GMA SHRM HR Link

Identity Theft: Think It Can't Happen to You?
By Lori Laufenberg
Senior Benefits Consultant
Heartland Benefits Group & Pre-Paid Legal Services

Have you ever given your credit card to a waitress, thrown away credit card solicitations, checked into a hotel or bought a vehicle, provided your social security number to someone to someone you didn't know? If you answered yes to any of these questions you could be at risk to have your identity stolen. In 2002 the Federal Trade Commission estimated that seven million Americans were victims of some sort of Identity Theft, in 2003 this figure was estimated at 10 million.

Most people think of a stolen credit card being used as identity theft. While this is one form it is by no means the most common. Overall, all types of credit card fraud accounts for less than half of all reported Identity Theft, which affects 1 in 25 Americans and is expected to reach 1 in 5 within a few years.

Still think it can't happen to you?

How can you, the consumer, protect yourself? Before we answer that question we should first define "Identity Theft." A search on Google results in the following definition: "Stealing of another person's social security number, credit card number, and other personal information for the purpose of using the victim's credit rating to borrow money, buy merchandise, and otherwise run up debts that are never repaid." Imagine being denied a mortgage or car loan because your duplicate defaulted on tens of thousands of dollars in your name. Think bad credit or no credit will protect you? Think again. Thieves will use or sell your identity to obtain employment and any income reported or unreported you would be responsible for unless you can prove otherwise. Your identity can be obtained and used or sold by crooks to commit fraud that would include obtaining: insurance, utilities, rental housing, employment, Internet, telephone and insurance in your name. Essentially they could become you!

Before I have you cutting up all of your credit cards and hiding money in your mattress there are a few simple ways that consumers can protect themselves from identity theft.

Order your credit report minimally once a year. Should you find an error, see an address or lines of credit opened that you do not recognize, contact the authorities and then the companies directly. Make sure to follow up with all 3 credit bureaus to ensure the errors are corrected. (http://www.bankrate.com/brm/green/cc/crdt2e.asp)
Do not share personal information such as social security, birth date, bank information or credit card information over e-mail or instant messenger. This is not secure!

Beware of scams that request personal information such "please complete your credit card number beginning with….." Hint: All major credit cards start with the same 4 digits. For example: all VISA cards start with the number 4305. Many of these scams will come over e-mail and say they are representing large well-known companies. Your financial institution or credit card company has this information for you; do not give it out over the phone or e-mail!

Do not carry your social security card with you. Take it out of your wallet and put in a safe place.
If your wallet is lost or stolen, don't wait a few days because "it will show up." Call immediately to see if any activity has occurred and to notify your financial institutions of your missing cards.

What can employers do to protect employees? Conduct background checks on all potential employees to see if the information on the application or resume matches up. If the information does not seem to match, notify the proper authorities. Keep social security numbers, bank information and any other personal information in a locked place with minimal access. Why else would employers want to be proactive in regards to Identity Theft? Victims report that they spend, on average 175 hours and thousands of dollars in an effort to restore their identity and credit rating. This may result in absenteeism from work, reduced productivity and increased health insurance costs from stress. In fact employees with legal problems are usually absent 5 times more than average, use their medical benefits 4 times more than average, use sick leave twice as often as the average employee and experience a substantial reduction in their productivity (LSK Associates study).

In the world of electronic convenience and mock-speed information sharing it is important to protect yourself and your identity. Being proactive and using the steps above will assist you in keeping your identity to yourself!

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