Not Your Daddy’s Identity Thief

If you think you’re not at risk for identity theft, think again. This must see video from a recent Dateline MSNBC special points out how hackers use technology to steal your identity despite common precautions.

MSNBC DATELINE Special Report

As you can see identity thieves move fast and everything from credit cards and bank accounts to Social Security numbers are available in illegal black markets. Where do identity thieves get their information? Data breeches. According to the ITRC Breach report, there were over 222 million compromised private records in 2009 alone. Unfortunately, it takes time for authorities to investigate and shut sites like these down and criminals can have new sites up in minutes.

The Modern Identity Thief

It’s not your daddy’s identity thief. Just a few years ago, the best way to prevent identity theft was to not carry your social security card on your person. Today’s identity thieves employ sophisticated technology to steal your personal information. Just a few weeks ago, police busted a major identity theft ring in Los Angeles that employed bluetooth scanners inside Arco gas terminals. Unsuspecting customers would enter their PIN number and the scanners would copy everything the thieves needed to duplicate your card and drain your bank account.

The reality is much of your private information is already out there and there’s very little you can do to stop it. How many credit applications have you filled out over the years? Have you ever filled out a department store charge card to get that 10% discount? In 2008, police found a retail store had discarded hundreds of approved applications in the trash. You could follow every advice about protecting your personal information and through no fault of your own, be a victim of identity theft because your auto insurer had their database hacked.

The Ordeal of Michelle Brown

When personal information is stolen, the harm to the victim often goes far beyond the pocketbook. When Michelle Brown was detained and questioned at Los Angeles International Airport, she realized that she had lost the claim on her own identity. Tears streamed down her face as she frantically fumbled through police reports and letters from the DA searching for anything that would prove she was a law-abiding citizen—not the felon who had stolen her identity, ruined her credit, and embarked on a crime spree which had led to an outstanding warrant for her arrest.

Every year 1 in 18.22 households will be victimized by identity theft. If it happens to you, the hit to your wallet may be only part of the cost. Many victims find their lives upended—and all too often the culprit is never identified and there’s no certainty about how the theft occurred. It’s up to the victim to take steps to limit the damage, by putting a stop on checks and credit cards, opening new accounts, and creating new passwords. And then comes the painstaking task of trying to undo any damage to one’s reputation or credit scores.

Michelle Brown’s ordeal did not end with the arrest of her perpetrator. The name “Michelle Brown” was given at the time of booking—and, incredibly enough, once convicted the thief continued to use the name for outgoing mail she sent from prison.

If identity theft victims are lucky, they are able to walk away with only the inconvenience of having to get new credit cards and remember new PIN numbers. Still 1 in 21.28 victims of identity theft will lose $5,000 or more because of the theft, and 1 in 5.56 will have ongoing problems, especially if the thief is never apprehended. If you are in that number, the biggest toll may be living with the knowledge that someone can live their life in your name, using your Social Security number, signing your name to loan applications, and using your credit to fund their every whim. And the burden of proof will be on you to prove you are who you say you are.

Of course, you can drastically reduce the chances of becoming an identity theft victim by using an identity theft protection service. (See our 2010 identity theft protection reviews of Lifelock, Lifelock Command Center, TrustedID, Identity Guard, ProtectMyID, and Equifax.)

These words were famously said by Scott McNealy, the former CEO of Sun Microsystems. While this isn’t an excuse for not taking action to protect yourself, it is important to remember there are limits on anyone’s control. Our private data exists in thousands of different locations, and is bought and sold hundreds of times a year.

Unfortunately it’s also regularly lost by companies we trust hundreds of times a year as well. In 2009 alone there were over 100 million compromised records resulting from data breaches. And we, as consumers, hand out or leave our data exposed far too often.

For example, you might fill out a credit application to get a discount on a purchase at a local retailer. Sure, you might have every intention to cancel the card; but you’ve just handed over your personal identifying information to an anonymous sales clerk. In 2009 authorities found thousands of credit applications for a national chain of retail restores lying in the dumpster behind the store.

Additionally, if your spouse emails you at work to request your Social Security number to complete your tax return, you might email or text it back to him. While this may be convenient, what if your email or internet connection is compromised by a hacker? You Social Security number could end up in the wrong hands. This type of reckless behavior leads to millions of Americans falling victim to identity theft fraud every year.

But does that mean we should give up modern conveniences in order to keep our information safe? Absolutely not. Advances in technology have a profound effect on our lives.

Identity theft is on the rise at alarming rates mostly due to the increased use of the Internet as a primary communications and commerce tool. There are many people who still do not have identity theft protection and are unsure how to obtain it. With the rise in identity theft there has been a surge of identity theft protection services popping up all over the Internet and some wonder whether or not they are worth the money.

If you are unsure of how an identity theft protection service works it may be one of the reasons why you are questioning whether or not it is worth the money. First, let’s gain an understanding of what an identity theft protection service is and some of the services it provides.

How an Identity Theft Protection Service Works

There are many reputable identity theft protection services that offer a host of protection services for a nominal monthly fee. Of course before you commit to one you should do your homework and read the reviews so you can make an informed decision. You can access an identity theft protection service online and some of the services are as little as $6.50 per month. Once you sign up you are provided with access to a dashboard in your account where you can track all of your activity. Here are a few things that an identity theft protection service offers:

• Security:

An identity theft protection service offers fraud alerts on your account so that anyone who tries to start a new line of credit on your account will not be able to do so because the fraud alert requires the credit lender to verify your approval before credit is granted. The fraud alert also provides fraud monitoring online to scan for criminals who are illegally using your personal information on the Internet.

• Credit Report Monitoring:

Most identity theft protection services will monitor your credit report for any suspicious activity and automatically provide you with a credit report from the major credit bureaus. Some services will request that your name be removed from pre-approved credit card mailing lists and offers.

• Identity Theft Resolution:

A reputable identity theft protection service will work to resolve any instance of identity theft and guarantee reimbursement of any monetary compensation you have lost in the process that is not covered by other sources.

• Recovery Assistance:

Recovery assistance services help you to reclaim your name and remove any activity on your credit report which was created by identity theft. Also, if you lose your wallet, the service will automatically cancel credit cards and any other personal financial information that you store in your wallet.

• Help and Support:

If you have any questions about your account or any problems, a reputable identity theft protection service will provide support around the clock or at reasonable hours where you can contact them at your convenience.

Is an Identity Theft Service Worth the Money?

Well, if you accept the fact that we live in an age where our most private information is beyond our control then having some form of protection makes complete sense. The days of our information locked in some file cabinet is long gone. Not only are your personal details digitized, but they are likely sold and copied a hundred times a day.

Why?

Convenience and Efficiency. Anytime you fill out a credit application or a job application, or even an health insurance application, somebody enters that application in a database. That information is stored, mined for marketing data, or even lost to hackers or disgruntled employees. Ever wonder how the credit reporting agencies like Equifax, TransUnion, or Experian make money? They make it by selling consumer data to other companies. Equifax made almost $500 million dollars selling consumer information in 2009. Despite companies taking precautions, 2009 was a record year for data breeches.

So with identity thieves becoming more sophisticated, it’s only common sense for consumers to begin taking action. Look at what happened this year in Los Angeles, tech savvy identity thieves used blue tooth technology to steal gas station customer’s credit card and ATM information including PINs by installing a wireless scanner in the pay terminals. (read the story here)

For pennies a day, you can have your private information scanned for fraud monthly including sex offender registries and county, state, and federal criminal databases. Get protected today.

Knowing you need identity theft protection is the easy part, deciding on the right service for you is far more difficult. We’ve compiled a list of seven questions you should ask about any service you’re seriously considering.

1. Does it monitor more than credit reports?

Since it’s easy to check your own
credit report and you can access it once a year for free, and because many types of
identity theft don’t show up in credit reports, credit monitoring alone is of limited
value. Consider services that scan other commercial databases, public records,
rogue Web sites that sell stolen credit cards and Social Security numbers, and
other places that may have your personal information and that aren’t as easy for
you to monitor yourself. Also check the options for receiving alerts; some
services only send alerts by email, others offer more alternatives.

• 2. Will it prevent you from getting your free annual reports when you wish?

Credit reports are often provided to customers as part of identity theft services.
But some companies obtain them by requesting the free reports that you are
entitled to get once a year, effectively preventing you from exercising your right
to ask for your free annual report when you want it.

• 3. How does the service help if you are a victim?

Most identity theft services only
provide advice about the steps you’ll need to take, but some take a more active
role to help resolve your problems. Depending on the terms of service, assistance
may be limited to identity theft that occurs, or is discovered, after you join. If it’s
unclear how the service will help you, continue to shop around.

• 4. Should you look for identity theft services that offer insurance?

Insurance
generally reimburses for lost wages if you must take time off from work without
pay to resolve an identity theft problem, long-distance calls, postage, notary fees
and other miscellaneous expenses. Money that an identity thief has stolen from
you is usually not covered. Since most identity theft victims have little or no
expenses, insurance is not an important factor in deciding which service to buy.

• 5. Does the guarantee really protect you?

No identity theft service can guarantee
that you won’t become an identity theft victim. Guarantees are promises about
what the service will do if you are victimized. They may provide for expense
reimbursement and/or assistance resolving your problem. Some only promise to
resolve problems resulting from a defect in the service. Read the guarantee
carefully; it may not provide as much protection as you expect.

• 6. What are the costs and terms?

Many identity theft services offer “free trials,”
during which you can test some of the features, but unless you have an identity
theft problem immediately, you can’t fully assess the service during the trial
period. Pay attention to the terms of the trial offer; usually consumers must cancel
before it ends to avoid charges. Some services charge month-to-month, others
require payment upfront for a year or offer pre-payment options that are less
expensive than paying month-to-month. Not all will provide a pro-rated refund if
you decide to cancel before the term you paid for is up, however. Read the terms
and conditions carefully to understand the cancellation policy.

• 7. Do They Offer Family Pricing?

Some services will offer substantial discount to cover a spouse or child while other services will one rate for an individual. If you’re the head of a household, it makes sense to search for policies that will cover a spouse or child. If your spouse or child becomes a victim of identity theft, it can very easily become your problem.

]]> http://www.idprotectionguide.net/seven-questions-to-ask-when-shopping-for-identity-theft-protection/feed/ 0 http://www.idprotectionguide.net/identity-theft-coverage/ http://www.idprotectionguide.net/identity-theft-coverage/#comments Thu, 13 May 2010 23:30:07 +0000 Greg Mckeon http://www.idprotectionguide.net/?p=675 Another common question I get is if identity theft coverage is worth it?

Most people who ask this question don’t really appreciate how vulnerable they are to identity theft. In this day and age it’s absolutely reckless not to carry some kind of identity protection. Here’s why:

Advancements In Technology Have Increased The Risk Of Identity Theft

Today we have services like online banking and the average family carries at least 3 credit cards. With an ever increasing amount of our transactions being conducted online, we open ourselves to sophisticated identity theft attacks like phishing or data breeches.

Even if you don’t purchase anything online, most if not all of your information is already out there. Have you ever filled a credit application for a home loan or car? Do you know how many people have seen your application? How about your health records? Last year alone, there were over 100 million data breeches by large companies and institutions.

]]> http://www.idprotectionguide.net/identity-theft-coverage/feed/ 0 http://www.idprotectionguide.net/best-identity-theft-protection-for-seniors/ http://www.idprotectionguide.net/best-identity-theft-protection-for-seniors/#comments Mon, 10 May 2010 17:35:44 +0000 Greg Mckeon http://www.idprotectionguide.net/?p=662


Best Identity Theft Protection For Seniors?

Senior citizens looking for identity theft protection have different requirements than say a young couple in their thirties raising a family. It’s a question I often get asked myself as an individual approaching retirement age.

First, seniors who are on fixed income may not need wage-loss protection or care about some of the more tech-oriented gizmos like IDVault or Mobile Lockbox, features that Identity Guard offers. Second, seniors have to be weary since as a demographic they’re constantly targeted by fraudsters and scam artists. Face it, we grew up in a more trusting time and the world around us has become increasingly cynical and far more dangerous.

Most seniors I talk to want affordable identity theft protection that will cover a spouse without paying for any of the features designed for a younger market. Also, seniors should look for a service with excellent customer service. The last thing any senior citizen wants to hear are words like “forum” or “chat online”. Should you become a victim of identity theft, you’ll want a resolution expert assisting you through the recovery process.

No service can completely guarantee protection but almost all services can drastically reduce your exposure to identity theft and will guarantee complete recovery if you do become a victim while under their protection.

So What’s Best For Seniors?

• Read our detailed TrustedID review

After looking at all the available plans, TrustedID’s individual or family plan is the one I recommend for seniors who fall into this category.

Family Pricing

TrustedID will cover an entire household for $13.46/month and that means it doesn’t matter if you have just a spouse or your kids have moved back in. (In this economy, not an uncommon situation.) TrustedID will cover the entire household. Lifelock on the other hand, will charge you a new subscription per adult.

Credit Freezes

TrustedID goes beyond fraud alerts and is the only service to offer credit freezes on all three of the credit bureaus. An AARP article on identity theft recommends placing credit freezes. For more information, read our article on the differences between fraud alerts and credit freezes.

Medical Benefits Protection

An increasing form of identity theft fraud that seniors are especially vulnerable to is medical benefit fraud. TrustedID will review your medical benefit statements to ensure that you and your family are the only ones being treated with your medical benefits.

TrustedID Fraud Scanning

While TrustedID isn’t a credit monitoring service like Identity Guard or ProtectMyID, it does offer sophisticated scanning services that will scan the black market internet sites where identity thieves buy and sell information. TrustedID will scan for your credit card numbers, social security numbers, bank account numbers, name and addresses. If they find that any of your information has been compromised, you’ll be alerted immediately.

24 On-Call Protection Specialists

Sometimes, you just need to speak to a live person. TrustedID has On-Call Protection Specialists that will assist you if you think anybody is trying to steal your identity.

TrustedID is a highly recommended service for identity theft protection and especially for seniors, it’s the protection service that gives you everything you need at a price that’s affordable.

Try TrustedID FREE For 30 Days

]]> http://www.idprotectionguide.net/best-identity-theft-protection-for-seniors/feed/ 0 http://www.idprotectionguide.net/fraud-alerts-credit-freezes-explained/ http://www.idprotectionguide.net/fraud-alerts-credit-freezes-explained/#comments Wed, 18 Nov 2009 23:05:21 +0000 John Oh http://www.idprotectionguide.net/?p=178


Fraud alerts & credit freezes restrict access to your credit.

Fraud Alerts and Credit Freezes are two processes that under the Fair Credit Reporting Act (FCRA), a consumer can use to help protect their credit. These are two of the many tools Identity Protection services use to protect your credit file and while you may find value in having a company place and renew these alerts on your credit file for you, they are available to you at no cost. Knowing and understanding how these processes work can help you evaluate the value in a commercial service and whether it may be right for you.




Fraud Alerts

A Fraud Alert is simply a notice placed in your credit file requesting creditors to verify your identity before issuing credit in your name. The law states that they must use “reasonable policies and procedures” to verify your identity which usually means making a call to the phone number on file in your report.

There are two types of fraud alerts: initial and extended. A consumer can place an initial fraud alert for any reason which will last for 90 days and can be renewed indefinitely. To place an initial fraud alert simply call any of the toll free numbers for any one of the three major credit reporting agencies which will be required to contact the other two. Please visit our Resource Page Link for contact info. After placing an initial fraud alert on your credit report, you are entitled to one free credit report from each of the reporting agencies. You also have the option of having only the last four numbers of your social security number appear on your credit report.

An extended fraud alert is almost identical to an initial fraud alert with the main exception that it will last for seven years. To obtain an extended fraud alert on your file you will need to provide the credit reporting agency with an Identity Theft Report. This report can be easily obtained through your local law enforcement agency or a report through the Federal Trade Commission (FTC). You can file a report with the FTC here. Link Some additional protections an extended fraud alert provides are the requirement that the consumer reporting agencies remove you from junk mail lists for five years and instead of one free annual credit report, you are entitled to two free annual credit reports from each consumer reporting agency.

Credit Freezes?

Credit Freezes differ from fraud alerts by literally locking your credit file. With a fraud alert, a potential lender can get access to your credit file as long as they take steps to verify your identity, which means that although they are required to take extra steps to access your file, the fraud alert does not prevent from getting your credit report. With a few exceptions for existing accounts, a credit freeze actually stops access to the consumer report as well as the credit score. A credit freeze will remain in effect until you remove it or lift it temporarily. A credit freeze is generally regarded as one of the most effective identity theft prevention tools available.

The laws governing credit freezes vary from state to state. While fraud alerts are federal rights intended for victims of identity theft, the availability of credit freezes depend or a consumer reporting agency’s policies. There is usually a nominal fee to place a credit freeze which varies by state and in most cases; credit freezes are free for identity theft victims. Visit the Identity Theft Resource Center’s state and local resource map Linkto see what the credit freeze laws are in your state.

It is important to plan ahead if you need to access to your credit file for any reason. It usually takes a few days and possibly a week to temporarily remove your freeze so a potential creditor may view your file. Although there is no negative effect on your credit file or score for having placed a credit freeze, it will interfere with you being approved for “instant” credit. This is an important
consideration to keep in mind.

What are the limitations?

While fraud alerts and credit freezes are useful and effective tools in preventing identity theft, there is no guarantee those employing these tools will prevent identity theft. While fraud alerts and credit freezes will make it far more difficult for identity thieves to open new accounts, it does nothing to stop or address an ongoing problem. It is important to understand that fraud alerts and credit freezes are proactive tools and work very well in preventing potential identity thieves from opening credit accounts without your knowledge. It will not prevent fraudulent activity on your existing accounts.

Also while the law requires creditors to verify your identity, some do not comply or just make cursory calls. Other creditors may not use credit reports and therefore will be unaware of the fraud. There are companies that will extend credit without looking at your report. However, if that occurs, your liability in that case may be questionable if you can point to an existing credit freeze or fraud alert.

Who do we like?

For this type of protection, TrustedID offers the most comprehensive protection. You may wonder why we didn’t choose a service like Equifax’s ID Patrol with its ability to lock and unlock your Equifax credit file without additional cost.. If it allowed you to lock and unlock all the credit reports and not just Equifax’s, they would be our top pick. Unfortunately, they only provide that service for their report and leave you no option for Transunion or Experian. TrustedID allows you to lock and unlock all three credit files with CreditLock. There is an additional charge and a small processing fee but no other service provides this option and is why TrustedID is our top choice for Fraud Alerts & Credit Freezes.

]]> http://www.idprotectionguide.net/fraud-alerts-credit-freezes-explained/feed/ 0 http://www.idprotectionguide.net/identity-theft-insurance-what-does-it-cover/ http://www.idprotectionguide.net/identity-theft-insurance-what-does-it-cover/#comments Wed, 18 Nov 2009 04:15:50 +0000 Brandon Qureshi http://www.idprotectionguide.net/?p=139

Considering that Identity Theft is the fastest growing consumer crime it is no surprise that Identity Theft Insurance has become a hot product. Identity Theft Insurance is not exactly insurance in the sense that we’re used to thinking of insurance. It does not cover damages from identity theft but rather reimburses the costs involved in restoring your identity. These usually involve lost wages, phone costs, notary and certified mailing expenses, and in some cases the use of an investigator or attorney.

What should I look for?

• Lost Wages

Probably the most beneficial aspect of these insurance policies is the reimbursement for lost wages. Recovering from having your identity stolen is a time consuming process. The average identity theft victim spends 22 days to repair the damage from identity theft. Look carefully at the limit on lost wages as well as if it requires you to use earned sick or vacation time.

• Deductible

Look closely at the deductible. If the deductible is too large than is there little chance you will ever benefit from the policy regardless if the coverage is one million or twenty thousand. On average most identity victims spend about $1,000.00 to repair their credit. If your deductible is too high, your expenses may never be able to justify a claim.

What doesn’t it cover?

Most Identity Theft Insurance policies do not cover any financial or physical losses resulting from an identity theft. If an identity thief steals your identity and gains access to your bank account, those losses will not be covered. However in most cases, financial institutions will take responsibility for unauthorized access to your accounts.

Who do we like?



TrustedID provides the most comprehensive theft insurance coverage

Most people have heard of Lifelock’s 1 Million Service Guarantee but if you read the fine print you will find that there is no coverage for lost wages, probably the greatest expense a victim of identity theft will incur. In fact, we find both Equifax’s and IdentityGuard’s $20,000 Identity Theft Insurance policies (underwritten by Travelers Casualty and Surety Company for America) superior to Lifelock’s 1 Million Total Service Guarantee. Both those policies cover lost wages but Trusted ID’s $1,000,000. Service Warranty offer’s more than double the wage limit ($5,000 vs. $2,000).

In most cases, victims of identity theft spent countless hours trying to repair their credit by themselves and do not require an attorney. It is simply filling out paperwork and contacting creditors and law enforcement agencies and while certainly time consuming, it will usually not generate 1 Million Dollars in reimbursements. In fact the average spent on restoring your credit is $1,000. If this type of protection is what you’re looking for, TrustedID offers the most comprehensive identity theft insurance coverage. Visit them through any of our links and get our exclusive promotion, 30 Days FREE and a 15% discount.

]]> http://www.idprotectionguide.net/identity-theft-insurance-what-does-it-cover/feed/ 0 http://www.idprotectionguide.net/what-is-credit-monitoring/ http://www.idprotectionguide.net/what-is-credit-monitoring/#comments Tue, 17 Nov 2009 22:43:04 +0000 Brandon Qureshi http://www.idprotectionguide.net/?p=128

Credit Monitoring is a service usually provided by a consumer reporting agency that will “monitor” your credit and alert you to any changes for a fee. Typically these services operate by notifying you if anything unusual or suspicious appears on your credit file. The thinking behind this service is to detect any problems immediately and react to it before further damage is done. By definition this is not a proactive service but a reactive one. You are detecting the damage after it has occurred. Combining some form of credit monitoring with proactive methods like fraud alerts and credit freezes is a highly effective strategy to protect you against identity theft.

How does it protect you?

Credit Monitoring products are designed to alert you to any changes in your credit file. As opposed to reviewing your credit report once a year, credit monitoring allows you to take immediate action once any unexplained changes or suspicious charges are made to your credit report. Early detection means you’ll be able to address problems as they occur and not after significant damage has been done.

What are the limitations?

The credit monitoring products only address problems after they have occurred and then only to accounts that report to the CRAs. It will not prevent fraud or alert you to credit issuers who do not update your information with the CRAs. The effectiveness of credit monitoring is completely dependent on financial institutions updating their information with the CRAs and the unfortunate reality is there are and will continue to be companies that do not report to the CRAs. It is a reactive process and not proactive one. ID Protection Guide recommends a combination of credit monitoring and fraud alerts and/or credit freezes.

Who do we like?

IdentityGuard is the only company that gives you quarterly updates to your credit file with all three CRAs and will email you immediately if there are any changes to your credit file. They will also include your FICO score with these reports. IdentityGuard has proprietary software that can scan credit application databases for fraudulently submitted credit applications in your name giving you proactive defense. IdentityGuard’s background providing credit monitoring solutions for a number of major financial organizations clearly shows in their consumer offering. It is our choice for the most comprehensive credit monitoring plan available.

Visit IdentityGuard

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