Q: I’m a gay man and a senior citizen.
One of my close friends had his identity stolen online and it has created a mess for him to get everything fixed. I go online sometimes, but I’m not the most computer-literate person. How can I make sure this doesn’t happen to me?
A: This is a great topic, not only for seniors but for anyone who uses email, shops online or participates in any financial activities on a computer. Let’s start the New Year off on the right foot and follow these steps to help protect ourselves from identity theft.
Preventing identity theft
Millions of Americans fall victim to identity theft each year — and their financial losses are in the billions. In 2010 (the latest data available), an estimated 8.6 million Americans experienced identity theft, causing losses of $13.3 billion.1
What can you do to reduce your chances of having your identity stolen?
1. Check your credit reports every year. You have the right to obtain a free copy of your credit report every 12 months from each of the three credit-reporting bureaus — Equifax, Experian and TransUnion. Check thoroughly to ensure that there aren’t any unidentified accounts on your report.
2. Place a freeze on your credit reports. This can help stop an identity thief from opening a credit card account under your name. You simply contact the three credit bureaus and request a credit freeze. This prevents lenders who don’t already have a relationship with you from viewing your credit report. If they can’t access your credit report, they won’t issue a new account. There is often a fee to request a freeze, depending on your state of residence and whether you’ve ever been the victim of identity theft in the past.
3. Monitor your email. You want to be on the lookout for phishing scams, particularly those that appear to come from a credit-card company, bank, retailer or anyone else you do business with. Many of these emails direct you to a phony website that will ask you to input sensitive data, such as your account numbers, passwords and Social Security number.
4. Be careful online. When banking or shopping online, be sure to use websites that protect your financial information with encryption, particularly if you are using a public wireless network via a smartphone. Sites that are encrypted start with “https.” The “s” stands for secure. Also be sure to use anti-virus and anti-spyware software.
What do you do if your identity is stolen? First, call one of the three credit bureaus and ask them to place a 90-day fraud alert on your credit report. They must contact the other two bureaus to place fraud alerts on your reports. You also want to get a copy of all three credit reports.
Second, file a complaint with the Federal Trade Commission (FTC). You’ll create an FTC Affidavit, which you should then take to your local police department and file a police report. Your copy of the FTC Affidavit and the police report make up an Identity Theft Report, which can help you:
• Get fraudulent information removed from your credit report • Stop companies from collecting debts cause by the theft • Get information about accounts that were illegally opened in your name
While it is hard to guarantee your identity will not be stolen, taking the above mentioned steps will make you a much harder target for those trying to do you financial harm.
Jeremy Gussick is a financial advisor with LPL Financial, the nation’s largest independent broker-dealer.* He specializes in the financial planning needs of the LGBT community and was recently named a 2012 FIVE STAR Wealth Manager by Philadelphia Magazine.** He is active with several LGBT organizations in the Philadelphia region, including the Delaware Valley Legacy Fund, the Greater Philadelphia Professional Network and the Independence Business Alliance. OutMoney appears monthly. If you have a question, contact Gussick at [email protected]. LPL Financial, Member FINRA/SIPC.
1Source: Bureau of Justice Statistics, November 2011 *As reported by Financial Planning magazine, 1996-2012, based on total revenues. **Award details can be found at www.fivestarprofessional.com
This article was prepared with the assistance of S&P Capital IQ Financial Communications and is not intended to provide specific investment advice or recommendations for any individual. Consult your financial advisor, or me, if you have any questions.
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