Investor's Business Daily, March 13th, 2007
Identity theft is the third-fastest-growing crime in the country. One of every 23 people is a victim, says a survey published early this year by the Council of Better Business Bureaus and Javelin Strategy & Research.
Why? Thieves like identity fraud because it means quick money. And if caught, penalties for first-time and repeat offenders are light -- often just a misdemeanor with a few days or a week in jail.
"The chances of an identity thief getting caught are 1 in 700," said Joe Lester, identity fraud product manager for Travelers Insurance. "It's difficult to get captured, and it's a crime that does pay."
The good news is that 63% of identity fraud is preventable, and that prevention works. Victims as a percent of the U.S. population dipped to 4% in 2006 from 4.7% in 2005, the study says.
Identity fraud differs from regular burglaries in that thieves may repeatedly use your information.
If burglars break into your house and steal your TV, you can look around and be sure they've left.
"It's not so easy with identity theft," Lester said. "Today they could be getting a new credit card, next week buying a car, a year from now getting employment or health benefits, all using your Social Security number."
Lester and Bob Proechel of the American Safety Council in Orlando, Fla., offer tips on prevention:
Shred financial documents. Use a cross-cut shredder.
The Javelin study shows that nearly 70% of Americans are shredding documents. Trash as a source of crime is now less than 1%.
Don't leave mail for your letter carrier. Go to an official post office mailbox to drop off items.
Check your credit reports. Lester says to do this every four months to get snapshots of your credit through the year. Thanks to federal legislative changes in late 2005, you can get one free report from each of the three bureaus every year.
Go to annualcreditreport.com and order one each from Experian, Equifax and TransUnion.
Avoid obvious passwords. Don't use birthdays or your mother's maiden name for accounts.
Protect your Social Security number. Once a thief gains access to your Social Security number, it leads to all your medical and financial accounts.
"If someone asks you for it, ask why. Often it's a just a standard question and isn't something they need," Lester said.
Consider insurance. Travelers sells a policy for $49 to $79 a year that covers the family for $10,000 to $30,000 in losses.
Even Frank Abagnale -- the author of "Stealing Your Life" and the former thief and FBI employee whose life was featured in the blockbuster film "Catch Me if You Can" -- sells a policy called PrivacyGuard.
Protect your computer. Secure your wireless Internet connection and block viruses. Not every virus is searching for your Social Security number, but many are.
Avoid links sent by unsolicited e-mail. Most are phony banks trying to get your Social Security number.
"That's called phishing. And the victims aren't just older people," Proechel said.
Copyright 2007 Investor's Business Daily, Inc.
