Fraud Prevention Continued    -              

After my article last month, I guess a few of you took it upon yourself to contact Chris Nelson at the Special Crimes division of the Jefferson County Sheriff’s Department. One of my readers called me back to inform me that in his conversation with Officer Nelson, he indicated that none of the allegations I presented in the article proved to be true. How interesting? Well Officer Nelson, I would be happy to make the following wager.  I will put up $1000 to go to the favorite charity of your choice. Next let’s pick a local criminal defense attorney, as that should help tip the scale in your favor. We will have him or her evaluate the evidence provided to you, by myself and the private investigator from 4 years ago. We can even rerun the search to bring it current, if you like? If the attorney agrees with you that the facts as presented in my article were inaccurate, (namely that “Gladys” has used at least four different social security card numbers and five different aliases, and has demonstrated a history of bankruptcy, foreclosure and the like) then the $1000 goes to your favorite charity. But if I win, then all I want is your word that you will finally pursue and prosecute this case. Sound fair?

Others of you wrote in to ask questions about avoiding identity theft and social security fraud. To that end I wanted to provide you a few ideas:

First of all, don’t carry your social security card on you and NEVER give it out to anyone but a bonafide trusted source, preferably in a face-to-face meeting if possible. Identity theft thrives on the creation of new credit under a valid social security number, more so than the use of current accounts. Criminals want to be able to use the number as long as possible. Using current accounts means you are more likely to find out faster, that someone else is using your credit. Your social security number is the key.        

According to the FBI, identity theft is the top online fraud. The U.S. Federal Trade Commission says that identity theft is its’ number one source of consumer complaints - 42 percent of all complaints, in 2001. The thief will use your personal information to open credit card accounts, cell phone accounts, open bank accounts in your name and write bad checks, thus leaving the victim with the bills and ruined credit ratings. Identity thieves may pose as representatives of banks, Internet service providers and even government agencies to get you to reveal your Social Security number, mother's maiden name, financial account numbers and identifying information.

Phishing for information on the net has risen to the level of an art form at this point. One recent article on MSNBC.com reported regarding a consumer who had his identity stolen as a function of applying for new job listing on Monster.com. So using a credit card on a secure server is fine, but you should avoid dealing with any commercial site that requires the use of your social security number.      

Finally, the use of a “fraud alert” with the three main credit bureaus is an excellent way to prevent unauthorized use of your social security number. It requires that any issuer of new credit must first contact you by phone to confirm the legitimate nature of the request. This may prevent you from taking advantage of “instant discounts” at some retailers (by applying in-store for a new credit card). However, the extra precaution can save you thousand of dollars and months of aggravation fixing stolen credit.

For more information on this or any other aspect of home finance, call the expert. Dan Smith can be reached at 303-674-0201, or visit him on the web at www.ColoradoHomeLoans.com any time.