Check Your Credit Report Regularly

by Darren Miller

Published on this site: January 13th, 2006 - See more articles from this month

Identity theft is a type of fraud in which financial information is illegally obtained for the purpose of making unauthorized purchases and transactions with credit cards or funds from financial accounts. A thief can use your personal information such as your name, drivers license, Social Security number, health insurance, or bank account number, to make purchases as if they were you. If this happens, it could be the beginning of a financial disaster that could linger for years and cause you to lose job opportunities, be turned down for credit or loans, and in some cases, ruin your reputation.

There are a lot of thing you can do to minimize the risk of becoming a victim of identity theft. This article focuses on obtaining and reviewing your credit report, quite similar to what we do when we perform network security assessments, believe it or not.

What is a Credit Report

There are three major credit bureaus that collect, maintain, an distribute credit information about you. These companies are Experian, TransUnion, and Equifax. Some of the information you will find in your credit report is; personal information such as your legal name, alias names, addresses, current and previous employers, and date of birth; your credit summary such as current and past credit status, total number of open and closed accounts, the balances of accounts, if they are current or delinquent; public record information such as federal bankruptcy records, local government court records, liens, judgments, and child support records (information that can stay in your record for up to 10 years); credit inquires - when you apply for a credit card or loan, the institution will make an inquiry to one or more of the credit bureaus; detailed account history - very up to date information about your loan payments, credit card debt and payment history, and this information stays on your report indefinitely; credit score - a number ranging from 330 to 830, the higher the number the better your credit is and increases the chance of you obtaining a loan or credit account.

Why Should You Check Your Credit Report Frequently

If someone gets your Social Security number, it only takes a few additional pieces of information, which is quite easily obtained, to assume your identity. The Internet makes it even easier than ever because most of this information the criminal needs to get his hands on is out there. It is not my purpose to scare anyone, but I must tell you that if you think you are not at risk, you need to think again.

The most common forms of identity theft include; credit card fraud, bank fraud, communications services, and fraudulent loans. The bad thing is that this type of fraud can negatively impact your life, the good thing is there are ways of monitoring what other people do with your identity.

Do you know, that nearly all of the security assessments we perform, we find personal and financial information on work computers. What ever you do, do not store this kind information at your workplace. This is a sure fire way of becoming a victim of identity theft. If I had more room in this article I could tell you stories about identity theft and fraud that would make your hair stand on end. And, everyone of us are potential victims.

Things You Can Do to Protect Yourself From Identity Theft

I've written other articles about identity theft, and I am sure I will write more. The bottom line is this is one of the worst things that can happen to you financially, and the risk of it happening is quite high. Some of the things you can do to minimize this risk besides regularly checking and monitoring your credit report is:

Shred all of those pre-approved credit cards you get in the mail. This includes any document or item you receive that contains your Social Security number, date of birth, or any other personal identity information.

Never print your Social Security number, phone number, date of birth, or credit card information on your checks. If a merchant ask you for this information so they can write it on your check, do not give it to them. Even if they tell you you cannot make the purchase without it, go somewhere else.

Secure your mail and email. Did you know that a common tactic for thieves is to divert your mail by filing a change of address at the post office. Of course, there is the typical method of just reaching into your mailbox and taking checks, utility bills, and so on. Because people use email as a substitute for snail-mail (normal paper mail), you should be careful what you email to people as well.

Monitor your credit by obtaining a credit report from one of the three, if not all three, credit bureaus. They may be able to provide you with a consolidated report from all three companies. And, most of them have inexpensive monthly services that monitor your report for you and send you alerts when things change or inquiries are made on your account.

Conclusion

As a consumer, you need to take this issue of fraud and identity theft very seriously. Not only should this be important to you, but if you have a family, you should see it as an obligation to protect their future. As with any type of security issue, there is nothing 100% secure.However, you can take steps to minimize your risk and exposure. Remember, it is typically the easy target criminals focus their attention and efforts on.

Obtain your credit report and review it thoroughly, you might be surprised by what you find. If you happen to see something that is not right, take immediate steps to clear it up.

Darren Miller is an Information Security Consultant with over sixteen years experience. He has written many technology & security articles, some of which have been published in nationally circulated magazines & periodicals. If you would like to contact Darren you can e-mail him at [email protected]. If you would like to know more about computer security please visit us at http://www.defendingthenet.com