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Personal home pages can invite
theft!
Personal
background, family genealogy,
education history, work
experience--these common contents of
personal home pages seem innocuous
enough in the context of family
history and communication. But a
website containing this kind of
information could be a gold mine for
an identity thief.
Most home
page owners would never post their
Social Security number on their
sites. But many people post personal
information, such as a family tree,
that contains details almost as
valuable to an identity thief as a
Social Security number.
Information
common to family trees, such as full
names, birthdays, and cities of
birth are all that a thief needs to
obtain a copy of your birth
certificate and, with that, a
driver's license bearing your name
and the thief's photograph. With
those documents, s/he can open bank
and credit accounts, rent an
apartment, even get a job or a
criminal record--all in your name.
A family
tree also reveals your mother's
maiden name, which is frequently
used as the security password for
bank and credit accounts.
Safeguarding your private
information is the best measure you
can take to prevent identity theft
and credit fraud. Be selective about
what you or your family members post
on personal home pages--remember
that if it's on the Web, it's
available to the world.
- Never
post your Social Security
number.
- Avoid
posting sensitive information
about you or your family that
could lead to impersonation.
- Make
sure your relatives know about
and agree to any information you
do put on the Web.
- If you
do post a family tree, make sure
you and your family all use
passwords other than your
mother's maiden name for bank
and credit accounts.
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Protect your
Social
Security
number!
Magic numbers
used to be for
lucky lottery
winners and
experienced
hackers only.
Cracking the
code was a
challenge
reserved for the
criminally
elite. Now,
though, in an
era of passwords
and Personal
Identification
Numbers, it
doesn't take
much to crack
the code and
open the
proverbial
vault. Thieves
can hit the
jackpot by
stumbling upon
your credit card
number-which is
why most of us
are now taking
greater
precautions with
our credit card
information.
But have you
considered that
your social
security number
could also be a
magic code for
identity crooks?
This nine-digit
code gives
thieves access
to your medical,
financial,
credit, and
educational
records. If
thieves have
your name and
social security
number, they can
apply for credit
cards in your
name, open bank
accounts, even
apply for jobs.
And you will be
left to deal
with the
consequences.
There are no
legal
restrictions on
private company
use of Social
Security
numbers, and
many states
still use your
SSN for your
driver's license
number. You've
learned that
being careless
with your credit
cards could cost
you, but how can
you protect
yourself and
your social
security number?
How you can
protect your
social security
number
-
Don't print
your Social
Security
number on
your checks
or give it
out unless
absolutely
necessary.
-
Ask
creditors
and
merchants if
you can
substitute a
special
password or
code to use
instead of
your Social
Security
number.
-
Order your
Social
Security
Earnings and
Benefits
Statement
annually to
check for
fraud by
calling 1
(800)
772-1213.
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Federal law protects your identity
A federal law signed by President Clinton on October 30, 1998, named "The Identity Theft and Assumptions Deterrence Act," closes vital gaps against identity theft. This law offers stronger protection than ever before to consumers and victims of this type of crime. It also redefines identity theft by making the theft of personal information--not just documents--a crime.
In the past, consumers were left to repair damaged credit reports and the credit card companies were considered the victims of identity theft. This law allows victims of identity theft to seek compensation for "identifiable losses" as well as expenses related to clearing their name and credit history. Unlike previous federal legislation, this identity theft law allows law enforcement officials to prosecute criminals who steal personal information via the Internet.
"The Identity Theft and Assumptions Deterrence Act" includes the following measures to protect you and other consumers:
- Making identity theft across state lines a crime with a punishment of a fine and imprisonment of up to 15 years.
- Allowing restitution to the victim.
- Increasing levels of jail time, depending on how many victims the criminal defrauds.
- Requiring the U.S. Secret Service to keep statistics on the identity theft cases they handle and which are reported to them by state and local authorities, and by financial institutions.
FTC aids consumers victimized by identity theft
Even before the identity theft bill was passed the Federal Trade Commission had taken steps of its own by establishing an identity theft complaint center that provides assistance to consumers. The complaint center records and acknowledges complaints by individuals who feel they have a reasonable belief that one or more of their means of identification have been assumed, stolen, or otherwise unlawfully acquired.
The FTC's complaint center refers an identity theft victim to the proper law enforcement authorities dealing in these types of crimes. Plus, the complaint information that one person provides instantly becomes available to help law enforcement agencies nationwide through a database operated by the FTC and the National Association of Attorneys General.
If you have been a victim of identity theft, you can contact the Federal Trade Commission's complaint center by calling (202) FTC-HELP or sending an email from their website at www.ftc.gov/ftc/complaint.htm. Or, you can write to: Consumer Response Center, Federal Trade Commission, CRC-240, Washington, D.C. 20580.
Protecting your identity
Although new laws will help, your best defense against identity theft is to safeguard your information. Remember these tactics to protect your identity.
- Monitor your credit. Check your credit report regularly. Also obtain your Social Security Earnings and Benefits statement once a year to ensure that no one is using your social security number for employment. Social Security Administration (800) 772-1203.
- Check your bills. Carefully study your credit card statements, phone and utility bills and cancelled checks for unauthorized use.
- Carry only what you need. Try to leave your social security card and extra credit cards in a safe place.
- Protect your records. Keep a list of all your bank accounts, credit cards, account numbers, and customer service numbers in a secure place.
- Choose proper passwords. When creating personal identification numbers (PIN) avoid using anything easy to figure out, and change them regularly.
- Keep your Social Security number secret. Don't give it out. It's only necessary for certain items such as tax forms, employment records, banking, and property transactions.
- Shred everything! Shred any documents that have any personal information or credit account numbers on them before discarding.
- Cover the screen or keypad when using an ATM or public phone so thieves can't read your personal identification number (PIN).
- Mail Strategically. Always drop your mail in the U.S. Postal blue boxes or at the post office.
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FTC stops new identity scams
A settlement between the Federal Trade Commission and so-called "credit repair" companies bars those companies from promising to erase your past credit problems by helping you apply for a "new Social Security number." The companies cannot claim their "file segregation" scheme is legal and must notify former customers that they may have committed a felony by using a false identification number to apply for credit.
The companies targeted thousands of people-including people who had recently filed for bankruptcy-through advertisements on the Internet, radio and through the mail. The advertisements claimed consumers could legally get a fresh credit start if they purchased instructions detailing how to apply for a "new Social Security number."
Consumers actually were directed to apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). EINs resemble nine-digit Social Security numbers, and are usually used by businesses to report financial information to government agencies. Individuals were told to lie and apply as if they were starting a business. Once consumers had this "new" number, the credit repair service told them to use it in place of their Social Security number on credit applications. Because your credit history is tied to your Social Security number, the person's old, negative credit information would not be attached to the new EIN.
However, several aspects of the credit repair service's program led consumers to commit fraud. It is a federal crime to:
- make false statements on a loan or credit application.
- misrepresent your Social Security number.
- obtain an EIN under false pretences.
In addition to the FTC's legal action against the credit repair companies, the office of the Treasury's inspector general for tax administration investigated more than 100 credit repair companies and individuals that sold or used the EINs to defraud creditors. Dozens of charges were filed, ranging from misrepresentation of a Social Security number to mail fraud and conspiracy. The office is still investigating hundreds more people who have illegally used EINs.
Improve your own credit by handling it well
These companies played on consumers' worst fears, telling them a bankruptcy or bad credit history would make it impossible for them to get any credit at all for years to come.
That's a lie, too. Certainly, a poor credit history will impact your ability to obtain new credit, but there are many options available for people who are ready to begin rebuilding their own, legal credit file. Many major banks now offer secured cards, for example, that allow a person with poor credit to begin establishing a track record of bills paid on time. And after just a couple of years, many people who have filed for bankruptcy find that some lenders are willing to consider them for small loans, allowing them to start over without falsifying their identity or applications.
Ultimately, the same rule applies to file segregation as to any other kind of "credit repair" system: There's nothing anyone out there can legally do to improve your credit rating that you can't do yourself for free.
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Darold D. Beier
Premier Mortgage Funding, Inc.
2315 Hwy 14 East
Richland Center, WI 53581-8922
Office: 608-647-6203
Cell: 608-604-4899
Fax: 775-458-6913 Fax: 608-647-6204
Fax: 608-647-6857
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