Curtis Flannigan, Assistant Vice President and Branch Manager, Union Bank, N.A.
By Curtis Flannigan, Assistant Vice President and Branch Manager, Union Bank, N.A.
Chino Hills, CA– According to the U.S. Department of Justice, nearly 12 million Americans have their identities used fraudulently each year with financial losses totalling approximately $21 billion in 2013. Identity thieves don’t just steal money; they often steal your credibility and their actions can jeopardize your financial future.
Following is information about financial planning for individuals, and is fourth in a four-part financial planning series.
Guard Your Identity– Identity theft occurs when someone uses information, such as your name, Social Security number, or credit card number without your permission, to commit fraud or other crimes.
“Synthetic identity theft” is the fastest growing type of fraud accounting for 80 to 85 percent of all identity fraud. Synthetic fraud is when somebody steals real information, such as your Social Security number, and combines it with a fake name, phone number or address to create a new and different identity. Since the fraudulent accounts are not in your name, they often go undetected, while a sub file is attached to your main credit file which may impact your credit rating.
Check your credit report every year and review your bank and credit card statements regularly. Be diligent about shredding sensitive documents before you discard them. Keep personal information in a secure place, and don’t carry your Social Security card in your wallet or write your Social Security number on documents. When re-ordering checks, consider requesting that they be sent to your bank branch to help prevent them being stolen from your mailbox.
Cyber fraud is also a growing concern, with con artists exploiting technology to target consumers, but precautions can be taken to help minimize your risk. When shopping online, make sure you are using a secure Web site and protect your computer with an updated antivirus and anti-spyware software. Avoid using public computers and “hot spots” to shop or do your banking, and keep user names and passwords secure. Be cautious of emails asking for sensitive information as they can lead you to fake Web sites where scammers may capture sensitive information (“phishing”) if you try to log in. If you receive a suspicious email, call the company in question, but do not use phone numbers supplied in the email.
Medical identity theft can happen when somebody gains access to your medical identity by stealing insurance cards or other documents. This can result in incurred medical bills for services you didn’t receive, inaccurate information entered in your medical file, or denial of health and life insurance coverage. Always pay close attention to your medical bills and explanation of benefits (EOB) statements and look for discrepancies. Keep your insurance cards in a safe place and shred sensitive medical documents when they are no longer needed.
Recovering from Identity Fraud–If you do become a victim of identity theft, there are steps you can take to recover. Immediately contact the three major credit bureaus and place a “Fraud Alert” on your credit reports, so creditors will be aware of the problem and will proceed with caution before issuing new credit or making changes to your accounts.