Wednesday, January 23, 2013

Why You Want To


Why You Want To

Phebe Durand

Online shopping has opened us to a whole new world of purchasing opportunities ... and a whole new realm of fear. Each time the news reports that yet another company has been "breached" - the banks of information the company stores on its customers lost or stolen - our fears grow larger.
To make matters worse, most people who have their identity stolen are victims of people they know well - people who stole a social security number or other personal information because they had physical access to it.
The most damaging type of identity theft is known as "new account" identity theft. This type of fraud occurs when someone steals personal information, like your social security number, and uses it to open a new account in your name. The account might be a credit card, a checking account, or a new apartment - the point is that since it's attached to your name and social security number, the charges go straight to your credit report and damage your reputation.
When new account theft occurs, it will likely be years before you find out about it. By then, your credit ratings will be a nightmare and your financial reputation ruined.
The good news is that you have an easy - and very inexpensive - safeguard if you live in one of the following states: California, Colorado, Connecticut, Florida, Illinois, Kentucky, Louisiana, Maine, Minnesota, Nevada, New Jersey, North Carolina, Texas, Vermont, or Washington. If you don't live in one of these states, you're going to want to keep a close eye on Congress as they try to pass laws extending the safeguard nationwide.
What's the safeguard? Locking your credit reports.
How Does Locking My Credit Report Help?
When you (or an identity thief) attempt to open a new credit card account, the financial institution you apply to has to check your credit report. They use your credit report to determine how likely you are to pay back the money you borrow, and use this information to decide whether or not they are able to issue you a card.
If you have a credit lock on your account, the institution will not be able to see your report at all. If they can't see your report, they can't open a new account in your name.
This applies to anyone that checks credit ratings to issue products or services - including lenders, insurers, cell phone companies, landlords, etc.
In other words, locking your credit report is like putting your identity in a safety deposit box. Only you have access to the box, the information, and what can be done with it.
Locking your credit isn't a permanent thing, either. When you need a lender or business to be able to have access to your credit report, you can unlock your report for a specific amount of time. After they have checked your credit, the reports are immediately frozen again. You choose when the reports are locked and unlocked. Total identity theft protection.
How to Lock Your Credit Reports
First, remember that only a few states currently allow you to freeze your credit. Secondly, in Texas, Vermont, Illinois, and Washington you are only allowed to freeze your credit if you have already fallen victim to identity theft or a security breach.
If you live in a state that doesn't allow a credit freeze, you can contact each of the three major credit reporting agencies to place a fraud alert on your credit report. Using this, you are supposed to be contacted if someone applies for credit in your name. Creditors aren't required to abide by - or even check - this alert, though.
To lock down your credit report, you will need to contact each of the three credit reporting agencies (Equifax, Experian, and TransUnion). Most states won't require you to pay a fee if you are the victim of identity theft - but you'll need a report from the police. Depending on the state you live in, each agency will require a different fee for locking or temporarily lifting your credit reports, but none will charge for permanently lifting the freeze if you change your mind later on.
Here are the details on each credit reporting agency, and what you need to send. You will want to first give the agency a quick call to find out how much the fees are, but they generally don't amount to more than $10 - if they apply to you at all.
Equifax
1-800-685-1111
Equifax Security Freeze
P.O. Box 105788
Atlanta, GA 30348
* Send by certified mail.
* Name, current and former address, Social Security number, date of birth
* Pay by check, money order or credit card. Credit card (Visa, Master Card, American Express or Discover only): Give name of card, account number, expiration date
* ID theft victim must include: valid copy of police report, investigative report or complaint filed with law enforcement agency
Experian
1-888-397-3742
Experian Security Freeze
P. O. Box 9554
Allen, TX 75013
* Send by certified mail.
* Full name, with middle initial and Jr./Sr., etc.
* Current address and home addresses for past five years, Social Security number, birth date, two proofs of residence (copy of driver's license, utility bill, insurance statement, bank statement)
* Pay by check, money order or credit card. Credit card: Give name of card, account number and expiration date.
* ID theft victim must include: valid copy of police report, investigative report or complaint filed with law enforcement agency
TransUnion
1-888-909-8872
Trans Union Security Freeze
P. O. Box 6790
Fullerton, CA 92834-6790
* Send by regular or certified mail.
* First name, middle initial, last name, Jr., etc.
* Current home address and addresses for past five years, Social Security number, birth date
* Pay by check, money order or credit card. Credit card: Give name of card, account number and expiration date.
* ID theft victim must include: valid copy of police report, investigative report or complaint filed with law enforcement agency

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