Identity Theft 101: How It Happens And What You Can Do To Prevent It

IDENTITY THEFT 101: HOW IT HAPPENS AND WHAT YOU CAN DO TO PREVENT IT Your information is on file everywhere, from your doctor's office to your bank to your school. Savvy criminals know how to get to it, so you need to know how to protect it. Identity theft can take many forms, but no matter how it hits you, its impact can be devastating. IDENTITY THEFT IS A MAJOR THREAT 13.1 million consumers suffered identity fraud in 2013. Every 2 seconds, another American becomes a victim of identity fraud. 17% Others 34% Government documents/benefits fraud 4% Loan fraud FORMS OF REPORTED 6% Employment related fraud 17% Credit card fraud IDENTITY THEFT 8% Bank fraud 14% Phone or utilities fraud WHAT CRIMINALS DO WITH YOUR INFORMATION Criminals can get your personal information by: 000 Dumpster diving Shoulder surfing when you Listening to personal enter personal information conversations Phishing emails requesting Skimming credit or debit cards Stealing mail personal information Hacking online accounts containing Posing as a legitimate institution over the phone or by email to obtain personal information directly from you personal or financial information With your personal information, criminals can: Apply for a new Take out Make withdrawals from Use telephone credit card a loan your bank account calling cards Open utilities File a File fraudulent accounts quitclaim deed tax returns THE FINANCIAL IMPACT THAT ID THEFT CAN HAVE ON YOUR CREDIT 10% Types of credit used 35% Payment history FICO CREDIT SCORES CONSIST OF 10% New credit 30% Amounts owed 15% Length of credit history Criminals who have stolen your identity reduce your credit score by: Opening new credit card Obtaining home or car loans in your name that they may default on. Upsetting the balance between credit available and credit used. Applying for credit, which will lower accounts and utilities accounts. your score even it the applications are denied. Failing to make payments Failure to pay any bill accrued in your name, including medical bills and utility bills can result in the charge being reported to a collections agency, which will appear on your credit report and negatively impact your credit score. Victims must painstakingly comb through credit reports to pinpoint all false inquiries, accounts, and charges and go through the lengthy process of disputing them. Until the damage is repaired, the victim's low credit score can impact: Ability to get a job when employers run the victim's credit Employers are hesitant to hire individuals with a low credit score, Interest rates on lines of credit If you are approved for a loan or credit card, your interest rate is much higher if your credit assuming that they're irresponsible. score is low. Approval for a home or car loan If you have a low credit score, you may be denied for a loan. 7 Approval for new credit cards A low credit score will result in denial for new lines of credit. CO Application approval for an Insurance premiums Insurance premiums are based off your credit score. A low score results in high premiums. apartment lease Individuals with a low credit score are seen as high risk and landlords may worry that they will not pay rent on time or at all. Victims may also lose money when identity thieves file fraudulent tax returns or apply for government benefits claims using the victim's stolen identity. Victims of employment fraud, where the criminal obtains a job using the victim's identity, may: Be unable to receive unemployment or other benefits they need because the government believes they are working. Have trouble getting a job because it appears they're employed. THE EMOTIONAL IMPACT OF IDENTITY THEFT Credit card companies and others who believe that the victim has been avoiding payments can turn everyday life into a nightmare, with: Astronomical bills Persistent harassing phone calls Notices from collection agencies Victims often come to dread looking in the mailbox or answering the phone. Identity theft effectively disrupts nearly every part of everyday life. In some cases, victims like Erie Salgado have been arrested for crimes committed using the stolen identity. Salgado was released 4 days later, but the fear of being arrested still haunts him. 10 WAYS TO PREVENT IDENTITY THEFT Be extremely cautious about who you give your information to, and never trust emails or phone calls from companies claiming to need personal or financial details. 01 02 Set up a hold on your mail while you're traveling so criminals can't steal personal information from your mailbox when you're away. 03 Never discuss personal or financial details on the phone when you're in a public place. Check your financial information often, including credit reports, bank statements, and any other notices you receive regarding financial 04 accounts. Make a note of items you don't receive as well as ones you do - if you stop getting credit card or bank statements it could mean that someone has filed a false address in your name. 05 06 Keep records of your financial accounts and transaction for five years. These will be helpful if you need to dispute fraudulent transactions. 07 Keep financial documents and personal records, such as a birth certificate and social security card, in a secure location like a home safe. 08 Lock your purse or wallet up when you're at work. 09 Place outgoing mail in a post office collection box, not your unsecured mail box. 10 Shred credit card offers, financial statements, and other mail before discarding it. Over time, it is possible to recover from identity theft, but it's important to act quickly. With IdentityForce's UltraSecure+Credit, your personal information, including your credit, will be monitored 24/7, and you'll be notified immediately of any suspicious activity so you can act before any damage is done. If anything does happen, IdentityForce will be with you every step of the way helping you restore your identity. Brought to you by: IdentityForce. 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