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How to Protect Your Credit from Identity Theft
Rapid technological advances have made identity theft one of the fastest-growing crimes in the nation. Identity thieves will use easily available information to get credit in your name. The law limits your dollar loss for credit card fraud to $50 per account. How-ever, the big problem is the damage identity theft can cause to your credit rating. People with good credit, good incomes, and common names are most at risk.
Identity thieves only need your name and Social Security number to access your credit. This information is fairly easy to get:
- Credit-reporting agencies sell it legally to "customers" who give your last name, last known address (often in the phone book), and a few dollars.
- It may be on your health insurance card or driver’s license.
- You sometimes write it on your personal checks.
- It’s in your mail. Thieves can file a temporary change-of-address form with the post office in your name (no ID required). Credit solicitations and pre-approved card offers make it easier for thieves to open new accounts in your name. To block the big credit reporting agencies from selling your name to lenders who make these offers, call the "opt out" numbers below.
Ways to avoid having your credit identity stolen
- Close unused credit card accounts.
- Keep a list of credit card numbers, lines of credit and company phone numbers.
- Don't throw ATM or credit card receipts in public trash cans. Tear them up before putting them in your garbage.
- List your name and phone number in the phone book without an address.
- Beware when using your credit card to buy something on the Internet. Many sites are not very secure.
What to do at the first sign of fraud
- Request a copy of your credit file.
- Keep a record of your efforts to fix the problem, including dates, who you spoke with, and what was discussed.
- Call and write the fraud departments of the three major credit reporting agencies at the numbers below. Demand that a fraud alert be placed in your file and that the fraudulent information be removed. You may also put a statement in your file asking creditors to call you to verify future credit applications.
- Dispute false information in your credit report, and require credit bureaus to put your version of the incident(s) in your file. Both the credit reporting agency and the information provider are responsible for correcting inaccurate information.
- Check your existing credit accounts for evidence of fraud, and get all new account numbers and cards.
- Contact local law enforcement authorities (usually they will act only if the dollar loss is over $50,000).
- For further help, call or write the Consumer Response Center, Fair Credit Reporting Act, Federal Trade Commission, Washington, D.C. 20580, (202) 326-3761. You can also visit their Website.
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