Don't Be a Fool: Protect Yourself from Identity Theft

Nearly one out of ten Americans was the victim of identity theft during the past five years, so you'd be a fool to think it couldn't happen to you. What you may not realize, however, is the profound impact it will have on your life, especially if you are a small business owner.

Consider this: 47 percent of identity theft victims have trouble getting credit or a loan as a result of the identity theft, and 70 percent have trouble getting rid of (or never get rid of) negative information in their financial records and credit reports. The average cost of identity theft to a business is in excess of $15,000, and the amount of time needed to repair the damage runs an average of 330 hours.

Identity thieves have become highly adept at stealing personal information, like Social Security numbers, driver's license numbers, ATM and credit card numbers and pins, and other pieces of an individual's identity, such as date of birth.

These thieves get the information in a myriad of ways. They may go dumpster diving in your trash looking for bills and other papers with your personal information on it, or steal your mail right out of your mail box. They may go phishing, pretending to be a financial institution and send spam or pop-up messages to get you to reveal your personal information. They may be someone who works at a store or bank and steals your credit or debit card numbers using a special storage device when processing your card. Computer hackers can steal private information from thousands of people at a time, and old fashioned thieves get information by stealing wallets and purses, or breaking into companies and stealing their personnel files.

They also know how to use that information to steal money by using your identity to open new accounts or take over your existing accounts.

Experts at the Federal Trade Commission and other law enforcement personnel who deal with identity theft on a daily basis recommend that you use a 3D defense to counter attacks on your personal information: Deter - Detect - Defend.

Deter identity thieves by protecting your information:

Shred financial documents, junk mail and paperwork such as credit card slips that have personal information on them before you discard them.
If your company deals with a large volume of documents that need to be shredded consider utilizing a company such as Shred It (http://www.shredit.com/) or Weyerhaeuser to help with document destruction.
Put any outgoing mail in a post office collection box rather than an unsecured mailbox, or better yet, take it to a post office.
Protect your social security number. Give it out only when absolutely necessary. Never put it on a document like a check that will be passed from hand to hand.
Don't use an obvious password, like your birth date or the last four digits of your Social Security number.
Don't give out personal information on the phone, through the mail or on the internet unless you know who you are dealing with.
Keep personal information in a secure place at home, especially if you have roommates, employ outside help, or are having work done on your house.
Be alert to changes in your financial life, such as bills that do not arrive as expected, denials of credit for no apparent reason, calls or letters about purchases you did not make, or unexpected credit cards or account statements. All are indicators of identity theft.

Detect suspicious activity by routinely monitoring your financial accounts and billing statements:

Check your credit reports at least quarterly to see if any new accounts have been opened without your knowledge or if there are mistakes in your bill paying history.
Review financial accounts and billing statements monthly, looking for charges you did not make.
Update your computer's virus protection and firewall software on a regular basis and make sure you send personal information only over a secure server.

Defend against identity theft as soon as soon as you suspect it:

Place a fraud alert on your credit reports of all three national consumer reporting companies: Equifax (800) 525-6285; Experian (888) 397-3742; and TransUnion (800) 680-7289.
When you place a fraud alert, you automatically are entitled to receive free copies of your credit report. Study the reports for inquiries from companies you haven't contacted, accounts you didn't open, and debts on your account that you can't explain.
Close any accounts that have been tampered with or established fraudulently, and call the fraud departments of each company where you suspect fraud. Follow up in writing with copies of supporting documents.
Create ID Theft Affidavit at ftc.gov/idtheft to support your written statements.
Ask for verification that the disputed accounts have been closed and the fraudulent disputes discharged.
Keep copies of documents and records of the theft.
File a police report to help you with creditors who may want proof of the crime.
Report the theft to the Federal Trade Commission online at ftc.gov/idtheft, by phone (877) 438-4338, or by mail: Identity Theft Clearinghouse, Federal Trade Commission, Washington, D.C. 20580.

For more tips about minimizing the risk of identity theft log onto the Federal Trade Commission web site at http://www.ftc.gov/bcp/edu/microsites/idtheft/

For more tips on safe computing, go to: http://www.onguardonline.gov/topics/computer-security.aspx.

If your business is a victim of identity theft or you would like more information about how to protect your business from identity theft, go to: http://www.ftc.gov/bcp/menus/business/data.shtm.

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