Identity Theft Wall

Prevent Identity Theft and E-File Your Taxes

jim — Wed, 22 Feb 2012 12:24:49 +0000

There are many reasons why you should e-file your taxes. By e-filing your taxes, you get your tax refund faster. By e-filing your taxes, you avoid the post office. But in terms of importance, there probably isn’t any reasons better than avoiding identity theft. Think about all the information you need to include on your tax return and how that information, if you mail your return, is being sent unsecured through the mail system.

Your tax return contains all the personal information a thief would need to steal your identity – your address and your social security number. It also contains information about your family, such as your spouse and any dependents, as well as their social security numbers. If includes the names of the banks and brokerages you use, those are included as 1099s, as well as roughly how much is in each of those accounts (they can assume an interest rate and calculate your balances based on the reported interest). They will know if you own or rent where you live, as well as several other details based on the deductions you claim.

Your tax return contains a frightening amount of information about you and while mailing your return is 99.999% safe, why take the risk when you can e-file and get all the other benefits? E-filing is smart on a number of levels and with the scary statistics involving identity theft, you might as well reduce your risk when it’s as simple as this.

(Photo: davidreber)

How Much is a Stolen Credit Card Worth?

jim — Tue, 12 Oct 2010 14:23:23 +0000

Back in 2008, Jacob Leibenluft of Slate did a story about how credit card numbers were for sale in “data supermarkets” online. You might find it surprising but credit card numbers aren’t worth very much. Symantec reported in 2008 that the cost ranges from 40 cents to $20, with the higher values going to European or smaller card companies because they’re harder to find. Bank account numbers go for a little more, $10 to as much as $1,000.

It’s amazing how little stolen credit card information is worth but it’s a sign that fraud protections in the United States are very strong. Kaspersky Lab analysts found a price listing, back in 2009, which listed US Visa cards were worth only $2, whereas German credit cards were valued at $6. (link)

Amazing right?

Buy a Cross Cut Paper Shredder

jim — Tue, 12 Oct 2010 13:53:53 +0000

One of the most important tools you can buy to help you prevent identity theft is a cross cut paper shredder. A cross cut paper shredder does exactly what it says it does – cross cuts paper. Cross cutting means the shredder cuts vertically and horizontally to turn a regular sheet of paper into a hundred pieces of confetti-like bits. Traditional paper shredders, which cut only vertically, result in long strands that are easier to put back together. While a traditional shredder is better than ripping it up, a cross cut paper shredder is much better because it’s a lot harder to put the tiny pieces together.

The more expensive units will shred the paper into much smaller pieces and are generally more durable. I’ve seen commercial cross cut shredders that turn phone books into a fine grey mist of paper (OK, that’s a bit of an exaggeration but it’s not far off). In general, I think it’s important to spend a little more to get a durable model. Given how much junk mail we get each year, it’s nice to have a shredder that can stand the test of time.

Finally, when you do buy a cross cut shredder, be sure to pick up a small jar of shredder oil and lubricant so you can keep it running in tip top shape.

Review Your Children’s Credit Reports

jim — Sat, 09 Oct 2010 14:23:09 +0000

Just this week we learned of a new way that identity thieves are stealing identities – scanning for inactive Social Security numbers of children and selling them to other people. One of the weaknesses of the credit reporting system is that there’s no way to determine the applicant’s age from their report. If you think back to your own report, there isn’t a birthday listed because, presumably, your age is not a reliable factor on your credit risk.

Thieves are able to get away with it because children never apply for credit, children don’t review their credit reports once every twelve months, and it’s typically not discovered until the family starts receiving collection notices for debts they never knew about!

The Identity Theft Resource Center has a fact sheet to help explain the problem and how you can fix it. Ultimately, the best solution is to review your children’s credit reports regularly, as you do your own, to detect it as early as possible.

What are Credit Card Skimmers?

jim — Mon, 30 Aug 2010 11:34:17 +0000

A credit card skimmer is a device designed to steal your sensitive personal and financial data when you’re accessing either a point of sale, such as at a gas station pump, or at your bank, on an ATM machine. Last year The Consumerist highlighted a card skimmer on a Bank of America ATM and at a gas pump.

There are two types of skimmers:

Cameras: A microscopic camera capable of capturing your card’s visual information, like your name, your card number, the expiration date, and your PIN when you enter it on the keypad.
Magnetic capture: A device that sits on top of the card scanner that captures your card’s magnetic information, which includes all the visual data and more.

How do you protect yourself from these devices? Unfortunately, the only reliable way to do so is by being familiar with how the unit is supposed to look normally. There are a few other tips to help you become less susceptible to skimmers:

Do not use unfamiliar ATMs, you don’t know what they look like normally so it’s difficult to determine if there’s a skimmer attached.
Do not use unsecure ATMs. Thieves are less likely to attach a skimmer to a unit inside the bank itself, as entry would require them to swipe a card. That doesn’t mean it’s possible though, as any credit card gives you access to typically “secure” bank ATM locations and thieves have likely stolen cards in the past.
Become familiar with different types of card scanners. The ones you see at a gas pump, that stick out, are generally called “dip scanners” and require you to insert and remove the card. Many bank ATMs have motorized scanners that take your card and ejects it when it’s done. If you see a dip scanner where you expect a motorized capture scanner, use another ATM.
Regularly review your accounts for fraud. You have consumer protections against fraud if you catch them in time, so be sure to stay on top of it.

Thieves are especially clever and there will always be a scam out there, so it’ll be impossible to prevent every scam, we have to at least stop the ones we know about.

Should I Change My Social Security Number?

jim — Mon, 23 Aug 2010 11:45:10 +0000

If you’ve been a victim of identity theft, you’ve probably contemplated changing your Social Security Number to prevent future attacks. Unfortunately, changing your Social Security Number doesn’t necessarily protect you the way you think it might. It’s a difficult process and, if you are assigned a new number, your old Social Security Number remains assigned to you. The Social Security Administration (SSA) doesn’t delete or void SSNs, it’s not like a credit card number.

So how do you go about changing your number? You will only be approved for a new number if you can prove that you’ve tried to resolve the problems caused by identity theft but continue to be hurt by your old social security number. The key term is “disadvantaged by misuse” and you have to have experienced financial or personal hardship within the last year. If you can’t get a mortgage loan because your ID was stolen, that’s considered “disadvantaged by misuse.” If the IRS audits you because someone else is reporting income on your SSN, that’s considered “disadvantaged by misused.” The Social Security Administration has a brief bit of information explaining other reasons why you should get a new SSN and unless you actually qualify, you won’t get a new number.

The process for changing your social security number is much like applying for a new social security number – completely Form SS-5 (Application For A Social Security Card), bring documents proving US citizenship (must be originals or certified copies), and evidence you need a new number. Bring all this to your local Social Security Office and apply for a new number.

NOTE: It’s crucial that you request a letter from the SSA explaining why you were issued a new Social Security number. (after you’ve received it) You will need this letter when you go to change over other documents, like your driver’s license, so get this in writing to help avoid headaches down the road.

ProtectMyID.com 30-Day ID Protection 30 Day Trial Review

mike — Fri, 20 Aug 2010 16:00:14 +0000

I’ve never heard of ProtectMyID before, however after some quick research online, they seem to be an up and comer in the Identity Theft Protection world. I decided to give them a once over and sign-up for their 30-day ID Protection free trial but I also had to sign-up for a $1 credit report in the process. An inconvenience but a small price to pay for a full 30-day free trial.

Signing up is as simple as the rest I suppose. You enter your personal information, credit card information, then answer a couple of questions about your identity. As long as everything checks out, you’re through to the dashboard however if you’ve mistyped anything, you may be asked to call in and answer a few more questions.

Experian is the credit bureau that provides your ID protection and credit report and after logging in, you fall on a packed landing page, including the following for ID Theft Protection:

You can see that some services are provided, some are discounted if you buy them, and one is simply not included in your 30 day trial.

The most attractive item on this list is the $1 Million Product Guarantee, which has a large number of rules and restrictions that need to be followed, including placing a credit freeze when you realize your ID has been stolen. Unlike LifeLock, the ProtectMyID guarantee is paid out if you follow the rules and incur any expenses after your identity has been stolen, up to $1 million. If for nothing other than piece of mind, this service is already way ahead of the game.

Other standard identity theft protection services apply, like adding the items in your wallet and providing bank account information. These are done to alert you when any changes occur on your accounts. An added protection is the Lost Wallet feature, which allows you to cancel all of your accounts with the click of a button, but only if you have previously registered them.

In terms of credit providing a $1 credit report, you are provided it from Experian and it does NOT come with a credit score. You are more than welcome to purchase your credit score but this 30 day trial does not include it. The credit report you receive is as detailed as any other, providing contact information for all of your creditors, up to the minute status on your accounts and a lot more.

When looking at the overall service provided my ProtectMyID.com, the identity theft protection is top notch. Add in a $1 million guarantee and a monthly fee of $9.95 (after the 30-day trial) and it sports the best of both among it’s closest competitors. In terms of credit monitoring, there are some better programs out there and ProtectMyID.com leaves a lot to be desired.

If you’re looking for help in protecting your good name, sign-up for ProtectMyID.com and their 30-day trial offer. You will have to pay $1 but you will receive a credit report in the process.

How to Place a Fraud Alert

jim — Mon, 16 Aug 2010 11:22:25 +0000

You can call up the credit bureaus and put a fraud alert on your account. Once you call one, it will notify the other two and the fraud alert will be active at those bureaus as well. The fraud alert warns a potential creditor to do additional due diligence before extending credit. The idea is that credit reports with a fraud alert have already been compromised so the creditor should do extra work to ensure they are giving credit to the right person. They aren’t required to but they probably will because ultimately they lose money if they give money to a thief.

There are two types of fraud alerts, initial fraud alert and extended fraud alerts. The initial fraud alert stays on file for 90 days while the extended version lasts for 7 years. You will need to confirm your identity to place either but an extended report requires an actual identity theft report (initial 90-day fraud alert doesn’t require this). This will make it more of a hassle to obtain credit (you’ll have to provide more information) but this is one of the things many identity theft services do on your behalf.

Pick one of the bureaus and call them to place a Fraud Alert:

Equifax: 1-800-525-6285
Experian: 1-888-397-3742
TransUnion: 1-800-680-7289

If you want to remove the fraud alert before the 90 days are up, you will need to send your request in writing. I recommend using the sample form provided by Experian.

TransUnion, P.O. Box 6790, Fullerton, CA 92834.
Experian, P.O. Box 9554, Allen, TX 75013
Equifax Information Services LLC, P.O. Box 105069, Atlanta, GA 30348-5069

Review Your Social Security Statement

jim — Mon, 09 Aug 2010 14:15:47 +0000

Every year, three months before your birth month, the Social Security Administration will send you a copy of your Social Security Statement. It’s a document that, among other things, lists how much you can expect to receive from the SSA when you reach retirement age. Here’s a sample Social Security statement that should look very similar to yours.

If you’re far from retirement, this document isn’t going to be very important to you because you aren’t planning on receiving benefits yet. You probably shred it the moment you received it, but that would be a mistake!

The next time you receive your Social Security statement, review page three very carefully and confirm that Your Earnings Record is accurate. In many cases of “minor” identity theft, someone steals your social security number in order to provide it to an employer for tax purposes!

Why is this a problem? Initially, you might be happy to learn that someone else is contributing to your retirement, right? Unfortunately, a few nefarious things could be happening:

While the earnings are being reported, the employer may not be withholding taxes from the person’s paycheck. That means, when the earnings are reported to the IRS, you may find yourself paying taxes on income earned by the thief.
It could be a symptom of a much more serious case of identity theft, as the person knows at least your name and your social security number… probably more.
You always want your records to be 100% correct, even if they’re better off being wrong!

If you see your earnings record is incorrect, whether because of fraud or just human error, contact the Social Security Administrator immediately at 1-800-722-1213.

(Photo: swanksalot)

zendough by TransUnion 7-Day Free Trial Review

mike — Fri, 06 Aug 2010 14:00:49 +0000

Zendough, a new and fresh idea to the identity theft and credit score space, is offering a 7-day free trial for those in need of protecting their credit and making sure their score is where it needs to be. Unlike other free trial offers, zendough not only provides you the credit information you’re looking for but they also provide you a zen score, which rates your overall financial well-being.

Zendough is part of TransUnion, one of the three main credit bureaus. While you will have access to all credit score and report information during your 7-day free trial, you will only have it from TransUnion. If you decide to continue your service beyond the free trial, you will be granted access to reports and scores from all bureaus.

I decided to give them a try and signed up for the 7-day free trial myself. The sign-up process is just as simple as many other services, as you’re required to submit your personal information, payment information (should you decide to keep the services beyond the trial period) and answer a few questions about your identity. The submission process takes a few minutes and the form is easy to fill out.

Once completed, access is provided to zendough and you land on a page loaded with useful information. First, you’ll find your zendough score, rated on a 1,000 point score. Just like a school transcript, the score is given a grade where an A is between 900 and 1,000, a B between 800 and 900 and so on. You’ll also find your ID score where the higher the number, the worse off you are. This number is based on all of your open credit accounts and with a little work in updating your bank and credit information within zendough, this can be improved. I’ve got a screenshot below of my landing page and suffice it to say, my credit stinks.

Now, you’ll also notice at the top of your landing page are six tabs that take you to different sections of your zendough account. All of them are fairly straightforward except the last, which is where zendough differentiates themselves from the competition.

The My Path page allows users to plan for future emergencies, save for college, buy a home or many of the other important financial decisions in your life. There is also a credit and identity theft checklist that you can follow to make sure your credit score is fully optimized and that your identity is always protected. Unlike IDENTITY GUARD®, you are not provided a million dollar guarantee and zendough is more about improving your credit score than working on identity theft protection.

Continuing your service beyond the zendough 7-day free trial is $14.95 a month. If you find yourself in the midst of a large financial purchase where you’ll be needing a lot of credit, then it would certainly be advantageous to give zendough a try and see just how quickly you can improve your credit.