We all like to think we are in control of our own lives. We feel confident that our unique identities, reputations, and even our credit scores are completely governed by our own actions. That perception is a myth that can get you in serious trouble.
What if your reputation or financial status was threatened by an inaccurate credit score caused by erroneously reported information? Or if your personal information was stolen by an identity thief who hacked into someone else's computer without your knowledge? If protection isn't a part of your life, how will you even know if this has happened?
I recently received an unsettling, but all too common, phone call from a friend. "After reading your newsletter, I thought it would be a good idea to order my free credit reports. I never thought I had to worry about what they contained because I pay my bills on time." From the tone of his voice, I knew what was coming next.
"My credit reports just came in yesterday…I'm stunned…I have over 14 accounts that aren't mine, and not only that, just this morning I received my first collection call notifying me that I owed more than $11,000 on my Sears credit card…. I don't even have a Sears credit card!!"
There was the usual moment of silence. While he was still reeling from his news and the subsequent unnerving collection call, I was taking a deep breath, knowing that I was about to make his life worse by telling him about the slew of clean-up work he now had in front of him – through no fault of his own.
The reality is that data breaches continue to happen, and thieves continue to find new methods to hijack and then sell our personal information. It's been reported that 10,000,000 people will have their identities stolen this year and recent studies show 1 in 4 credit reports contain inaccurate and damaging data that will cause consumers to pay higher interest rates, insurance premiums, lose employment and rental opportunities, and face humiliating denials of credit.
Private businesses, universities, local, state, and federal entities all have databases that thieves view as precious gold – they are hot commodities! When crooks, thieves, and hackers gain access to one of these databases filled with your personal information, it's as though the thief has physical possession of you and hence, your life.
Thieves can sell your information multiple times to multiple buyers. When thieves use a young child's Social Security Number to gain employment or credit, that particular SSN can be bought and sold for as long as it goes undetected. By the time the child is old enough to notice his/her identity has been stolen –their credit has been all but destroyed and can take years to reclaim.
The lessons to be learned: look for and close out any old accounts and do not rely on others to safeguard your information!
Remember…it's much easier to be proactive when protecting your credit and identity than to be reactive once "you've" been stolen. Here are a couple of resources for prevention…
www.attrition.org/dataloss -A database that includes a running list of reported data breaches. Have you been stolen? This page is updated quite frequently and unfortunately, the list continues to grow.
Annualcreditreport.com (The only legitimate place to obtain your annual free credit report.) To get your report, call toll free: 877-322-8228.
National Do Not Call Registry: Call (888) 382-1222 or visit www.donotcall.gov to reduce telemarketing.
888) 5-OPT-OUT / (888) 567-8688 or opt out online at www.optoutprescreen.com to opt of pre-approved credit card offers.
Denise Richardson is an author, freelance writer and advocate who educates the public on identity theft protection, identity theft prevention and credit reporting issues. She is a Board member of American Consumer Credit Education Support Services, a non-profit organization dedicated to educating the public on credit matters. She is founder of http://www.givemebackmycredit.com .
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