10 Steps to Prevent Identity Theft

by Tom Furio

Identity theft. Those words can make your blood run cold. A recent General Accounting Office report estimates that approximately 750,000 Americans are victims of identity theft every year! Those are reported cases. Many more cases go unreported.

You can’t just close your eyes and pray that it doesn’t happen to you. Unfortunately this is a very real part of today’s world. You must be proactive in protecting yourself.

Let me share a real story about a client of mine. This family had great credit and a great family business. They did everything right. They made their payments on time. They kept their personal and business accounts separate. They were had worked hard to position themselves financially for long term financial health.

I had helped them refinance their home a few years prior and we had made some small adjustments to their financial strategy so that their financial position would continue to improve. When they called me to buy their new home, the home of their dreams, I knew that they would have no problems in securing the mortgage strategy that would fit their financial plan. Since this was to be a newly constructed home we needed an approval to start construction. This went without a hitch. Construction began and they paid deposits along the way that totaled more than $70,000 toward their $550,000 new home. Six months later as the home was nearing completion, we had to get a new approval based on their current financial picture. When I pulled credit I was shocked. Though their credit was still strong, they had $75,000 in new debt! They were no longer able to qualify for the mortgage on their new home. And the now had more than $70,000 invested in the process; they could not back out of the purchase!

What had happened was that someone stole their identity. In fact, the thieves not only used their identity to charge $75,000 worth of merchandise, they had been making the payments so that no flags were triggered that would have alerted them to the problem.

The good news is that together, we were able to get the authorities involved, get affidavits filed and gather all the documentation needed to get their loan approved. But that could have cost them their home, their credit worthiness and their peace of mind.

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Don’t be a victim. Take these proactive steps to protect your identity. Though there is no guarantee that your identity won’t be compromised, these steps will protect you from most of the attacks that are currently in use.

1. Secure or destroy private records and statements. If you have a personal safe or safety deposit box, use it. Make sure all documents that contain your personal information are stored in the safe. If you do not have a safe, tear up or better yet, shred all documents that contain your critical personal information.
2. Secure your mail. Make sure that you retrieve your mail quickly from your mailbox. Do not let mail sit in their more than is necessary. Consider getting a P.O. Box for all financial correspondence. Also, do not mail out bill payments or any other check from your home mailbox. Drop them in your neighborhood mailbox or drive through post office.
3. Secure Your Social Security Number. Never carry your Social Security card with you unless you intend to use it. Make sure that none of your other identification has your Social Security number on it either. Never have your number printed on your checks.
4. Erase your paper trail. Do not leave credit card, gas station or ATM receipts behind.
5. Keep your credit card in sight at all times. Make sure that you keep your card in sight at all times. Don’t let cashiers lower your card below counter level. Most cashiers are trained to keep the card on top of the counter at all times. If you card leaves your site, ask them to leave it on the counter. This is more difficult at restaurants. If you feel that your waiter or waitress may not be trustworthy, ask for a manager or use cash.
6. Always confirm who you are interacting with. All reputable companies have a policy of NOT asking for personal information in an email or in an unsolicited phone call. If someone calls you and asks for personal information, ask to call them back. Call their main office to confirm that this is a legitimate call. Never click on email links to provide personal information. Those links are easily altered to look like they are from a legitimate company when in reality they are thieves posing as a real company. Always go to their main website to transact any business. NEVER reply to unsolicited mortgage offers.
7. Remove your name and phone number from telemarketer’s lists. Place your phone numbers on the national Do-Not-Call registry. Call 1-888-382-1222 or go to https://www.donotcall.gov/default.aspx. Also, every time you apply for credit, car loans, mortgages, credit cards, the credit reporting companies sell your information to other companies. You will be bombarded with phone calls, email and U.S. mail with credit solicitations. To stop this, go to www.optoutprescreen.com. Do this at least 48 hours prior to applying for new credit.
8. Be proactive in defending your information. Many transactions require your personal information, many don’t. When you are asked for your personal information, always ask if the requested information is absolutely necessary. If it is, ask them about their privacy policy. Make sure that they do not share your information with third parties.
9. Review your credit card statements. I know you already do but make sure that you recognize all transactions that are on that statement. You want to be sure that no one is using your credit card without your permission.
10. Review your credit report annually. This allows you to make sure that no one has created new credit accounts without your knowledge. It will also allow you to address any inaccuracies before you need your credit. I offer a free service to go over your credit report with you. To take advantage of my free consultation call me at 866-388-1036 ext.110.

There is an 11th step as well. The first 10 steps you can do at no charge today. The 11th step is to use a service to secure your identity. I have reviewed several of them and in my opinion, the best one right now is LifeLock. You may have seen or heard their commercial where the CEO gives out his Social Security number on air. For more information “Click Here” or go to www.lifelock.com and use the Promo Code “guardian”. We have secured a 10% discount for anyone who reads this article. Either click on the link above or go to their web site and use the Promo Code “Guardian”

To discuss these strategies in detail call me at 866-388-1036 ext. 110