Common Sense: Your Guide to Safe Urban Living

Identity Theft

Although identity theft affects millions of Americans every year, you can take steps to lessen the chances of becoming a victim. Identity theft occurs when someone fraudulently uses your name, Social Security number, or credit card to, for example, apply for additional credit cards or loans. In most instances, identity theft results in ruined credit scores that jeopardize your fi nancial stability. A stolen identity can also result in problems with the law if the thief uses your name and information after an arrest. Identity thieves can gain access to personal information via physical or electronic means. Although you may not have direct control over some of their methods, you can deter identity thieves by being proactive in managing your fi nancial records and credit history.

Ways that thieves can steal your identity

• Searching through your mail for bank or credit card statements
• Snatching your wallet or purse
• Accessing information from businesses that have your personal information
• Posing as legitimate businesses over the phone or through e-mail to collect information (also known as phishing)

Ways to prevent your identity from being stolen

• Shred all documents containing account information before discarding them.

  This should include credit card offers and cash-advance credit card checks.

• Never give out personal information over the phone or through e-mail unless you made the phone call or you verified the validity of the information request.

  Be aware that identity thieves use creative ways to portray themselves as legitimate government or bank institutions. They may use specific Web sites, e-mail names, and even logos.

• Save important documents in a secure location.

  Safeguard your Social Security card and all papers that contain employment and medical information. Be especially careful when your household has additional occupants such as roommates or visitors (e.g., workers, agents, prospective buyers).

• Use complicated passwords and change them frequently when conducting financial transactions online or storing electronic documents.

  It is never a good idea to use your name, date of birth, or Social Security number as a password.

Although these tips are helpful, perhaps the most effective ways to deter identity theft are to make a monthly analysis of your statements and to frequently review your credit reports. The top three consumer reporting agencies (Equifax, Experian, and TransUnion) provide a free annual credit report upon request. Take advantage of this opportunity! Your credit report lists every instance in which you applied for credit, making it easier for you to detect suspicious activity. To request a copy of your credit report, visit annualcreditreport.com or call 1-877-322-8228.

For additional resources on identity theft, visit ftc.gov/bcp/edu/microsites/idtheft/ index.html.