Financial Reflections

Identity theft is still around. Of course, it always has been, but sometimes it takes a story to bring things back into the spotlight.

What caught my attention this time is that the identity thieves aren’t cloak-and-dagger types, they aren’t working in some organized crime ring abroad, nope, they are pretty regular people — a boyfriend and girlfriend who learned to live large on other people’s debt. Check out the before and after photos of the woman who just entered a guilty plea and now faces 2 years or more in prison.

Who’s Stealing your Identity?

The fact is, identity theft can still happen to any of us at any time, without us even knowing. What’s even more shocking is that the Federal Trade Commission’s 2006 Identity Theft Survey Report shows that 16% of the time the victim actually knew the thief — often a family member, friend or neighbor.

How to Prevent Identity Theft

There are several ways to stop theft before it happens. The FTC lists several, including:

• Protect Your Social Security Number — It’s a key ID thieves can use to access your data.
• Treat your trash and mail carefully — Dumpster and mailbox dives are big ways thieves get your identity.
• Verify sources before sharing information — never give data out to someone who’s called you on the phone, be sure of who you’re communicating with.
• Select intricate passwords — Using “password1″ just isn’t going to cut it. Thieves can get an online ID and then hack every site they think you might use.
• Be careful on the internet — Sadly, “phishers,” thieves who set up fake sites to get your data, have made it so we must be careful about what sites we are on.
• Safeguard your purse and wallet — The $100 in cash in your wallet can be the least of your worries these days. A thief can access all your account numbers and start using your cards and ID to get new accounts.

How To Monitor Your Credit For Identity Theft

If thieves do get your identity, it’s important to stop the damage as soon as you can. The law in the US has mandated that everyone has access to their credit report from all three major agencies — Experian, TransUnion and Equifax — once a year. You can get all three reports from www.annualcreditreport.com for free, but be aware that identity thieves take a lot less than 12 months to operate. That’s why I use Equifax’s Credit Watch to monitor my credit as well. It comes with automatic triggers and emails me if something is up. So far, I’m safe.

Got an ID theft story? Share it below in the comments…