Identity fraud crimes, one of the most insidious forms of white-collar crime, are a federal offense under the Identity Theft and Assumption Deterrence Act. Identity fraud is the deliberate appropriation of an individual's personal information to impersonate that person in a legal sense. In the sci-fi flick "The 6th Day" machines are used to replicate the mental state of a person, such as memories, habits, etc. and subsequently create a clone. Similarly, stealing someone's identity allows a fraudster to clone or create your shadow, enabling him to make a number of financial and personal transactions in your name, thus making your life a living hell, particularly if you don't realize what has happened right away, and the pretender siphons off huge funds. Identity theft is usually slow to detect and even slower to rectify.
Therefore, to detect many types of identity theft crimes in the earliest stages and minimize damages, you should subscribe to one of the identity theft monitoring services provided by all three credit bureaus. For a small monthly or yearly fee, the identity theft monitoring agency of your choice notifies you by email of any changes or unusual activity in your credit reports. Most of these services come with identity theft insurance as well as the reports. Some of the bureaus even offer a three-in-one monitoring service that alerts you to changes in any of the three bureaus' reports. Federal Trade Commission (FTC), the leading governmental agency addressing the problem of identity fraud, recently launched an identity theft monitoring website called annualcreditreport where all consumers are eligible for a free copy of their credit reports. I recommend that you visit this web site and determine if the service is for you. Idntity theft is serious and could happen to anyone.
Banks, credit cards, debit cards and brokerage statements give a transaction-by-transaction replay of where you spent your money for the month. The more often you monitor them, the more quickly you will detect foul play. However, the best way to obtain and monitor your credit worthiness is through identity theft monitoring organizations that work with major reporting agencies. Time is of the essence. Monitoring credit statements on the Net, removes the paper statements from the mail, and there is a very little lag time between making a charge on your card and being able to view it online, thus cutting detection time. Fast detection time is your friend in stopping identity theft.
We've all heard the horror stories about identity theft, but is it really likely to happen to you? According to the non-profit Identity Theft Resource Center, everyone has a chance of becoming a victim. You can greatly decrease the risks by following a few simple tactics to make yourself virtually identity theft proof.
It's just common sense that you shouldn't carry around your social security card or bank PIN number in your wallet, and that you should lock up or shred any financially sensitive documents like credit card or bank statements. Yet, criminals are still able to gain access to these key pieces of personal identifying information and use them for their own illegal gain. Contrary to popular belief, the majority of identity theft does not start online. It comes from stolen mail, dumpster diving, and lost or stolen wallets.
Armed with your personal information (your name, address, birth date, etc.), the thief can commit check or credit card fraud, and even obtain a loan in your name. When the financial institution checks the personal information against the data at a national credit bureau, it sees no problem. The data the thief provided matches the official records.
Here's how you can defend against basic identity theft, where the criminal steals your identity and then uses it to open a new credit account for their personal gain. Place an "Initial Fraud Alert" on all three of your credit reports (TransUnion, Equifax, and Experian). This can only be done if you feel your personal information has been compromised. The Initial Fraud Alert requires that lending institutions call you at the phone number listed on your credit report to confirm any new transactions. That should stop a thief from getting money in your name, but unfortunately the Initial Fraud Alert only lasts for 90 days.
Another form of identity theft is credit hijacking. That is when the criminal steals your identity in order to use your existing credit accounts. In order to protect against credit hijacking, many online merchants now use "Address Verification Service." This security feature only approves credit card transactions for merchandise that is shipped to the same address as your credit card billing address. So far, so good. Until the thief calls up the bank, posing as you, and changes your billing address. An excellent defense against this scam is to establish a personal security code with all your bank accounts and credit cards. This code is a unique group of numbers and letters that you create, and then give to the financial institutions. Now when the thief tries to hijack your credit, the bank will ask for the personal security code, and he'll be stopped cold. Of course, it's critical that you keep this code truly secure.
In summary, if you establish an Initial Fraud Alert and a personal security code, you'll be protected against the most common forms of identity theft. If a thief tries to open a new credit account in your name, the financial institution will call you for approval. And if the criminal tries to hijack your credit by changing your mailing address, the financial institution will ask for your personal security code. Game over.
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Keith Londrie has sinced written about articles on various topics from Online Dating, Information Technology and ADHD. Keith Londrie II is a well known author. For more information on Identity Theft, please visit for a wealth of information. You may also want to. Keith Londrie's top article generates over 246000 views. to your Favourites.
Jay Peters has sinced written about articles on various topics from Bad Credit Loans, Free Credit Report Score and Credit Counseling. To learn the inside secrets to fixing your credit fast, visit the author's website: . Jay Peters's top article generates over 40500 views. to your Favourites.