By Don White

Ten million people have identity theft each year. It’s a $55 billion problem. I wrote the following to help you avoid identity theft.

Maybe you’ve heard the sad story of Michael Dolan. I mean sad for his victims, not for him. He allegedly masterminded a phishing scan that targeted America Online (AOL) subscribers. For four years Dolan and a group of hackers sent millions of email notices that appeared to come from legitimate sources, such as AOL’s billing department, to trick members into providing their billing information.

He stole $400,000 from hundreds of unsuspecting AOL members before he was caught and sentenced to seven years in prison.

Were you one of those AOL members who had your identity stolen and/or were robbed of assets and savings?

Internet theft rings are operating even as I write. For some time I received a bogus email from someone purporting to be Google and they wanted my intimate information again. I disregarded those emails, of course. I hope you do, also.

If you have a small business and your customers pay using PayPal you may know about this scam. Recipients get a stream of emails supposedly from PayPal asking for more or new information. Failure to respond “will result in your PayPal account being closed.” Again, ignore those because they’re probably from scammers

If you’re using a debit card, change to a credit card. Check fraud is the beginning of identity fraud. Once they have your credit card number they can buy almost anything. But it’s easier for them to empty your debit card than to access a credit card, and credit cards have more built-in protections.

My wife and I were going to Dallas for a meeting when our card was illegally used. The card company called and said someone in London had bought a car for $3800 on our card. We have never been there. We immediately cancelled the card. A new one would be sent to our hotel in Dallas. But, unfortunately, at that time we had only one card so that once in Dallas we had to pay cash for everything until a card could be FedExed to us.

• Never write your social security number on a check. Some merchants now ask for that, but simply say no and go somewhere else for your purchases.
• Don’t leave anything behind at the checkout counter.
• Don’t throw away blank checks or checks that you’ve made mistakes on. Shred them before tossing them.
• Write checks only to those you know and trust.
• Get a locking mailbox. If you don’t have one, try to remove mail from your mailbox right after the postman comes. If you live in a bad area, camp on your box until he comes. Never leave outgoing mail in your box for the postman to pickup – especially if it has credit card or check information, names of occupants or anything that could make it easy for someone to steal your assets and your identity.
• Don’t keep a higher account balance than you need. Make a habit of reviewing your balance and moving any amounts higher than you need for daily life to a less-accessible savings account, CD, or brokerage account.

After a home burglary, look for your checkbook. Count the check number. Thieves may steal only a single check and use it to request more.

The above are things that usually happen before someone takes over your identity. It’s natural when you learn of your own identity theft for you, the victim, to wonder when and how it happened.

“Was it when I left my wallet on the counter of the rental car office? Did the waitress swipe my card number when she took so long getting it back to me? Should I have refused to give my credit card number at the dental office?

Those are things only you can judge. Keep your wallet in your purse or pocket at all times. Get one of those metal clip board wallets which hang tight to cash and a credit card. Don’t pull out your wallet when among strangers.

Here are some tips that can substantially reduce your chances of becoming an identity theft victim. They are also necessary as soon as you learn someone has stolen your identity.

1. Locate your existing files. That means your records from your banks, credit card companies, and any other account holders. These will help you contact people
   
2. Keep good records. You’ll need a notebook or pad of paper. Keep detailed notes of all conversations, including names, dates, and phone numbers. You will also want to log the time and money you spend. If you have a homeowner policy, it is possible that it includes coverage for identity theft. If so, the carrier will reimburse all or a portion of the value of the time and money spent recovering your identity. Good records are indispensible. 
3. Start a new file. Label it identity theft with month and year. Keep copies of all correspondence and relevant records, such as police reports, fraud forms, fraudulent credit applications, and bills.
4. Keep track of your time and expenses. If and when the criminal is caught, the Court may award damages to you or restitution as a condition of probation or a lighter sentence.

   5.  Create a running list about the facts of your case. List activity, people, times, dates         and records you’d like to receive and the answers you get. 

        Don't rely on other’s records because they may not be available when you need them. 

   6.  Follow up in writing with everyone you speak to on the phone.  

It may take several years to recover your good credit and name destroyed by identity thieves.

The first thing to do when you find your identity has been breached is to notify the police. File a formal written report.

Also, notify your employer. If the company automatically deposits your paycheck, mix it up for the thief. Change the recipient bank. Make sure this is a new bank, one that anyone out there wouldn’t have access to.

For a while, you may want to revert back to receiving a monthly paper check that only you can cash and use.

Here are some websites you should visit about identity theft:

• Federal Trade Commission, Fighting Back Against Identity Theft

http://www.ftc.gov/bcp/edu/microsites/idtheft/index.html

• National Check Fraud Center. Get information on check fraud.

www.ckfraud.org

• TeleCheck. Place a fraud alert on your file

www.TeleCheck.com

______________________________________

Consumer reporting agencies. You may want to see what’s in your file.

• Choice Trust – CLUE This is the company insurance companies use to check credit and driving records.Phone 866-312-8076
  

• ISO – Insurance Services Office

800-627-3487

• Choice Point – employment records

866-312-8075

• Acxion – employment records

800-853-3228

• ChoicePoint Tenant – history of tenant records

877-448-5732

Other Hubs On Identity and Credit Theft

Protecting Yourself Against Identity Theft
by mcstir

Gardening Friends here is some help with your credit cards...
by gardener den

More information on Identity Theft. Part 2
by gardener den

How To Fix A Bad Credit Score
by Julie-Ann Amos

How can I protect my credit
by Kentent

•      PayPal Phishing Scam. Guard Against Identity Theft

            by The Industry Gian