To protect yourself from becoming a victim:
- Don't carry a checkbook. Pay by cash or credit card.
- Don't carry your Social Security card with you or use your Social Security number as your driver's license number.
- Buy a paper shredder. Shred any documents listing your social security number and other financial information such as your bank account numbers and credit card numbers. This is the number one way of preventing identity theft.
If someone is using your identity and cashing your checks or credit cards, you should:
Report the situation immediately to your bank or credit card company. You may not have monetary liability because forgery and/or fraud is involved, but you will want the companies to be aware of the problem, as this is something that could affect your credit. In addition, follow these instructions to fully protect yourself:
a) Contact all three credit bureaus and issue a fraud alert. Check your credit report six months later and look for items you don't recognize.
b) Provide a copy of your driver's license to each agency's fraud unit in order to register an affidavit.
c) Contact the proper authorities in writing, via certified receipt request.
d) Inform your local police department, Social Security Administration and all creditors with whom you have accounts.
Credit bureaus:
Equifax: 800-525-6285
Experian: 888-397-3742
Transunion: 800-680-7289
SSA Fraud Hotline: 800-269-0271
If a thief steals your identity and begins racking up debt:
A) Contact the fraud units of the three credit reporting agencies. Request that your account be flagged and add a victim's statement saying, "MY ID has been used to fraudulently apply for credit. Call me at this number to verify all applications." Find out how long the fraud alert will be posted and how to extend it if you need to. Check your credit report and look for items you don't recognize.
B) Contact your credit card companies and financial institutions to report the fraud. Get new cards, have old accounts colsed with a memo stating, "account closed at customer's request." Follow up in writing.
C) Call the police and get the crime on record, then get a copy of the police report. Keep a log of all conversations including date, name, phone number, and the information provided.
D) Notify the Federal Trade Commission, which keeps a database of identity thefts. Phone: (888) FTC-HELP; Address: FTC, CRC-40, Washington D.C. 20580.
E) Notify you bank and if necessary, cancel checking and savings accounts and get new account numbers. Request a password that may be used in every transaction. Get a new ATM card, account number and password. Don't use your SS # or birthdate as a password.
F) Don't pay any bill or part of a bill resulting from identity theft.
May 06, 2008 -- 40 cents for a stolen credit card number?!
The latest Internet Security Threat Report shows that the value of stolen info has declined as the crime of ID theft spikes. Who knew that supply and demand even drove prices in the criminal underworld?!
A stolen credit card number now nets a measly 40 cents! That sum used to be at least several dollars higher. Your bank account number now goes for about $10. And get this -- your entire identity (credit card number, Social Security number, name, address and date of birth) now goes for just $2! Stolen info is that prevalent; in just the first 90 days of 2008, more than 8 million people had their data breached.
Business owners face an added burden when it comes to certain kinds of ID theft. Under the Uniform Commercial Code, they may be held partly or totally responsible if their own credit card or business checking account number is used for phony charges. Consumers would be protected under the same circumstances, but not so with businesses. So it's imperative to keep your check book locked up at the office if you're a business owner.
For consumers, be sure to monitor your credit card statements closely. You have 60 days to dispute any fraudulent charges. And consider freezing your credit. It's the best preventative medicine you can take.
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May 06, 2008 -- The downside of a possible gas tax holiday
Both sides of the aisle are advocating the idea of a gas tax holiday this summer. Yet Clark thinks this is one of the craziest economic ideas he's heard recently. We're all hurting as we watch the dollars fly and the gallons crawl at the pump. But the gas tax holiday is a recipe for financial disaster. It would increase demand and ultimately drive up prices.
Brazil is one country that's made some smart decisions in the energy realm. The South American nation was even more dependent on foreign oil than we were during the last energy crisis in 1979. So they embarked on a program of energy independence using sugar. Our Brazilian allies now provide for 100% of their energy needs and can export additional sugar as well.
Sugar produces a fuel that's more efficient than the corn-based ethanol we use. So why aren't we getting Brazil's exports? Domestic sugar producers have gotten Congress to put up trade barriers to keep it out of the marketplace. Meanwhile, our farmers have turned to growing their corn crop for fuel use, not for food. That, of course, further drives up the price of food!
We continue to use foreign oil from those who want to destroy us, instead of using sugar from our allies in Brazil. It makes no sense to Clark.
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Dec 11, 2007 -- Halt the growth of ID theft with a credit freeze
The latest figures show that ID theft continues to grow at an alarming pace. The feds report that 8.5 million people had their identity stolen last year. But other private industry reports put that number between 12-15 million last year. ID theft can range from a minor aggravation to a full-on tragedy. In the latter category, Clark has heard numerous stories over the years of ID theft taking place within families. There are instances where a father will steal the ID of a son, or a mother of a daughter.
So what can you do about ID theft? Try freezing your credit file. Credit freezes are now available in all 50 states from all 3 credit-reporting bureaus. See our credit freeze guide if you're having trouble navigating the often-confusing application process. Credit freezes shut down ID thieves cold. A "perk" is that you also shut down your ability to make an impulse purchase with a new line of credit! You'll pay a nominal fee to do a credit freeze or thaw. But the cost will be nothing compared to the hassle you could have if you leave yourself unprotected. A cautionary tale comes to us from Britain, where the government recently lost the data files of 25 million people in one fell swoop. Now criminals have all the info they need to wreak havoc. The British prime minister is understandably facing a firestorm of protest.
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