Protect Your Assets from Identity Theft

Suzanna De Baca -- Expert Business Source, 7/18/2008 11:29:00 AM

One of my clients told me today that her bank account had recently been hacked into, resulting in the theft of considerable amounts of her money.  The bank, a leading national firm with a name everyone would recognize, assisted her in recovering her assets, but the process was stressful and time consuming. It also made her paranoid, since she thought her account was secure. The numerous reports of similar incidents make you wonder what you can do to safeguard your identity and your assets while still participating in the technological realities of our world.

Identity theft can occur in many ways.  Thieves may obtain your personal information through stealing your physical forms of identification, such as your driver’s license or social security card, by stealing info via the internet (known as phishing) or phone (called pretexting), dumpster diving through your trash, finding personal information at an employers, or any number of other ways.  In some cases, individuals may actually pose as employers or landlords in order to get information.

While technology has made many of our tasks in life more convenient, we are also more vulnerable to identity theft now and may need to take precautions to protect ourselves.

Here are some tips to avoid identity theft:

Never, ever divulge personal information to anyone you don’t know – If you receive phone calls from people asking for information, do not respond to them unless you know them personally, have proof of their identity, and are sure that they have valid reasons to know your information.  This list may be very short, including your accountant, attorney, or banker.  There are few other individuals who would ever need access to your personal information urgently over the phone.  Personal information may include your date of birth, address, full name, spouse’s information, social security, driver’s license number, passport, credit card information, bank information, or investment account information, among others.

Don’t respond to email requests for verification of information – Similarly, if you get an email from someone – even a person claiming to be from your bank or a trusted institution – do not respond with any of the personal information listed above.  If your bank supposedly emails you, call them personally to confirm that they need this information.  

Protect your information in your home and in your workplace  --- Even if you trust your roomates, kids, and co-workers, be cautious about leaving information around. While they may all be trustworthy, your roomates or kids may have guests who you do not know, you may have workers in your home, and there may be visitors in your office who can quickly nab a bill or receipt off your desk.

Shred – Routinely shred the bills that you do not file.  Never throw away any mail with personal information.  Theives go through garbage at people’s residences and also go through dumpsters behind office buildings.  Don’t make it easy for someone to find your account numbers or any other important information.

Travel light – Do not carry multiple forms of important identification with you in your wallet or purse, especially when traveling.   Many experts recommend keeping your driver’s license, social security card, and passport separated, because having all of this data gives thieves open access to your finanical life.  If you have multiple credit cards, take only the one or two you need with you on a daily basis.

Take computer passwords seriously – While it can be inconvenient to change passwords for multiple sites, having the same password make it easy for thieves to quickly empty all your accounts and run up huge bills online.  Use different passwords and try not to make them too obvious;  your birthdate, kid’s or spouse’s name, or company name can be easily discovered and tried.

Check your statements – Carefully read your credit card statements and bank statements to be sure there is no suspicious activity.  Sometimes thieves charge just one item, assuming that many consumers will just never notice.

Check your credit reports regularly -- Consider ordering credit reports at least once a year.  You can contact contacting the three major credit reporting bureaus, Equifax (800-685-1111), Experian (888-397-3742) or TransUnion (800-916-8800), and for a modest price check your credit for any suspicious activity or eroneous information.

Explore Identity Theft Insurance – ID Theft insurance is becoming more and more popular.  It can be a valuable safeguard in these technologically complex times.

For more information,  Federal Trade Commission has a helpful booklet called ID Theft: What It's All About, which is available on its website.

Suzanna de Baca is president of Private Capital Solutions Group. Securities offered through Broker Dealer Financial Services Corp. Member FINRA & SIPC. Investment Advisor Representative of Investment Advisors Corp., A Registered Investment Advisor. Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal or investment advice. Although the information has been gathered from sources believed reliable, please note that individual situations can vary, therefore the information should be relied upon when coordinated with individual professional advice.