June 17, 2009
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News: ID Protection with Security Freeze
Credit card fraud and identity theft have become two of the fastest growing criminal activities facing our nation today. Recent studies have shown that nearly 70% of identity theft cases stem from within an organization's personnel or someone the victim is acquainted with. Individuals who are privy to sensitive information are the most likely individuals to steal identities. We are warned about identity theft all the time, but most of us don't really understand how it works. The most common form is when the thief obtains personal information on an individual and uses it to open credit card accounts or loans. When filling out the credit application, the thief will list the individual's current address as the previous address and then uses a different address for the current address. Thieves often will set up a Post Office Box for the new address. Upon approval, the new credit card will be sent to that new address.
Prior to submitting the credit application, the thief purchases a prepay cell phone and records that phone number on the bogus application. When the thief receives the new credit card, they activate it with the prepay cell phone and then destroy the phone. The thief then begins drawing cash advances against the account and running the card up to its limit. Typically, they will purchase big ticket items that can easily be resold at flea markets or online. With the onset of new security technology, it is becoming more difficult for individuals to be successful at credit card fraud, making identity theft even more prevalent. Individuals should protect themselves by finding a reliable identity protection agent. Shop around online for comparable pricing and benefits.
Another valuable option in protecting your identity is getting a security freeze. All three of the major credit bureaus offer a security freeze which seals an individual's files preventing access to any new creditor or seller of services. The freeze stays in effect until the consumer temporarily opens it with a PIN and reseals the file once their creditor has obtained the information for legitimate credit card and loan applications. To implement a security freeze, you'll need to contact each of the three credit bureaus individually. Most states charge a small fee for the service. For more information on security freezes, visit the State Security Freeze at http://www.consumersunion.org/campaigns/learn_more/003484indiv.html