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Did you hear the one about the IRS agent who
filed tax returns in other people’s names
and collected hundreds of thousands of dollars
in stolen refunds?
Oh, yeah, that’s a scary one!
And how about that Australian woman whose
personal information was used to make a fake
passport that implicated her in an international
assassination ring?
That would be so freaky.
Oh, and then there’s the one about the tenant
who used just a couple pieces of stolen mail
to take out a dozen credit cards in her landlord’s
name--
Stop!
I don’t wanna hear anymore!
They say on quiet nights, you can still hear
him arguing with a customer service representative…
That's not funny, Philip!
Identity theft isn’t just a scary story,
it can happen to anyone.
I mean with the Equifax and Facebook
hacks--we could be next!
Shh!
What’s that sound?
Oh, stop.
No really, it came from out there.
AHHHH!!!!
If you haven’t already fallen prey to some
kind of financial fraud, odds are pretty good
that you will in your lifetime.
A recent Bureau of Justice Statistics survey
found that 17.6 million Americans--or 7% of
people over 16--will be a victim of identity
theft each year.
The vast majority of these incidents are unauthorized
uses of credit cards or bank accounts, but
these criminals will also use stolen info
to pay for medical treatments, intercept tax
refunds, cash in airline miles, and set up
utilities like water and electricity.
While the frequency of identity theft is alarmingly
high, the good news is that the monetary damage,
for most people, is usually small.
According to a study conducted by the Federal
Trade Commission, only 14% of identity-theft
victims were not reimbursed for their loss.
And only 7% suffered a loss of $100 or more.
The bigger risk is the amount of time and
effort victims often have to spend to untangle
their real identity from the fake one.
A stolen credit card can usually be cleared
up in a few hours.
But if a thief opens new accounts in your
name, it can haunt you for years.
Some victims don’t even find out they’ve
been compromised until they start getting
letters from collection agencies, or go into
a bank to open an account and find out they’ve
already got one.
And clearing your name can be a rabbit-hole
of bureaucracy.
Lenders and credit agencies tend to demand
a lot of proof when you’re trying to get
out of paying a debt, like passports, drivers
licenses, social security cards, birth certificates,
police reports, signed affidavits--whew!
If only they had those high standards when
the fraudsters were racking up the debt in
the first place.
And if your info was used to pay for hospital
fees or medications, your medical record might
be mixed up with your identity thief’s!
So not only could it be hard to get a mortgage
in the future, you might not be able to get
health insurance!
Thankfully, situations this extreme are pretty
rare.
But the risk isn’t going away.
If you’ve been watching the news in the
past year, you might’ve heard that there’s
a whole lotta hackin’ goin’ on.
Sony, Target, Equifax, Facebook...
So many people have been compromised, it’s
not really a matter of if… it’s a matter
of when.
And that when can be way in the future.
Things like your name, birthday and Social
Security number are evergreen.
Hackers can sit on that info for decades before
deciding to use it.
So, what can you do?
Thankfully, the vast majority of banks and
credit cards offer zero-liability protection
to account holders.
Meaning you will be completely refunded if
you are victimized by fraud.
That’s great for accounts you already have,
but what about new lines of credit someone
could open in your name?
The three major credit bureaus--Equifax, TransUnion,
and Experian--are required by law to provide
you with a free credit report once a year,
and you’ll be able to see pretty quickly
if there are accounts on there you don’t
recognize.
You’ve probably also seen ads for companies
that will monitor your credit activity more
closely for a monthly fee.
Some even search the “dark web” to see
if your information is being bought or sold
on the internet’s black markets.
But most of these precautions are reactive--their
purpose is to alert you quickly once you’ve
become a target.
The only proactive thing you can do to protect
yourself is freeze your credit.
Don’t worry, that doesn’t mean you have
to turn in your charge cards.
Freezing your credit means no one will be
able to open new lines of credit in your name--even
you.
So if you don’t plan on applying for any
new loans in the near future, it might be
a good idea.
Surprisingly, even though two-thirds of respondents
to a recent poll said they were worried their
identity had been compromised in last year’s
Equifax breach, only 19% reported taking any
kind of precautionary steps--not even finding
out whether they were one of the victims.
Maybe they were counting on technology to
protect them.
Maybe they figure there’s safety in numbers.
Or maybe they’re just too busy to worry
about a problem until it’s on their doorstep.
One thing is certain: identity thieves have
a perfect victim in mind when they’re on
the hunt.
This person doesn’t keep a very close eye
on their account balances.
They don’t ever check their credit report
or communicate regularly with their bank.
This is a person who can be victimized for
years before even knowing it.
So while you can never protect yourself 100%
from identity thieves, there’s no reason
you should make it easy 
for them.
And that’s our two cents!
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