Identity theft who's got your numbers?

By Michael J. Matty, CFA, CFP Chief Investment Officer St. Germain Investment management Special to PRIME Practically everyone has received fake emails that pretend to be from your bank/credit card company/lender/Ebay requiring you to "verify your account information." These days, almost everybody is savvy enough to ignore these attempts to access your personal information. We know better than to disclose such details. But does this make you safe from identity theft? Not by a long shot. In fact, identity theft is most commonly taken through a "lost or stolen wallet, checkbook, or credit card"(2005 Javelin Strategy & Research Survey). So in about half the cases of identity theft, nothing more was required than to lose a wallet or a purse . something that has probably happened to most of us at one time or another. So, even if you ignore the frantic emails looking for data, you may still be at risk. Other ways your data may be obtained include theft of your incoming personal mail, account information that you have disposed of in the trash, and a variety of other methods. The fallout of identity theft However they obtain it, once the thieves have your information, they can obtain credit cards in your name, take out loans in your name, and create a whole host of problems for you. Of course, the lenders all believe it was you incurring these debts, and want to hold you accountable for the charges. In the meantime, you begin to get calls and letters from collection agencies. Your credit rating is ruined and loans become extremely expensive or impossible to get. You begin the burdensome process of trying to clear yourself of all these issues, while re-establishing your good name and credit. It's not epidemic Sound awful? It really is. But the reports of identity theft are often overly exaggerated, because the term is used very loosely. Someone using your credit card number for a single purchase or two is not really committing identity theft. This is really credit card fraud, from which your liability is fairly limited (typically $50) and the remedy fairly simple (get a new credit card number). You still need to be cautious But even if identity theft is not as common as some of the headlines suggest, it still happens to hundreds of thousands of Americans every year. What can you do to protect yourself? First, continue some of the common sense steps that you are probably already taking. Things like shredding sensitive documents, reviewing credit card bills, and not responding to silly e-mails. Second, keep an eye on incoming mail that may contain sensitive information like social security numbers. If you really want to make it difficult for thieves, get a PO Box where your incoming mail cannot be stolen. Third, review the contents of your wallet or purse. Remember that a lost wallet or purse is the most common basis for identity fraud. Keep the personal information in there to a minimum. Do you really need to write down your social security number? Is it really necessary to write down your bank account numbers? Have you made sure that your driver's license number is different than your social security number? Try to photocopy all the credit cards, healthcare cards, and other items in your wallet, both front and back. If you do lose it somewhere, it makes reporting the loss very quick and efficient. If it happens . So what if the worst happens, and you realize that you are a victim of true identity theft? Don't hope it will resolve itself, it is essential that you take action right away. You need to file police reports, reports with the FTC, and get fraud alerts put on your accounts. How do you do all this? All the instructions you need can be found online at: http://www.ftc.gov/bcp/edu/microsites/idtheft/consumers/defend.html≤ Column provided to PRIME by:St. Germain Investment Management; 1500 Main Street, Springfield, MA; Phone is 413-733-5111 or 1-800443-7624; web site:www.dgstgermain.com