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Protect Yourself From Identity Theft
By JLP | March 6, 2007
My friend Michael Domingo and his partner John Hetzel run Cadence Financial Advisors, LLC in Dallas, TX. They sent me a copy of their February Newsletter (PDF), which contained the following advice on protecting yourself from identity theft. It’s some good advice!
Protect Yourself: Identity Theft
We have all heard horror stories about identity theft. Here are some critical steps you can take to limit the chances of identity theft and to limit the damage in case this happens to you or someone you know:
1. The next time you order checks have only your initials (instead of first name) and last name put on them. If someone takes your checkbook, they will not know if you sign your checks with just your initials or your first name, but your bank will know how you sign your checks.
2. Do not sign the back of your credit cards. Instead, put “PHOTO ID REQUIRED”. (Note - You may have to use another form of payment for the post office and other places that may require a signature on the credit card)
3. When you are writing checks to pay on your credit card accounts, DO NOT put the complete account number on the “For” line. Instead, just put the last four digits. The credit card company knows the rest of the number, and anyone who might be handling your check as it passes through all the check processing channels won’t have access to it. When writing checks at a store, do not allow them to write your credit card number on the check.
4. Put your work phone number on your checks instead of your home phone. If possible, use your work address.
5. Monitor your credit for inaccuracies. As of September 1, 2005, all US residents are entitled to receive one free credit report every 12 months from each of the three nationwide consumer credit reporting agencies: Equifax, Experian and TransUnion. You can request your report at AnnualCreditReport.com.
6. Never have your social security number printed on your checks. You can add it if it is necessary (like writing a check to the IRS.) But if you have it printed, anyone can get it.
7. We have been told we should cancel our credit cards immediately if they are lost or stolen. But the key is having the toll free numbers and your card numbers handy so you know whom to call:
Place the contents of your wallet on a photocopy machine. Do both sides of each license, credit card, etc. You will know what you had in your wallet and all of the account numbers and phone numbers to call and cancel. You may also want to carry a photocopy of your passport when you travel either here or abroad. Remember to update this regularly, as the contents of your wallet change. And most importantly, store these photocopies in a secure location.
8. File a police report immediately in the jurisdiction where your credit cards, etc., were stolen. This proves to credit providers you were diligent, and this is a first step toward an investigation (if there ever is one).
9. Contact the Federal Trade Commission (FTC) regarding a stolen social security number. Additionally, OnGuard Online, a site created by the FTC, offers additional information on preventing identity theft.
10. This is perhaps the most important step of all: Call the 3 national credit reporting organizations immediately to place a fraud alert on your name and Social Security number. The alert means any company that checks your credit knows your information was stolen, and they have to contact you by phone to authorize new credit. The
phone numbers are below - write them on the photocopy of your card numbers from number 7 above.Here are the numbers you always need to contact if your wallet, etc., has been stolen:
1.) Equifax: 1-800-525-6285
2.) Experian (formerly TRW): 1-888-397-3742
3.) Trans Union: 1-800-680-7289
4.) Social Security Administration (fraud line): 1-800- 269-0271In summary, if you suspect that your personal information has been wrongfully used, immediately:
- Review your credit reports
- Place a fraud alert on your accounts
- Close any accounts opened or used fraudulently
- File a report with the police
- File a complaint with the Federal Trade Commission
Topics: Basics, Financial Planning |
March 6th, 2007 at 11:43 am
I would like to add a few comments to this.
#1: As useful as this is, the bank probably will never look at your signature. When I had changed my name I screwed up my signature countless times, some times signing the wrong name, some times mixing up the names. Once I wrote a $1,000 check with the WRONG name. No one ever called me on it.
#2: Do NOT put “PHOTO ID REQUIRED” on your Credit Card for a number of reasons. The biggest of course is that unless your name is “PHOTO ID REQUIRED” it’s an invalid signature, it won’t match between the slip and the card. Also, it’s not your name. A properly trained clerk should reject any credit card where the signature doesn’t match the name. Second, if someone lifts your wallet they already have an ID and can easy slap there own picture onto it.
All “PHOTO ID REQUIRED” does is create a false sense of security. It’s right up there with buying an alarm system but never turning it on.
Mind you, this is both in my experience and my opinion. You mileage may very.
March 6th, 2007 at 3:08 pm
My wife has an American Express card that is also her Costco membership card, so her picture is on the back of the card. Too bad more credit cards can’t do something like that.
March 6th, 2007 at 4:01 pm
I travel extensively. I also have “ASK FO ID” written on my credit cards. I find that overseas, clerks are more likely to look at the back of the card and ask for ID. I’ve also had several stores that will not accept the card with “ASK FOR ID” on it. They refuse and will only take a card with a signature on it.
Very, very few clerks in the US have asked for my ID.
With the advent of signature-less transactions under $25, you’re going to see even fewer clerks that are going to check the back.
March 6th, 2007 at 7:01 pm
Not only do very few clerks in the US ask for ID when using a credit card, more often then not they wont check the back of the card at all.
I’ve written random things on a countless number of slips and I’ve never had a problem.
March 6th, 2007 at 7:13 pm
A good way to keep your credit card info secure while shopping online is to use the Bill Me Later option instead. I work for Bill Me Later and strongly recommend it to anyone concerned with the safety of online shopping. With Bill Me Later, you don’t need to provide any credit card information to complete your transaction. Just click on “Bill Me Later”, answer two simple questions for a quick credit check, and approval is within seconds. Then you get a bill in the mail a few weeks later. It really is a great way to shop safely online. Go to http://www.billmelater.com for more info and for a list of merchants in the network.
March 6th, 2007 at 8:43 pm
I spoke with a Visa rep some years ago and she advised me that stores are not required to accept a card if it has “Ask For ID” or similar written on the back of it, and that if it IS accepted, Visa can fight any disputes because there are no matching signatures.
March 6th, 2007 at 10:20 pm
I once looked it up, and the legal definition of “signature” was a(n) identifying mark. So if you owned a company, you could sign all of your employees checks with just a thumbprint as it is your identifying mark. Asking to see a photo ID which more than likely HAS a signature on it makes sense, and since YOU wrote “See ID” or “Check ID” it’s identifying to you as it’s YOUR handwriting. As an ex-cashier, I have never given anyone a problem nor had a problem due to this. Some stores don’t even require a signature if the order is under a certain amount.
March 7th, 2007 at 7:48 am
“As useful as this is, the bank probably will never look at your signature”
Actually, one time when my husband wrote a check to me with the “Memo” and signature locations reversed (his signature was on the check, but on the left instead of the right), my credit union called me instead of depositing it. They also make scans of all my checks online so that I can view a check as soon as it posts to my account. Perhaps credit unions are just more watchful than banks.
March 7th, 2007 at 4:38 pm
There are alot of steps that people should take to help prevent their identity from being stolen but that still wont fully protect you. Since you give your Social Security number to alot of places they can sometimes be stolen. For example recently in Austin, Seton Hospital had a laptop stolen with almost 8,000 peoples personal information.
http://www.statesman.com/search/content/news/stories/local/02/25/25seton.html
Ive noticed alot of companies in the news for losing their employees or customers personal information. Some better solutions to all of this are credit monitoring which you can get from your credit card company or even insurance which alot of insurance companies are now offering. The company mentioned in the article about Seton is http://www.csidentity.com They seem to offer both of those and then some.
Change personal habits and look into some sort of other protection. Identity theft is becoming a big business and victims are on the rise.
March 11th, 2007 at 6:44 pm
[...] AllFinancialMatters helps you protect yourself from identity theft. [...]
March 16th, 2007 at 11:18 pm
This is very interesting I like this information. I think that your blog should be more wide spread.
-Chad
Check out my blog
http://aintnobull.blogspot.com/
May 8th, 2007 at 2:55 pm
Consider placing a security freeze on your consumer credit reporting files to make it harder for thieves and scammers to use your information to open new accounts, like new credit cards in your name.
A security freeze is a powerful identity theft prevention tool for individuals. It enables consumers to take a step that will stop the opening of false new accounts which require a credit check unless the consumer has expressly authorized a potential creditor to check the consumer’s credit report or credit score. Without a credit report or credit score a business usually will not open a new account. As of today, 34 states and the District of Columbia have enacted security freeze laws. Check Consumer Union’s list to see if your state is one of them and on how to place a security freeze.
For more additional ways to make it hard for a thief to take your identity, check out Consumers Union’s “Identity Theft: Tips for Consumers” for a list of actions to reduce your chances of becoming a future victim of ID theft.
Amy
http://www.financialprivacynow.org
A Project of Consumers Union
May 8th, 2007 at 2:59 pm
Sorry. The URL links went missing in the previous post…
Consumer Union’s list of states that have enacted security freeze laws:
http://www.consumersunion.org/campaigns/financialprivacynow/2006/09/freeze_identity_thieves_out_of_1.html
Identity Theft: Tips for Consumers
http://www.consumersunion.org/campaigns/financialprivacynow/2006/11/identity_theft_tips_for_consum.html