Preventing Identity Theft Requires Consumer Responsibility
Preventing identity theft is not just a matter of implementing new government regulation. Laws can be passed between now and the end of the world intending to prevent identity theft, and yet there would still be those creative criminals able to slip between the cracks.
The moral of this story is that you need to do everything possible to protect yourself from those determined to steal another person’s identity for the purpose of buying goods and services or to obtain credit or loans illegally.
Recently the federal government reported that 10 million people were the victims of identity theft in 2008. Too many consumers wait until they become victims to take a proactive approach to identity theft prevention. They watch for the lock icon on website screens and change their passwords periodically and still find themselves trying to undo damage to their credit as a result of identity theft.
The government wants every consumer to understand their options when it comes to preventing identity theft and online fraud. One of the many issues the government faces when trying to prosecute these kinds of cases is finding the people or organizations that committed the fraud in the first place. With all the benefits gained by having access to the internet, it is also possible for criminals around the world to get access to your account information unless you take special precautions.
Once a criminal has your account information he or she will usually try to use that information to continue fraudulent activity to buy goods or services or to borrow money in your name. There was a case of a woman who had her identity stolen and didn’t know it for months because she seldom used her charge cards.
The thief had stolen her credit information and then changed the mailing address on the account so she didn’t get a statement. By the time she realized what had happened, there were thousands of dollars of debt incurred.
That leads to the first important fact. It is up to consumers to regularly check their loan and credit card accounts for accuracy. If a thief has used an existing account, then you can certainly prevent the thief from opening up any more accounts.
It is possible to place a ‘fraud alert’ on your account so creditors know to use extra caution when approving new credit under your name. The law requires creditors to use “reasonable policies and procedures” when it comes to verifying your identity.
There are two kinds of fraud alerts. The first is a temporary 90 day alert that expires. This alert is used by people who suspect their identity has been or will be stolen or who believe they have exposed themselves to this type of fraud. If you know you have been a victim, you can add a fraud alert to your credit report that will remain for up to 7 years.
It is now also possible to put a credit freeze on your credit report. The credit freeze will stop someone from opening a new account or a line of credit. The freeze can be left in place for up to 7 years also. If you need to create a new account, it’s possible to temporarily lift the freeze so a lender can do a credit check.
Each state has different laws and fees related to these actions, but the general rules are the same across the board. If you want to place fraud alerts or credit freezes, it is recommended you contact one of the 3 major credit agencies – Equifax, Experian or TransUnion. The one you contact will inform the other 2 national credit reporting agencies.
Keeping updated on current laws concerning protecting your identity is important. One thing that is always pointed out is that you must move quickly when you suspect someone is trying to commit fraud using your personal information. The longer you delay, the more likely you will become a victim.
