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Security Freeze, Fraud Alert, and other alternatives!!
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People in general are
confused about how to protect their credit and identity. There
are more than a few ways to protect your credit and it is important
to know which is best for you.
There are three types of fraud:
Identity Theft- the use
of personal identification information to commit credit fraud or
other crimes.
Assuming Identity- long
term victimization of your identification information.
Fraud Sprees-
unauthorized charges on existing accounts.
Some of the ways in which we become a victim to this very costly,
time consuming, and infuriating crime are through our mailbox, lost
or stolen credit cards, our trash, having a criminal looking over our
shoulder while we are in the midst of a transaction,
unsolicited telephone calls or emails, and our personal
records. Having a criminal find your personal records through a
third party or stealing your wallet may be out of your control but
there are many ways in which you can be proactive to protect your
identity and credit. Having a lock on your mailbox, whether you
live in a secluded area or on a busy highway, is essential in this
day and age. Always keep a shredder next to the area where you
look through your mail. Make sure to shred everything you
discard especially credit card offers with checks attached.
Don't carry all your credit cards in your wallet and keep a
list of the ones you have with you on your cell phone (excluding the
account #'s). When you are a victim of your wallet or purse
being stolen you want to make sure you know what you must
cancel. Cancelling all your cards because you are unsure of
what you had could cause more damage to your credit then
necessary. Be careful when in the midst of transactions that
there is no intrusion on your personal space. Do not give any
personal information to creditors via telephone or email if they are
unsolicited. If you want to be certain get the companies phone
number through a third party and call to verify on your own.
Always check all charges on your credit card statements and
immediately inform creditors if there are items you do not recognize.
Be sure if charges appear that are not yours to call the
creditor. Sometimes the corporate name of a business is
different from the name of the store etc. that you bought the item
from. You may suddenly recognize the charge when you get more
information about where and when it was made.
Placing a note on your credit
reports
One of the less invasive
choices of protecting your credit is writing a statement regarding
pending credit to be placed on all three credit bureaus. To do
this you must send a letter to Experian, Trans Union, and Equifax
stating you would like a note on your credit authorizing all
creditors approving new credit in your name to call you directly on
your phone for prior authorization. The letter must have your
name, address, social security number, phone number, proof of
address and social security, a copy of your cell phone bill.
You can request it remain for 7 years or 90 days. This
will only protect you from new credit being opened without consent
and will not deter charges on existing credit from occurring.
It is important to understand that instant credit will be difficult,
if not impossible, to get. When you go into a department store
and they offer 20% off if you open an account it is likely they will
take a few days to call you for consent. This process gives you
more control as opposed to the standard credit reporting agency
alerts.
Alerts to place on your
credit after you become a victim of fraud:
Fraud Alert
You have the right to ask that credit reporting agencies place
"fraud alerts" in your file so potential and existing
creditors will know that you may be a victim of identity theft.
It should be known that a fraud alert can make it more difficult
for you to get credit in your name because your creditors will have to
follow certain procedures to protect you. Your creditors will
have to contact you for approval on new credit before allowing it to
be issued. If they cannot reach you it will be declined.
You will be taken off prescreened promotional credit offer lists.
Once you apply for this alert with one of the agencies the other two
will be notified automatically to place the same alert. This
can delay your ability to obtain credit. To place a fraud alert on
your file you can call one of the three credit reporting companies.
There are 2 types of fraud alerts. An initial fraud alert stays
on your file for 90 days and an extended fraud alert can stay on your
credit file for up to 7 years. To place these alerts you must
provide the bureaus with specific proof of identity. To file an
extended fraud alert you will be required to provide more
documentation including a report from a federal, state, or local law
enforcement agency. You can go to www.ftc.gov/idtheft to learn more about it.
To remove these alerts you must submit written permission with proof
of identity to the bureaus.
Security Freeze
Security Freeze stops people
and companies from having access to your credit. A
security freeze stops 3rd parties (except for those exempt by law)
from viewing your credit reports and from reporting certain
information on them as well. Having a security freeze placed on
your credit profile can inhibit your ability to get a new loan,
credit, mortgage, insurance, government services or payments, rental
housing, employment, investment, license, cellular telephone, utilities,
digital signature, Internet credit card transaction or other
services, including an extension of credit at point of sale. If
your name or other personal information changes while you have the
security freeze, only you, will be able to change it through written
request and proof with the bureaus directly. This is a serious
alert and should not be taken lightly when applying for. You
can get a security freeze if you have a police report and provide the
reporting agencies with proof of identity. There are fees
associated with this alert depending on the state you live in.
If you are over a certain age you may be eligible for a free
freeze. Usually this freeze stays on the report until you
authorize its removal in writing and in some states it stays for 7
years. There is a temporary lift that can be requested by the
consumer where the agencies provide you with a pin# and your
creditors will have a specific access code for approval to review
your reports. Usually the lifts are anywhere from 1-30 days.
More protection articles to come!
Copyright ©2009 North Shore
Advisory Inc.
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Tracy A. Becker
President
155 White Plains Road
Suite 203
Tarrytown, NY 10591
(914) 524-8300
(914) 524-5014
www.northshoreadvisory.com
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