Financial Literacy Tips: Protecting and Correcting Financial Identity

Protecting personal information is crucial to avoiding identity theft. College-age students age 18 to 29 can be a frequently victimized group because they often live in a group setting — living with roommates, sharing dorm mailboxes and interacting with other students who are unknown to them.

USA Funds^®‘ online course “Identity Theft” notes that, while it’s not always practical to adjust living arrangements, there are several practices to help you and your students decrease the chances of becoming victims, and resources available in the event theft occurs.

1. Cut up old credit, debit and ATM cards and receipts before discarding them.
2. Don’t write personal identification numbers on credit, debit or ATM cards, or preprint telephone, driver’s license or Social Security numbers on checks.
3. Sign credit, debit and ATM cards in permanent ink as soon as you receive them.
4. Shred unwanted financial offers received in the mail. Reduce or eliminate mail that contains personal information by contacting (888) 5OPT-OUT toll-free or visiting www.optoutprescreen.com to discontinue mailings.
5. Use extra caution when using Internet kiosks or other people's computers to avoid putting confidential information at risk.
6. Before submitting personal or financial information online, look for the locked padlock image on the browser's status bar or "https://" at the beginning of the Internet address. Although a padlock image and "https://" does not guarantee that the Web site is authentic or secure, the absence of the padlock symbol or the "https://" does indicate that the site is not secure.
7. Keep computer systems up to date with the latest security patches, personal firewall, antivirus and spyware detection software.
8. Avoid downloading software or files from an unknown source.
9. Change passwords on a regular basis. Don't write down passwords or send passwords to anyone in an e-mail. Keep passwords in a safe place.

Prevent further damage
Unfortunately, even the most diligent can become identity theft victims. According to the U.S. Federal Trade Commission, identity thieves typically average $10,000 in fraudulent charges before theft is detected, and most victims are unaware their identity has been stolen until more than a year after the theft has occurred.

Following are steps to take to identify and help resolve theft if it happens, or to prevent additional problems from causing further damage to credit records:

1. Review your accounts on a regular basis to identify any unfamiliar activity in the early stages. If fraudulent activity has occurred, immediately contact businesses involved via telephone and in writing to inform them of the fraudulent activity. Report existing accounts as lost or stolen and replace them with a different account number.
2. Contact the three national credit bureaus to place a credit freeze on your accounts, which will prevent potential creditors and other third parties from accessing your credit report unless you lift the freeze or already have a relationship with the company. A similar option is to request a fraud alert on your accounts. This will alert creditors to follow certain procedures before opening new accounts or making changes to existing accounts. Fraud alerts typically expire after 90 to 180 days, but can be extended up to seven years when requested.
   • Experian — (888) 397-3742.
   • Equifax — (800) 525-6285.
   • TransUnion — (800) 680-7289.
3. Request a free credit report from each of the three credit bureaus. Carefully review the information to look for inquiries from companies you haven’t contacted, accounts you didn’t open and transactions on your accounts you did not make.
4. Close accounts that have been opened fraudulently by contacting the fraud department of each company where an account was opened or changed. Follow up in writing and include copies of supporting documents. Ask for written verification that the disputed account has been closed and the fraudulent debts discharged.
5. Contact the Department of Motor Vehicles to inquire if a new license has been issued.
6. Contact the Federal Trade Commission’s Identity Theft Hotline at (877) ID-THEFT.
7. Report theft to local law enforcement and provide as much information and documentation as possible.
8. Keep a complete record of all information and related correspondence. Record names, dates, times, addresses, phone numbers and important notes from conversations. Summarize conversations for follow-up in writing and send via certified mail.

To learn more, register for USA Funds University online course 306, “Identity Theft.” The course provides information about the different types of identity theft and how it happens; the steps to take to prevent it; and steps to take if identity theft occurs. For more information about the more than 70 online courses available, visit USA Funds’ online learning site.