5 Steps to Take Immediately If You've Been a Victim of Identity Theft

5 Steps to Take Immediately If You’ve Been a Victim of Identity Theft

Identity theft has topped the list of consumer complaints filed with the FTC for 13 consecutive years and there’s no evidence that this year it won’t make the list for the 14th. Just how many victims of identity theft are there each year? While we don’t yet have the figures for 2013,  a Javeline report puts the numbers from 2012 at 12.6 million. Factor in the more than 70 million Americans impacted by the recent Target and Niemen Marcus data breaches, and it’s clear why identity theft is a major concern for many Americans.

Identity theft takes many forms. Some of the most common include:

·         Credit card fraud

·         False applications for new credit

·         Fraudulent withdrawals from a bank account

·         Fraudulent use of telephone calling cards

·         Fraudulent use of an IP address in order to engage in illegal acts online

·         Fraudulent use of medical care

·         Social security fraud (for tax and employment fraud)

If you know or suspect that you are the victim of identity theft, there are steps you should take immediately to stop the theft and minimize the damage.

1. Put a Fraud Alert on Your Credit Reports 

A fraud alert puts a red flag on your credit report and notifies lenders and creditors that they should take extra steps to verify your identity before extending credit. To place a 90-day fraud alert on all three of your credit reports, you only need to contact one of the three credit reporting agencies (Experian, Equifax, or TransUnion). When you place the initial alert, they will automatically notify the other two agencies for you.

Another option—and a more effective identity theft prevention measure—is to place a security freeze on each of your credit reports. A freeze prevents creditors (except those with whom you already do business) from accessing your credit report(s) at all. New applications will automatically be declined. With a security freeze in place, you will need to take extra steps if you wish to apply for new credit. Each agency has a procedure for temporarily “thawing” your file in order to allow a legitimate application to be processed and unlike a fraud alert, you’ll need to contact each agency individually to place a freeze on each of your reports. See more information about security freezes here: Experian, Equifax and TransUnion.

When you place a fraud alert on your credit reports, you’re entitled to a free copy of your credit report from each of the three agencies. Be sure to obtain them. If you find fraudulent items on your credit report(s), the simplest way to begin the dispute process is to click the item while viewing your credit report online. Some items must be disputed in writing and with supporting documentation. Hard inquiries cannot be disputed, but may give you a clue as to where a thief has applied for credit in your name.

Initial fraud alerts are free and remain in place for 90 days. In some cases, security freezes and extended fraud alerts incur a small fee, but these services are free to victims of identity theft.

2. Contact Any Institution Directly Affected

For example, if you know your credit card was stolen, report the theft to the credit card issuer. If your checkbook was stolen, contact your bank.

For this step it’s really helpful if you’ve prepared a list of institutions and phone numbers in advance. You don’t have to write account numbers down on the list – that would be just one more way for a thief to gain access to your personal information. But do keep a list of what’s in your wallet, along with the contact information for each item.

3. Contact the Federal Trade Commission (FTC)

File an Identity Theft Affidavit and create an Identity Theft Report. You can file your report online, by phone (toll-free): 1-877-ID THEFT (877-438-4338); TDD (toll-free): 1-866-653-4261, or by mail — 600 Pennsylvania Ave., Washington DC 20580.

The FTC will provide you with information about what to do next, depending on what type of fraud was (or may have been) committed.

4. File a Police Report

To complete the Identity Theft Report, you’ll need to contact your local law enforcement office and report the theft. Be sure to get a copy of the police report and/or the report number. Both your police report and the FTC Identity Theft Affidavit combine to create your Identity Theft Report. Your Identity Theft Report will help you when working with the credit reporting agencies or any other companies the identity thief may have used to open accounts in your name.

5.  Protect Your Social Security Number

If your social security number was or may have been compromised, contact the Social Security Administration (800-269-0271) and the Internal Revenue Service (800-829-0433).

It’s important to talk to the SSA if you have reason to believe your social security number has been compromised, even if you don’t yet see any evidence of financial fraud. A thief could be planning to swipe your tax refund, or to obtain employment in your name.

In addition to these five steps, if you have reason to believe the identity thief may have submitted a fraudulent change-of-address to the post office or has used the U.S. mail to commit the fraud against you, contact the Postal Inspection Service, which is the law enforcement and security branch of the post office. Fill out the online form.

This list is not exhaustive. These are only some of the first few steps. Indeed, clearing the wreckage of identity theft can be a laborious and complex process. For more information about how to prevent or recover from identity theft, the U.S. Department of Justice and the Federal Trade Commission offer a wealth of information and will walk you through the steps.

How Do You Know if Your Identity Has Been Stolen?

How Do You Know If Your Identity Has Been Stolen?

Identity theft was likely the number one complaint to the Federal Trade Commission in 2012. I can state that with some conviction because identity theft has been the number one complaint to the FTC for the prior 11 years. The question most of us wrestle with is this…how do I know my identity has been stolen?

Ground Zero…Your Credit Report

The only reason you’d be the target of an identity thief is because you have an identity.  That’s your “value” to a thief and to them it’s as good as currency. And because identity theft is a financial crime, money or access to capital is the crook’s end goal.

We all have the ability to apply for credit. Add over 10,000 creditors in the U.S to the fact that most of us have average to above average credit reports and credit scores and you’ll see that access to easy credit isn’t terribly difficult. That’s not a secret and the fraudsters know this. That’s why your credit identity is always in the cross-hair of an identity thief.

Thankfully the credit reporting system is set up in such a way that consumers can immediately see if their identity has been used to apply for credit on behalf of another person. And while credit reports are not “real time” in their reporting of account information, they are in their reporting of changes to your identification information and credit related inquiries. This makes credit monitoring an effective tool to notify you when fraud has possibly occurred.

What Changes On My Credit Report Could Be Indicative of Fraud?

While it is certainly possible that changes to your credit reports does not indicate fraud, it’s in your best interest to be cognizant of any substantive change to your personal information.  Changes to any of following areas could mean identity theft:

Address Information:

If a new address hits your credit reports it could mean that a fraudster has applied for credit in your name but with a different address. Addresses are updated on credit files when new applications for credit are submitted. This is the reason monitoring the address section of your credit report is so important.

Inquiry Information:

An inquiry is a record of someone or some company pulling your credit report, and the date on which the access occurred. If a fraudster applies for credit in your name and the lender accesses your credit report a record of the access will hit your credit report immediately and trigger an alert from a credit monitoring service.

Account Information:

If a fraudster is successful opening a new account in your name then it’s very likely that account will be reported by the creditor to one, two, or all three of the national credit reporting agencies; Equifax, Experian and TransUnion. Again, the new account will trigger credit-monitoring alerts.

New Collections:

If a fraudster opens a new account in your name he or she is unlikely to make payments, which could result in the loan going into default and to a collection agency. And while the fraudster probably didn’t give the lender your telephone number, collectors have very effective ways of acquiring that contact information. If you start getting calls from collection agents attempting to collect a debt that you don’t recognize, it could be the result of fraud. At this point your problems are significant because you’ll be telling the collection agent the same thing that legitimate debtors in default are telling them…”that’s not my account.”

If you’re worried about becoming a victim of identity theft, you should at the very least check your credit reports on a regular basis. There are also free resources like CreditKarma.com & CreditSesame.com, where you can get your free credit report and free credit monitoring to help you pinpoint any unauthorized inquiries or new account openings that are often the first signs of identity theft.

10 Ways to Minimize Your Exposure to Identity Theft

10 Ways to Minimize Your Exposure to Identity Theft

You don’t help burglars break into your house by leaving the doors unlocked or hand over your car keys to an auto thief. Yet, every day, Americans share sensitive information that can be used for identity theft – an offense that is much more widespread and costly than property theft.

According to the most recent data available, 16.6 million victims of identity theft reported a total of $24.7 billion in direct and indirect losses in 2012. Those damages were far greater than the $14 billion lost from all other property crimes (burglary, motor vehicle theft, and genera theft) that year.

That data comes from the Department of Justice in its Victims of Identity Theft, 2012, report published in December. It found that identity theft losses were more than four times greater than losses due to stolen money and property in burglaries ($5.2 billion), and eight times the total losses associated with motor vehicle theft ($3.1 billion).

What’s more, this data is from 2012 – the most recent data available from the Department of Justice. We won’t know 2013’s numbers for another year, but considering the massive data breaches that targeted several large retailers just four months ago, these numbers will likely be even higher.

With these facts in mind, here are ten measures you should be taking right now to protect your personal information and provide your best defense against identity theft:

1. Shred important documents

Identity thieves love waste baskets and dumpsters. These receptacles can be a great resource for fraud, so it’s important to destroy all of your important documents with a crosscut shredder, which slices and dices, to ensure they’re completely obliterated.

2. Watch your cards

This means actively monitoring your credit and debit card accounts to check for any unauthorized charges or transactions. Don’t wait until your statement arrives to check for unusual activity or unauthorized charges. If you spot any unauthorized or unusual charges, contact your bank or credit card issuer immediately.

3. Check your credit reports

Your credit report is often the first place you’re likely to identify potential signs of identity theft. By law, you’re entitled to a free copy of your credit report from each of the three credit reporting agencies once every twelve months. The Fair Credit Reporting Act gives you this federally mandated right, and if you’re not taking advantage of it – you should be.

4. Monitor your credit

Checking your credit report once a year is a given, but monitoring it regularly is one of the most effective ways of catching the first signs of identity theft. Think of your credit as the canary in the coalmine. By keeping an eye on it with regular monitoring, you can quickly spot the sorts of discrepancies that signal identity theft. Most monitoring services provide real-time alerts to help you pinpoint possible signs of fraud before they cause major damage to your credit reports and scores. And while most credit monitoring services will cost you a small monthly fee, by taking advantage of free resources like CreditSesame or CreditKarma, it doesn’t have to cost you a dime. 

Our choice for a paid credit monitoring service with alerts has always been: www.PrivacyGuard.com.  For $1 initial introductory price (14 day trial), you can download and view your tri-merged credit reports.  If you decide to continue your service, it’s only $14.95 per month and well worth the small investment.

5. Use strong passwords

Make sure you protect all of your important hardware and sensitive accounts by using a strong password. Experts suggest you create passwords by mixing uppercase and lowercase letters with numbers and symbols. It’s also a good idea to change passwords regularly and never use the same password on all your accounts.  It may be convenient for you to use the same password containing the name of your cat and the numbers of your house, but anyone that knows personal information about you could quickly figure out your password and be tempted to help themselves to your credit.

6. Don’t take the bait

Never respond to phishing emails, or unsolicited emails of any kind, asking for personal data or information, and never click a link in those kinds of communications. If there is an offer you would like to pursue, conduct your own Internet search before doing so and follow the links you find from it.

7. No card carrying

You’d be surprised by how many people carry their social security card around with them in a purse or wallet. This presents a tremendous opportunity for identity theft. A social security number can be used to apply for credit cards, open a bank account or get a loan. Obviously, you don’t want yours out in public unless it needs to be. Find a safe place for your social security card and keep it there.

8. Lock and block

If you are going to send sensitive information over the Internet, make sure to use encryption software that scrambles the data and keeps it safe from prying eyes. You should also make sure to look for the “lock” icon in the status bar of your browser when sending data. This is an indication that you have a secure connection with the recipient.

9. Don’t be too social

Everyone loves to talk and share news about themselves on social media. But too much information isn’t just an annoying catch-phrase. It can also be a problem. An identity thief can learn enough about your life to answer challenge questions on accounts and get access to money and other personal data. Never post your full name, date of birth, address, phone number, Social Security number or account numbers on any publicly accessible site, and be sure to limit access to your networking pages.

10. Recognize security differences

A secure website is not the same thing as a secure network. An encrypted website only protects data you send to that site. Don’t mistake a secure website for an unsecured network. This is especially important when using a wireless network or free Wi-Fi in a coffee shop, airport or other public space, which are prime targets for identity theft.

How to Check Your Child's Credit Report

How to Check Your Child’s Credit Report

I’ve just obtained my 4-year old’s first passport, complete with adorable photo. We’re planning a family vacation in Nova Scotia, Canada this fall to enjoy the changing colors and attend a Celtic music festival. We’ll also visit a working farm where she’ll help milk a cow and churn butter. But while I plan our hikes and hayrides, something else entirely is on my mind…My child’s identity.

You see, her original birth certificate never came back to me from the Passport office. I didn’t request expedited service since we had plenty of time and there seemed to be no need to incur the additional cost. So her documents – a U.S. passport, a U.S. passport card and her original birth certificate – were returned to me in three separate first-class mailings. No tracking numbers. No signatures required for delivery. No evidence whatsoever that any of the three were ever sent or received.

To me, this is a deeply disturbing shortcoming in the Passport office’s process. At the time we submitted the passport application, I was not offered any option to have the documents returned with tracking numbers or I would have gladly taken it. Now, there is simply no way for me to know if her birth certificate was lost or simply set aside for later use by an enterprising identity thief.

Child identity theft

Children are perfect candidates for identity theft.  With a beautifully clean credit history, the sky is the limit for an intelligent and careful scam artist. In most cases, the perpetrator is a friend or family member. But many cases involve enterprising strangers who count on the probability that the theft won’t be detected for many years.

Child identity theft is much harder to detect and resolve than adult identity theft. Where adults are often made aware of fraudulent activity on the same day it happens, children can be victimized for a year or longer before any fraud is detected. And the fraud can begin many years after the initial opportunity (like the chance to pocket a birth certificate) presented itself. Adults spend an average of 12 hours over the course of a couple of weeks to resolve identity fraud against them, but child identity fraud can take nearly a year to detect and at least 44 hours over several months to clean up.

It’s wise to periodically check your child’s credit. It is critical to do so if you have reason to believe your child’s identity may have been compromised. If you have listed your child as a joint account holder at a financial institution, he or she may have a credit report. Otherwise, your child should not have a file at all.

How to check your child’s credit report

For adults, a copy of your credit report is only a click away. Simply visit AnnualCreditReport.com and verify your identity to receive a free copy every 12 months from each of the three major credit reporting agencies. For children, it’s not so simple.

Equifax, Experian and TransUnion allow parents and guardians whose identities have been verified to view a minor’s credit file. Here are the steps to find out if your child has one:

TransUnion: When it comes to checking your child’s credit, TransUnion is the friendliest. Simply complete the Child Identity Theft Inquiry form online. TransUnion will investigate and let you know whether any credit data exists. If a file exists for your child, you’ll need to provide some documentation to proceed. TransUnion’s email will tell you what to do next.

Experian: Mail a written request for information about your child’s credit report to Experian, P.O. Box 9554, Allen TX 75013. Your request must include:

·         A copy of your driver’s license

·         Proof of your address (bank statement, utility bill, etc.)

·         A copy of the child’s birth certificate

·         A copy of the child’s social security card

·         The child’s full name, including any suffix (Jr., III, etc.)

·         The child’s date of birth

·         Previous addresses for the last two years

All copies must be legible. Read more here. You can verify the above process by calling 1-888-397-3742. The phone prompts for this task are not terribly intuitive. To get the information, I pressed:

·         2 (I don’t need information about Experian Credit Educator)

·         2 (I don’t need to hear my rights as a California resident)

·         2 (I want to learn about fraud prevention services)

·         1 (I believe my information is being used fraudulently)

·         1 (I am calling about my minor child)

Equifax: Mail a written request to Equifax Information Services LLC – Minor Child, P.O. Box 105139, Atlanta, GA 30348-5139, and include the same items (listed above). Read more here.

Keep copies of all correspondence for your records.

If your child is found to have a credit report and it’s not the result of financial accounts you were aware of, you will need to place a fraud alert on his or her file. You’ll also need to take steps to remove fraudulent data from the report and notify any creditors. If you haven’t done so already, contact the police and file an identity theft report with the Federal Trade Commission. Finally, you may wish to freeze your child’s credit report.

6 Ways to Earn More Cash Back Rewards

6 Ways to Earn More Cash Back Rewards

When it comes to saving money, you have to be shrewd. In addition to clipping coupons, refinancing your home loan, and holding off on buying a new car, why not make your purchases work for you by scoring cash back whenever you shop? Most credit cards have cash back programs in place, but it’s easy to miss out on rewards if you’re not paying attention. Here are six ways to get more cash back.

1. Use the Right Credit Card

Make sure you’re using the right credit card to earn cash back for all of your purchases.  The Chase Freedom Card and the Discover it Card feature rotating categories with 5% cash back (and no annual fee). Educate yourself on the details and plan your purchases accordingly.

The American Express Blue Cash Preferred Card comes with 6% cash back on groceries (capped at $6,000 per year), and 3% cash back on gasoline. There is a $75 annual fee, so do the math to make sure the rewards are worth the expense.

2. Sign Up for Cash Back Websites

If you’ve never heard of Ebates or FatWallet, check them out. Both have cash back programs that provide a rebate whenever you use their links for making online purchases. If you shop a lot online, the cash back can really add up.

3. Download Smartphone Apps

Download the Wallaby app to determine which of your credit cards is the best to use on any given purchase. This ensures you’re always getting the best cash back reward, simplifying the reward-management system if you’re juggling multiple cards.

You can also earn money by using other apps. For instance, download the GymPact app, set up a workout schedule, and earn up to 75 cents every time you exercise. If you shop a lot, try the Shopkick app. Every time you enter a participating store or make a purchase, you receive “kicks” which can be redeemed for gift cards.

4. Pay Your Bills With Credit Cards

Many monthly service providers offer customers the option to automatically pay monthly bills with a credit card. By putting $5,000 worth of monthly bills on a credit card over the course of a year, you could earn at least $50, assuming your card offers a 1% or greater cash back reward. Just make sure you’re paying off your balances each month – if not, the added interest payments could eclipse any cash back bonus.

5. Apply for New Cards

If you have a vacation coming up, sign up for the Chase Sapphire Preferred Card. It offers $500 worth of travel rewards after you spend just $3,000 on the card in the first three months. Similarly, the Citi Thank You Premier Card offers $200 worth of gift cards after you make $2,000 worth of purchases in the first three months.

Just don’t sign up for too many new credit cards in a short period of time – that could hurt your credit score – and do pay attention to your cards’ annual fees. For instance, the Chase Sapphire Preferred Card has a $95 annual fee after the first year, while the Citi Thank You Premier Card has a $125 annual fee after the first year. Only sign up for cards with rewards programs aligned with your spending habits – you want to be in a position to earn more rewards than the cost of the annual fee.

6. Pay for Everything With Credit

The more you spend on your credit cards, the more cash back you can earn. But once again, this only works if you’re paying off your balance each month. As long as you’re living within your means, by paying with credit, you’re racking up those cash back rewards.

If you have the option to apply your cash back rewards in different ways, such as gift cards, travel rewards, or statement credits, always opt to use them as statement credits. You usually get a better return on your rewards, and if you’re paying for everything with your credit cards, your cash back essentially helps pay for your current purchases.

Sign up for a secured card to help rebuild your credit by clicking on one of our links on the right.  A great website to shop for credit cards is: www.FreeDebitCardStore.com.

Why Don’t My Credit Cards Ever Show a Zero Balance on My Credit Reports?

Why Don’t My Credit Cards Ever Show a Zero Balance on My Credit Reports?

You’ve done your homework and you know that paying off your credit cards in full each month is the smart move.  You’re avoiding expensive interest charges and you’re avoiding excessive credit card debt. And, you know that maintaining a low balance relative to the credit limit is a great way to earn solid credit scores.  The cherry on top is that you check your credit reports several times each year to ensure the data is accurate.

By all accounts you’re well engaged with the important facets of all things consumer credit. But, one thing has you baffled. Every time you check your credit reports the credit cards that you use always show that you have an outstanding balance. How can that be true given that you pay them off each and every month?

The answer is…

Credit card issuers update the information in your credit files only once each month. And, their update occurs soon after your statement closing date. The statement closing date is the end of you monthly billing cycle.  It’s also the same date that your balance due is determined, which is what’s included in your billing statement.

You’ll notice that the balance on your credit report is the same balance as was on your prior month’s billing statement. So, if your balance due in September was $1,000 then the balance reported to the credit bureaus as of September will also be $1,000. That’s not a coincidence. As long as you get a statement will a balance greater than zero, your credit reports will always show that there’s a balance due on your credit card accounts.

Here’s how to beat the system

It’s true that if you continue to simply pay your bill in full by the due date you’ll never have a zero balance on your credit reports. However, there are a few legitimate ways to beat the system but they’re going to require some strategy on your part.  Here are the two ways to ensure a zero balance shows up on your credit reports.

1.  Stop using the card for one full billing cycle.

If you pay your balance in full each month BUT then use the card again you’re always going to have a balance the following month and, therefore, will always have a balance on your credit reports. But, if you’ll pay your bill in full and also stop using the card your next statement will have a zero balance due.

This isn’t an optimal strategy because those of us who use credit cards responsibly recognize that they make our lives much more efficient and not using it just to force a zero balance on our credit reports isn’t a viable long term strategy.

2.  Pay the balance in full by the statement closing date.

Your statement balance is a product of any unpaid balance carried over from the prior month + interest + fees – payments – credits.  If you can get that math to equal $0 then your statement will also have a $0 balance due.

This isn’t very hard to accomplish because all you have to do is pay off your existing balance online a few days before the statement closing date. That will result in your balance being zero on your statement. And, it will also result in a zero balance on the account as reported to the credit reporting agencies. This strategy is much more attractive because you can still use your credit card. But, you will forgo the grace period because you’re paying off the balance even before the billing statement has been generated.

Sign up for a secured card to help rebuild your credit by clicking on one of our links on the right. 

Email us at: info@CherokeeFinancialinc.com for the opportunity to make money from your excellent credit on any of your high limit credit cards that have at least 2 years payment history.  You'll be surprised to find that doing something simple will put money in your pocket to pay down your

debt or use however you want.

5 Secrets to Earning Great Credit Scores

5 Secrets to Earning Great Credit Scores

Love them or not, credit scores have become an integral part of our financial lives. From lending to insurance to tenant screening credit scoring models are now one of the factors used to determine whether or not we’re going to get what we’ve applied for, and at what costs. It’s in your best interest to earn and maintain great credit scores, and here’s how:

1.  Don’t miss payments, ever.

Both FICO and VantageScore credit scores consider your payment history as being extremely influential. In all actuality this category could better be described as the presence or lack of derogatory information. You don’t ever want to give a lender an excuse to report something negative to the credit reporting agencies or your scores could suffer significantly. Late payments, defaults, collections, tax liens, judgments, bankruptcies, settlements, repossessions, and foreclosures can all devastate your credit scores for seven to ten years.

2.  Avoid too much credit card debt.

Despite the noise made by some of the self-proclaimed credit experts, credit cards are not bad for your credit scores. To the contrary, a well-managed credit card portfolio is actually very helpful to your credit scores. In fact, of the most common forms of credit (mortgage, auto, student loan, credit card) only the credit card allows you to choose whether or not you get into debt.

Still, maintaining a modest balance on your credit cards is a great way to improve your credit scores. The balance relative to the credit limit is an important measurement in credit scores. If you can keep that percentage as low as possible, less than 10 percent preferably, your credit scores will reward you.

3.  Apply for credit only when you need it.

While applying for credit isn’t necessarily a bad thing, applying too often suggests that you are credit dependent and can have an adverse impact on your credit scores. Each time you apply for credit a new hard inquiry appears on your credit reports. Hard inquiries are the type that can have an adverse impact on your credit scores. Note: I used the word “can” instead of “will,” as inquiries don’t always lower your credit scores.

4. Be careful when closing unused credit cards.

Closing an unused credit card can, in fact, lower your credit scores. The reason it can lower your scores is due to the loss of the unused credit limit. As explained in number two above, having low balances relative to your credit limits is helpful to your scores. If you close accounts that you no longer use, then you’re no longer getting the benefit of the unused credit limit associated with that account.

Note: There are some people that will suggest that closing credit cards can lower your scores because you don’t get the benefit of the age of the card any longer.  That’s simply not true. Closed accounts still appear on your credit reports and you do still get the value of the card’s age. In fact, closed cards continue to age.

5. Don’t co-sign for loans, ever.

If someone asks you to co-sign for a loan it’s likely because a bank has denied their credit application. Asking for a co-signer is their way of making the bank more comfortable because they’ll now have someone who is actually creditworthy on the hook for payment. You co-signing for a loan is really no different than you applying for the loan on your own. Not only will the debt show up on your credit reports but any mismanagement of the account will also blow back on your credit scores.

Sign up for a secured card to help rebuild your credit by clicking on one of our links on the right or visit the website directly at: www.FreeDebitCardStore.com

Email us at: info@CherokeeFinancialinc.com for the opportunity to make money from your excellent credit on any of your high limit credit cards that have at least 2 years payment history.  You'll be surprised to find that doing something simple that will put money in your pocket to pay down your debt or use however you want.