Bob Dreizler, Chartered Financial Consultant
916-444-2233

Chartered Financial Consultant

Protect Your Good Name

A "bad dream" that thousands of people are having each year is becoming more common: A stranger living the high life using your identity and good credit. We can all learn how to protect ourselves with a few lessons learned from others. Things you can do now to guard your identity from theft:

1. Check your credit report for suspicious activity at least once a year, if not more often. (See article and box in this Newsletter, or go to www.FTC.gov/credit for more information.)
2. When you buy items online, use your credit card, not a debit card. With a credit card, your maximum liability for unauthorized purchases is $50; debit cards can drain your account dry.
3. Don't respond to a "phishing" e-mail. These emails look like a message from a company you already do business with. They often warn that your account will be terminated if you don't "update" or "verify" your financial information with them within 24 hours. DON'T click on the links in the e-mail. Type in the company's web address yourself, or, better yet, call the company.

For someone to steal your identity takes just one fact about you. Your credit history and future can be altered, and setting the record straight can be a problem that can take years to correct. Stolen wallets and checkbooks remain the most frequent sources of identity theft. Here are some other measures to protect your identity:

1. Whenever possible, don't carry your checkbook or your Social Security card with you. Photocopy your social security card and cut out all but the last four digits.
2. Don't give out your Social Security number without first asking "What happens if I don't give it?" Most of the time, their answer will be "Nothing." Your number is routinely used by government agencies, health care providers, utility companies, employers, financial institutions, and sometimes even your video rental store. See if they can use a password or other identifier for you.
3. Buy a paper shredder and use it--destroy all unsolicited pre-approved credit offers and blank "courtesy" checks from your credit card company. Never recycle/throw out any potential confidential information (bank statements, tax documents, etc.) without first shredding it beyond recognition.
4. Keep your mail away from "itchy fingers" - make sure your mail is delivered to a locked box or put directly into a mail slot in your house. If you can't isolate your mail, keep track of when confidential information comes in your mail (credit card bills, bank statements, checks) and follow-up with the lender/bank when you don't receive it. Some thieves steal credit card bills or the mailed credit cards themselves, and then change the address, while running up your credit card bills.
5. Try to add passwords to online and offline accounts, so that anyone who calls your bank or mutual fund needs more than your name, address and Social Security number to impersonate you.
6. Don't use your mother's real maiden name or your real city of birth as identifiers. Use made-up names; be creative. (Examples: Nirvana or Brigadoon.)
7. A somewhat controversial form of defense is to place a fraud alert ("freeze") on your credit file. Credit bureaus strongly oppose freezes because the bureaus make a fortune selling access to your credit report. A fraud alert lets creditors know to contact you before opening new accounts under your name. The alert lasts up to 90 days, but be forewarned: There's no legal requirement to honor alerts, and merchants eager to make sales often ignore them. (Contact by phone: TransUnion [800-680-7289]; Equifax [800-525-6285); Experian [800-397-3742]). A freeze normally costs $10 and a "thaw" normally costs $10. It can take up to three days to "thaw" your account, so you need to plan ahead if you want to shop for a car or a home loan.

Best piece of advice: Be vigilant. It's easier to avoid it now versus having to "clean up" after an identity theft. If your identity is stolen, the Identity Theft Resource Center in San Diego (www.idtheftcenter.org) can help, as well as Mari Frank's book From Victim to Victor: A Step by Step Guide for Ending the Nightmare of Identity Theft. The Guide lists the agencies to call for help and provides many legal form letters.

Registered Representative for securities and Investment Advisory Representative, Protected Investors of America.

This website and Bob's Quarterly Update newsletter are for educational purposes only and are not intended to contain recommendations or solicit sales on any specific investment. Opinions expressed in my newsletters and this website do not necessarily reflect the views of any other organization mentioned.

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