Anyone can become the victim of identity theft. It happened to the wife of Ben Bernanke, the current chairman of the Federal Reserve. It also recently happened to Paul Allen, the co-founder (with Bill Gates) of Microsoft. Federal investigators allege that Brandon Lee Price pretended to be Allen when he called one of Allen's credit card companies and changed the address on the account. Price then had a debit card issued in Allen's name but sent to Price.
Price's scheme unraveled when the bank's fraud protocol spotted red flags when Price allegedly attempted a $15,000 Western Union Wire transaction and made a payment on a bank loan. But all that could have been averted had the credit card company had more safety protocols in place before allowing an unverified caller to change the address on Allen's account.
Here's some good advice from Adam Levin, co-found and chairman of Identity Theft 911, about how to avoid having this nightmare happen to you:
1) Develop a strong relationship with your Bank and ask what provisions they have to protect you if you become a victim of identity theft.
2) Ask your bank or credit card company what steps it takes to authenticate the identity of someone attempting to access the account by phone. If there is no pin or secret password in place, ask for one.
3) monitor bank accounts daily. I know that sounds like a daunting task in this fast paced world, but make use of the ability to be "logged in" from practically anywhere to your advantage. Keeping a close watch on your accounts could save you a lot of hard ache elsewhere.
And one that Levin did not mention. Ask your credit card company or bank to add either e-mail or text alerts for any changes to your account. If Allen's credit card company had texted him when Price changed his address, a lot of hassle could have been avoided.
Also, and this is one that I was guilty of in the past, don't use the same login and password for all your internet activity (i.e. banking, social media, e-mail, online games) because, if you do, once your password is compromised, they got you. Use something hard to figure out (i.e. not your birthday, mother's maiden name or kid's name) and use upper and lower case letters and numbers in every password. And not just numbers at the end but in the middle too.
Hope these tips help you avoid the nightmare of being an identity theft victim.
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Showing posts with label how to avoid identity theft. Show all posts
Showing posts with label how to avoid identity theft. Show all posts
September 28, 2011
Identity thieves go high tech
Do you think you are safe because you shred your credit card bills (after paying them of course), change your password often and don't respond to e-mails from banks where you've never been a customer? Think again. Identity thieves are now using a new high tech device to take advantage of new features on credit cards. This new device, which costs less than $100, allows identity thieves to electronically pick your pocket without ever touching you.
Newer credit and debit cards, as well as some driver's licenses and passports, are being made with radio frequency identity chips that transmit information. This relatively new feature has opened up an opportunity for identity thieves to use a small device to intercept the signals being transmitted by getting close to you, within 7 feet, from what I am told. Thus, sporting events (like the Cubs/Cardinals game I went to over the weekend) are treasure troves, since at any time you are within 7 feet of multiple people.
Many of the banks/credit card companies whose cards use these new identity chips offer protective sleeves for the credit cards. But for those of us who already have a "George Costanza wallet" issue - see http://www.youtube.com/watch?v=yoPf98i8A0g if you don't understand the reference - this is not a good option. Another option is a whole new type of billfold - a new type that is made of lighweight steel. Never tried a wallet like that myself, but it is said to hamper the success of this type of identity theft.
As I have said before, there is no fool proof way to prevent identity theft. Do your best, but be prepared to take action if and when it happens to you. Dispute the fraudulently opened accounts early and often, with as much detail and supporting proof as you can. And, when that doesn't work, hire someone like me to sue the credit bureaus and/or fraudulent credit grantors using the protections of the Fair Credit Reporting Act. Only in a courtroom are your rights equal to the power of these corporations.
Newer credit and debit cards, as well as some driver's licenses and passports, are being made with radio frequency identity chips that transmit information. This relatively new feature has opened up an opportunity for identity thieves to use a small device to intercept the signals being transmitted by getting close to you, within 7 feet, from what I am told. Thus, sporting events (like the Cubs/Cardinals game I went to over the weekend) are treasure troves, since at any time you are within 7 feet of multiple people.
Many of the banks/credit card companies whose cards use these new identity chips offer protective sleeves for the credit cards. But for those of us who already have a "George Costanza wallet" issue - see http://www.youtube.com/watch?v=yoPf98i8A0g if you don't understand the reference - this is not a good option. Another option is a whole new type of billfold - a new type that is made of lighweight steel. Never tried a wallet like that myself, but it is said to hamper the success of this type of identity theft.
As I have said before, there is no fool proof way to prevent identity theft. Do your best, but be prepared to take action if and when it happens to you. Dispute the fraudulently opened accounts early and often, with as much detail and supporting proof as you can. And, when that doesn't work, hire someone like me to sue the credit bureaus and/or fraudulent credit grantors using the protections of the Fair Credit Reporting Act. Only in a courtroom are your rights equal to the power of these corporations.
March 30, 2011
Tips for avoiding Identity Theft when shopping online
Here are some tips from http://www.retail-digital.com/ regarding how to avoid identity theft when shopping online. I especially agree with tip # 2 - why risk your money when you can risk the credit card company's?!
1. Keep your internet security up-to-date
Updating your internet security, keeping your operating system and browser updated and securing your internet connection can all help to greatly minimise the possibility of a security breach. It is also important to regularly run anti-virus software.
2. Use a credit card over a debit card
Where possible use your credit card instead of a debit card for online purchases. This is important for two reasons. Firstly, if you do become a victim of online fraud and your personal information is stolen, the worse they can do is run up charges on your card. With a debit card this would mean they could drain your bank account. Credit cards are usually easier to dispute fraudulent charges over debit cards and also offer you an extra layer of security.
3. Use secure shopping sites
Always make sure that you use a secure site when submitting information like your credit card details online. Secured websites can be distinguished from unsecure sites in two ways. They use something called SSL and are usually identified by the display of a padlock or other icon in the address bar. The URL of secure starts should also start with https. Secure sites ensure that your personal information is encrypted as it travels across the web. If you are ever unsure, do not use it.
4. Be vigilant
Check your bank statements every month. Research shows that identity thieves often do a test charge to see the card works or not and may not take a lot of money out until months later. By monitoring your account regularly you can notice any suspicious account early and take action before more damage can be done.
1. Keep your internet security up-to-date
Updating your internet security, keeping your operating system and browser updated and securing your internet connection can all help to greatly minimise the possibility of a security breach. It is also important to regularly run anti-virus software.
2. Use a credit card over a debit card
Where possible use your credit card instead of a debit card for online purchases. This is important for two reasons. Firstly, if you do become a victim of online fraud and your personal information is stolen, the worse they can do is run up charges on your card. With a debit card this would mean they could drain your bank account. Credit cards are usually easier to dispute fraudulent charges over debit cards and also offer you an extra layer of security.
3. Use secure shopping sites
Always make sure that you use a secure site when submitting information like your credit card details online. Secured websites can be distinguished from unsecure sites in two ways. They use something called SSL and are usually identified by the display of a padlock or other icon in the address bar. The URL of secure starts should also start with https. Secure sites ensure that your personal information is encrypted as it travels across the web. If you are ever unsure, do not use it.
4. Be vigilant
Check your bank statements every month. Research shows that identity thieves often do a test charge to see the card works or not and may not take a lot of money out until months later. By monitoring your account regularly you can notice any suspicious account early and take action before more damage can be done.
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