Common Myths about Identity Theft

Myth 1. Identity theft is a financial issue

Reality-Financial Identity Theft accounts for less that 30% of reported Identity Theft complaints.  The banking industry did an awesome job of making people aware of the financial side of Identity theft but because they did such a good job, most people think that Financial Identity theft IS Identity theft.  In truth all of us have 5 areas to our identity. 

Financial-No explanation needed

Social Security-This can affect your ability to get a job as others use your SSN to gain employment.  People have actually applied for jobs only to be told that they are already employed by the company in question

Driver's License-This can cause increased insurance rates, suspension of your driver?s license or even criminal traffic charges

Character-Not only could you find yourself being arrested on outstanding warrants, you could be denied employment or housing based on the criminal history an identity thief creates.  You could even find yourself listed as a sexual offender.

Medical-The worst type of all in my opinion, because your very health could be placed in jeopardy.  Your insurance could be exhausted, you could be deemed unemployable, hit with medical bills our have your medical record altered.

Myth 2. You don't lose anything because the banks will write off fraudulent chages.

Reality- Banks and credit card companies 'write off' billions of dollars worth of fraudulent charges each year but that loss does not just go away.  Just like the store owner who raises prices in his store to cover the losses he experiences from shoplifters, Banks and credit card companies pass the cost of those losses to the consumer through higher fees and interest rates.

Myth 3.  I'm safe, I don?t give out my personal information

Reality-You don?t have to give out your personal information because others already have it.  The average Americans' personal information is already listed in about 50 different databases.  Hospitals, Schools, Banks and employers are just a partial list.  Add to that all the different things you sign up for like those keychain saver cards from your local merchants.

Myth 4. If my information does get lost I'm covered by credit monitoring

Reality-Yes in the US, agencies that lose personal information do pay for about a year of credit monitoring BUT, personal information is a non-perishable commodity.  So it can be released into the black market for sale at any time even years later.  That means that ID thieves can sit on your information for years before using it.

Myth 5. If I become a victim fixing my credit will fix the problem

Reality-Credit problems are only the most visible affect of identity theft.  Many people don't even know that they are victims until one of the other hidden problems shows up.  Fixing your credit will not make an arrest warrant go away.   If all you are looking at is your credit, you won't even know about that warrant until you get pulled over for speeding.

Identity theft is a complex issue.  Educate yourself on what Identity theft really is and take steps to protect yourself.

Shred everything that might even remotely have your information on it

Take the time to read the privacy information/policies from your credit card companies and find out how what to do to opt out of their information sharing lists if possible.  The three Major credit reporting agencies in the US Can be reached to opt out of receiving offers based on their lists by dialing 1-888-5OPTOUT (1-888-567-8688)

You need some form of credit monitoring even if it is the do it yourself route of pulling your credit report yourself (And stay away from the singing pirates! They are NOT free) by going to www.annualcreditreport.com.  You can pull from each of the major credit reporting agencies once every year.

Be proactive in educating yourself.  In the US The Federal Trade Commission Has a wealth of information and resources available at their website www.ftc.gov.  In Canada, The Competition Bureau serves much the same function.  If you are in another country, do a search to find out which agency is in charge of consumer protection.

Understand that you can lower your risk but never eliminate it.