Protect Yourself from Identity Theft
In 2005, according to the Federal Trade Commission (FTC), identity theft cost U.S. citizens nearly $300 million and over 255,000 Americans registered complaints. The Justice Department, however, believes identity theft is grossly underreported because victims can go about their daily lives without knowing their identity has been stolen. In a six-month period in 2004, The U.S. Justice Department’s Bureau of Statistics said that 3.6 million households had been victims of at least one type of identity theft.
Granted, statistics like these are generally too large for us to apply to our lives. So consider this, if you regularly access the Internet, or use e-mail, it is likely that you are being approached by criminals almost daily. Imagine the steps you would take to protect yourself from someone who tried to break into your home everyday.
For those that fell victim to identity theft in 2005, the average loss was over $1,000 according to the FTC. In extreme cases, however, the identity thief may completely take over the victim’s identity -- opening a bank account, getting multiple credit cards, buying a car, getting a home mortgage and even working, or committing crimes, under the victim’s name. In at least one case, an identity thief reportedly died using the victim’s name, and the victim had to get the death certificate corrected.
While the crime of identity theft may be impersonal, the effects can be lasting and very personal. People can spend considerable time and money correcting their credit record. Victims have reported losing job opportunities, loans for education, housing and cars - while others have been arrested for crimes they did not commit.
How do identity thieves operate?
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E-mail scams including viruses or ‘phishing’ tactics. Phishing e-mails try to trick the e-mail recipient into visiting a phony Web site to divulge personal data, like a trusted bank, credit card company or online service provider. The e-mails look legitimate, appear to come from the company in question, include company logos and try to get the reader to click a link to either correct an account problem or receive a special offer. Virus e-mails can appear to come from anyone, even people you know. In almost all instances, the message of the e-mail persuades you to open an attachment containing a virus. These malicious programs, when opened, will scan your computer for personal information and report it back to the identity thief.
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Network ‘worm’ programs are viruses that travel the Internet from one machine to another.
They travel between connected computers and attempt to scan your computer for personal information that can be reported back to the identity thief.
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Other thieves are ‘low-tech’ and can access your personal information by either stealing your wallet, mail, or rummaging through your garbage.
- Network ‘worm’ programs are viruses that travel identity thief.
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Finally, others abuse the access they have to personal information through their employer to steal credit card numbers, bank account numbers or credit reports.
Safeguards to minimize the threat.
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Question the validity of each e-mail you receive. Just because you recognize the sender, does not mean an attachment is safe to open. It is recommended that you first confirm with the sender that they intended for you to receive that attachment.
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Avoid ‘clicking a link’ within an e-mail, even if you know the sender, as this may actually lead you to a phishing site. Instead, manually type the link into your Web browser. Additionally, once you arrive at a Web page, make sure the site address displayed in your browser is correct.
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Invest in computer security software that protects you against viruses, spyware and spam. Many venders offer security packages for less than $100. Once installed, make sure you also keep the software current by downloading updates when prompted to do so.
Victims have reported losing job opportunities, loans for education, housing and cars - while others were even arrested for crimes they did not commit. In at least one case, an identity thief reportedly even died using the victim’s name, and the victim had to get the death certificate corrected.
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For better protection, upgrade your Web browser to Internet Explorer 7.0 that includes enhanced security features, or consider using either the Firefox or Opera browser to surf the Web. You can also add an anti-phishing plug in to your Web browser that will warn you before you visit a suspicious Web site.
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Examine the contents of your wallet or purse and don’t carry excess information about yourself. Safely store items such as your social security card, birth certificate, bankbook and other personal information that do not need to be with you.
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Invest in a home paper shredder to prevent dumpster divers from accessing your personal information.
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Utilize a locking mailbox or door mail slot. You should also report any missing mail immediately. Another tactic used by identity thieves is to request a change of address on your bills so you do not immediately notice erroneous charges.
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Evaluate your financial institution’s privacy policy to make sure it is properly protecting your information.
Knowing you have been a victim is also one of your best defenses against identity theft.
The sooner you become aware, the less time the criminal has to cause lasting damage. To do so, check your credit reports often. The three leading credit bureaus (Equifax, Experian and TransUnion) will provide you with one free credit report a year. Credit monitoring services, for a fee, will monitor your credit report regularly and alert you immediately to any suspicious transactions.
The FTC has published a booklet to help raise awareness of identity theft. A downloadable version of this booklet can be found at:
www.collegesavings.com/pdfs/ftc.pdf
College Savings Bank also encourages all of our customers to review our privacy policy to understand how we protect your personal information.
www.collegesavings.com/privacy.html