By Clare Scanlan (Financial Education Specialist)
As many as 10 million Americans a year fall victim to identity theft. It is very important to protect yourself against this type of fraud because it can severely damage your credit score and take years to fix. ACCION USA has helped many victims of identity theft during the difficult process of filing disputes to clear their names and correct their credit reports.
For example, Juan*, a Puerto Rican veteran currently living in South Florida, discovered several accounts that did not belong to him on his credit report, including a bankruptcy that had been filed in Puerto Rico while he was at the veterans' hospital in Miami. To clear his name, a great deal of documentation was needed to prove that the accounts were not actually his.
The best way to avoid the time-consuming and frustrating task of filing for disputes is to protect your identity using these tips:
Tip #1: Protect your personal information.
- Store your social security card, birth certificate, passport, and other personal IDs that contain sensitive information in a safe place
- Give out your Social Security number only when absolutely necessary
- Do not give your credit card number to anyone on the phone unless you initiate the call and know the organization
- Make sure any online credit card charges are handled through a secure site
- Keep your mail safe
- Use strong passwords by mixing letters and numbers
Tip #2: Shred anything that has personal information including:
- Credit card receipts (after comparing them to your bill)
- Old bank statements
- Pay stubs (after you receive your W-2 Form)
- Credit card and mortgage offers
- Medical statements
- Insurance forms
- Utility bills
- Any document that contains your Social Security Number, account numbers, password/PIN, birth date, signature, or private contact information
Attend a Shredding Party in your community to shred your personal documents for free! Search online to find a Shred Fest or Community Shred in your location. These events are usually sponsored by banks, credit unions, or the local government. Also, don't miss the annual National Foundation for Credit Counseling's Protect Your Identity Week held nationwide from October 17-23, 2010 to learn more and shred your documents.
Tip #3: Be organized with your credit.
- Order your credit report at least once a year to check for errors
- Check your credit card and bank statements every month as soon as they become available for any unauthorized purchases
- Limit the number of credit cards you have, and close the accounts of any unused credit cards
Tip #4: Be aware of phishing.
Phishing is the attempt to acquire sensitive personal information through masquerading as a trustworthy source on electronic communication such as e-mail.
- When contacted by an account that needs to be "verified," contact the company directly using their real phone number
- If a hyperlink is provided in an e-mail, make sure it connects to the company's real website
- Be wary of any e-mail addressed "Dear Customer"
Tip #5: Be proactive.
- Immediately report any losses of personal identification
- Close accounts of lost credit cards
- Report lost or stolen checks
- Inform creditors of address changes immediately
Being cautious and organized with your personal information can protect your identity. Always remember that when it comes to identity theft, the best offense is a strong defense.
*Name has been changed for privacy
Visit the Federal Trade Commission and the National Foundation for Credit Counseling for more information about identity theft.
For general information about fraud visit STOPFRAUD.gov.
For more information on our services, like business loans and credit education, please visit our website at: www.accionusa.org
ACCION USA © 2010