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Expert Tells How to Protect Yourself from Identity Theft

Writer: Linda Anderson, (979) 862-1460,lw-anderson@tamu.edu
Contact: Dr. Joyce Cavanagh, (979) 845-3850,jacavanagh@ag.tamu.edu

COLLEGE STATION – March 22, 2005 - The news is full of horror stories about identify theft, but few give specific steps on how to protect yourself. But a Texas Cooperative Extension expert can fill in that gap.

Dr. Joyce Cavanagh, an Extension family economics specialist, defines identity theft as "someone stealing your personal information to open new accounts in your name, accessing existing accounts or using your information to assume your identity.

"People hear of all these instances of security breaches in the news," Cavanagh said. "They need to be vigilant and keep check on their credit report on a regular basis."

According to recent research, she said, only about 2 percent of all credit reports generated are a result of consumers checking their own credit reports. And that's not good.

"It's very important to check your credit report at least once a year," Cavanagh said.

That's true even for the most careful of consumers.

"A lot of identify theft happens because of an existing relationship with some business or people who have access to your information," she warned.

Identity theft recently made headlines again, thanks to ChoicePoint. This data collection company collects consumers' personal information and sells it to such organizations as insurance companies and government agencies.

According to the company's Web site ( http://www.choicepoint.com/ ), in October 2004 the company "detected possible signs of fraudulent activities in several small business accounts based in the Los Angeles area. We alerted the Los Angeles County Sheriff's Department and they subsequently confirmed our suspicions and began an investigation."

That investigation revealed a consumer's nightmare. By posing as legitimate businesses, scammers were able to acquire personal information – including telephone numbers, addresses, driver's license numbers and Social Security numbers – of about 145,000 individuals.

Now thousands of consumers now face potential financial problems including identity theft.

ChoicePoint offers help and information to correct its own error, but goes on: "Financial fraud and identify theft are pervasive problems in the economy. While ChoicePoint offers a wide range of tools to help detect fraud, no one – including us – is immune from it."

Unfortunately, that is true, Cavanagh agreed. However, she said, individuals can take steps to lessen their chances of being caught by identify thieves.

- Step No. 1: Check your credit report regularly.

"It's important to monitor all three credit reports (from three credit bureaus) because not all creditors report to all three," Cavanagh said.

The three credit bureaus can be contacted by toll-free telephone or on the Web:

Experian at (888) 397-3742 and www.experian.com

Equifax at (800) 685-1111 and www.equifax.com

TransUnion at (800) 888-4213 and www.transunion.com

Maintaining a regular check on personal credit reports is getting easier too, Cavanagh said. A new addition to the federal Fair and Accurate Credit Transaction Act allows consumers to get one free copy of their own credit reports each year from each of the three credit reporting agencies. In Texas, this law takes effect June 1.

Consumers can take advantage of this offer by visiting the Web at www.annualcreditreport.com on or after that date, she said, or call (877) 322-8228. Another option is to write to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

For an even closer watch on personal credit information, Cavanagh suggested not requesting all three credit reports at once.

"Every four months request a copy from a different credit bureau so that over the course of the year you have received one copy from each credit bureau," she said. "That way you can monitor a broader picture and if something happens, you will be more likely to catch it quicker than if you monitor (all three credit reports) once a year at the same time."

- Step No. 2: Opt out. Take your name off mailing lists, Cavanagh said.

To be taken off mailing lists for pre-screened credit cards call (888) 5OPTOUT (567-8688).

To be removed from telemarketing call lists in Texas, visit the Web at www.texasnocall.com or call (866) 896-6225. To be included on the federal do-not-call list, go to the Web at www.ftc.gov or call (888) 382-1222.

For no more contact by direct marketers, go to www.dmaconsumers.org

- Step No. 3: Never put your outgoing mail – especially mail containing checks – in your mailbox for the letter carrier to pick up, Cavanagh said. Scammers go through neighborhoods looking for red-flagged mailboxes and steal the mail. That gives them direct access not only to the resident's name and address, but also to his or her bank account number and other personal information.

Instead, put outgoing mail in secured postal collection boxes or take it directly to the post office.

- Step No. 4: Never give out personal information without a valid reason.

"If someone asks for your Social Security number, ask them why they need it," Cavanagh said. Applying for a job, credit or an investment account are all legitimate reasons to disclose a Social Security number, she added.

"If it doesn't seem like a legitimate reason, don't give them the number."

- Step 5: Don't fall for "phishing" expeditions. This involves scammers sending what looks like e-mails from financial institutions or on-line services asking for updates of personal information. These are scams, Cavanagh said. Don't be taken in.

Banks, credit card companies and on-line services such as PayPal will never send e-mails asking for updates of personal information. To verify that these e-mails are not what they seem, Cavanagh advised consumers to call their bank with the telephone number listed on their bank statement, and discuss their concerns with a banker.

- Step No. 6: Take this opportunity to start very young children off on a lifetime of consumer identity protection.

"If you have a new child," Cavanagh said, "you have the opportunity to really guard their Social Security number by not giving it out to just anyone who asks. Start doing your kids a favor by really safeguarding their (personal) information."

- Step No. 7: Use a paper shredder.

"Get a paper shredder and shred any paper with any personal information before discarding it in the trash," Cavanagh said. "Crosscut shredders are best since they shred in smaller pieces, making it difficult to reconstruct a document. Many shredders can now shred credit cards and similar ID cards."

By following these steps consumers can safeguard their information as much as possible, Cavanagh said.

" It's our responsibility to guard our own information as best as we can."

For more information contact:

- Texas Attorney General at www.oag.state.tx.us or (800) 621-0508 (Consumer Protection Hotline);

- Federal Trade Commission at www.ftc.gov/idtheft ; and

- Identity Theft Resource Center at www.idtheftcenter.org .