volume 31, number 5
assets
a business, tax, and
financial newsletter
Ways to Protect Yourself
from Identity Theft
i
dentity theft is one of the fastest growing crimes in the United States,
with an estimated 9 million victims every year, according to the Federal
Trade Commission (FTC, 2011). Identity theft is a type of fraud in which the
thief uses your personal information to conduct transactions in your name.
Thieves may, for example, use your identifying information to open or empty
bank accounts, obtain credit cards, or take out loans.
Thieves can sometimes access your confidential financial details when
companies that hold your information, such as your bank and credit card
providers, lose customer data or have their systems raided by hackers. While
these situations are out of your control, there are several steps you can take
to help reduce the risk of having your personal details stolen and misused, as
well as a number of ways to detect a theft early and minimize damage done
to your credit. Consider taking these precautions to reduce your chances of
becoming a victim of ID theft:
•
in this issue:
Life Insurance and
Estate Taxation
Retaining
Business Records
Choosing Your
Pension Payout Option
Monitor your credit reports, checking regularly for any suspicious transac-
tions. Under Federal law, each of the three major credit bureaus, Experian,
Equifax, and TransUnion, must provide consumers with a free annual
credit report upon request. You can access the reports through one website
co-sponsored by the agencies, www.annualcreditreport.com. A thorough
review of these reports, also known as credit file disclosures, can reveal
any unusual activity.
•
While you can order all three disclosures at once, requesting one report
at four-month intervals may be a more effective way to monitor your
score. You are entitled to receive free reports more than once a year if you
are unemployed or have been denied credit, insurance, or employment
because of your credit score.
• Do not provide sensitive data in response to e-mail or telephone solici tations. If you are interested in an offer, take down the caller’s contact
information and verify that the company is legitimate before revealing
your identifying information. You can bar telemarketers from calling you
by registering your phone number with the Do Not Call Registry at
www.donotcall.gov.
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