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The Season for Giving - and for Stealing!
by Nancy Zambell, Contributing Editor, Financially Fit
How I love the holiday season - sitting by the fire, watching reruns of It's a Wonderful Life, Miracle on 34th Street, and, yes, even, Rudolph the Red-Nosed Reindeer! And it warms my heart to see that extra spurt of human kindness that folks seem to feel toward their fellow man at this time of the year.
That is - most folks. For while the holiday season is a time of giving, unfortunately it's also a lucrative feast for criminals and scam artists out to make a quick buck.
Specifically, I am talking about identity theft.
Thanks to heavy media coverage the last few years, most of us know that we should safeguard our credit cards by recording their numbers, expiration dates and contact numbers in case of loss or theft. And we are also aware of the importance of reporting any incidents to the three major credit bureaus.
Credit bureaus:
Equifax Experian TransUnion
1-800-525-6285 1-888-397-3742 1-800-680-7289
www.equifax.com www.experian.com www.transunion.com
And while credit card fraud is still rampant and requires your vigilance, there is an even more ominous dilemma looming - theft of your account numbers, the personal pieces of information like your social security, driver's license and your bank account numbers - that are critical to your everyday financial transactions, as well as your future credit ratings and prospects.
The Federal Trade Commission (FTC) logged 255,000 complaints of ID theft in 2005, a category that comprises a whopping 37% of the agency's yearly complaints.
Yet, that number is just the tip of the iceberg. Private research groups estimate that nearly 10 million cases of ID theft affect consumers each year, with most going unreported to the FTC, as well as to local police departments.
It takes only moments for a thief to abscond with your most personal information, yet the damage he leaves behind can easily cost you - an average $1,400 and 600 hours of your time to correct the mess.
Those figures are absolutely frightening and are destined to rise as con artists and their scams continue to proliferate. But with a little extra caution and a few easy steps, you can dramatically lower your chances of becoming a victim of ID theft. You've most likely heard of the following tips, but it doesn't hurt to be reminded:
- Invest in a shredder, and use it to destroy papers with personal information.
- Bank online. Loose checks are a goldmine to thieves, holding some of our most private information, including account, telephone, and driver's license numbers. Make sure any extra checks and deposit slips are in a locked cabinet - away from prying eyes. And don't keep your checkbook in your vehicle.
- Review your bank and credit card statements promptly, and immediately report any suspicious transactions. Keep track of your debit and credit cards, and report any losses as soon as possible.
- Ask why they need it, when someone requests your Social Security Number. There are actually very few reasons to give your social security number out, and they are mostly for tax withholding purposes.
But an even greater danger lurks on your desktop. And these computer tips will save you plenty of headaches, and money:
Email
Don't open email attachments unless you know whom they are from and immediately delete email (without opening it) from unknown sources.
If you receive an email warning of an account shutdown with little or no notice unless you confirm some billing data, do not click on the link or reply. Instead, contact the company directly via telephone or their corporate web site to ensure the email is legit.
Be suspicious of emails or web sites in which a company logo is distorted or looks as if it has been stretched. And be wary of clicking on web site links in emails, as fraudulent sites with very similar URL's abound, just waiting to grab your personal information. It's better just to bookmark your favorite sites or type them directly into your browser.
Be aware of email fraud. 'Phishing', 'carding', or'spoofin' - are email requests that seem to be from a company with whom you often do business with - your bank, your ISP, etc. These messages may request that you update your personal financial information and direct you to a phony web site that looks like the real thing, but will capture your data for nefarious uses.
If the email looks too good to be true, it usually is. Lottery scams, advanced fee scams (some person in a foreign country who needs you help in moving his money to the US), even bank employees who will reward you since they need your assistance to detect a fraud, and ask you to verify your account information. All of these are SCAMs; you just can't get something for nothing!
Web-sites
Before submitting financial data to a web site, know that a secure website is denoted by 'https', not 'http'. Additionally, look for the padlock icon in your browser's status bar, another indication of a secure transmission.
If you see an '@' symbol anywhere in a URL or on a web page, be aware that it generally represents a fraudulent web site.
Always logout of online sessions that require a password or login ID. If using a computer in a public facility, reboot it to clear your information from its memory. Don't share your usernames and passwords. And change your key passwords on a regular basis (every 30-60 days).
Avoid downloading files from unknown sources, especially file sharing sites, which are often infected with viruses and Trojan horse programs. Suspect web sites that have an IP address or numerical address instead of a domain name as their URL.
Additionally, these general precautions will help keep your computer safe:
- If you are disposing of a computer, make sure you destroy the hard drives or memory cards as they will most likely contain your personal and financial data. For PDAs and cell phones, reset the internal memory so that all your personal information is deleted.
- Install anti-virus protection software and firewall protection on your computer, and keep it updated regularly.
- Use an Internet service provider that blocks spam.
- Keep your web browser security settings on at least medium.
Here are additional steps you should take immediately if you become a victim:
Report scams and complaints:
FTC, (877) FTC-HELP; www.consumer.gov/idtheft/
Notify your local police department and post office
National Fraud Information Center, (800) 876-7060; www.fraud.org
Internet Crime Complaint Center, http://www.ic3.gov/
Social Security fraud hotline, (877) IDTHEFT
SEC, www.sec.gov
Don't forget that you can now receive one free credit report per year from each reporting agency; just call (877) 322-8228, or visit www.AnnualCreditReport.com
Better safe than sorry; just a few moments of your time and a little extra wariness can save you time and money and ensure that your holiday season is worry-free.
We wish you a wonderful holiday - good food, good company and good health!
This concludes this week's issue of Financially Fit. We encourage you to visit our website to review past issues of Financially Fit:
http://www.brokeradviser.com/newsletter.cfm
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