I'm not one to be overly paranoid about such things, but as much info as we put out about our personal lives, it is important that we take basic precautions to protect ourselves from identity theft or to at least discover it quickly.
I don't know that full-time RVers are any more vulnerable than anyone else, but we do have others handling mail for us. Of course most of us have very little mail coming in as we transact most of our business via paperless online transactions. However, we also tend to have blogs and more information out on the net than others in our generation. :)
At any rate, this entry is to offer some suggestions for all of our readers.
The most common identity theft is when someone gains your bank account or credit card information. They may be able to withdraw funds or make charges on your already opened accounts. If caught quickly, you can usually recover any losses and rectify that situation.
The bigger problem is when someone steals your identity and opens new accounts using your personal information. That can cause nightmarish situations and ruin peoples' lives.
Preventing Identity Theft
Obviously, prevention of identity theft is what we'd all like to accomplish. Most prevention is common sense, but here are some tips from IDSafety.net. I've added my own comments below each tip.
Online is Safer Than Offline When Consumers Use Available Security Controls –
Consumers should install and regularly update anti-virus and anti-spyware software, and keep operating systems and browsers updated. Once online access is secure consumers should move financial transactions online to eliminate many of the most common avenues fraudsters use to obtain personal information and gain more control compared to traditional channels. Moving online includes turning off paper invoices, statements and checks, including paychecks, and replacing them with electronic versions. Avoid mailing checks to pay bills or deposit funds in your banking account. Instead, pay bills online and use remote deposit check imaging services.
Online Is Safer Than Offline - One of the big keys in that paragraph is to "regularly update anti-virus and anti spyware software ...". I'll go a step further. Make sure those softwares are set up to automatically scan your computers or that you set reminders to periodically run manual scans. The softwares do you no good if you don't use them.
Personally, we use AVG Free and Ad-Aware Free. I'm not a fan of Nortons or McAfee due to their cost, their excessive use of valuable memory, the conflicts they cause with other software, and their questionable effectiveness. Just my opinion. :)
The rest of that paragraph is pretty much about going paperless. Most of us mobile folks do that anyway to eliminate mail and heavy paper files. But there are lots of people that still like to see paper in their hands. Transacting business online is safer as long as you know who you are dealing with and you have initiated the transaction or inquiry with a trusted site.
Keep Personal Data Private – Do not provide sensitive financial information over the Internet or phone, including Social Security numbers, passwords, personal identification numbers (PINs) or account numbers, unless you initiated the interaction to a verified and trusted location, such as the number or web address on the back of a credit card, debit card or statement.
Keep Personal Data Private - That's the big common sense tip. Of course, us mobile folks buy lots of things online and we are often providing personal information. The key is once again knowing who you are dealing with and making sure you initiated the transaction. Be wary of all emails and phone calls requesting personal data. Just because it seems to be from a "trusted" company doesn't mean it is.
Be Aware of Those Around You - Be mindful of your environment and others who may be in proximity of overhearing sensitive financial or personal information or watching you text. This includes purchases over the phone or use of your Social Security Number for identification.
Be Aware Of Those Around You - Another common sense tip. Is anyone standing too close when you are typing a PIN into an ATM or store terminal? Can anyone else hear your conversation when purchasing something over the phone? Is your credit card/debit card in plain view for too long? How easy is it to access your wallet in a crowd?
Common sense, but I'll take this one a little further. Often it is not the strangers around you that you have to worry about. A lot of ID theft is perpetrated by family and friends. So be aware of those closest to you. Do you know of any alcohol, drug, gambling, or shopping addictions? Do you know of any financial distress? Do you truly know what the people you trust are capable of when desperate? Because of our trusting nature, we are very good targets for those that have the easiest opportunities.
Ensure Credit and Debit Cards are Protected – Obtain credit and debit cards from financial institutions that provide zero liability if a card is ever lost, stolen or used without authorization. Nearly all financial institutions automatically protect you against any unauthorized transactions made at merchants, over the phone, on the Internet or at the ATM.
Ensure Debit Cards and Credit Cards Are Protected - It is almost always the case that your liability is limited in case of lost or stolen cards as long as you report quickly. But it never hurts to be absolutely sure, especially with smaller banks and credit card issuers.
Know the timeframes for which your liability is limited. Failure to report a lost or stolen card timely and within the card agreement could cancel your liability protection. That goes for lost cell phones (I know from experience on that) and other unauthorized service charges as well.
Learn About Identity Protection Services – There are additional services for those consumers who want extra protection and peace of mind. These include credit monitoring, fraud alerts, credit freezes and database scanning, some of which can be obtained for a fee and others at no cost. At a minimum, consumers should review their credit report no less than once per year, either for free at AnnualCreditReport.com or through many financial institutions’ websites.
Learn About Identity Protection Services - There are several commercial companies that claim to protect your identity. But often all they do is charge a fee to do what you could do yourself. If you can spare that extra $100 a year and it makes you feel better, go ahead. But make sure you read the fine print and know what you are really paying for.
Check out the Federal Trade Commission's webpage To Buy Or Not To Buy: Identity Theft Spawns New Products And Services To Help Minimize Risk.
Also, you might want to read this May 2008 New York Times Article called LifeLock Identity Fraud Service Finds Skeptics. LifeLock is probably the premier Identity Theft Protection company. At the time of that article, some states were claiming that LifeLock's $1 Million guarantee amounted to unauthorized insurance. I think they've taken care of that because, if you read the guarantee on LifeLock's webpage, they do not cover direct losses (amounts stolen or debt incurred), they do not cover lost wages or lost business profits, they do not cover loss of business or lost opportunities, and they do not cover your direct out-of-pocket expenses. The site specifically states " ... NO money passes directly to our LifeLock members".
So what is covered by LifeLock? If you are a victim of identity theft because of some failure or defect in their service, they will cover the costs of lawyers, investigators, consultants, etc. to help you recover your good name and "help" you recover your direct losses. Now that phrase "because of some failure or defect in their service" is very important. Their service is so simple, it's kind of hard to screw it up and even if they don't screw it up, you can still become a victim of identity theft. Will they still cover you if it's not technically their fault?
Now, for $10 a month, it's probably a worthwhile service for those that can spare the cash. I just want to make sure people know exactly what they are paying for when they sign up for one of these "Theft Identity Protection" services. They don't provide insurance for losses and they don't necessarily prevent ID theft.
Okay. So what do the services do that you can do yourself? That Federal Trade Commission link I gave you above provides a great explanation. I went ahead and copied part of it below.
Fraud alerts
A fraud alert is a signal placed in your credit report or credit file to warn potential creditors that they must use what the law calls “reasonable policies and procedures” to verify your identity before they issue credit in your name. Fraud alerts may be effective at stopping someone from opening new credit accounts in your name, but they may not prevent the misuse of your existing accounts.
Under the federal Fair Credit Reporting Act (FCRA), you may be entitled to two kinds of free fraud alerts: initial and extended.
You may ask a consumer reporting company to place an initial fraud alert on your credit report if you suspect you have been, or are about to be, a victim of identity theft. This may be appropriate after your wallet or another source of personal information is lost or stolen. An initial fraud alert is good for 90 days, and can be renewed when appropriate. To place an initial fraud alert, call the toll-free fraud number of any one of the three national consumer reporting companies. The company you call is required to contact the other two; they, in turn, will place an alert on their versions of your report. Expect to receive a confirmation from each of the companies.
Equifax: 1-800-525-6285
Experian: 1-888-EXPERIAN (397-3742)
TransUnion: 1-800-680-7289
When you place an initial fraud alert on your credit report, you’re entitled to order one free credit report from each of the consumer reporting companies; if you ask, only the last four digits of your Social Security number will appear on your reports.
If you have been a victim of identity theft, you may ask for an extended alert, which stays on your credit report for seven years. To get an extended fraud alert placed on your report, you will need to contact one of the credit bureaus, and provide an Identity Theft Report, such as a police report or other report to a law enforcement agency, including a report to the FTC. If your credit report has an extended alert, potential creditors must contact you in person, or by phone or some other method you have provided before they can issue credit in your name. When you place an extended alert on your credit report, you’re entitled to two free credit reports from each of the consumer reporting companies within 12 months. In addition, the consumer reporting companies must remove your name from marketing lists for pre-screened offers of credit for five years — unless you ask them to put your name back on the list.
Credit Freezes
A credit freeze allows you to restrict access to your credit report. If you place a freeze on your report, potential creditors and certain other people or businesses can’t get access to it unless you lift the freeze temporarily or permanently. For more information about credit freezes, check with your state attorney general’s office or visit www.naag.org.
Limiting access to your credit report makes it more difficult for identity thieves to open new accounts in your name. That’s because most creditors will need to view a credit file before opening a new account; if they can’t see the file, they may not extend the credit. Still, a credit freeze may not prevent the misuse of your existing accounts or certain other types of identity theft.
A credit freeze is different from a fraud alert in a number of ways. A freeze generally stops all access to your credit report, while a fraud alert permits creditors to get your report as long as they take steps to verify your identity. The availability of a credit freeze depends on state law or a consumer reporting company’s policies; fraud alerts are federal rights intended for consumers who believe they may have been, or actually have been, victims of identity theft. And some states charge a fee for placing or removing a freeze, although it is free to place or remove a fraud alert.
Most states have laws that allow consumers to place a credit freeze with consumer reporting companies. In many of these states, any consumer can freeze their credit file; in others, only identity theft victims can freeze their files. The cost of placing a credit freeze and the lead times vary. In many states, credit freezes are free for identity theft victims; other consumers typically are charged about $10 per credit reporting company. Contact your state attorney general for the particulars of your state’s freeze laws. To place a freeze, contact each of the nationwide consumer reporting companies because a credit freeze placed at one company is not referred to the other companies. And be aware that the three major credit reporting companies have begun offering credit freezes directly to consumers — for a fee — regardless of whether their state has a freeze law.
Placing a credit freeze does not affect your credit score, keep you from getting your free annual credit report, or keep you from buying your credit report or score. It doesn’t prevent you from opening a new account yourself, applying for a job, renting an apartment, or buying insurance, either. In these situations, the business usually needs to review your credit report. You can ask the consumer reporting company to lift your credit freeze temporarily, or remove it altogether. But the cost and lead times to lift or remove a freeze vary, so it’s wise to check with your state authorities or with a consumer reporting company in advance if possible.
Fraud Alerts and Credit Freezes are great ways to prevent someone from procuring credit with your personal information. But they do not prevent someone from using existing accounts or from using identity theft in other ways. Placing Fraud Alerts on your credit and renewing them is the primary "preventative measure" the commercial "Identity Theft Prevention" companies use. Again, that may be convenient, but you can do it yourself.
The Credit Freeze is more effective than the Fraud Alert. It's a bit more of a hassle and can become expensive to turn it on and off (in some states), but for those that no longer have a need for credit or only an occassional need, that may be the way to go. We haven't done that yet, but we probably will since there is no cost to turn it on and off in our home state and we certainly aren't expecting to need credit for a long, long time, ... if ever. :)
Be Vigilant – Monitor your accounts regularly online at bank and credit card websites, ATMs or by phone and set up alerts that can be sent both online and to a mobile device. Americans who monitor their accounts frequently are most likely to uncover suspicious or unauthorized activity. The survey found that those victims who took more than six months to detect the fraud saw four times higher average costs. Meanwhile, too many cases of fraud are detected via slower methods, such as when consumers review credit histories, paper statements or are contacted by a debt collector.
Be Vigilant - Now, I put this tip from IDSafety.net at the bottom of the list because it doesn't really help prevent ID theft. It's more of tip on discovering ID theft more quickly.
The bottom line is that the faster you discover fraud, the easier and less costly it is to fix. Did you see that stat? Victims taking more than six months to detect the ID theft had four times the cost. Yikes!
Discovering Identity Theft
The best way to discover ID theft fast is to "be vigilant" as stated above. That's another great reason to set up all your accounts for online access. If you can access your accounts online, you don't have to wait for monthly statements to see activity.
If you don't have online access, at least review the monthy statements thoroughly. And reconcile your checking account timely!!
Remember, the possibility of identity theft is still pretty small, but if you are a victim and you don't discover it quickly, it can be financially and emotionally devastating.
Annual Free Credit Reports
Reviewing your credit reports allows you to check for inaccuracies that could hinder your credit. In addition, you can look for credit accounts that may have been fraudulently established.
The Fair Credit Reporting Act guarantees you access to a free credit report from each of the three nationwide reporting agencies — Experian, Equifax, and TransUnion — every twelve months.
While there are several services that you can use to get those free credit reports, many require you to sign up for a membership or give your credit card information (so they can sell you other stuff later). However, there is only one authorized source under federal law.
Here is a quote from the Federal Trade Commission's FREE Annual Credit Reports page.
"AnnualCreditReport.com is the ONLY authorized source to get your free annual credit report under federal law."
You can get your credit reports through that website or you can request them by mail or phone. Access through the website is easy. It does require your social security number and other confirmation of your identification, but I can have a report in my hands in about ten minutes from start to finish.
Once you sign in through AnnualCreditReport.com and select the agency or agencies you want, you are taken to the individual credit reporting agency websites. You are under no obligation to pay any money, but the agencies will tempt you to purchase your credit score and other services. You can if you want, but you can always click through and get just the free credit report.
Now, you can request credit reports at the same time from all three credit reporting agencies. That's helpful to compare all of them, but not all creditors report accounts to all three companies so you can expect some differences. If you get them all at the same time, you will have to wait twelve months before you can check the credit reports again ... for free.
What many people do, us included, is stagger the requests for the credit reports. Since you are entitled to one free report from each agency every twelve months, you can spread them out to check your credit more frequently.
We have reminders set up to request each agency's report for each of us every four months - September 1, January 1, and May 1. My September reminder just came up and that's why I decided to do this entry. :)
In Conclusion
It's not my intent to scare anyone or create unnecessary paranoia, but exercising some basic protection and periodic due diligence could save lots of headaches down the road. At least one of our own in the RV-Dreams Family has been a victim, so it certainly does happen.
Of course, even with lots of precautions, you can still have your identity stolen and it could be used for criminal acts that have nothing to do with your credit or finances. In that case, discovery is difficult if not impossible.
But at least we may have provided some clarity and a couple of tips you didn't consider.
Take the IDSafety.net 14-question quiz to see how safe or risky your activities might be regarding identity theft.
And for more information about identity theft, check out the Federal Trade Commission's Identity Theft Site to help you "deter, detect, and defend".
Here's hoping that the RV-Dreams Family will be a little more aware and a little less susceptible to ID theft than the general population. :)
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