Protecting Your Private Data

by John Doan
September 19, 2005

Identity theft has become such a problem that either you or someone you know closely has probably already been a victim. The damage may be felt for years as you battle with credit and financial institutions to restore your credit rating, as well as, trying to restore financial losses. You may also face rejection for employment or even lose your current job based on criminal and credit records. Some may find themselves in trouble with criminal charges on crimes they did not commit. If you think that this is serious stuff, you are absolutely right. If you don't think this can happen to you, then you better pay attention. This can happen to anyone. Identity theft does not prey on the technically savvy, the elderly or any ethnic group. If you have a social security number, a name, an address or a phone number, you can be targeted as a victim.

Recently, Federal and State governments have passed laws to help protect Americans from identity theft. HIPAA, Federal Privacy Law and California Senate Bill 1386 are just a few of the growing numbers of laws enacted to help protect our private information. Despite all of the effort at Federal, State and Local government levels, we are all at risk if we don't consciously decide to protect our own personal information.

Again, the statements given here are the opinion of its author and are not a guarantee or a representation of any guarantee that will prevent identity theft. Neither Halfsquare.net nor its authors may be held liable for damages or losses incurred.

With that out of the way, I can share with you some personal habits that may prevent you from becoming a victim of identity theft.

Homepages, web boards, etc.
These are really great for grandparents or distant friends and family to share news about the new baby, the new house, etc. It is also a great place for an identity thief to learn more about you and your family. Not to mention the other criminal types who may be eyeballing your car, your neighborhood or your family. I've found people's resumes that include their name, address, phone numbers and current employers for everyone to see right on the Internet. I usually ask myself a simple question before posting any type of picture or information on the Internet, "Would I place this in a maximum security prison, knowing that Bubba, the Serial Killer, has just been paroled?" That usually wises me up to look things over a second time just before I post my new home page.

Mail
There is an incredible amount of information that comes in the form of junk mail. Pre-approved credit applications will tell a dumpster diver how much your worth or at least how much you could possibly lose. "Pre-approved for $10,000 credit limit" sounds really good if you aren't the one paying it back. I open all of my mail, even the junk mail! You may surprised to find that a credit card company is offering to transfer balances from other credit cards by simply allowing you to deposit a check "pending approval" into your account. Pay particular attention to your own credit card statements because in between the glossy ads for the pocket calculator or US Quarter collection are cash advance checks that any thief would love to get their hands on. Don't just throw these away; make sure they are shredded to prevent anyone from being able to use them.

Credit Cards/Debit Cards
First off, make sure you know the difference between the two. Credit cards typically limit the amount of loss if you are a victim of identity theft. Keep in mind; you are still responsible for minimum payments while your account is being reviewed. Debit cards on the other hand don't usually set a loss limit. That means, if a thief drains your account, you may not be able to recover any of your money. With this knowledge, I NEVER use a debit card to make online purchases. Using a credit card will limit your liability if that card is used fraudulently. To be even safer, some credit card companies offer a one-time use number associated with your account. Some banks also offer debit gift cards these are great if you know you are going to buy an item and don't necessarily trust the vendor. Finally, check with your bank to see if there is a daily limit for purchases or withdrawals on your debit card. If not, see if it can be set. I find that $400-500/day is more than enough to cover even large purchases and limits the amount that I could potentially lose.

Credit Report
If your only credit report comes when you are buying a car or other large purchase, then you are at risk for identity theft. Let's face it; an identity thief isn't stealing your identity because of all the dates you are able to line up. It may be as innocent as your roommate applying for a credit card in your name to get a free blow-up broom at the Indian's game, but it ultimately affects YOUR credit score. I personally know of someone who applied for a credit card for the free gift and ended up receiving it despite a semi-false address and incorrect social security number! Not sure how that slips by, but I know for a fact that it has happened. Signing up for a credit service such as Experian's Credit Manager gives you unlimited access to your credit report(s) and also notifies you whenever a change posts to your credit report.

Taking out trash
I covered some of this when we discussed mail, but there is more to it. How about those receipts you leave at the gas station pump. Does it contain your credit card number? Law has been introduced to block the display of credit/debit card information on POS (Point of Sale) receipts, but in the meantime, make sure you dispose of it properly. Same with store receipts, your parents wouldn't leave their carbon copies lying around! Use that shredder if you've got it to dispose of paid bill statements, old documents or anything that has your name and any other important piece of information. Your name and address may not seem like a big deal, but it is when an identity thief also knows your utility provider, your bank, etc.

Social Engineering
Finally, this is probably the easiest and most successful way an identity thief gets information. Be aware when people are asking you for personal information. Even more importantly; talk to family members about not disclosing information. Let's give an example here. Eric lost his cell phone and Joe Bad Guy found it in the alley. He knows the owner's name is Eric because the banner on his phone reads, "Eric's Cell." Convenient enough! Inside Eric's unlocked phone is a stored number called "Mom & Dad". Joe calls "Mom & Dad" and explains that he is a new co-worker of Eric's. They were recently at an office outing when a car hit Eric. He is unconscious but Joe, the Hero, stayed with him as an ambulance took him to the hospital. They can't admit Eric until they have his social security number, address, phone number, spouse's name and number and/or parent's name and number. Not wanting to delay the treatment to Eric, his father quickly gives all of the information making sure to spell everything so Joe does not miss any of it. Quickly, Joe has to go because the nurse is calling him. Eric's father is so shaken; he forgot to ask what hospital they are at. Unfortunately, he spends the rest of the night trying desperately to locate his son by calling every local hospital. Besides the obvious grief Joe bestowed upon Eric's family, he also made out with Joe's personal information. None of which can be changed very easily. Be sure to discuss with your family and friends the need to be on the lookout for this type of call. How different would that call have been if Eric's father simply said, "I don't have all that information in front of me, but tell me what hospital you are at and I will call them back immediately." Always call the person to whom you are going to give personal information, unless you know beyond a doubt you are speaking to someone you know.

Now that you know a little about how identity theft occurs, take some time to go over the things that you do in your everyday life that puts your personal information at risk. Once you realize how much information you have been exposing, you will give thanks to your guardian angels, for without them, you would have surely been victimized. Remember that although governments and businesses have worked to try to protect you; your due diligence is necessary to win this battle against identity thieves.