| The bear in your campground analogy: | | | | to prevent alteration of that check, the data on |
| Perfect protection is unreachable but you can be | | | | your check can be used to produce (or even |
| better protected than most people with | | | | order) perfectly valid looking checks that can be |
| reasonable efforts. The "Bear in Your | | | | written by the thief that will clear and post against |
| Campground" story applies here. When a bear | | | | your checking account. |
| comes into your campground, you can't outrun | | | | * Deposits - An outgoing deposit-by-mail is a |
| the bear but you can outrun the other campers. | | | | double gift to the thief. Not only can they "edit" |
| The fact is that there is no way you can be sure | | | | the checks to their specifications but they can |
| to outrun the thieves either, but you can outrun | | | | use the deposit slip too. That scam goes like this: |
| the other potential victims - and that may be | | | | They go into your bank (probably a remotely |
| enough. I will try to help you make the trade-offs | | | | located branch so they aren't recognized) and |
| that work for you. | | | | hand the teller the deposit slip along with some |
| There are lots of people out there making it easy | | | | bogus checks they printed up on their PC or have |
| to steal their identities. You don't want to be one | | | | from a nearly zero balance account out of state. |
| of them. There is a lot you can do without major | | | | Then they ask for some cash back from the |
| expenditures and major changes in your lifestyle. | | | | deposited funds. They are usually handed the |
| The point of this book is to teach you what you | | | | cash, since it is less that the funds already |
| can do and let you make intelligent trade-offs | | | | available on your account. When the deposited |
| yourself of security versus cost and | | | | checks bounce back against your account, the |
| inconvenience. | | | | thief has been gone for two or three days. |
| Things to do right away: | | | | * Data sources - Various other sorts of mail (like |
| The point of this is to get you off to a fast start, | | | | car registrations, tax forms) can help the thief |
| positioned to better protect yourself. Some of | | | | build a file on you which will later be used to open |
| the things you should do right away include: | | | | accounts in your name. You can count on him |
| Review your last bank and card statements. | | | | running up overdrafts and bad debts in your good |
| Be sure all listed transactions were authorized by | | | | name. |
| a family member, don't assume. Also check to | | | | For all of these reasons, place outgoing mail only in |
| see that you are not missing the most recent | | | | secure mail boxes, not the office OUT box and |
| statement, as that might be a sign of account | | | | not your personal mailbox. The big blue USPS |
| takeover. List each account and card on the | | | | boxes are pretty well bear-proof. |
| Account and Card Inventory Form provided in the | | | | Be wary at ATMs and points of purchase |
| back of this book. Include on your list your divers | | | | The ideal situation for a thief is to have both your |
| license and ID cards from your employer, | | | | card and your PIN. They will go to quite a bit of |
| insurers, that would have to be replaced if your | | | | trouble to get them. If they can copy the data |
| wallet was lost or stolen. This form will be an | | | | from the magnetic stripe on the back of the card |
| important tool for detection as well as recovery. | | | | they can create an exact copy of your card. |
| Order a credit report. | | | | Even with only plain white card stock they can |
| One report from each agency per year is now | | | | use the magnetic stripe data to create a "white |
| free. Some people get one each four months, on | | | | card" that will work perfectly well on an ATM, gas |
| a revolving basis, so that they never have to pay | | | | pump or other unmanned locations. |
| for a report. Some request all three or each | | | | * Getting your PIN - Watch out for "shoulder |
| more often. This is one of those trade-offs of | | | | surfing". Be aware of anyone watching you enter |
| protection versus expense and effort. | | | | your PIN at an ATM or point of purchase terminal. |
| Calendar the date when you want to order the | | | | Some thieves even use a video camera to |
| next credit report. And note which agencies are | | | | record your entry from a short distance or hide a |
| next in rotation, if you are ordering one at a time. | | | | camera to record and transmit your finger |
| When I first did this I found a debt listed that had | | | | movements on the keypad. |
| been run up by my former wife. I called the bank | | | | * Getting your data - Your card's magnetic stripe |
| and got them to take it off of my credit report. | | | | data can be read by one of three types of small |
| As reviewing your credit report is an ongoing | | | | skimmer devices. |
| habit, we will discuss what to do when the report | | | | * One is a portable device that can be taped to a |
| arrives in the next section. | | | | waiter's arm. They go to a private space, roll up |
| Install a locking mailbox or get a Post Office Box. | | | | their sleeve, swipe the card, then go about their |
| Incoming mail can provide a thief with credit | | | | normal business. |
| cards, applications, checks, and various identifying | | | | * Another kind is mounted under the counter. You |
| information. I put up the first locking mailbox in | | | | won't see the card swiped but it will disappear |
| my neighborhood. It cost $60 and a little time. But | | | | from view momentarily. |
| when one neighbor had a box of checks stolen | | | | * Some thieves go so far as to install a skimmer |
| and another lost incoming pay and dividend | | | | on a bank's ATM. These look like part of the |
| checks, I wasn't the only one for long. | | | | machine but they are unauthorized "add-ons" that |
| When my wife went out to run in the mornings, | | | | read the magnetic stripe on the card before |
| at least once a week she noticed all the unlocked | | | | passing it on to the real ATM card reader. |
| mailboxes were hanging open. One day in the | | | | * Getting your card - Some thieves us a device |
| park I found all of a certain neighbor's junk mail. | | | | known as a "Lebanese loop" to steal your card at |
| But not those credit card offers and nothing that | | | | the ATM. The loop is a strip of plastic they stick |
| resembled account statements, or other financial | | | | into the cred reader slot. Your card is caught by it |
| or government mail - those were too valuable for | | | | and jams. After you leave in frustration the thief |
| the thieves to toss. What was going on was that | | | | uses a tool to pull out the loop and your card with |
| groups of teens were cruising the streets making | | | | it. |
| quick grabs into unlocked boxes. They sell | | | | Use safer ways to make payments. |
| "interesting" items to a broker. The broker sorts | | | | It is safer to use credit over debit cards, as they |
| out the items by type and sells groups of like | | | | provide better protection against fraudulent |
| items to transaction specialists. Certain thieves | | | | charges and their spending limit is most likely |
| pass bad checks, others use deposit slips, still | | | | below the amount than can be taken from your |
| others specialize in cards-related frauds. | | | | deposit (checking or savings) account. Once |
| P.O. boxes may be safer, if less convenient and | | | | money has been taken from your deposit |
| more expensive, another trade-off. The bear | | | | account, it may take some time to resolve the |
| might tear into your locked mailbox, but if the | | | | issue with the bank. In the mean time you may |
| other campers have open jars of honey out | | | | not have access to all of your funds. A credit |
| front, then why would he bother you? | | | | card balance, on the other hand, you can simply |
| Get gel ballpoint pens for writing checks. | | | | not pay if you have lodged a legitimate complaint |
| A thief can take a check from your outgoing mail, | | | | in the right manner. |
| remove regular ballpoint pen ink with nail polish | | | | Checks are relatively easy to manipulate. Even if |
| remover (protecting the signature, of course), and | | | | gel ink is used the check can be scanned, the |
| have a signed blank check - on your account. | | | | image manipulated, then printed (including the |
| The cheapest investment you can make is to buy | | | | signature). It is remarkably easy for people to |
| a gel ballpoint pen and keep it clipped to your | | | | order checks on your account and have them |
| checkbook. Gel is a newer kind of ink which | | | | sent to an address supplied by the thief. They |
| cannot be removed by washing. The point is to | | | | just say they are you and have recently moved. |
| look for the word "GEL" on the pen, buy it, and | | | | Many check printers do nothing to verify the |
| use it for all your checks. | | | | identity of the person placing the order, On-line bill |
| Get a shredder. | | | | paying is available from most banks and is far |
| A crosscut or confetti style is best, as strips can | | | | safer. Once you get used to it you will probably |
| be reconstructed. Anything with your social | | | | find it more convenient as well. Just be careful |
| security number on it or containing personal data | | | | with your on-line ID and password. |
| is fair game to the thieves when it hits your | | | | Now obviously there are other kinds of risks in |
| garbage bag or can. "Dumpster diving" is a | | | | the world that need to be considered. Over use |
| profitable profession. | | | | of credit cards, without regular full payments of |
| Things you don't want fished from your trash | | | | the balance, can be a problem. To address this, |
| include bank and card statements, old taxes, | | | | some families use one card for debt and another |
| voided or old checks, deposit slips, credit | | | | for routine purchases. They look for a |
| applications you don't want to complete, credit | | | | low-interest card for the first purpose and pay |
| offers, and those checks the credit card | | | | off the other each month, without exception. |
| companies send you to initiate low interest rate | | | | Close old accounts. |
| loans and balance transfers. | | | | An amazing number of accounts are sitting |
| Change poor PINs and passwords. | | | | around the country in an inactive status. These |
| They should be at least six numbers and/or | | | | are prime targets for the thief. If they send in or |
| characters. They should not be easy to guess or | | | | call in a change of address for the account they |
| based on information which might be in your | | | | are set to strike. They can then run up a card |
| wallet. The first numbers a purse or wallet thief | | | | balance, get checks printed and overdraft a |
| would try are parts of your birth date, phone | | | | deposit account, and set up new accounts related |
| number, SSN, and any other key number they | | | | to the original. |
| find in you wallet. Realize that your SSN can be | | | | After you try to close an account, note it on |
| accessed by a large number of people. A thief | | | | your Account and Card Inventory Form but don't |
| might obtain it and try different parts of it in | | | | remove it until you see a credit report listing it as |
| guessing your PIN even if they don't find it in your | | | | closed. It once took me five trys to get a card |
| wallet. | | | | issues to actually cancel my card account. |
| There are trade-offs here too. | | | | Establish good habits for new accounts. |
| * Multiples - If you always use the same | | | | Ask what the statement date will be. Establish |
| password it is easy to remember but people at | | | | passwords when you set up the account, as |
| each site have access to it. So you also might | | | | described in Chapter 2. Add new accounts to the |
| want to use a unique password on banking sites. | | | | Account and Card Inventory Form as soon as |
| If you use the same ID and password on many | | | | you get them. Watch for the first statement and |
| sites you are exposing them to key employees | | | | review it carefully. |
| of multiple companies. | | | | Avoid common mistakes |
| * Complexity - Complex passwords may be hard | | | | Doing the things described above is important. But |
| to recall and tempt you to write them down in a | | | | it is equally important that you avoid common |
| handy spot. | | | | mistakes. |
| * Real or made-up - To be extra careful, you | | | | * Don't give out data - Incoming-phone calls or |
| might create and use an imaginary "mother's | | | | e-mail can be a source of data to the thief. They |
| maiden name", as the real one could be | | | | can later use that data to pretend to be you |
| researched. It is on your birth certificate, for | | | | while on the phone to a bank, check printer, or |
| example. | | | | loan company. Once they are accepted as you, |
| Set up a password on each bank and card | | | | they can run any number of scams: |
| account. | | | | * Take over your account by changing the |
| Use your Account and Card Inventory Form as a | | | | address of record. They can then transact |
| guide to contact each bank. Once set up, the | | | | without your finding out about the activity. |
| password can be used by the bank to determine | | | | * Set up a new account, card, or loan and link it |
| it is really calling them with a transaction such as | | | | to the existing accounts. They then are positioned |
| an address change or funds transfer. If the only | | | | to make transfers as well as play on your good |
| way they can identify you is by asking for | | | | credit. |
| personal data, your account is exposed to any | | | | Another form of thief's data request is "phishing" |
| thief who has obtained your data. | | | | e-mails. These can seem to be from your bank, |
| Remove any PINs or passwords written in your | | | | card company, brokerage, or other trusted |
| wallet / purse. | | | | financial institution. They send you to an |
| They could be a goldmine for a thief. | | | | apparently valid web site that asks for your ID |
| Secure any PIN and password list within your | | | | and PIN data. They can be very realistic, with |
| home. | | | | your bank's logo, the look and feel of their web |
| Don't leave them out, in a well labelled file in an | | | | site and even seem to have taken you to the |
| unlocked file cabinet, on your computer in an easy | | | | familiar site. |
| to find file, or on a notebook PC that could be | | | | Don't ever provide ID or PIN's as a response to |
| stolen. | | | | e-mails or calls. Call the bank and report the e-mail. |
| Protect Social Security Numbers (SSN). | | | | Go to your bank's Web site only in your usual |
| Remove them from your checks, driver's license, | | | | manner, by typing in their URL or clicking from |
| resume, or other documents where it is not | | | | your browser's Favorites or Bookmarks list. |
| required. My employer forced their insurance | | | | * Don't leave data around - Don't leave the |
| companies to take our SSNs off of our group | | | | customer copy of a charge slip on the table after |
| insurance cards. | | | | paying for a meal or making a store purchase. |
| Remove unneeded IDs from your wallet, purse, | | | | Although the law now requires that only the last |
| and car. | | | | digits of your card number appear on the slip, |
| This will reduce the potential damage from theft | | | | some older systems are still out there which have |
| and reduce the work you will have to do if theft | | | | the whole card number. This applies also to carbon |
| does occur. | | | | copies and the carbon sheets themselves. |
| Protect your PC's | | | | Don't write your PIN or password on anything |
| Get and run anti-spyware and anti-virus programs | | | | that isn't very secure. This includes your house or |
| and firewalls. Be sure to use the encryption option | | | | unsecured PC file. |
| on wireless networks. | | | | * Don't use your SSN unnecessarily - Don't put |
| Protect Yourself - Avoidance Habits to Develop | | | | your SSN on your checks, driver's license, |
| and Keep | | | | resumes or anything else, if you can avoid it. |
| Even as you complete the initial protection steps | | | | Don't give it out unless absolutely necessary. It is |
| described in the prior chapter, you also need to | | | | legally required in relation to any taxable income |
| start practicing on-going protective habits. | | | | source. Merchants may not choose to grant you |
| Review this list from time to time. | | | | credit if you do not reveal it, it's your choice (and |
| The first habit is to learn and repeat each of the | | | | theirs) in that case. Some people make up a |
| others. Put "review the good habits list" on your | | | | number. This ploy has risks that the number will |
| calendar, as a reminder, until you regularly practice | | | | be found to be invalid or, worse, that the number |
| each of these good habits. | | | | belongs to someone else. The other person may |
| Protect your outgoing mail. | | | | not have good credit or may even be wanted by |
| Taking outgoing mail can be lucrative for the thief | | | | law enforcement. You don't want to appear to be |
| in many ways. | | | | an ID thief yourself. |
| * Applications - Applications for cards or loans can | | | | *Don't ignore early signs - A common mistake is |
| be "edited" by thieves so that they get the | | | | to take lightly the early signs of identity theft. |
| payoff and you get the collection calls. | | | | The quicker it is caught, the sooner it will be |
| * Checks - A check in the outgoing mail can be as | | | | resolved and at the least cost in effort and |
| good as gold to them. Even if you used a gel pen | | | | dollars. |