Tips for Preventing Identity Theft

I know that this is a long blog post but there is some great information and resources in this post.

Via Lifeguard Wealth blog: “There is a lot of information buzzing around in the wake of the cybersecurity breach of credit reporting agency Equifax, which put virtually all Americans’ personal and financial information at risk of theft. We want you to know what the consensus is in the financial services industry about the seriousness of this breach and what action you need to take.

THIS IS A BIG DEAL

As The Atlantic reported on September 7^th, just after the company’s announcement that the breach had been ongoing since May and was discovered on July 29^th, 143 million U.S. consumers were affected. As there are only about 125 million households in the U.S., the scope and sensitivity of the information is unprecedented.

We’ve all been hearing about the importance of protecting ourselves from identity theft for years, even decades. It may seem to some like this is just another data hack and all we need to do is not give our Social Security numbers out to strangers and we’ll be fine. On the contrary, we must take this seriously, and we musttake action.

TAKE THESE 5 ACTION STEPS NOW

1. Check the Equifax website to see if your information was breached.

Go to www.equifaxsecurity2017.com and click on “Potential Impact.” Simply enter your last name and last six digits of your Social Security number as instructed. If notified that you may have been impacted, take the recommendations below much more seriously. If not, stay vigilant and strongly consider them.

2. Sign up for the free Trust ID service.

Equifax is offering this free of charge. You will be asked if you’d like to enroll if, after going through the above process, the determination is that you were potentially impacted. Once you enter your name, the site will give you a date to return to the site to enroll. Note that the deadline to enroll is November 21^st, 2017.

TrustedID Premier

What’s Included:

 3-Bureau Credit File Monitoring – Credit file monitoring and automated alerts of key changes to your Equifax, Experian, and TransUnion credit files.

 Equifax Credit Report Lock – Allows you to prevent access to your Equifax credit report by third parties, with certain exceptions.

 Social Security Number Scanning – Searches suspicious web sites for your Social Security number.

 Equifax Credit Report – A copy of your Equifax Credit Report.

 $1MM Identity Theft Insurance – Up to $1 million in ID theft insurance. Helps pay for certain out-of-pocket expenses in the event you are a victim of identity theft.

For additional important product information visit www.equifaxsecurity2017.com.

3. Place a freeze on your credit file with all three credit monitoring agencies.

The following links will take you to each agency’s credit freeze sites: Equifax, Experian and TransUnion. This action makes it impossible for creditors to access your credit file without taking additional steps to verify that the person requesting credit (a new credit card, vehicle loan, personal loan, etc.) is you. Note that you will need to “thaw” your credit file (temporarily remove the freeze) when applying for new credit.

4. Take steps to protect your Social Security benefits.

As Boston University professor of economics Laurence Kotlikoff wrote for Forbes, the breach has made it easier than ever for thieves to steal your Social Security benefits. Kotlikoff recommends immediately printing out and preserving your Social Security earnings record to help prove the real you has the earliest records if you were ever the victim of identity fraud.

As an additional precaution, enable two-factor authentication on your “My Social Security” account. From then on, you will need not only a user name and password, but must enter a unique passcode sent to you by text message or email as well. This makes it far more difficult for identity thieves to access your account.

5. Be vigilant.

Sadly, it seems we are entering a new phase of identity uncertainty in a digital world. Be aware of your credit surroundings just like you are aware of your surroundings when walking to your car late at night. The Equifax breach, while huge, will not be the last. You are your best defense against fraud.  Again, add enabling two-factor authentication to the list on all your online accounts that offer it.”

Here is another article with suggestions

Over the last month, we were informed 143 million Americans had key identifying information stolen through credit reporting company Equifax.

Equifax responded by saying they will offer a one-year “credit monitoring” service and then tried to upsell their premium service.  Being as they are the ones responsible for the breach in the first place, this does not reassure.

Furthermore, one year of monitoring is completely random. Suppose thieves only want my information for the next year and then will promise to never use it again? Ridiculous.

https://www.consumer.ftc.gov/blog/2017/09/equifax-data-breach-what-do – this is a good overall guide.

Given this, what to do?  Here are some ideas.

1. If someone has stolen your identity or used your SS number, let your Advisor know that you have been the victim of identity theft or fraud. We already monitor investment accounts for outgoing cash. At this point, I basically assume that my private information has been part of one of the many breaches!
2. Religiously read and scrutinize your bank and credit card statements every month. If you see something that does not look right, contact the institution immediately. They will generally suspend the payment of the suspicious transaction pending a more thorough investigation. If you have moved to all-online access (no monthly hard-copy statement), make sure you are thorough in reviewing transactions on a regular basis.  You can also use something like www.mint.com (free) or quicken to review all of your statements.
3. Use credit cards instead of debit cards. If someone has hacked into your world, a credit card offers a grace period in which you can review your statement before payment is due. However, if someone hacks into the debit card, the burden falls more on your shoulders. If you have payments auto-drafting from your bank account, this can easily send you into a cascading problem of overdrafts. If this happens, it is a pain to fix.
4. Once you have determined a fraud has occurred, put an alert in your credit report and send a copy of the ID theft report (https://www.consumer.ftc.gov/articles/pdf-0094-identity-theft-affidavit.pdf ) to all the credit reporting companies. Although this may sound like closing the barn door after the horses are out, you want proper documentation that you have reported this and are working with the authorities.  Also see – https://www.consumer.ftc.gov/articles/pdf-0014-identity-theft.pdf
5. Monitor credit reports closely. Not only can these reports have errors that can hinder your ability to get credit, but it’s a good habit to be in to see what accounts have been opened in your name. This service is available for free on an annual basis by going to: www.annualcreditreport.com/index.action .
6. Evaluate a credit freeze. This offers the most serious level of protection, in our opinion. It literally freezes the ability for anyone, including you, to open new credit of any kind in your name or Social Security number. Although it works very well, it can also be a bit of a burden to undo. Allow yourself at least a week to lift a credit freeze once you have submitted the necessary information. This is important to consider if you plan on financing a new car or applying for a mortgage.

It is also important to understand that a credit freeze does not stop someone from accessing an existing credit card and using it. As such, a second reminder to review your credit and debit statements religiously!

7. Contact the police and Federal Trade Commission. Although cybercrime may not involve a gun and masked robber, it is still a crime. To get needed protection, contact the local police and the FTC to obtain their official reports. These reports must go in your credit files. Not only does this help law enforcement track and catch criminals, but it is necessary for your protection, too.
8. Change passwords frequently, use strong passwords and be careful of where you access Wi-Fi. Possibly use a password generation software like www.lastpass.com . If there has been a breach, determine what accounts are affected. Immediately change those passwords. Furthermore, reduce vulnerability to someone stealing passwords by not using public Wi-Fi. Public Wi-Fi allows keystrokes to be more easily monitored, allowing information to be stolen.
9. Contact the Social Security fraud hotline (http://oig.ssa.gov/report-fraud-waste-or-abuse ). In some cases, we have seen clients who have had their Social Security numbers used for fraudulent purposes. Depending on the level of severity, they not only had to not only prove their innocence but then apply for a new Social Security number.

We have only seen the tip of the iceberg relative to the Equifax debacle. As such, be proactive and remain vigilant to prevent being a victim.

Additional Tips for Preventing Identity Theft

Checks

• Use your initials and last name when ordering printed checks. A check forger won’t know how you sign your checks, but your bank will.
• Do not have your home phone number or Social Security number printed on your checks. Use your work phone number. Use a post office box or work address instead of your home address.
• Order new checks from your bank and pick them up at the bank, rather than having them sent to your home mailbox.

Credit cards

• When paying credit card bills, write only the last four digits of the account number in the check memo line.
• Do not sign the back of your credit card. Instead write, “Photo ID required.”
• Photocopy both sides of your driver’s license, credit cards and other important contents of your wallet. In the event it is stolen, you’ll know exactly what is missing.
• Keep a list of your credit card numbers and their toll-free customer service numbers so you can cancel cards quickly if lost or stolen. Keep the list in a safe place in your home, not in your wallet.

Social Security Number

• Do not carry your Social Security card in your wallet. Memorize the number and put the original card in a safe place.
• If you believe your Social Security number has been compromised, contact the Social Security Administration fraud line 800-269-0271.

PINs and Passwords

• Do not write your PIN on the back of the card or on anything else in your wallet.
• Use different PINs for each debit and credit card. If you have too many to remember, consider reducing the number of cards you carry in your wallet.
• Do not use easily available information, like your birth date, phone number or part of your Social Security number, for PINS and passwords.

Mail and Trash

• Most identity theft occurs via phishing emails in which the end user is tricked into clicking on links or providing information that allows fraudsters to gain access to accounts or personal information.
• Use post office collection boxes for outgoing mail, rather than your home mail box.
• Shred any trash that may contain personal information, including charge receipts, credit applications, insurance forms, medical statements, checks and bank statements, expired credit and debit cards and direct mail credit offers.
• You can opt not to receive direct mail credit offers by calling 888-567-8688.

If your wallet is stolen, you should immediately:

• File a police report to document the theft and the wallet contents.
• Contact one of the national credit reporting organizations (listed below) to have a fraud alert placed on your name and Social Security number. The organization you contact is required to contact the other two. If the thief’s purchases initiate a credit check, the credit reporting organization can alert the merchant. Placing a fraud alert entitles you to free copies of your credit reports.
  • Equifax 800-525-6285
  • Experian 888-397-3742
  • Trans Union 800-680-7289
• Close all accounts for missing credit cards. Check your credit reports for accounts opened fraudulently.
• File a complaint with the Federal Trade Commission, which maintains a database of identity theft cases, online at www.consumer.gov/idtheft. This database assists law enforcement agencies and helps the FTC learn more about identity theft.
• Notify your bank if your wallet contained a checkbook or debit/ATM cards.

Thanks for reading.

Please Remember: Past performance may not be indicative of future results.  Moreover, no current or prospective investor should assume that future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in any general informational materials or educational sessions, will be profitable or equal any corresponding indicated historical performance level(s).  Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for an investor’s retirement portfolio.  Moreover, you should not assume that any discussion or information contained in this website serves as the receipt of, or as a substitute for, personalized investment advice from Integrity Investment Advisors, LLC and Integrity Investment Advisors, LLC is not providing services in jurisdictions that the firm is not registered or acting under an exemption to registration. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing.