CONSUMERCONNECTION
Avoiding ID theft
Keeping your personal information safe
AS TECHNOLOGY like EMV chip cards is
introduced into our daily lives to help cut down
on fraud, identity thieves are finding new ways
to acquire and abuse your personal information
and steal money. It’s impossible to say with ;;;
percent certainty that you can stop identity
theft from happening to you. What you can do is
know about damaging forms of identity theft
and adopt habits that protect your accounts and
personal information.
doesn’t need to be physically present.
• New account fraud means a new account is
fraudulently opened in your name and you
aren’t aware of it because all account information is sent to the thief who created it.
JERRAD MATTHEW / © AMANDA HOROWITZ MEDIA
“If you just took the time to look at your
finances you would be able to head off a major
problem,” says Rob Douglas, a nationally recognized identity theft and information security
consultant (identitytheft.info). “It’s mind-blowing to me how many people don’t do it.”
• W-; fraud occurs when a crook sends an
official-looking email that purports to be from a
company executive or the IRS, requesting W-;
or payroll data. For small businesses, the email
might be sent to a bookkeeper or accountant.
These emails are designed to get information
that can be used for crimes like filing fraudulent
tax returns for refunds.
AMANDA HOROWITZ
Account takeover fraud, card-not-present
fraud, new account fraud and W-; fraud are
damaging forms of ID theft, and you should
know how they work. I collaborated with
Douglas to unpack this topic.
• Account takeover fraud means a thief uses
your personal information to access your financial accounts and reroute your account communications in order to keep you in the dark. The
thief might clean out your funds, request credit
cards or pose as you to borrow money.
As Douglas notes, one of the most obvious
ways to protect yourself from identity theft in
general is to check your accounts often. Utilize
account alerts and look at transactions to make
sure they are yours. The more immediately a
financial institution or credit card issuer is
notified that fraud has occurred on an account,
the sooner they can act to limit the damage.
Early notification can also help limit your liability in some cases.
Here are other basic protections you can
practice to reduce your exposure.
Amanda Horowitz is a writer,
businesswoman and owner
of Fight Back! She is the
daughter of Fight Back’s
founder, David Horowitz.
Fight Back! has received multiple Emmy Awards, awards
from more than ;;; government and citizen groups, and
has helped to draft over ;;
pieces of consumer-related
legislation in America.
•Card-not-present fraud occurs when
crooks use your stolen credit card information
to buy things online or on the phone. That way
they can circumvent EMV cards since the card
Don’t use simple passwords. Create strong,
unique passwords that use a mix of numbers,
symbols and letters. Avoid using common
words, obvious passwords like “;;;;;;;” or personal information. You should have different
passwords for all accounts and utilize two-factor
authentication.
We think that password-complexity practices should be mandatory until biometrics like
thumbprints, facial recognition and retina scans
are further implemented to improve security.
Horowitz can be contacted
at Amanda@fightback.com.
Please include “Consumer
Connection” in the subject
line. She will select questions
to answer in this column
but regrets that unpublished
questions cannot be answered
individually.
CHRIS A RUSNAK
MORE IN ARCHIVES
At costcoconnection.com,
search “Consumer Connection.”
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Please note that Amanda Horowitz
and Fight Back! are not licensed
professionals in any field. If you are
seeking professional advice you should
consult with your own licensed
professional. Amanda Horowitz and
Fight Back! do not assume any liability
or responsibility for the interpretation,
application, or accuracy of any
information provided.
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Check your credit reports. Federal law
requires each of the three major credit reporting agencies—Experian, TransUnion and
Equifax—to give you a free credit report at your
request each year. You need to check your credit
report to make sure the information is complete and up-to-date. If an identity thief uses
your information to open a new credit card
account in your name, for example, and doesn’t
pay the bills, the delinquent account is reported
on your credit report. So check the history and
status of your accounts.
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Consider a freeze. Placing a credit freeze
(aka security freeze) on your credit files lets you
restrict access to your credit report, making it
more difficult for thieves to open new accounts
in your name. It doesn’t stop a thief from accessing your existing accounts. Each state has its
own rules about credit freezes and how much
you pay for them. Contact the nationwide credit
reporting companies for more info. C
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