Identity Protection and Fraud Prevention
On far too many occasions, we receive phone calls from clients who have been the victim of identity theft or fraud.
One was the victim of a fraudulent scheme which led to them withdrawing a sizable amount of cash from their bank account to “settle” the situation.
Another had their federal income tax return filed on their behalf to receive their expected refund.
Another, which is the most common form we hear, had random purchases show up on their credit card statement indicating their card had been compromised.
Whenever this occurs, it’s very unsettling, and it’s hard not to feel nervous and violated.
In light of this and the security breaches we all hear on the news, I thought it would be a good time to revisit some simple steps you can take to help protect yourself going forward.
What You Can Do
Order a Free Credit Report: The three major credit reporting agencies, Equifax, Experian, and Trans Union all provide free credit reports once a year. This will allow you to see any credit inquiries or requests for credit. Request one from each of the three agencies every four months.
You may either request your credit report from www.annualcreditreport.com, or go directly to each agency:
- Equifax – Equifax.com
- Experian – Experian.com
- TransUnion – Transunion.com
Add a Fraud Alert to Credit Reports: Each of these credit reporting agencies can place a fraud alert on your credit for 90 days, and they are required to notify the other two. If anyone attempts to apply for credit in your name, you will be contacted.
Credit Freeze: This is very important, and we strongly recommend it. A credit freeze can prevent creditors from accessing your credit report, thus preventing credit, loans, and services from being approved in your name without your consent.
This does not affect your credit score.
However, if you are in the process of applying for a loan (auto, home, etc.), you will have to temporarily lift the freeze while they are processing your loan.
To place a freeze on your credit reports, contact any of the credit reporting companies: Equifax, Experian, or TransUnion.
Identity Theft Protection: Each of these agencies offers TrustedID service which you can sign up for on their sites above.
There are a number of other companies offering similar services such as LifeLock which you can obtain for a small monthly fee. All are designed to assist in resolving any issues stemming from identity theft and can potentially save you time and grief if your information is stolen and used.
Suspicious Emails or Phone Calls: As you might imagine, hackers and fraud artists will try to take advantage of everyone’s fears to gain access to their personal information. Be on alert for suspicious emails or phone calls from these folks who will be out there “phishing.”
If you receive any phone calls, find out what company the person says they are calling from, hang up and call the company directly to see if they were making a legitimate attempt to speak with you. The same advice applies for an email—pick up the phone and call the supposed sender instead of replying or clicking on any hyperlinks.
File Your Income Taxes Early: Here is an interesting one that is recommended by the Federal Trade Commission (FTC) to battle tax fraud. Thieves are known to use stolen Social Security numbers and other personal information to file taxes in your name in an attempt to have the refunds sent to them instead of you.
The first thing you can do is file as early as you’re able each year as this helps reduce your risk of fraud as they won’t have time to beat you to it.
The second recommendation is an extension of one above. Beware of phone calls from folks identifying themselves as from the IRS. The IRS does not make random phone calls. They have only been known to do so after multiple attempts have been made to reach you through the mail.
This is intended for informational purposes only. You should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment advice from Savant. Please consult your investment professional regarding your unique situation.
Jack Phelps
Managing Partner / Financial Advisor