It is probably no surprise to most adults that identity theft is one of the fastest growing types of fraud. But what may be more alarming is that people in the 18 to 29 age range are the fastest growing group of victims. One need not look too far to figure out why.

Today’s young people have grown up in a digital society. They routinely post their personal information on websites like MySpace and Facebook. Often, they provide much more information than they should, e.g. their full names, addresses, phone numbers, birth dates, employers’, pets’ and friends’ names or places they like to hang out, all of which leaves them (and their parents) susceptible to criminal activities. While college students may think they’re only sharing innocuous tidbits of personal information on public websites, these “tidbits,” once collected and assembled, can provide a thief with enough data to wreak havoc in one’s life and finances.

If students are not vigilant about protecting their credit identities, they run the risk of having their credit ratings destroyed if they fall victim to identity theft. But it is not just online behavior that can lead to identity theft. College kids are bombarded daily with credit card offers, both in the mail and through booths that are commonly set up on college campuses. Initially, the payments on their credit cards may seem quite affordable. However, when an ID theft occurs, interest rates rise –and so do the payments. When unpaid bogus accounts contaminate credit reports, it can take months or years to fix the mess, leaving one to pay higher auto insurance and credit card payments. The payments that once seemed quite affordable suddenly skyrocket, along with an individual’s stress level! Fraud Alerts can be placed on credit reports however; these are usually only good for about 90 days or so. (Credit freezes are now available but you need to determine if you will be seeking credit in the near future as you will have to pay to freeze it and then unfreeze it). You need to determine which safety measure is best for your situation.

Students should start by getting their free annual credit reports from a legitimate source. The toll free, automated number for ordering a credit report is 877-322-8228. All three available credit reports can be ordered in one quick call. Remember - knowledge is power and in the world of credit and fraud, what you don't know can definitely hurt you!

So what can you do about it? The bottom line is to be proactive when guarding your identity from fraud!

Here are some tips (and warnings) to keep in mind...

1. Monitor your credit card, bank and loan statements. If you are expecting a bill that doesn’t come, contact your account holder immediately. If you see any unexpected spikes in your interest rates, contact your creditor. Unexpected interest rate spikes can be a tip off that erroneous information is contaminating your credit report. Watch for withdrawals or charges you did not make!

2. Be watchful of people lurking nearby while using ATMs, credit cards, checks and your computer. Thieves will often hover near you to steal account and PIN numbers; they are trained to memorize account numbers.

3. Always delete any personal information and passwords you may have entered into a shared computer. You never know who is going to be using it next and you never know if the computer is already infected with key-logging spy ware that collects bits of information on you with every stroke you make on the keyboard.

4. Make sure all correspondence mailed to you has your correct name and address. If there are name variations, contact the sender and ask why you are receiving it. When throwing out documents that contain personal information…SHRED them into small pieces.

5. Safeguard your laptop. Over the last 6 months, many of the data breaches have occurred in colleges and universities through the theft of laptops. Always make sure that your laptop is password protected, and armed with a firewall and up-to-date virus protection software –at all times.

6. Monitor you credit reports. Look for any name, address or open accounts that are not yours. Dispute all inaccuracies via certified mail.

7. Place fraud alerts on your credit reports. Remember, they fall off every 90 days or so. If you are not going to take the time to monitor and order your credit reports, consider hiring a company that does it for you. It's not just your identity they steal - it's your valuable time they rip off as well. See “How much value to you place on your “free” time time?”

8. Remember profiles and posts are never private. Employers often Google a prospective employee’s name to see what is on their personal pages or what others post about them.

9. Keep you Social Security number, passwords and PIN's safeguarded -and never carry them in your wallet.

10. Don't provide any personal information such as your Social Security number, bank account numbers or credit card data to anyone who contacts you via telephone solicitation, email or on social networking sites. Oftentimes, scam emails and phone calls will appear authentic and urgent -but they are not! If you receive a notice from someone instructing you to dial an 800 number, first check your statement or legitimate documentation for the valid phone number. Fake websites and bogus 800 numbers are often included in “phishing” email scams, which are designed to appear urgent –don’t fall for them. Legitimate companies will not ask for this information through emails.

11. Prevent thieves from cracking passwords. Pick Passwords and profiles carefully. Pet names, birthdates, interests such as favorite sport team or band, favorite hangouts, hobbies, spouses and children’s names are often compiled in passwords and thieves know this. They use these bits of information to crack you password and then get into bank accounts or other online sites you frequent such as Amazon, itunes or anywhere you utilize that password, including email accounts, to purchase goods and services.

12. Learn about the dangers of too much debt. Efforts to correct fraud or credit reporting errors, especially those associated with id theft, can take years to clean up. When errors or fraud are contaminating your credit reports it causes you to pay higher insurance premiums and higher credit card interest rates. Credit card payments can quickly grow unaffordable as with just one error, one id theft or one account opened in your name and reported as late can double or triple your payments due to interest rate spikes. Debt Logistics has a new system that comes equipped with a tutorial and provides easy to understand language that will show the user just how to use the low APR offers received from credit card companies in order to beat them at their own game. The system does all the strategizing and figuring for you. Considering the overwhelming economic hardship created by massive amounts of unmanageable personal debt, a product that teaches people the optimal way to manage their current debt is worth taking a look at.

Taking necessary precautions now -can save you a lot of time, money and aggravation later. If you don't want to pick up the pieces of your life when an identity theft strikes I suggest you check out LifeLock. I personally subscribe to their services because I don't want to spend hundreds of hours cleaning up my credit and reclaiming my identity alone.

For an instant 20% discount, go to LifeLock.com and click on enroll and use the promotional code:denise

For $88.00a year or $8.00 a month they will take steps to prevent identity theft from happening -but more importantly, if it does they promise to fix it -and they back that promise up with a million dollar guarantee.

Posted by Denise Richardson at 07:37 PM | Permalink | Comments (0) | TrackBacks (0)

The US Ninth Circuit Court of Appeals in San Francisco has ruled that credit reporting agencies can be held liable when they inaccurately report court judgments on credit reports. A three judge panel from the court reversed a lower court ruling in a case which Experian had erroneously stated that a man named Jason Denis had had a court judgment of nearly $3,000 entered against him. The case is important because Experian, Equifax and Trans Union have all had a longstanding practice of stating that they are not responsible for reporting inaccurate data from the courts.

The case started in 2002 when Dennis was sued by his landlord. Dennis and the landlord eventually reached and accord that allowed Dennis to pay the money he owed using an installment plan. As a part of their agreement, both sides agreed that no court judgment would be entered against Dennis. But unfortunately for Dennis, the court mistakenly published a report that stated that a trial had been held and a judgment had been entered.

Unbeknownst to Dennis or his landlord, Experian used this report to place a notation on Dennis's credit report. Two months later, Dennis paid off his debt and the court reported that the action against him had been dismissed.

When Dennis became aware of the erroneous judgment on his Experian credit report, he disputed it. Experian, which uses an outside vendor to gather court records, went back to that vendor and asked them to investigate. The vendor, Hogan Information Services, apparently did a cursory investigation and concluded that its information regarding the judgment had been correct. Based on this, Experian refused to remove reference to the judgment from Dennis's credit report. Based on this, Dennis eventually sued.

When the case finally went to court, the trial judge ruled in favor of Experian and dismissed the case. This is the verdict that the Appeals Court reversed in language that was none too kind to the lower court.

Source: Jim Malmberg, ACCESS
American Consumer Credit Education Support Services,

Posted by Denise Richardson at 04:39 PM | Permalink | Comments (0) | TrackBacks (0)

Last weekend two close friends of mine were added to the ranks of the ever-growing list of identity theft victims. Their car was broken into while they were nearby at their's daughter's softball game. The thieves broke two windows and stole the purse, wallets and other personal identifying information that was in the car.

They filed a police report and then rushed to take the necessary steps to block the crooks from using any of their personal identifying information...but Julie was too too late. As diligently as she worked to lock up their identities, and contact their financial institutions –it wasn't nearly quick enough to beat the thieves to their money.

The thieves were able to make several withdrawals from Julie's savings account at an ATM machine totaling about $500.00. She tried to contact her bank immediately after the theft; but unfortunately, the bank had no emergency contact number allowing her to report it the fraud department -on a weekend. I wonder if thieves know they have an entire weekend to empty out accounts, before the account can be closed?

Over the last few days Julie has spent a vast amount of hours on the phone and running around notifying creditors, financial institutions, cell phone, insurance and utility companies of the theft. Closing accounts, obtaining new drivers licenses, notifying the Social Security department, opening new accounts, changing passwords, and even paying to have her auto keyless key codes to her car changed. She's had to notify automatic withdrawal account holders that withdraw payments for her mortgage and other accounts -that her account numbers have all been changed!

In her own words...

I lay awake at night wondering if I’ve done all I can to prevent further intrusions. This is a nightmare!
Just a nightmare! It's one I can't seem to find my way out of… When this crime strikes -you are initially in shock...you can't believe it's happened to you. Then a picture suddenly emerges and all the steps you now need to take, start rushing through your mind like a tidal wave. Ultimately, you not only feel angry, stunned and fearful of what could happen next, you also feel extremely violated, then -overwhelmed."

With continual reports of data breaches and the rapid growth of identity theft (estimated 1 every 3 seconds); odds are pretty good a thief will eventually find you. But if you take proactive steps to protect your identity –you don’t need to worry about it. I’m frequently asked

“What can I do to protect myself?” My answer?

Be proactive! Do all you can to prevent it! See prior blog: Top Five Steps to protect your identity

Anyone that has been a victim of identity theft will tell you that the biggest problem is the overwhelming amount of time and frustrations involved trying to clean up the mess left behind once it occurs. The Federal Trade Commission says it takes anywhere between 170-300 hours to fix problems from this crime –often taking months or years to clean up-only to find it happens again!

If you suddenly find you are a victim -what do you do, where do you turn?

IMMEDIATELY report the fraud (or theft of information) to any one of the nationwide consumer reporting companies. Advise them you need to place a fraud alert on your credit reports. Fraud alerts can help prevent an identity thief from opening any more accounts in your name. The company you call is required to contact the other two, which will place an alert on their versions of your report, too.
•Equifax: 1-800-525-6285;
www.equifax.com
•Experian: 1-888-EXPERIAN (1-888-397-3742);
www.experian.com
•TransUnion: 1-800-680-7289;
www.transunion.com

In addition to placing the fraud alert, the three consumer reporting bureaus will send you free copies of your credit reports.

Contact the security or fraud department of each company where you know, or believe, accounts have or could be tampered with or opened fraudulently. Close the accounts. Follow up in writing, and include copies (NOT originals) of supporting documents. It’s important to notify credit card companies and banks in writing. Send your letters by certified mail, return receipt requested, so you can document what the company received and when. Keep a file of your correspondence and enclosures.

When you open new accounts, use new Personal Identification Numbers (PINs) and passwords. Avoid using easily available information like your mother’s maiden name, your birth date, the last four digits of your Social Security number or your phone number, pet’s names or a series of consecutive numbers.

File a police report. Contact the local police or the police in the community where the identity theft took place to file a report. Get a copy of the police report or, at the very least, the number of the report. It can help you deal with creditors who need proof of the crime. If the police are reluctant to take your report, ask to file a “Miscellaneous Incidents” report, or try another jurisdiction, like your state police. You also can check with your state Attorney General’s office to find out if state law requires the police to take reports for identity theft.

To make certain that you do not become responsible for any debts incurred by an identity thief, you must prove to each of the companies where accounts were opened or used in your name that you didn’t create the debt. Often, easier said than done –but if you know what steps to take as soon as you suspect an identity theft has occurred you can put a stop to further damage!

Complete ID Theft Affidavit
A group of credit grantors, consumer advocates, and attorneys at the Federal Trade Commission (FTC) developed an ID Theft Affidavit to make it easier for fraud victims to uniformly report information. While many companies accept this affidavit, others require that you submit more or different forms. It will be necessary to provide a copy of the affidavit anywhere a new account was opened in your name. The information will enable the companies to investigate the fraud and decide the outcome of your claim.

The affidavit has two parts:
• Part One — the ID Theft Affidavit — used to report general information about yourself and the theft.
• Part Two — the Fraudulent Account Statement — used to describe the fraudulent account(s) opened in your name. Use a separate Fraudulent Account Statement for each company you need to write to.

It might be a good idea to have copies of the Identity theft Affidavit on hand so you’re not frantically looking to obtain a copy at the time of the crime!

When you send the affidavit to the companies, attach copies (NOT originals) of any supporting documents (for example, driver’s license or police report). When you have finished completing the affidavit, mail a copy to each creditor, bank, or company that provided the thief with the unauthorized credit, goods, or services you describe. Attach a copy of the Fraudulent Account Statement with information only on accounts opened at the institution to which you are sending the packet, as well as any other supporting documentation you are able to provide.
Send the appropriate documents to each company by certified mail, return receipt requested, so you can prove that it was received. The companies will review your claim and send you a written response telling you the outcome of their investigation. Keep a copy of everything you submit.

Complete this affidavit as soon as possible. Many creditors ask that you send it within two weeks. Delays on your part could slow the investigation. Be as accurate and complete as possible.

When you have finished completing the affidavit, mail a copy to each creditor, bank, or company that provided the thief with the unauthorized credit, goods, or services you describe. Attach a copy of the Fraudulent Account Statement with information only on accounts opened at that institution to which you are sending the packet, as well as any other supporting documentation you are able to provide.

Send the appropriate documents to each company by certified mail, return receipt requested, so you can prove that it was received. The companies will review your claim and send you a written response telling you the outcome
of their investigation. Keep a copy of everything you submit.

Report any theft of identity to the Federal Trade Commission. By sharing your identity theft complaint with the FTC,
you will provide important information that can help the FTC compile statistics, but they can not and will not act on your behalf.

You can file a complaint and obtain a copy of the Affidavit online at www.consumer.gov/idtheft or by calling the FTC’s Identity Theft Hotline, toll-free: 1-877-IDTHEFT (1-877-438-4338); DO NOT SEND AFFIDAVIT TO THE FTC Source: Federal Trade Commission

Once your personal information has been compromised -that data is usually bought and sold multiple times, for multiple purposes! It's important to note that just because you have successfully cancelled credit cards and closed accounts, changed PIN numbers, etc, that will not stop a thief from continuing to re-sell your information to other criminals who are looking to purchase personal information. The data mined by a thief is as good as gold to them and can be used repeatedly without your knowledge -until it's too late. Keep your identity locked up by either freezing your credit or placing fraud alerts on your credit reports. Remember -fraud alerts can and do fall off every 90 days or so unless the credit bureaus allow you to place an extended 7 year alert on them.

If you don't want to be left alone to clean up the mess if your identity is stolen, -consider hiring a company that will do it for you. I personally subscribe to LifeLock, for good reason!

Here's why...How much value do you place on your "free" time?

If you want to subscribe use the promotional code:denise
to receive a 20% discount -courtesy of LifeLock.

Posted by Denise Richardson at 09:04 AM | Permalink | Comments (0) | TrackBacks (0)

Over the years I've received countless letters from distressed and desperate consumers seeking much needed guidance to find the proper enforcement agency or experienced attorney that can help them with whatever consumer nightmare they've found themselves caught up in. The complaints and often heart-wrenching stories relate to various consumer issues such as identity theft, abusive debt collectors, mortgage fraud and inaccurate credit reporting. In early September, I received one of these requests for guidance from a distraught woman named Helen.

Helen did nothing wrong yet like many others, woke up to her own nightmare that appears to be an exhaustive mortgage servicing mess ! She learned, like I once did, that her additional principal payments have been unaccounted for...to the tune of an estimated $6,000.00 to date.

Sadly, Helen's story is not at all uncommon. These days it's actually more the norm. More often than not I hear from consumers just how hard it is to find an ear of the proper agency, government entity or law firm that will give them the real help they need to get out of the nightmare they've innocently woken up to.

Today, more than a month after receiving her initial letter, she sent me another disturbing email. It seems, not surprisingly, her continued attempts to find help have been unsuccessful so I'm posting her story here today in hopes that someone will step forward to help her.

Please read her original email below and if you feel you can help Helen or know someone who can, please contact me and I will put you in touch with her!