The Costco Connection - October 2013

inside costco

By Hana Medina

THIS TIME OF year, some real scary things are going on out there, and we’re not just talking about your child’s Halloween costume. Fall is prime season for kids’ personal information to be compromised, which can potentially lead to identity theft.

“When kids register for fall sports or after-school
activities, parents submit applications that include
their child’s name, Social Security number [SSN] and
address, and it can end up in the wrong hands,” says
Christine Sonnenberg, senior director of marketing
at Intersections Inc., which provides Costco’s Identity
Guard® service. “It can also happen with unsecured
medical records at the pediatrician’s office, going in
for an annual checkup or immunizations.”
SSNs are the leading piece of information used
to compromise a child’s identity, according to a 2012
study conducted by Javelin Strategy & Research.
The same study found that one in 40 households
with children under 18 had at least one child who
had experienced ID theft.

Why kids?

Children are prime targets due to their lack of credit history. Sonnenberg says thieves assign the SSN to a different name and address, and then apply for credit cards, loans or other financial benefits. The theft can go undetected for years, and sometimes isn’t discovered until the child applies for a first credit card or loan.

Some thieves also steal SSNs to commit crimes without having them become part of their own criminal record. Sonnenberg says that, due to identity theft, children have defaulted on loans, received mailed speeding tickets or were charged with crimes they didn’t commit.

Clues

Child ID theft can be hard to pinpoint, but Sonnenberg says that these events are among the warning signs that a child’s identity may be compromised: The child starts receiving credit card offers;

collection agencies start calling the child; tickets or court requests start arriving in the mail.

The Federal Trade Commission (FTC) website ( www.consumer.ftc.gov) says a child may also “be turned down for government benefits because [they are] being paid to another account using [the] child’s Social Security number” or the child may even “get a notice from the IRS saying the child didn’t pay income taxes, or that the child’s Social Security number was used on another tax return.”

Prevention

Sonnenberg advises following these basic steps to protect your children:

; Don’t give your children’s information away, especially their SSNs. Supply only the last four digits of the SSN if possible. Ask why the information is needed and how it will be used and secured.

; Ask medical offices how they secure patient files. If they’re on paper, are they locked? If they are electronic, are they encrypted?

; Teach your kids safe Internet habits, especially concerning social media. No one should post a SSN or home address online.

; The FTC site recommends checking all three credit bureaus to see if your child has an established credit history.

Identity Guard recently added kids to their identity protection plans. kID Sure® specifically monitors the Internet, chat rooms and public records for a child’s information. They search for and protect against Social Security number exposure and false criminal, Department of Motor Vehicles and utilities records. kID Sure alerts parents of a potential compromise before it becomes a complicated situation. Identity Guard’s Identity Theft Recovery Agents are available by phone to walk through every step of the recovery process if your child’s identity is stolen.

For more information, for pricing or to sign up, visit Costco.com and search “kidsure.” C

TECHNOLOGY HAS revolutionized the business world, and so have the tools that keep businesses running. Methods to pay for goods and services are handier and more mobile than ever. Elavon, Costco’s payment processing provider, offers simple point-of-sale solutions and affordable processing plans to fit businesses of any size.

Elavon’s VirtualMerchant software allows businesses to transform any PC Web browser into a payment terminal. This secure, hosted payment solution supports both keyed and swiped transactions (with the addition of a card reader). VirtualMerchant has been favored by online businesses, but even storefronts have found it very useful as their main payment terminal.

The VirtualMerchant app turns any mobile device into a payment terminal, allowing traveling businesses to provide their customers with a convenient and secure payment method. The app accommodates keyed and swiped transactions (with the addition of a mobile card reader, currently free for new accounts).

This option eliminates the need for an extra phone line or equipment for payment processing.

Elavon’s pricing
plans also have evolved.

The Clear and Simple pricing plan—introduced last spring— offers Executive members a

2. 49 percent flat rate for swiped-card transactions and a flat rate of 3. 49 percent plus 15 cents per keyed transaction, simplifying options for business owners who prefer an alternative to a tiered-pricing plan. Members can use any type of payment terminal with this plan, and there are no limits on transaction volume.