Mistaken Identity

Guard against identity theft with these important steps

By Sandi Dahl

The FBI has called identity theft the “fastest-growing white collar crime in America,” and in 2005, the Federal Trade Commission report ranked Arizona number one for identity theft and the Phoenix metro area number one in the state.

Identity theft happens when someone steals your personal information and uses that information without your knowledge. Your name and information can be used to open a bank account and write bad checks on that account, buy a car and take out an auto loan in your name, or establish phone or wireless service in your name. When identity theft happens, it not only steals your money but your time. Your credit and good name can be ruined, often taking years to fix the damage. Many times, victims of identity theft aren’t even aware that they have been taken advantage of until it is too late.

“Sarah’s” first sign of trouble was when she was declined for a credit card. She didn’t understand; she had always had excellent credit and had managed her debt. Sarah was shocked when she checked her credit and found charges of $2,400 from an electronics store for a new TV, $5,000 for computer equipment and $1,900 for jewelry in just a one- month span. She quickly realized she had become a victim of identity theft. To date, it has taken Sarah five years and hundreds of hours to try and clear her name and restore her excellent credit rating.

“Paul” fell victim to identity theft when he lost his wallet, with his ID, credit and debit cards and business cards with home and work phone numbers inside. First, Paul noticed several hundred dollars in charges from Sears that he did not make. Despite putting out a fraud alert on his card, Paul soon learned that several new credit cards had been opened under his name. Soon, Paul was struggling to keep up with the unauthorized charges that quickly totaled more than $7,000. Paul has suffered for two years, both financially and emotionally, on the road back from identity theft.
No one is safe from identity theft, and there is no guarantee you will not become a victim. But you can take several precautions to reduce your risk and minimize the effects in the event you do become a victim of identity theft.
The Federal Trade Commission has outlined these steps to be taken to DETER, DETECT and DEFEND against identity theft:

DETER identity thieves by safeguarding your information:

• Shred financial documents and paperwork with personal information.
• Never carry your social security card with you.
• Don't give out your personal information unless you know with whom you are dealing.
• Never click on links sent in unsolicited emails.
• Don't use obvious passwords.
• Keep your personal information in a secure place at home.
• Stop offers for credit that may be used by identity thieves by going to www.optoutprescreen.com or calling 1-888-5-OPTOUT (1-888-567-8688).

DETECT suspicious activity by routinely monitoring your financial accounts and billing statements:

• Be alert to signs that require immediate attention, such as bills that do not arrive as expected, unexpected bills or a denial of credit.
• Inspect your credit report. The law requires the major nationwide consumer reporting companies—Equifax, Experian, and TransUnion—to provide a free copy of your credit report to you once a year upon request. Go to [www.annualcreditreport.com|www.annualcreditreport.com] for your free copy. To track your credit free of charge throughout the year, get a report from a different bureau every 4 months (i.e. TransUnion in January, Experian in May and Equifax in September).

DEFEND against identity theft as soon as you suspect it:

• Place a "fraud alert" on your credit reports and review the reports carefully.
• Close any accounts that have been tampered with or established fraudulently. Use the ID Theft Affidavit at www.ftc.gov/idtheft to support your written statement.
• File a report with law enforcement officials to help you with creditors who may want proof of the crime.
• Report the theft to the Federal Trade Commission online at www.ftc.gov/idtheft or by phone: 1-877-ID-THEFT (438-4338).

Sandi Dahl is a compassionate mortgage consultant working for the rapidly expanding company Windsor Capital Mortgage Corporation. For the last three years, Dahl has been enthusiastically and creatively helping her clients realize their dreams with her mortgage consulting services. Her office is conveniently located in beautiful Scottsdale. She can be reached at 480.596.6492 or sandi.dahl@windsorcap.com.