Home Living
Avoiding Fraud & Indentity Theft part 2
By Dan Smith

Fraud and Indentity Theft

part II

Last month we looked at the use of a “fraud alert” in protecting your identity and preventing fraud. The biggest drawback to the “fraud alert” is that it prevents you from getting instant credit issued. So whether you are getting a car loan at the dealer, or a new charge at Dillards, a fraud alert requires you to authorize the new credit from either your home or work phone. Some people would find that restriction critical. So for those of you who are willing to take some chances, in order to have the convenience of instant credit, I have the following list of tips. My hope is that it may prevent you from being the next victim of identity theft and fraud.
1. Do not carry your extra credit cards, Social Security card, birth certificate, or passport in your wallet or purse except when necessary. This practice minimizes the amount of information a thief can steal. If you have extra credit cards, consider placing them in your safety deposit box.
2. Install a lockable mailbox at your residence to reduce mail theft, or open a P.O. Box at the local post office.
3. Take credit card receipts with you. Never toss them in a public trash container.
4. Never leave your purse or wallet unattended at work or in church, restaurants, health fitness clubs, parties, or shopping carts. Never leave your purse or wallet in open view in your car, even when your car is locked.
5. Destroy all checks immediately after you close a checking account. Destroy or keep in a secure place any courtesy checks that your bank or credit card company sends to you.
6. Do not have your bank send your new checks to your home address. Tell the bank that you prefer to pick them up.
7. Reconcile your check and credit card statements in a timely fashion, and challenge any purchases you did not make.
8. Limit the number of credit cards you have, and cancel any inactive accounts.
9. Never give any credit card, bank, or Social Security information to anyone by telephone, (or e-mail) even if you made the call, unless you can positively verify that the call is legitimate.
10. Minimize exposure of your Social Security and credit card numbers. If the numbers are requested for check-cashing purposes, ask if the business has alternative options such as a check-cashing card.
11. Do not allow your financial institution to print your Social Security number on your personal checks.
12. Safeguard your credit, debit, and ATM card receipts. Shred them before discarding.
13. Scrutinize your utility and subscription bills to make sure the charges are yours.
14. Memorize your passwords and personal identification numbers (PINs) so you do not have to write them down. Be aware of your surroundings to make sure no one is watching you input your PIN.
15. Keep a list of all your credit accounts and bank accounts in a secure place so you can quickly call the issuers to inform them about missing or stolen cards. Include account numbers, expiration dates, and telephone numbers of customer service and fraud departments.
16. Do not toss pre-approved credit offers in your trash or recycling bin without first tearing them into small pieces, burning or shredding them. Dumpster divers use these offers to order credit cards in your name and mail them to their address. Always do the same with other sensitive information like credit card receipts, phone bills, and such.
If you suspect that you might be a victim of fraud or identity theft, consider placing a Security Alert on your credit report. While it acts like a fraud alert, the security alert is only valid for 90 days, and would need to be renewed after that. A fraud alert lasts for 7 years, unless you request it be removed in writing.
If anything odd happens related to your checking account, you need to immediately close the account and re-open under a new account number. Unlike credit cards, checking accounts are not likely to reimburse you for fraudulent use of the account, even if you can prove fraud. And even credit cards will not cover your losses unless you report the card stolen in a timely fashion. So check you card agreement for details.
For more good advice on this or any other aspect of personal/home finance, call the expert. Dan Smith, Bank of the West Mortgage, can be reached at 303-674-2205.


© Copyright 2004-2007 by ColoradoHomeLoans.com