Say No to Downloads From Strangers

You’re surfing the web and a window pops up. You don’t really read it (who has time to read all those boring gray windows?) but you click “yes” to make it go away. Congratulations…you just downloaded a program. It may, of course, be a friendlyharmless program. Then again it also might be a mean sneaky program that changes your firewall settings and snoops around your computer for personal information. Many of these programs, known as “spy-ware,” really do perform useful functions while also doing less desirable things just under your radar. The point is, you really don’t know. Once you let a program onto your computer, it can do just about anything, and its movements can be very hard to detect.

The solution? Click “no” instead of “yes.” Your browser usually has to ask you if you want to download, so read those boring gray boxes carefully, and choose your downloads wisely. If you’ve downloaded a lot of free software and can’t seem to make it go away, you may want to get “spy-killer” or “ad-killer” software, which is designed to find and delete all your spyware.

Identity Theft and the Internet

Not every virus is lurking about your hard drive looking for your SSN, and not every piece of spam you receive is a solicitation from an identity thief. But some of them are. Nine out of ten identity thieves agree that the Internet makes their job a whole lot easier. Read on to find out how you can make it a little harder for identity thieves.

VIRUS PROTECTION
Viruses—programs written by hackers to mess with your computer—can do any number of unpleasant things, some of which can be quite handy for an identity thief. For instance, a virus could keep track of every key you type, which might include your passwords or your credit card number. The virus then sends that information back to the thief. Virus protection programs search out and destroy these sneaky bits of code, but the software has to know what it’s looking for. Update your virus protection software regularly and whenever you receive an alert about a new virus.

WINDOWS UPDATES
Despite its many useful capabilities, Windows contains some security loopholes that hackers find and exploit for their own gain. Fortunately, Microsoft is always working to come up with security patches to stop the hackers and thieves. But you’ve got to install the Microsoft updates if you want to be protected. Update your operating system whenever it tells you to—even if you’re in the middle of a particularly important game of Minesweeper.

FIREWALLS
When you venture out for a stroll in cyberspace, you use the front door: your browser. What you probably don’t realize is that there are thousands of other doors, windows, and ventilation shafts (ports, if you want to get all technical) through which your computer can be accessed. If you leave all of those entrances wide open, you’re just begging an identity thief to get in there and steal information. Firewall software protects your computer by locking the extra doors and windows. This is especially important if you have a high-speed Internet connection that’s always on.

Are Debit Cards Safe?

Answer: The Jury Is Still Out.

The problem is that although your credit card number and your debit card number are both pretty easy to steal, the results can be quite different. With credit card fraud, the thief steals the bank’s money, and your job is to prove you don’t really owe it.

With debit card fraud, the thief steals your money, and you have to convince the bank to put it back into your account. Guess which one’s easier? When a thief steals your credit card you’ll never pay more than $50 in fraudulent charges. But when it’s your debit card, it’s possible to lose all the money in your bank account.

Should I Get Identity Theft Insurance?

Answer: Probably not

Okay, the decision is up to you, but keep in mind that no one but the companies selling the insurance recommends this step. That should be a clue. For around $25 to $60 a year, these companies offer identity theft policies to cover the expenses associated with theft—lost wages, mailing and phone charges, and attorney’s fees, for instance. While that might sound good at first, the truth is that the maximum coverage for lost wages can be miniscule compared to your salary. And as for legal fees, few victims actually require a lawyer.

The other problem with ID theft insurance is this: it only covers the financial losses, which are only one part of what a victim has to deal with.

Identity theft insurance doesn’t comfort you when you feel violated, wait on hold for you when you call the credit bureaus, or help you make sense of the complicated and frustrating project of clearing your name. At best, identity theft insurance helps to ease part of your financial burden if you become a victim. At worst, it takes advantage of your fears by selling you a service you don’t really need, then lulls you into a false sense of security, and only resolves part of the problem once your identity is stolen. The best insurance is prevention and early detection.

Preventing Identity Theft – How to Protect Yourself

Secure the home front.
Digging a moat is probably overkill—start small by finding a lockable location in your home where you can store your Social Security card, passport, and all records (including credit card statements) that contain personal information.

Secure the office front.
After safely stowing your purse and briefcase, look into workplace security procedures for your info. Does the guy who delivers lunch have access to your W-4? He probably shouldn’t. Talk to your boss and explain the importance of keeping personal information confidential.

Don’t give out your SSN.
Just because there’s a space for it on the form. Employers, credit grantors and schools may need your Social Security number—but your grocery store’s savings club does not. (Are they going to run a credit check before you buy a box of cereal?) When a business asks for it, ask why they need it, what they plan to do with it, and how they will keep it safe. It’s your SSN, and you have a right to know.

Ask for a safer ID number.
Try not to let businesses use your SSN as an identification number that’s printed on every piece of paper you receive. Some businesses—health insurance companies, for instance—may not be willing to give you an alternate number, but it can’t hurt to ask. If your Driver’s License Number is your SSN, your state government needs to get with the program. You can ask to have it changed.

Only carry what you need.
It’s one thing to be prepared, but you really aren’t going to need your Social Security card when you run out to pick up a gallon of milk. Keep any unessential cards locked up at home.

Spring clean your credit cards.
If you aren’t regularly using your “Sausage-World” credit card, cancel it. The fewer cards you have, the less you have to keep track of, and the smaller the chances of losing one. Keep organized records of all your credit cards so that you can report theft promptly and thoroughly.

Don’t put your SSN on your checks.
The less information you give out, the better, so it’s a good idea to leave off your phone number too. The same rule applies to résumés: a prospective employer will need your phone number, obviously, but you don’t have to provide your SSN and birth date until later in the game.

Install a Firewall and Antivirus software.
And come on now, why is your credit card number publicly posted on your web page? Seriously though, folks, Internet access leaves you open to identity theft in many thrilling ways.

Opt out.
Tired of telemarketers who call during dinner? Sick of junk e-mail for products no one would ever want? Opting out means getting your name off these marketing lists and making some of it stop. It isn’t entirely an identity theft issue, but if fewer businesses have and sell your data, fewer thieves will be able to find it.

Read privacy polices.
Yes, we mean those densely printed, poorly worded slips of paper your bank sends you every year, the ones that all look exactly the same. Yes, read them. Why? Because, dull as they are, they’ll tell you what your bank is doing with your personal information, and what you can do to opt out of having that info shared.

Preventing Identity Theft- Ways to Lower Your Risk

Check your credit reports every year!
We’ve said it once, and we’ll say it again. Whether or not you have any identity theft symptoms, this step is absolutely vital. If an identity thief uses your SSN to open a new credit card account with a fake address and phone number, you may not find out about it
until the damage is done—unless you check your credit report periodically.

Keep track of your billing cycles.
A missing bill doesn’t mean that the credit card company is giving you a month off. It may mean a thief has changed your address. Call and figure out why they don’t seem to want your money.

Examine your financial statements like an obsessed accountant.
As soon as a statement arrives, go over it carefully to make sure you really bought all that stuff. If you didn’t, deal with it right away. (If you did, give yourself a moment to recover from the shock—you really bought all that stuff?)

Guard your mail from theft.
Pick it up as soon as the mailman puts it down—otherwise some well-meaning thief might figure you don’t want it. When you order new checks, go get them yourself from the bank instead of having them mailed. And burn some extra calories by taking your outgoing mail to a drop box rather than leaving it in your mailbox. Does all that sound like too much trouble? A locked mailbox also does the trick nicely. If you live in a particularly high-crime area, con¬sider playing it extra safe with a P.O. box. And finally, if you go on vacation, ask a neighbor to pick up your mail, or call the post office to have your mail held for you.

Invest in a shredder.
When chucking something sensitive, destroy it first. Cross-cut shredders dice your data into tiny squares instead of settling for strips like a traditional shredder. The cross-cut style is your safest bet, unless of course your identity thief really likes puzzles.

Avoid sketchy ATMs.
Some ATMs are set up to copy your bank card as well as give you money. Unless it’s a dire emergency, steer clear of the “KaSh-O-RaMa” at the end of that dark alley.

Be suspicious of unexpected calls.
When a “business” calls or e-mails and asks for personal information, indulge in a little healthy paranoia. Make it a policy not to get personal unless you’re the one who initiated the contact. Even if the caller seems legit, it’s best to double-check.

Put real passwords on your accounts.
Yeah, it’s a hassle, and you might be tempted to use the same short and simple combination for each of your bank and service accounts. Keep in mind, though, that even the densest crook will eventually crack “1234,” and believe it or not, your mother’s maiden name is hardly a government secret. Use a strong password—a “random” eight-character combination of numbers, letters, and symbols—and don’t write it down.

Keep your credit card close, when shopping or eating out.
Watch how clerks handle your plastic so they don’t have a chance to copy it.

Mind your own business, and make sure no one else does.
Keep an eye out for anyone who seems a little too interested in your ATM action, and use your free hand to shield the keypad when you enter your PIN. Likewise, don’t make sensitive phone calls where other people can overhear you.

Preventing Identity Theft

There’s good news and there’s bad news about preventing identity theft. The good news is that if you remain reasonably paranoid and moderately vigilant and never mind that both of those terms are loaded with contradictions—you’ve got a halfway fighting chance of avoiding becoming a victim.

The bad news is that taking all the steps to prevent identity theft can begin to feel like a part-time job. By the time you’re done ordering credit reports, shredding documents, and checking your credit card statement like an IRS auditor each month, you barely have time to enjoy the fact that your financial identity is still in good shape.

But hold on—there’s more good news. The fact is, a part-time job guarding your financial identity is better than the full-time job of correcting the mess if the ID thieves make you a target.

Bottom line: no one’s going to watch out for you, so you’ve got to do it yourself.

A Look at Your Credit Report

Your credit report reveals a surprising amount of information including:

• Your name, address, SSN, and employment information.
• What credit accounts have been opened in your name, and the current status of those accounts—whether they are active or closed, for instance.
• The balance on each account, how much your monthly payments are, and whether or not you make those payments on time.
• What other companies have ordered your credit report in the past. These prior requests are called “inquiries.”
• Your credit score, which determines your “creditworthiness.” Your score is based on such things as whether you make payments promptly, how much credit you already have, and how long you’ve had various accounts. Creditors look at your credit score as a way to predict whether you will be able to pay your bills on time.

How do they know so much?

Some of this information, your name and address, for instance, comes from public records. The majority of it, however, is reported to the credit bureaus by banks and other businesses that have issued you credit. These companies report to the credit bureaus on a monthly basis, telling them what your balance is and whether you’ve been keeping up your payments.

Creditors also let the credit bureaus know when you—or an identity thief using your information—open up a new credit account. So even if there are no other clues that your identity has been stolen, your credit report can tell you if someone has been obtaining credit in your name.

When you apply for any kind of credit—a car loan, let’s say—the bank checks you out by ordering your credit report. Based on your credit history and score, the bank decides whether or not to approve your loan application. If an identity thief has been using your identity to open bogus accounts, those actions will show up on your credit report and negatively affect your credit score. (And guess what? Identity thieves don’t tend to pay their bills on time…or at all. Big surprise.)

The result? The bank won’t exactly be eager to lend you money. Now don’t you want to know what’s on that report?

Identity Theft Warning Signs

If your identity is stolen you need to know about it ASAP so you can stop further fraud and work on repairing your good name.

Here are some major signs that you are the victim of identity theft.

DENIED!
Your application for credit or a job is turned down based on your credit report—and as far as you know, your credit history is good.

RIPPED OFF!
Your credit card, bank balance, or other financial statements show charges you never made. Or you receive a statement for a credit card you didn’t know you had.

HARASSED!
Collections agencies start calling you out of the blue to collect on debts you never incurred.

MISSING MAILS!
This one might seem the most innocent—you might even be grateful at first! But if your bills stop coming, that’s a bad thing. It might mean an identity thief has changed your address on your credit card statement so you won’t notice the fraudulent charges on your account. And guess what? The thief isn’t taking care of those bills for you.

If you have one of these symptoms, don’t assume it’s simply a clerical error, and don’t put off investigating it. Find out what’s up. Your first move? Order your credit report and see for yourself what the deal is.

Identity Theft Impact on Victims

In the search for help and sympathy, too many identity theft victims run into the ridiculous attitude that they aren’t really victims at all. Many people have been told that the banks and credit card companies (who lose tens of thousands of dollars per incident) are the “real victims.” Although it’s true that most individuals don’t end up paying for the fraudulent charges, having your identity stolen is no walk in the park. Getting debt collectors off your back and straightening out your credit history can be a long hard struggle.

And even after the theft itself is stopped, victims are sometimes denied loans, housing, and employment because of bad credit. Try telling someone who’s spent hundreds of hours clearing her name (and hundreds of dollars in expenses) that she isn’t a victim!

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