Truth 39 Stopping thieves in their tracks
When it comes to protecting one’s identity, most people have no clue where to start. While there are no silver bullets to guarantee your safety from identity thieves, following the advice I provide here can make a huge difference. I focus on what to do if you think someone may have gained access to your confidential information and how to stay one step ahead of a would-be identity thief.
When it comes to protecting one’s identity, most people have no clue where to start.
Fraud alerts
One of the first steps you should take when trying to protect your identity is to set up a fraud alert. There are two types of fraud alerts:
Initial fraud alert—You can place an initial fraud alert if you suspect you have been or are about to become a victim of identity theft. In my opinion, everyone falls under the category of “about to become a victim.” You should file for an initial fraud alert if you think your identity might be compromised. This type of alert is active for 90 days. During this time, creditors that follow “reasonable policies and procedures” as outlined by federal law will refuse to open a new account. Unfortunately, since “reasonable policies and procedures” is a loose term, credit can still be given to identity thieves using accounts under fraud alert.
Extended fraud alert—If you are already a victim of identity theft and provide one of the credit report agencies with your identity theft report, you are eligible for the extended fraud alert. The extended fraud alert stays on your credit report for seven years. During this time, creditors are required to speak with you or meet with you before issuing any credit under your name. In addition, your name is automatically removed from all marketing lists and preapproved credit offers for five years. Even with this type of fraud alert, some identity thieves have been able to slip through the cracks and receive credit approval. It’s still worth the effort to file this alert.
Everyone is entitled to one free credit report from each of the three credit reporting agencies in a 12-month period. However, if you file for an extended fraud alert, you are entitled to two free credit reports from each of the three credit reporting agencies during a 12-month period. Regardless of whether you get all the reports, I recommend that you get them on a staggered schedule. For example, if you get only one per agency, get one, wait four months, and then request another from the second agency. Wait four more months, and then request another from the third agency. This gives you far greater coverage over the year.
Filing is free, and you are only required to file for a fraud alert at one of the three reporting agencies. (The three reporting agencies are Equifax, Experian, and TransUnion. See the section “ Credit reporting agencies” at the end of Truth 46 for their complete contact information.) Once you’ve filed, the agency that you file with passes the information to the remaining two at no charge to you.
Identity theft report
Many people are not aware of the identity theft report. This is a police report designed specifically for identity theft victims. One of the most important steps you can take if you have become an identity theft victim is to fill out this report. This report details everything that you are aware of and is required by many creditors and businesses that you are dealing with when cleaning up your credit. However, simply filing a general police report is not enough. You must also file the identity theft report. Because this type of filing is different from other police reports, it is important that you file in person. If you file over the phone or via the Internet, getting the identity theft report is far more difficult. If you have already filed a police report but not an identity theft report with the police, contact the Federal Trade Commission (www.ftc.gov).
Credit/security freeze
In 2007, the reporting agencies began offering credit or security freezes. A freeze is different from a fraud alert. If you have been the victim of identity theft, you can set up a freeze at no charge. However, unlike fraud alerts, you must file for a freeze at each of the reporting agencies. If you have not been a victim of identity theft, each reporting agency charges a fee if you want to activate a freeze.
A security freeze means that the reporting agency blocks anyone from getting a copy of your credit report without your permission. You are provided with a PIN or password that is required to release the credit report. A freeze generally is more secure than a fraud alert, and the two combined are a great defense against the majority of identity theft attacks. Lifting a freeze can take between 3 to 30 days, and you must contact each reporting agency separately.
Stop preapproved credit offers
Reporting agencies sell your information to advertisers who, in turn, use that information to send you preapproved credit card offers. You can stop most of them from ever being sent by going to the Web site www.optoutprescreen.com and filling out the form. You can choose to opt out permanently or for a five-year period. In addition, once you have opted out, you can always go back to the site if you decide to opt back in. If you do not want to use the form online, you also have the option of calling a toll-free number at 1-888-5OPT-OUT (1-888-567-8688). You can also get on the “do not call” list to stop telemarketers from calling you: www.donotcall.gov.