| How to leave identity thieves out in the cold
WALNUT CREEK, Calif. � It could happen to you. Somebody swipes your Social Security number, then uses it to open a credit card in your name. Before you know it, you've become a victim of identity theft and have a pile of bills for things you didn't buy. Sylvia Coates has found a way to prevent that unpleasant scenario from happening by freezing her credit reports. ``I can't tell you how wonderful it is. I think it is the only foolproof way,'' she said. Coates, who lives in Orinda, Calif., applied for a credit freeze soon after that option become available in 2003, thanks to passage of a state law there that requires credit reporting bureaus to let consumers initiate a credit freeze. Having a credit freeze means that access to your credit reports and credit scores cannot be shared with potential creditors or lenders unless you give permission.
Identity theft common around Holidays
Identity theft crimes hit home for more than eight million adults in the US in 2005, according to a new report from the federal trade commission. In ten percent of cases, victims surveyed said they paid at least $1,200 to settle charges to stolen or fraudulent credit cards or bank accounts. Add to that the hours they spent repairing their credit reports. Nearly 40 percent of victims reported being harassed by debt collectors, denied credit or loans, having utilities cut off -- even getting sued. And more than half of victims said they still don't know how the thieves got a hold of their personal information. Experts at the non-profit identity theft resource center say the holidays are prime time for thieves. They recommend you leave your social security card at home -- don't carry it in your wallet.
LifeLock signs pact with NRA
Identity theft prevention service company LifeLock added a big gun to its list of clients, signing the National Rifle Association in a pact that gives members of the firearms organization discounted rates. LifeLock, based in Tempe, communicates with the nation's largest credit reporting agencies to make stolen information unusable to thieves. Backed by a $1 million guarantee, the company essentially reports stolen data, including bank account, credit card and social security numbers, to the agencies to stop charges from being approved. The service also removes customers names from junk mail lists and pre-approved credit card offers. With the partnership, NRA members will receive 60 days of free service and a 10 percent discount. The monthly cost for LifeLock is $10.
New laws fight ID theft, extend health benefit
The other will prevent potentially thousands of young adults from suddenly being dropped from their parents' health insurance once they graduate from college. These are two big but very different consumer issues. Let's take them one at a time. First, the identity-theft weapon: the ability to put a "security freeze" on your credit report. Freezing your credit report prevents new creditors from looking at it. If a creditor can't see a report, it is not about to extend credit to you or anyone else trying to open accounts under your name. You can lift the freeze before applying for new credit. Maryland law requires credit bureaus to allow residents to freeze their reports, starting next month. But just weeks ago, the three major credit bureaus, which long resisted freezes, started allowing everyone to put his reports on ice.
Thwart thieves by freezing credit
When it comes to keeping a thief from obtaining credit in your name, consumers have a tough weapon in the form of a so-called security freeze. When you freeze your credit report, you thwart would-be thieves by preventing creditors from checking your credit history. Few lenders will lend you – or a thief – money without first checking your credit report. Texans got added muscle in September, when a new law took effect that allows consumers to freeze their credit report without first having to have a police report. Previously, Texans couldn't freeze their credit reports unless they were victims of identity theft. .
Identity theft targets kids, and relatives often the perpetrator
While only a small percentage of identity-theft victims are children, the number is growing, and the impact on the victim's credit, confidence and relationships could be devastating. The crime can go undetected for years and is most commonly committed by a family member, according to a report released this week by the Identity Theft Resource Center, a San Diego nonprofit organization. Fortunately, simple precautions, such as keeping your child's Social Security number secret, can prevent some of the abuse. For instance, you can check your children's credit reports at credit bureaus to nip identity theft in the bud. .
Trusted waitress stole diners' data
A waitress at Mister B's used a magnetic card reader she kept hidden in the kitchen to swipe credit card information from some 150 customers of the Germantown restaurant, according to police reports. The restaurant owner, tipped by customers, called in the Germantown police. And now the Secret Service is investigating, trying to crack an identity-theft network. .
Use free reports to monitor, clean up your credit
CREDIT REPORTS show the good, the bad and the ugly in your financial life. They also provide the basis for calculating your credit score, which among other things is used to determine what interest rate you pay on a loan or whether you even get a loan in the first place. That's why it's so important for consumers to obtain a free credit report once a year from each of the country's three major credit reporting bureaus: Equifax, Experian and TransUnion. Passage of a federal law in 2003 made this possible. Going over your credit report helps you find out not only if there are mistakes that could lower your credit score, but also whether you are an identity-theft victim. Sandra Chapin, program director at the San Mateo-based Consumer Federation of California, ordered her credit reports a few weeks ago.
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