Preventing Identity Fraud
Five tips to keep your good name from going bad

By Ron Sibley
President, Community Guaranty Savings Bank

Once considered an isolated problem, identity theft is now a national concern threatening anyone who has a credit card, bank account, driver’s license, Social Security number or address. Don’t think it can happen to you? Think again.

Ten million Americans were victimized by identity fraud in 2004, topping the U.S. Federal Trade Commission (FTC) list of consumer complaints for the fifth straight year. Losses exceeded $52 billion nationwide, taking many forms: stolen credit cards, false phone or utility charges, bogus checks, plus loans or electronic transfers taken out in the names of people often a continent away.

Victims of identity fraud often spend years clearing their names—while losing job opportunities, being denied loans, education and housing, or getting arrested for crimes they didn’t commit. So follow these simple tips for preventing the theft of your good name. 

Avoid sharing personal data. Thieves are clever at obtaining Social Security numbers (SSN), account numbers, or even your mother’s maiden name. Beware of phishing, a scam in which crooks masquerade as your bank, utility or some other service provider in order to “confirm” personal account information that has supposedly been lost or jeopardized. Never give out personal information via the phone, mail or Internet unless you have initiated the contact or are sure of the person you’re dealing with.

Minimize your personal ID. How much would thieves make off with if they got your wallet or purse? Carry only the ID and cards you really need. And instead of carrying your Social Security card, leave it in a secure place.

Be careful with mail and trash. It sounds funny, but “dumpster diving” is the identity thief’s most time-honored way of striking gold. Tear or shred all receipts, insurance forms, checks, statements and applications before discarding them. Also, deposit outgoing mail at the post office or a collection box rather than an unsecured mailbox. Remove all mail promptly, and arrange to pick up new checks or other financial materials at the bank.

Use passwords on credit, bank and utility accounts. It’s easy for outsiders to find out birthdays, maiden names, last four SSN digits and other traditional identifiers. Ask about substituting a unique password when opening new accounts—and don’t neglect to change passwords that have been in place for a long time.

Tighten your information security. Don’t leave purses, wallets or data in plain view of roommates, outside help or workers. Get a strong, inconspicuous lockbox instead. If you have a personal computer, make sure it features up-to-date virus and spyware protection, a secure web browser and an adequate firewall program, especially if you have a high-speed Internet connection via cable, DSL or T1 line. Open 24 hours a day, these kinds of connections are especially vulnerable to uninvited computer hackers.