Fighting Identity Theft
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- Last Updated: Monday, 15 March 2021
Identity Theft Prevention Services
| Additional Resources |
- Credit Freezes
- Identity Theft Insurance
- Fraud Alerts
- Credit Monitoring
- Data Sweep Services
Credit Freezes
For a small fee, credit-reporting bureaus offer consumers the ability to freeze their credit report. Also referred to as a report lock, or credit lock, this service stops all access to this information. By locking an account, the consumer prevents thieves from opening an unauthorized line of credit. While a freeze is effective at preventing thieves from opening a new account in the consumer's name, it does not prevent a thief from accessing an existing account. It's also somewhat inconvenient for consumers, since they must pay a small fee of around $10 each time they want to lock or unlock their report.Identity Theft Insurance
This service provides insurance coverage for expenses incurred following the theft of someone's identity. Coverage is normally purchased as a rider on a homeowners insurance policy, and the premium can range from $10 to $100 per year, depending on the deductibles chosen.
Fraud Alerts
If someone's identity has been stolen, or they have reason to believe it's been stolen, it's possible to have a fraud alert placed on a credit report. Once on a report, potential creditors must either contact the victim directly, or use what is referred to as "reasonable policies and procedures" to verify identity before issuing credit. Once again, one of the drawbacks of this service is it does not prevent thieves from accessing an existing account. However, fraud alerts are effective at protecting a credit score from further damage in the event it has been stolen.Credit Monitoring
For about $15 to as much as $100 per month, it's possible to find a wide variety of service providers that will monitor a credit reports, and provide an alert if changes are made to the account. Typically, the service will only monitor one of the three credit reporting bureaus. For example, each of the three major credit-reporting agencies offers this service:- Equifax: offers Complete Advantage, Complete Premier, Complete Family, as well as Score Watch
- Experian: offers Credit Manager, and CreditCheck Monitoring
- TransUnion: offers Credit Monitoring, and True Identity
Data-Sweep Services
This type of company checks the Internet for listings of personal identifying information. If the client's personal information is found on the Internet, this service company will alert them to the potential fraudulent use of their information. Data-sweep services can cost nearly $100, and cover a wide-variety of online information such as public records, email addresses, as well as real estate transactions.Preventing Identity Theft
As promised earlier, we're also going to discuss some of the simple precautions anyone can take to help lower their risk of becoming a victim of identity theft. Perhaps the most effective approach is to be cautious when it comes to giving out personal information. That simple rule of thumb sounds easy enough to follow, but what are some of the ways it's possible to practice this technique:- Confidential Papers: consider shredding papers containing confidential information such as bank statements, credit card receipts, insurance statements, medical records, and credit card offers. When away from home, make sure a trusted friend or relative collects the mail each day. Even better, contact the local post office, and have the mail held until the trip or vacation is over.
- Social Security Number: never carry a Social Security card in a wallet or purse. If asked by a service provider for the number, ask them why they need it, and what happens if you don't provide it. This way it's possible to make an informed decision whether or not to share the number.
- Internet Use: perhaps the easiest way to protect information while surfing the Internet is to keep the computer's antivirus program up-to-date, as well as using a firewall. Be wary of phishing emails asking to update passwords or other confidential information. Avoid responding to any unsolicited offers, including clicking links in emails.
- Password Protection: whenever possible, place passwords or pins on bank accounts and credit cards. When creating passwords, use techniques that result in hard-to-guess combinations of upper case letters, numbers, and special characters. Even better, use an easy to remember passphrase instead.
- Credit Cards: avoid using a debit card where a credit card is accepted. Credit cards offer consumers more protection if lost or stolen than debit cards.
- Verify Identities: individuals should never give out personal identification information unless they were the person that initiated contact and / or they're confident they're speaking to a legitimate organization.
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