-to-day work responsibilities and enjoying the freedom to pursue their interests via travel, revisiting long-forgotten hobbies or even going back to school.

Retirees have earned the time to fulfill their dreams by working hard and planning wisely for their financial future. That is why it is so important to carefully manage your finances during retirement as well.

Protect Your Credit

When you retire, your lifestyle may change enough to warrant a big transformation such as renovating your house, buying a vacation home, RV or boat, or even downsizing to take advantage of the lower maintenance cost of a condo or townhome.

Any of these options likely would involve a loan to help pay for the project. Before you apply for that loan, check your credit report and your credit score so you’ll know where you will stand with lenders. “The better your credit score, the better the interest rate you can expect to receive from lenders,” notes Maxine Sweet, vice president of public education for Experian, a global information solutions company.

Web sites like www.experian.com give you quick and easy access to your credit report and credit score. “Even if you have an unblemished payment record with your credit card companies, it pays to check your credit report for inaccuracies that could affect your standing,” says Sweet.

Travel Tips

If your retirement plans lean more toward seeing the world than remodeling your home, you need to be a savvy traveler. Identity thieves prey on travelers, finding personal information in mail left uncollected while you’re gone, by hijacking PIN numbers or by old fashioned methods such as stealing your wallet.

In order to enjoy your travels without worrying about these matters, follow these tips.

At home:

• If you are receiving pension or social security checks, take advantage of direct deposit so checks won’t be waiting in the mail.

• If you have a trusted neighbor, friend or family member, ask them to collect your mail while you’re gone. Otherwise, have the post office suspend delivery while you’re away. “Your mail can contain information that could help identity thieves victimize you, such as your Social Security number, name, address and account numbers,” says Sweet.

• When you return from your travels, check your credit report for any unusual activity. To make checking your credit report even easier, sign up for a credit monitoring product to help protect you while at home or away. Knowing that your credit report is being monitored daily and that you will be alerted if key changes are detected gives extra peace of mind.

On the road:

• Carry only the one or two credit cards you use regularly. Keep the others either at home in a secure place, or even better, in a safety deposit box at your bank.

• Protect your PIN number when you use your bank card or credit card at ATM machines or store registers.

• Use credit or debit cards instead of cash whenever possible so that you aren’t carrying a large amount of cash with you when you travel. Remember to take all of your receipts when paying by credit card so your account information doesn’t get into the wrong hands.

These common-sense precautions will help you protect your finances so you can relax and enjoy your retirement.

For more information on learning about your credit, visit www.experian.com 

Six Ways to Avoid Identity Theft

Here's a list of six ways to avoid identity theft from financial expert David Bach:

1. Keep your private information private.

2. Get a copy of your credit reports.

3. Find out if your state has a credit freeze law.

4. Check your bank statements weekly.

5. Be computer savvy.

6. Be aware of "deleted" data.

My thoughts on each of these:

1. I guard my private information like it's my life at stake (it is, after all.) I recently had a company ask for a copy of my driver's license for no reasonable reason (at least not one they could give me.) I told them I wasn't giving that out and they said they didn't need it after all.

2. I do this at least once a year -- though I should do it more often.

3. Mine does. I recently had some information "lost" by a company and had a 90-day freeze put on my reports as a precaution. Yes, you can do all you can do and then some stupid company mishandles your information.

4. I reconcile my statements monthly, but also look online regularly to make sure everything's ok.

5. It still amazes me how easily people fall for some of the traps on the web. And it amazes me how sophisticated the crooks are getting.

6. I'm going to face this problem later this year as we're looking to give away an old computer. I want to make 100% sure there's no data left on it. Can anyone say "format c:?" ;-)

Finally, the piece ends with this bit of good advice:

Don't waste a minute once you've discovered suspicious activity -- go directly to the website of the Federal Trade Commission to file a complaint and access their comprehensive guide on the steps you'll need to follow to resolve the situation.

The Best Way to Avoid ID Theft

Here's the next item I wanted to cover from Kiplinger's "The Best List". Today, we're highlighting the best way to avoid ID theft:

The Best Way to Avoid ID Theft: Fellowes P-57Cs Shredder

The most popular shredders cut paper into thin strips that a determined thief could reassemble. Your identity will be safer if you choose a "cross cut" shredder, which turns paper into unreadable confetti. Our top pick is the Fellowes P-57Cs, which showed its chops by dicing credit cards and stapled bills without jamming. We also liked the easy-empty wastebasket. And the price is right -- $60 starting this fall at OfficeMax and other retailers.

I shred religiously -- even stuff that probably doesn't need to be shredded (it doesn't hurt to be safe, does it?) To me, it's the first (and a great) defense against ID theft that's simple and not time-consuming. I think protecting my ID is certainly worth the time and effort.

For more on the topic of identity theft, see these posts:

• What to Do If Your Identity is Stolen

• How Long Does It Take to Clear Your Name if Your ID is Stolen?

• Identity Theft Statistics, Part 1, How Much Money Does the Typical Victim of Identity Theft Lose?

• 10 Ways to Stop Identity Theft Cold

The Best Place to Report ID Theft

Here's the next item I wanted to cover from Kiplinger's "The Best List". Today, we're highlighting the best place to report ID theft:

The Best Place to Report ID Theft: Federal Trade Commission

The FTC's ID-theft Web site offers step-by-step instructions for reporting identity theft. To keep an eye out for suspicious activity, order a free copy of your credit report from each of the three credit bureaus every year at AnnualCreditReport.com. For updates on security breaches, see the Web sites of the Privacy Rights Clearinghouse and the Identity Theft Resource Center.

I'll save you my usual rant on ID theft and how the government is ignoring this crime -- at least for this post. ;-)

But I would like to second their suggestion to check your credit report regularly to make sure you haven't been taken advantage of. I just did this last month myself (and do so at least once a year -- though I like to do it more often.) With a free credit report from the three credit reporting agencies each year, you can (and should) space them out every four months and keep a revolving check on your credit report status.

What to Do If Your Identity is Stolen

Here are two simple suggestions from Kiplinger's on what to do if your identity is stolen:

• If your personal information has been compromised because of a security breach, check your credit cards for suspicious charges.

• If your name and Social Security number are stolen, contact the three credit bureaus and put a fraud alert on your account, which requires lenders to verify your identification. Call the Federal Trade Commission's ID Theft Hotline (877-438-4338) and visit the agency's identity-theft page for instructions on reporting ID theft.

After writing on this topic for some time (including the useful posts How Long Does It Take to Clear Your Name if Your ID is Stolen? and Identity Theft Not that Big of a Deal (And What to Do If You're a Victim)), it seems like one key to how painful the loss will be for you -- at least one key that you can control -- is the speed at which you contact the appropriate organizations and tell them about the theft. The faster, the better. So once you suspect your identity has been stolen or mis-used, don't delay in acting. The sooner you stop it in its tracks, the sooner (most likely) the thief will move on to an easier mark.

How Long Does It Take to Clear Your Name if Your ID is Stolen?

In Identity Theft Not that Big of a Deal (And What to Do If You're a Victim), I highlighted a couple of comments where the posters said it took them only a few hours to clear their names after their identities being stolen. In response, I said:

I guess the learning here is that identity theft doesn't necessarily sentence you to an extended trip to financial purgatory.

Here's how a couple people responded to this thought:

Both my wife and I had out IDs stolen this year (we bought a house in Feb, and figure somewhere along the line our data was stolen/sold). Let me give a plug to Citibank later on, the first card was opened in my name at Sears (whose credit is run by Citi) and the thieves spent $2400. Citi thought that this was unusual, so they red flagged it, and found out that the phone number the thieves put down didn’t match the one on my credit report. They called me to ask if I had opened an account in Phoenix that morning. Living in Oregon, I told them I hadn’t. They closed the account and advised me to call the credit agencies, which I did, and put the fraud alert on my account. Good thing too, I stopped these bastards from opening 3 more cards in my name. This was on a Saturday.

On Sunday, I thought it might be a good idea to put a fraud alert on my wife’s credit report, just in case. Turns out that was a smart thing to do, the thieves opened 2 accounts in my wife’s name (spending close to $5000), but we stopped them from opening 2 more accounts before they gave up using our information.

Now my accolades for Citi, They did a great job in contacting me, on a Saturday nonetheless. But that’s not all, I have had a CitiCard sine 1994, and they have an ID theft department open to any Citibank customer (I never noticed the commercials until after this event, you know the ones with a guy working out, but he’s got the voice of a valley girl). Let me tell you how great this service was. The lady who helped me got all my information about what had happened, called three-way to TransUnion and did all the talking while I listened to her clean up my credit report. While they only work with TU, it was helpful to listen in and learn the things I would say to the other 2 credit agencies. I just can’t say enough good things about Citibank.

All in all, it took a good 15-20 hours to clean up our ID theft, which wasn’t really that bad since we were able to stop the thieves the same day. I would have hated to have received the cards and statements later on and try to fix it from there. Final word: get a CitiCard - no annual fee, good rates, decent rewards programs, and Citi Identity Theft Solutions.

So, another vote for "not that long" to clean up a problem. Seems like one must-do is to contact your banks and the credit agencies quickly. Also a good plug for Citibank credit cards. Sounds like they really do work.

But not so fast. Here's what the next commenter had to say:

Your situation was pretty simple, but the FTC says it takes on average 600 hours to get your life back to normal once your ID has been stolen. Your situation is more credit card fraud than ID Theft.

Ok, maybe that's the point we need to highlight -- the difference between some credit cards being stolen and someone's total ID. Maybe the former doesn't have to be that long, but the latter can be a real mess. Does this sound like a viable explanation?

For more on identity security, see these posts:

• Protect Against Net Threats

• Assessing Bank Safety

• Identity Theft is Worse than You Think It Is

• Don't Get Hooked by a Crook

Identity Theft Not that Big of a Deal (And What to Do If You're a Victim)

After writing several posts on identity theft, I penned Identity Theft Statistics, Part 1, How Much Money Does the Typical Victim of Identity Theft Lose? to discuss how much the typical victim loses when identity theft happens to him/her. On this post, I received two surprising comments. I had always thought that one of the major hassles of your identity being stolen was that it took hours and hours (if not days and even weeks) to correct. After all, we've all heard the horror stories, right? Well, these two commenters paint a different picture. Here's the first:

I was the victim of identity theft last year. The balance charged in my name was around $600, and it took about 3 hours to get everything straightened out with all of my creditors and the Big Three reporting agencies.

Of those three hours, I don't think a single second was spent during "worthwhile" time. It was all early evening hours when I would have just been watching Jeopardy. I certainly didn't have to adjust my schedule or work or miss a beat there. Everyone I needed to talk to was available 24/7 or close to it.

I think identity theft is so common these days that the powers that be have really streamlined the process for correcting it.

Maybe it is so common that companies have handling it down to a science, but this was a real surprise to me.

The process was even easier for the next commenter:

I was a victim of identity theft a few years ago. Whoever stole my identity wasn't able to charge anything. I spent about an hour contacting the three credit bureaus. It was a hassle but not that big of a deal.

Ok, color me very surprised.

I guess the learning here is that identity theft doesn't necessarily sentence you to an extended trip to financial purgatory. And as far as what to do if you're a victim, it appears the best bet is to act fast and contact the credit bureaus and your credit companies. If that happens, the process can be not that bad at all.

How about the rest of you -- anyone else out there who's had his/her identity stolen. Was it easy or hard to get corrected? Any tips for the rest of us?

Identity Theft Statistics, Part 5, What Age Group is Most Susceptible to Identity Theft?

Here's part 5 of an interesting article from Money magazine that lists several identity theft statistics -- many of which I found surprising. It's done in a question and answer format, so here is today's question:

What age group is most susceptible to identity theft?

The answer:

25 to 34. Contrary to popular belief, seniors had the lowest rate of ID theft, while 25- to 34-year-olds were most at risk. Why? The lifestyle of many Gen X-ers--going out often and trading personal information on MySpace.com and other social networking sites--creates more opportunity for identity thieves.

My thoughts:

1. Again, I'm very surprised at this finding (I guess that's the purpose of this piece, huh?). I would have guessed seniors all the way. But now that they explain it, it does make sense.

2. Add ID theft to the list of financial topics you teach your kids about. Then, when they are young adults, they'll be more guarded with their data and less likely to get into trouble.

Click here to read part 1 in this series.

Identity Theft Statistics, Part 4, Is Identity Theft on the Internet Growing?

Here's part 4 of an interesting article from Money magazine that lists several identity theft statistics -- many of which I found surprising. It's done in a question and answer format, so here is today's question:

Identity theft on the Internet is growing.

The answer:

False. Online fraud made up 9% of ID theft cases in which the source was known last year, down from 11.6% in 2004. People who bank online typically uncover fraud in 22 days vs. more than a month for paper accounts.

My thoughts:

1. I'm not sure I buy this information. Online may be down as a percentage, but the total number of cases could still be up (may the other forms of ID theft have grown at faster rates). I can't tell the true story from these stats though, there's not enough here.

2. Either way, I am surprised that Online ID theft isn't skyrocketing. With all the pfishing going on, I thought it would have been much, much higher.

3. Looks like there's another advantage of banking online -- faster detection of ID theft.

Click here to read part 5 in this series.

Identity Theft Statistics, Part 3, What Type of Identity Theft is the Most Difficult to Detect?

Here's part 3 of an interesting article from Money magazine that lists several identity theft statistics -- many of which I found surprising. It's done in a question and answer format, so here is today's question:

What type of identity theft is the most difficult to detect?

The answer:

Fraudulent accounts opened in your name. It takes an average of 152 days for victims to find out that a new account has been opened in their name. That's because only a credit report or notice from the lender or a collection agency will alert you to the new account's existence.

My thoughts:

1. I would have thought "charges to a credit card you already have" would have been the "winner" here.

2. This is why I have checking my credit reports as part of my New Years resolutions.

Click here to read part 4 of this series.

Identity Theft Statistics, Part 2, What is the Most Common Way Your Identity is Stolen?

Here's part 2 of an interesting article from Money magazine that lists several identity theft statistics -- many of which I found surprising. It's done in a question and answer format, so here is today's question:

What is the most common way your identity is stolen?

The answer:

Among victims who could pinpoint the source of ID theft, 30% blamed a lost or stolen wallet, checkbook or credit card. Dumpster diving, in which your personal info is lifted from documents you throw out, made up less than 1% of cases, down from 2.6% in 2004, as some 70% of people now shred paper files (keep shredding!). However, in 8% of cases, info is stolen out of mailboxes before you have a chance to shred. Since credit-card offers make it easy to open an account in your name, call 888-5-OPTOUT to stop unsolicited card applications.

My thoughts:

1. So, if 30% can be traced to a lost or stolen wallet, checkbook or credit card, 8% to stolen mail, and 1% to dumpster diving, what happens in the other 61% of cases? Am I missing something here?

2. I shred religiously, though it does create another problem -- my kids want to scatter the confetti all