The Insecurity of Your Social Security Number - How to Protect Yourself From Identity Theft

When Cmdr. Gloria Christensen retired from the NavyC is for Credit. Here are some tips for protecting your
at full disability due to a service-related head injury tencredit rating:
years ago, she thought the worst was over as sheCheck your credit report at least once a year. Here
began to return to some normalcy of life. Withoutare the names and phone numbers of the three major
family members nearby, she asked for - and wascredit bureaus: Equifax (1-800-685-1111); Experian
granted - a custodian certified by the VA, to help her(1-888-397-3742), and TransUnion (1-800-916-8800.)
manage her financial affairs as she recovered.Expect to pay about $10 for each report - cheap
Now, a decade later, she has learned a bitter lessoninsurance.
that she wants other veterans to know: Someone canIf a credit card bill you're expecting doesn't arrive on
do tremendous - sometimes irreparable - damage totime, call the company to find out why - and have
you, just by having access to your social securitythem check your mailing address to see if someone
number.has filled out a change of address form without your
You see, while Christensen continued her recuperation,permission.
sustained financially by allotments from her tax-freePlace passwords on your credit card, bank and phone
disability payments administered by her custodian, sheaccounts. Choose a combination of letters and
never dreamed that same custodian was usingnumbers that can't be guessed, and store any records
Christensen's Social Security number to buy and sellof the passwords securely.
stocks on the Internet -- racking up enough profits thatSubscribe to a service, such as Privacy Guard, that
the IRS came after Christensen for over $200,000 inprovides you with the contact information of each
back taxes.company that accesses your credit report. Abagnale
Now, after nine months of wrangling with lawyers,uses such a service, saying, "I consider their annual fee
federal tax specialists and her custodian who deniedmoney well spent."
everything, Christensen is only $7000 poorer, sadderCancel all unsolicited "pre-approved" credit cards.
and wiser.When renewing credit cards, bank cards, and
A UNIVERSAL NUMBER?telephone cards, always request the security code
"Your Social Security number was never meant to beimmediately.
a universal number for all purposes," says New Mexico"Don't be surprised if you receive an unexpected call
State Representative Danice Picraux, who hasfrom a credit card company asking about an unusual
introduced legislation in Christensen's home state to trypurchase or series of purchases, even if you haven't
to staunch the bleeding-out of her constituents'lost your card," advises Picraux. "The company is just
resources through identity theft. Her NM House Bill 905doing its job of protecting its customers. But don't give
- "Privacy Protection Act" -- will make it illegal in herout any information if they don't already have your
state for a business to require a customer to give hisaccount number - a legitimate caller will already have
or her Social Security number as a condition of lease,that information."
purchase or provision of service.Never pay "up-front" for a loan or credit. The FTC
"There's a provision in this law that if an existing statewarns, "Remember that legitimate lenders never
or federal law requires that a number be provided,'guarantee' a loan or credit card before you apply,
then the person can ask for it and have it," saysespecially if you have bad credit, no credit, or a
Picraux, "but in the future, when you go to yourbankruptcy."
doctor's office, and they ask for your Social SecurityCarefully look over credit card bills before paying them,
number, you don't have to give it and they still have toand personally reconcile your own bank statements
serve you."promptly upon receiving them.
A second provision in Picraux's proposal would forbidA is for Access: and anyone-friend, foe, family, or
the printing of more than the last five numbers of yourstranger - who has access to any of your personal
credit card number on any receipt. "And no expirationdocuments has you at their mercy.
dates on the receipts," says Picraux. "Your credit cardTake every credit card and every other ID card in
information is supposed to be yours and yours alone."your wallet and make a photocopy of front and back
NATIONAL CONCERN(spread several out on the machine and do them at
Such legislation reflects a concern that borders ononce.) Keep in a locked, secure place in your home or
urgency. The Federal Trade Commission's annualsafe deposit box. In addition, do not carry any credit
report about consumer complaint categories in 2002cards or ID cards with you that you don't absolutely
says that identity theft topped the list of top ten fraudneed - and never take your Social Security card with
issues, with 43 percent of the complaints. Theyou -keep it locked up too.
Department of Justice says that identity theft affectsReport stolen or lost checks, credit cards, medical
between 500,000 and 700,000 Americans-up 40cards, military ID cards, drivers' licenses, even library
percent from just last year-hundreds of thousands ofcards immediately.
people with an average loss of $18,000 each.Make absolutely sure in your home that blank checks,
And cleanup - if it can be achieved - is expensive andbank statements, account information and other data
time consuming. According to Frank Abagnale - theare not accessible to guests, domestic help, tradesmen
clever crook-turned-crime-consultant whose life wasand repair persons, and others. Consider buying a
recently chronicled in the movie, Catch Me If You Canlockbox with a tamper-proof lock for such documents.
-- getting just your credit report scrubbed of identityScrutinize your personal and business check forms.
theft can take an average of $1,173 and 175Abagnale says that annual check fraud losses exceed
man-hours. And since those man-hours probably won't20 billion dollars. On his site, there is a list of services
be consecutive, Abagnale notes that "it can be monthsand check security features that are "must see."
or even years to regain financial health," during whichNever mail your bill payments or checks from home.
time getting a job, obtaining loans and housing, even"They can be stolen from your mailbox and washed
writing checks for utility bills and groceries, can literallyclean in chemicals," says Abagnale. "Take them to the
become a federal case.post office."
If you suspect or know you've been a victim of identityR is for Recognize: Be cautious about anyone
fraud, there are steps to take and no time to waste.unknown to you who approaches you to sell (or
But prevention is cheaper, easier, and more satisfying"give"!) you something, or who wants your private
than cleanup.information.
Don't minimize your personal risk. People you don'tDon't give your Social Security number out on the
know and will probably never meet are actively lookingphone, nor any other personal information to retailers
for credit card receipts in public trash cans; andor other strangers.
"dumpster divers" specialize in going through householdDon't transact any business over the phone that you
and business trash. They can fill out a change ofdon't initiate, and then only to companies you know and
address form with the post office to divert your mailtrust. Say, "Take me off your call list" to any
to another location while they spend on your credittelemarketer you don't want to hear from again..
cards. They look for your business or personnelKnow who you're dealing with. "Walk away from any
records at work. They can rob your home or usecompany that doesn't clearly state its name, physical
special software on your present - and discarded -address, and telephone number," advises the FTC. "A
computers. They can get your credit report byWeb site alone or a mail drop box should raise
pretending to be a landlord or employer. They can getsuspicions."
your birth certificate by posing as a lawyer, and createIf you buy online, be sure the site is secure by reading
a new identity with your name. They can buy personalits privacy statements before purchasing or giving
information from dishonest employees of companiespersonal information. Use firewall software, especially if
that have a right to your information; or buy youryou use high-speed Internet services. Update virus
personal information from any number of online sitesprotection software religiously.
that sell detailed facts about you. They can counterfeitTo complete the word SCARS, here are specific tips
your checks or debit cards and drain your bankto keep your Social Security number (S) out of the
accounts. They can set up new bank accounts andwrong hands:
cell phones in your name.When asked for your Social Security number, ask
And then they can even file for bankruptcy under yourquestions. Say, "Why do you need that number? What
name to avoid the debts they've racked up using yourhappens if I don't give it to you? Can you accept any
name!substitute?" And if it's mandatory that you supply your
PROTECT YOURSELF!number, Abagnale advises you to request that your
Abagnale, Picraux, and government agencies havenumber be either truncated or obliterated on loan and
some suggestions in order to help you keep your goodcredit applications, and that "your original credit report
name good and your private information private. Onebe shredded before your eyes or returned to you
thing they all emphasize: Be proactive, and assumeonce a decision has been made." Abagnale says that
that somebody wants your private information. Thea lender or retail manager needs to retain only your
best, cheapest way to protect yourself is to use aname and credit score to justify a decision to grant or
shredder (Abagnale advises a crosscut shredder) ondeny your credit request.
every single piece of mail you don't intend to keep.Never put your Social Security number on checks, and
Tear covers off catalogs and shred the covers, alongonly put your first initial on them. "Thieves will not know
with any other piece of mail that contains your name,how to sign your checks and may not know if you are
address, account numbers or any other information. Inmale or female," advises Picraux.
particular, shred every credit card application youOrder your Social Security Earnings and Benefits
receive and do not apply for; and when you cut upStatement once a year to check for fraud. The Social
expired credit cards, do not throw all the pieces awaySecurity fraud hotline is (800) 269-0271.
at the same time or in the same place.And finally, the X-Files warning is appropriate: trust no
An easy way to remember the basics of protectingone. Although most identity theft occurs when a
yourself is with the acronym, SCARS: Sharing, Credit,stranger steals your personal information, you can lose
Access, Recognition and SS#.as much or more just from friends or family who have
S is for Sharing: which is what happens when you'reaccess to your records and accounts. Even the
on any kind of mailing list. The fewer you're on, thebookkeeper or other entrusted person you've treated
more secure your personal information is. How to staylike family for decades-as Cmdr. Christensen ruefully
off them:discovered -- shouldn't be given carte blanche with
Contact every financial institution where you doyour personal information, bank statements and bills.
business and tell them that you do not want them to"I've been doing this for 25 years," says Abagnale, "and
share any information about you without your writtenit's never the person who's worked for you for six
permission.months that rips you off for $25,000. It's always the
Check the boxes on any application form you fill out,long-trusted employee."
specifying that your information isn't to beIF SOMEONE STEALS YOUR NAME, DOCUMENTS,
disseminated.OR INFORMATION
Get your name off mailing lists by writing the MailImmediately do the following:
Preference Service, PO Box 643, Carmel NY, 10512.Report the crime to your local police. Get a police
Cost is $5 for online registration; expect to see resultsreport number.
in about 3 months.Keep a written record of all calls - time, date, who you
Get your phone number off call lists by writing thespoke to - and details of your conversations with
Telephone Preference Service, PO Box 1559, Carmelauthorities, financial institutions, anyone you talk to about
NY 10512.the crime.
Be aware that grocery store and other "frequentCall your credit card issuers at once. Then follow up
buyer" cards reveal your buying habits and otherwith a letter repeating what you said on the phone and
information you may not want disseminated. Count theincluding the police report number.
cost: is that discount worth it?Call your bank immediately and follow up with a written
Think twice before entering any contests. Theletter.
information -your name, address, phone number - isFile a complaint with the Federal Trade Commission's
almost certain to be sold to marketers. Don't believe it?Identity Theft Hotline (1-877-438-4338).
Enter a contest with a misspelling of your first name orCall the fraud units of credit reporting companies
add a non-existent apartment number, and wait and(TransUnion, Experian, and Equifax - see article above)
see just how much junk mail you get addressed thatto place a fraud alert on your name and Social
way.Security number.