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Dollars & Sense: Staving off credit predators
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Posted by admin Thu Sep 28, 2006 16:12:26 PDT
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0 responses 0 comments Hello Northwest Voice readers.
Once again, thank you for all of the e-mails you sent to me after my last column. I also would like to thank those of you who came up to me at the Voice one-year celebration party on Sept.16 at the downtown Nile.  The Voice really knows how to throw a party!  I must say that this was one of the most well-constructed parties I have attended. The band was great and the food was good, especially being that it was free and all of the people who attended were so very friendly. Thumbs up to The Voice and those sponsoring the gala event.

I was hoping that my last column would help everyone who may have had an unresolved issue, and that by reading my column could learn something that would help. It appears that what I am writing about has helped many of you in more ways than one.

In this column, I would like to talk about identity theft.  We all know identity theft is on the rise in America. It is the fastest-growing crime in America, and there appears to be no end in sight. What can you do to protect yourself from this new wave of crime? One thing that you have to know is that this crime strikes mainly the middle- to upper-middle class consumers, which means most of us. California has the highest rate of identity theft in the nation.  Nearly 60 to 65 percent of identity theft takes place in California. Protecting your credit history should be high on your list of things to do.

A large part of identity theft is performed by people  the victim knows or someone who is close to the victim. One way that many street-level identity thieves get a hold of personal information is by garbage diving. We have all heard of people going through garbage to pull out credit card statements and other personal information. 
Another way that personal information may end up in a stranger’s hands, which most people don’t know about, is through accessing the credit bureaus.

With only your name and address, a thief could send the credit bureaus a new bogus address and a bogus social security number and then dispute a bogus account at any of the three major credit bureaus. The credit bureaus would then send an updated report to the new bogus address, along with your correct Social Security number and a footnote stating a variation in the Social Security number. The problem is that the credit bureaus just released all of your personal information to some stranger without your knowledge.

The thief would then have everything needed to run up your credit:  your correct Social Security number; all of your previous addresses; all of your previous jobs; and all of your accounts with which they could order new credit cards.

The credit bureaus do not want the general public to know that this problem exists within their system. There would be a major backlash if consumers found out just how easy it is for a stranger to get all of their personal information from the credit bureaus. However, criminals have known about the existence of this problem for years and have preyed on the bureaus for quite some time.

The credit bureaus will tell you that there are barriers in place to protect you from this, namely a current picture ID.  However, criminals can get a fake California ID, and if the credit bureaus have never seen you before, how do they know if the person on that ID is you? The bureaus will also say that a second form of ID is required, such as an electric bill or Social Security card. Just like the first form of ID, a street-level criminal can get a fake utility bill or Social Security card.

These are old techniques but they are still effective. You can protect yourself by ordering a credit report directly from the credit bureaus no less than twice a year so that you can review your report and detect any foul play. Get a paper shredder and shred all important documents (get a paper shredder that mulches the paper or one that shreds sideways and not just straight cuts). You may want to get a post office box, but not from the U.S. Postal Service. Get  one from UPS, Mail Plus or a mailbox service in your neighborhood. Have all of your personal mail go to your postal mailbox so that street-level criminals would have a much more difficult time in figuring out who you really are.

Inform the credit bureaus to e-mail you every time someone inquires about your credit. Most street-level criminals would not know your e-mail address, and they would not realize you would be notified of their actions.   All of the credit bureaus have a notification program. These programs can range in price from $35 up to $75 a year, so make sure you choose the right program that fits your needs.

On another note, the seminar I mentioned a few weeks ago has been rescheduled for Sept. 28 from 5:30 to 8:30 p.m. at the Double Tree Hotel. To RSVP, send e-mail to: tonyatxfc@yahoo.com. There is a $5 cost for those who RSVP and a $10 charge at the door. Remember that you too can have good credit.

— Tony Grimes is a local, independent debt consultant. If you have questions about credit or other financial issues, e-mail them to:  Tonyatxfc@yahoo.com
We will consider running your question and his comments in a future issue of The Northwest Voice.

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