Identity theft is a nationwide epidemic. Anyone who uses credit and worries about fraud needs to safeguard his or her financial identity. Today's average citizen must be aware of the criminal mind.
Michelle Brown diligently worked her way through college and then began a career in her chosen field of international banking. No slouch at twenty-nine, she was fiercely proud of her perfect credit report. Michelle's world suddenly shifted when a perpetrator stole her rental application from her landlord's office, taking with it her good name and peace of mind. What transpired next was nothing short of a nightmare.
How Identity Theft Can Damage a Good Name
For a year and a half a woman impersonated Michelle while spending over $50,000 in goods and services. In a widely publicized account, Michelle Brown testified before a senate committee hearing. Not only was her credit damaged, but the thief escalated her crimes to a level that stunned Michelle.
The perpetrator engaged in drug trafficking, resulting in an erroneous arrest record along with a prison record when she was booked as an inmate in a federal prison under Michelle's name. Five hundred hours were spent desperately trying to undo the madness.
How Criminals Progress
Unfortunately, we can count on criminals to constantly update their scams. Here are a few to be aware of:
- shoulder surfing (someone carefully watching as you conduct a transaction in public)
- hacking (stealing personal information through computer databases)
- spamming (inviting you via email to respond to an alleged contest or FREE PRIZE)
- phishing (impersonating a trusted organization like PayPal in an email)
- pharming (a hacker's attack that redirects a website's traffic to another site)
Conventional Methods of Theft
The Better Business Bureau concluded in its ID Fraud Survey Report ('06) that conventional methods such as obtaining credit cards from lost or stolen wallets and theft of paper mail are still among the most common ways thieves gain access to personal information.
This includes dumpster diving (stealing bank statements right out of your trash) and stealing from your mailbox.
How to Fight Back
Outgoing bills containing checks should be dropped into a United States Post Office mailbox instead of a personal mailbox located on the street for a more secure transaction.
Any discarded financial documents should be shredded before going in the trash.
The Federal Trade Commission recommends canceling paper bills and statements wherever possible, paying bills online instead. When using a personal online banking site, do monitor account balances weekly, or daily, if at all possible.
According to the FDIC (Federal Deposit Insurance Corporation), recent studies indicate that unauthorized access to checking accounts is the fastest growing form of identity theft. Your social security number, inestimable in value, must be carefully guarded.
New Solutions for Consumers
There is a new solution for consumers who want to avoid becoming a victim of identity theft and it has never been so easy. For those interested in protecting their identity, a 10-question survey based on current behaviors and past experiences is available through Base Point Analytics. Tim Grace, CEO of Base Point, is a renowned fraud expert offering state of the art ways to stay ahead of criminal minds.
Learn what key actions should be taken now to secure your identity. No personal information is collected in this survey.
Sources:
www.consumer.gov/idtheft/
www.identityTheft.org
rkatz@thepowermarkgroup.com (PowerMark for BasePoint Analytics)
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