HR Solutions: Education, prevention combat ID theft

Editor's Note: Protecting Your Identity: Part I was published in the Oct. 6 edition of Springfield Business Journal and covered ways that employers can help staff members fight identity theft. The article can be accessed at below under "Related Items."

Identity theft happens when someone utilizes others' personal information, such as names, Social Security numbers or other identifying information, to commit fraud or other crimes. One of the keys to avoid being victimized by identity theft is to protect Social Security numbers at all costs. Identity thieves can use this number, along with other information, to acquire loans, obtain jobs, get credit cards or file tax returns and receive the refunds.

Accessing personal information

It's important to understand how personal information can be misused. How, for example, does an identity thief open a credit card in someone else's name?

To do this, a would-be thief can go through the trash and pull out direct-mail applications that list names, but were simply thrown out rather than shredded. Or, applications can be completed online. And because Internet protocol addresses can be changed often, it can be nearly impossible to trace who is filling out the online applications.

Once an identity thief has personal information from others, that information also can be used with telemarketers who call the thief's home with credit card offers.

Another common scam technique is "phishing," through which fraudulent e-mail and Web sites are designed to look identical to those of reputable entities.

When these sites are used, private information is inadvertently given to the wrong people. The best way to combat phishing is to be aware of how e-mail sources and Web sites you frequently use will contact you, as well as which of those sites and sources will - or will not - routinely ask for password information.

Sometimes, identity thieves will divert your regular mail for a few months so that they can access it and obtain private information. This can cause massive confusion, because neither the sending company nor the U.S. Postal Service will be able to determine what's happening. Eventually, you will again receive mail at your proper address, and you may not realize that identity thieves were behind the switch. But somewhere, a pre-approved credit card with your name on it will arrive at the thief's home.

What to do after ID theft occurs

Once it is determined that someone is using credit cards in your name, the first step is to contact the credit card company and ask to speak with someone in the security or fraud department.

If you have been able to determine who the identity thief is, provide that person's name, date of birth and contact information to the company. You typically will be contacted within 90 days with a finding. During that 90-day period, potential victims of ID theft cannot call and check on the investigation. A toll-free number will be provided only for the victim's attorney or law enforcement personnel, who can call and obtain status reports.

If the investigation doesn't result in any leads, the case is closed. It may, however, be reopened and reviewed if leads are later uncovered.

Check credit reports

If you suspect your identity has been stolen, get your credit reports as quickly as possible. By law, you are allowed one free credit report a year from each national credit reporting company. Visit www.annualcreditreport.com or call the three national credit reporting companies, Experian, Equifax and TransUnion, and get your credit report from each one. Credit reports can be viewed online or obtained via mail. Tell at least one company that you want to put a fraud alert on your credit file. That company will automatically contact the other two, and the fraud alert will remain for 90 days, letting creditors know that you could be at risk for identity theft. If someone tries to access credit in your name, the creditor will contact you. While the fraud alert won't mitigate all risk, it may help prevent further fraudulent activity, according to Equifax.

Review the reports carefully to see if there are accounts in your name that you don't recognize, or if any information is inaccurate or incomplete. Call any companies that show false or inaccurate information, and obtain documentation from them to send with credit dispute reports that must be filed with the credit reporting agencies when this occurs.

Another measure is to call every company you do business with and ask them to put a confidential code on your account so that before company representatives discuss your account, the person requesting information will first have to give the code. Some companies, unfortunately, are not this sophisticated, and in cases when customer service representatives promise to make a note about the code, ask if the note will be seen every time someone calls about your account. Also ask whether, as more notes are made on your account, the code will get buried. If that's the case, ask the company to take appropriate measures. If that can't be done, you might consider changing the companies with which you do business.

While these definitions and steps can help fight identity theft, there are additional tips and information available at www.consumer.gov/idtheft.

Lynne Haggerman, M.S., is president/owner of Lynne Haggerman & Associates LLC, a Springfield firm specializing in management training, retained search, outplacement and human resource consulting. She can be reached at lynne@lynnehaggerman.com.