Preventive
Measures
Credit & Finances
 Your Credit Report
What many people do not realize
is that they are victims of identity theft until long after
the initial crime occurred.
Identity thieves will surely try to hide the crimes for
as long as possible so that they can access more money
and services. To stop the crimes quickly, make sure you
carefully check your credit reports on a regular basis.
Your credit reports are important tools for limiting the
amount of damage an identity thief can cause and keep you
updated on your finances.
How to Read Your Credit Report
- Check to
make sure you are aware of all your accounts
listed, and all balances are what you expect them to
be.
- Look for anything doubtful in the
section that lists who has received a copy of
your credit history. Some identity
thieves “pretext” by
posing as a landlord or employer based on
this information.
- Call your bank/credit company
regularly
to make sure no inquiries have been made
about loans or leases
you did not
apply for.
- Check for dubious addresses where
you have never lived.
- Check for typographical
errors in your social security number.
- If there is any
incorrect information in your records, contact the
concerned credit bureau, creditor, employer,
or government
agency immediately. Follow this up
with a letter describing what actions were
taken. Your protective options are
usually stronger if you report the
problem quickly and in writing.
Contact
each of the major credit reporting agencies to order a
copy of your credit report at least once a year. Credit
reports will normally contain information on where you
work and live,
the credit accounts that have been opened in your name,
if you own a home, if there are any loans against your home,
how you pay your bills, and whether you have been sued,
arrested,
or have filed for bankruptcy. Also consider cancelling
credit cards you have not used in a long time.
You can also
consider adding a “fraud alert” service
to make it harder for thieves to open new accounts without
your knowledge. With a fraud alert, the credit agency needs
to call you to confirm any request it receives to open
a new account in your name. If you decide you require this
service,
just contact the credit reporting agencies. These steps
will make it harder for thieves to use your personal information.
ID Theft Insurance
Some home insurance policies can include “identity theft
insurance” as an option. However, know that if you are
a victim, insured or not, you should be able to get out of
paying all fraudulent bills. Consult with your financial adviser
regarding this matter.
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