What Can You Do to Prevent Identity Theft?

Are you familiar with the expression “an ounce of prevention is worth a pound of cure”? This is absolutely true in regards to protecting your identity from being stolen rather than dealing with the trauma and cost of being a victim.

It must be stated here that there are no guarantees that the steps you take will prevent your identity from being stolen. Personal information is available from sources (including government, employment and other business records) that we are not in a position to personally protect.

Taking steps to limit the use of our personal information makes it more difficult to become a target. Proper disposal of personal records and other common sense steps will also thwart any opportunistic thieves.

Here are some steps that every individual should incorporate into the management of their personal information. What you choose to implement will depend on how much time or energy you want to use in protecting your information. Making conscious decisions as to how or when our personal information is shared will give us more control and should become a lifelong habit.


Monitor Your Credit Reports

If you are entitled to one free credit report each year you can request a report every four months by requesting one from each of the three credit agencies in turn. It is wise to check your credit report at least once every year even if you must pay to receive it. If you suspect your identity has been stolen or have received notice of information that has been stolen you may be able to get free reports throughout the first year of the incident.

Don’t Carry Your SSN in Your Wallet

Social Security Numbers, birth certificates, passports or any other personal identification should not be carried in your wallet. The same goes for extra credit cards and store or gas credit cards. The less you carry the less risk if your wallet is stolen or lost.

Stop Pre-Approved Credit Offers

You can stop the mailing of pre-approved credit offers by calling toll-free
888-5OPTOUT (888-567-8688). Ask to have your name removed from the list as pre-approved credit offers can be easily abused by thieves.

Shred Personal Documents

If you do throw away pre-approved credit offers or other personal information (such as old tax forms, bank statements or expired credit cards) you must shred the information before disposing it.

Pick Up the Mail EVERY Day

Don’t allow mail to sit overnight in the mail box or you give thieves an easy target. Credit card offers, bank statements and possibly information with your SSN can be used to open new credit in your name or steal from you.

Don’t Respond to Email Requests

If you are contacted by a bank or service provider through email you must never submit any personal or financial information to them. These attempts to ‘trick’ you into believing they are a legitimate business is called phishing.
If an email claims that you must validate your information and provides you a link to the form DO NOT OPEN THE LINK! If you are concerned that the request may be legitimate close the email and enter the URL to the actual business in your browser window. If your account looks fine contact their customer service department to verify the email. A fraudulent email is called a ‘spoof’ and the company will likely want you to forward it to them.

What is Being Done to Protect Your Privacy?

While government agencies are submitted to legal requirements that protect your personal information, other businesses are not. This makes it vitally important to take steps protecting your information yourself and knowing who has it and what they are doing with it.

State laws do have requirements for the disposal of personal records but the manner of disposal can vary depending on the nature of the information and the resources available to the business. If you do business which requires you to keep personal information on record you must check with local law regarding the disposal of these records.

Fair Information Practice Principles

While the law is still catching up to the needs of individual privacy protection, Europe, Canada and the USA have created a guideline of processes for collecting and using personal information. This guide is called the ‘Fair Information Practice Principles’. It outlines the safeguards necessary to ensure the use of personal information is fair and to protect privacy.

The core principles outlined in the Fair Information Practice Principles are: Notice/Awareness; Choice/Consent; Access/Participation; Integrity/Security; and Enforcement/Redress.

Here is a brief outline of these principles:



Notice/Awareness
Notice and awareness requires businesses requesting personal information to disclose their information practices before collecting information. The following principles listed would be included in the notice.

Choice/Consent
Choice and consent give the individual the ability to allow or restrict the use of personal information beyond the transaction being initiated. Opt-in or opt-out choices include how much personal information is included and what it may be used for.

Access/Participation
Access and participation requires the individual to be able to access, correct or verify their personal information on record. The means of accessing and making corrections must be timely and inexpensive.

Integrity/Security
Integrity and security refer to the business’ steps to maintain accurate records, secure the information and destroy records in an appropriate manner.

Enforcement/Redress
Enforcement and redress must be established either by self-regulation or legislation.

The full report of Fair Information Practice Principles can be found at:
http://www.ftc.gov/reports/privacy3/fairinfo.htm.

While steps are being made to create enforcement it is up to the individual to be aware of the use and protection provided by each business and agency they provide personal information to.

Who Should Require Your Social Security Number?

There are some government agencies (tax, welfare, Medicare and motor vehicles) who can lawfully require your SSN. Other agencies may request your SSN in a manner that implies you must give it.

You can determine whether the agency has a right to your SSN by reading the disclosure statement that is mandatory on government forms requesting the number. The disclosure statement will tell you if the SSN is required or optional. It also states which agency is requiring the number and what it will be used for. Government agencies have strict laws about the use and storage of SSN’s – private agencies or businesses do not.

You cannot be denied services from government agencies if you refuse to give your SSN unless they are legally required to obtain it or had a law in effect before January 1, 1975 requiring a SSN.

Employers must obtain your SSN to report earnings and payroll taxes. While they are required by law to have your SSN you might ask for them to protect your number if it is used for filing, listed on ID badges or otherwise made public.

Other businesses or agencies, including private medical insurance and schools, may request your SSN. If they are federally funded schools or are reporting to the IRS they may have a legal right to the information. If the reason for the request is not listed on the form you can leave the space provided for your SSN blank and ask for an explanation of why they are requesting it.




While a business may have no legal right to the information they can refuse service if you choose not to disclose it. State laws differ but businesses should not willfully display SSN’s, however, carelessness or inadequate protection of SSN’s may not violate these laws.

Financial information that is of interest to the IRS requires your SSN to be listed. Banking, stocks, employment and other financial statements all must include the number.

Credit card companies may request your SSN but are not legally required to have it. Since the number is used to validate who you are you may be able to provide proof with other forms of identification. Be prepared to have a difficult time finding a creditor who will provide credit if you refuse to submit your SSN.

Since potential creditors (including landlords) may wish to see your credit report you will likely be required to give them your SSN to obtain the report. You may ask if they will accept a current report without the SSN and confirm your identity with other forms of ID.

Federal records, including driver’s license, divorce papers, child support and death certificates all require SSN’s. Birth certificates usually require the SSN’s of both of the parents unless there is good cause for not requiring it.

If you receive email that appears to be from a service provider or government agency that requests your SSN do not reply. This information will not be requested through unsolicited emails and is being sent from a fraudulent source.


You can find out more about the legal requirements for using your SSN at:
http://www.privacy.ca.gov/recommendations/ssnrecommendations.pdf

Who Has the Right to Access Your Information?

It can be difficult to determine WHO has the right to access your information. This is especially true in situations where you are requested to divulge information such as Social Security Numbers (for employment or rentals). Who has the right to demand that information and do you have the right to refuse?

You may also be concerned with who is accessing your information within businesses or government agencies. Understanding the need for your information can help you judge whether providing it is in your best interest.

Your Social Security Number is Your Biggest Threat

While information such as your name, date of birth, mother’s maiden name, address etc. are easily traced it is your SSN that is the biggest threat. If thieves know your SSN they can access your banking information, utilities and other personal information as well as establish new credit in your name.

Although originally the SSN was only to be used for Social Security programs it is now commonly used for filing purposes including bank accounts, employee, student and medical records. This makes your SSN a free pass gaining access to your personal information.