Ways to Shield Yourself From Identity Theft

Arizona is No. 1. Hold your applause.

For the fourth consecutive year, our state is tops in the nation for identity theft, according to a recent report from the Better Business Bureau.

The Federal Trade Commission's Identity Theft Data Clearinghouse reports that Arizonans filed 9,113 identity-theft complaints in 2006, the most recent year for which data were available. A little more than 1,500 of those complaints came from Tucsonans. Sierra Vista and Douglas residents accounted for another 229.

While most people think of credit cards and other forms of financial fraud, identity theft — specifically, misuse of another person's Social Security number and personal identifying information — is also used to commit employment fraud, fraudulent reporting to police and medical fraud.

It's enough to keep some people paralyzed with worry, and the crime has spawned an entire industry dedicated to identity protection and recovery.

But take a deep breath — your identity might already be safer than the identity-protection marketers would have you believe.

According to 2006 Census Bureau statistics, Arizona had about 2.95 million people old enough to be in the labor force. That means less than 1 percent of the labor force — three-tenths of 1 percent, in fact — reported having their identities stolen that year.

However, for the small percentage of people whose identities are stolen each year, life can be a twisted nightmare to get back on track.

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STEPS TO AVOID ID THEFT

Protect your Social Security Number. Don't write it on a check or use it as your driver's license number or health-insurance policy number. Don't carry your Social Security card in your wallet. When people ask for the number, find out why they need it, how it will be used, how it will be protected and what will happen if you don't give the number.

Treat your trash and mail carefully. Identity thieves have been known to pick through garbage and steal mail from mailboxes. Shred financial papers that have personal identifying information.

Send outgoing mail through a post office collection box instead of an unsecured mailbox. Opt out of pre-screened credit offers that come in the mail by calling 1-888-5-OPT-OUT (1-888-567-8688). Be advised: You will be asked for your Social Security number so the consumer reporting companies can match you with your file.

Don't respond to unknown solicitations by phone or e-mail. Verify a source before sharing information. Don't give out personal information unless you initiated the contact and you're sure you know whom you're dealing with.

Be on guard when using the Internet. Update firewalls and anti-virus software on your computer.

Pick intricate passwords. Put passwords on your credit, bank and phone accounts, and avoid passwords that might be easily guessed, such as your birthdate, mother's maiden name, the last four digits of your Social Security number, a series of consecutive numbers, etc.

Consider placing a credit freeze or fraud alert. Credit freezes are meant as a preventive measure, while fraud alerts are for people who think their Social Security numbers already have been compromised. For more information, see the related box.

Sources: Federal Trade Commission and Arizona attorney general

REPORTING ID THEFT

The Federal Trade Commission's identity theft site, including instructions and complaint forms, can be accessed through www.consumer.gov. Or call the FTC's identity theft hot line toll-free at 1-877-ID-THEFT (1-877-438-4338).

The Arizona attorney general's site has an entire section dedicated to avoiding identity theft and what to do if you're a victim, including a downloadable Identity Theft Repair Kit: www.azag.gov. For more information, call 1-800-352-8431.

ID THEFT PROTECTION

If you search online for identity theft protection, you'll discover there are dozens of companies that offer various kinds of service. In fact, some homeowners insurance policies even offer it.
Experts including the Identity Theft Resource Center advise consumers to compare services carefully, keeping in mind that you may be able to take many of the steps yourself at little or no cost.

Here's a snapshot of a few ID-theft protection services:
Tempe-based LifeLock:
• $10 per month.
• Sets and renews fraud alerts.
• Removes your name from mailing lists for junk mail and pre-approved credit offers.
• Offers up to $1 million to repair any fraud damage done to your identity while covered by the company.
• Go online to www.lifelock.com or call 1-877-LIFELOCK (543-3562).
Pre-Paid Legal Services Inc.'s Identity Theft Shield:
• $9.95 per month per couple in conjunction with a legal service plan, or $12.95 per month on its own, with a one-time $10 enrollment fee. The Gold plan is $3 more per month.
• A risk-management firm monitors your Experian credit report — or all three credit reports under the Gold plan — and sends monthly updates by e-mail or regular mail to inform you of any activity. It notifies you immediately if fraud is detected.
• The firm will investigate and work on your behalf with banks and creditors after you sign a limited power of attorney to restore your identity if it is compromised.
• Go online to www.prepaidlegal.com, find a local Pre-Paid Legal independent associate in the telephone book or check with your chamber of commerce.
Intelius Inc.'s IDWatch:
• Three billing options, each prepaid in one installment: Three months for $9.95 per month, a year for $7.95 per month, or three years for $4.95 per month.
• Builds an "identity profile" that includes a current credit report, address history, aliases and background information to help determine if you are at risk for identity theft. Sends alerts about suspicious activity within your identity and monitors your identity profile daily, scouring the black market for the use, trade or sale of your identity-related information.
• Includes a $25,000 insurance policy for recovery-related expenses in case someone uses your identity.
• Go online to www.intelius.com or call 1-425-974-6100.
ALERTS AND REPORTS
• Call the toll-free number of any of the three credit-reporting companies to place a fraud alert on your credit report and order a free copy of your credit report. When you receive your credit report, review it carefully.
• To place an initial fraud alert, contact Equifax at 1-800-525-6285, www.equifax.com; Experian at 1-888-397-3742, www.experian.com; and TransUnion at 1-800-680-7289, www.transunion.com.
• To take advantage of your right to one free copy per year of your credit report from each of the three consumer reporting companies, call 1-877-322-8228 or order online at www.annualcreditreport.com.

CREDIT FREEZE VS. FRAUD ALERT

When you place a credit freeze, potential creditors will not be able to access your credit report unless you temporarily lift the freeze. This makes it difficult for an identity thief to open a new financial account in your name.

In Arizona, all consumers are eligible to place a credit freeze. There is no cost for identity-theft victims, and there is a $10 fee for anyone else to place, temporarily lift or completely remove the credit freeze.

A fraud alert is a tool for people who have had or suspect they've had their identity stolen. With a fraud alert in place, businesses may still check your credit report.

With an initial fraud alert, which is good for 90 days, when someone tries to take out credit in your name, you are contacted and must give verification that it's you, or else the credit is denied.

Reference: azstarnet.com

(IDTheftDefense.com) and (USPublicRecords.com)