Data Breach and Identity Theft are spreading like viruses across our great land financially affecting individuals and organizations. Some companies, who have sprung up out of nowhere, make bogus claims that they can prevent identity theft. They put millions of dollars into their marketing pitch and very little into the solution that you buy. In fact, they are selling something that you can get absolutely free with one 3 minute phone call. The pitch is so convincing because they dazzle you with offers of a million dollar guarantee or internet techno-magic by making your telephone ring simply by inputting the number into their website. It is all smoke and mirrors. There is no real solution here and no pay-off.
So, let’s take a strong hard look at identity theft, fraud alerts and the newest early ID theft discovery technology available, ID Alert.
Fraud Alerts
A fraud alert is the equivalent of a yellow post-it note on your credit file. It is simply a flag to indicate that you may be at risk of becoming a victim of identity theft. If a financial institution, car dealer or retailer is looking to issue credit to you they will see this notation on your credit file, along with a phone number that you have supplied. The credit grantor is supposed to call this phone number to validate that it is you who is in front of them applying for credit in your name. However, credit grantors are not required by law to observe a fraud alert – and it is against their better interest to do so. They are, after all, in the business of granting credit to make money. Most pay-day loan companies advertise “no credit check” which bypasses a fraud alert altogether. Or the criminal may simply convince the creditor that they are you.
Only 51% of all identity theft involves a credit card, bank account or loan.
What is the other 49%? Utility fraud, medical fraud, contract fraud (such as apartment leases, cell phone contracts), government benefits fraud, immigration fraud, employment fraud, criminal fraud and we could go on.
None of these types of fraud depend on the granting of credit or a credit inquiry in order to execute the fraudulent transaction. Therefore a fraud alert serves no purpose in preventing these types of identity theft. Source: Federal Trade Commission, Identity Theft Data Clearinghouse Report, February 7, 2007. www.ftc.gov
A fraud alert stays on your file for 90 days, then must be renewed. For many people who have an event, such as a lost wallet or purse, the 90 period is sufficient. If you are a confirmed victim of identity theft you may request that a longer term alert be placed on your file. The system of fraud alerts depends on the fact that the credit granting financial institutions, retailers and others understand the importance of the alert – and observe it. If everyone has an alert on their file it will become more and more common for credit grantors to ignore the alert.
Even a credit report cannot tell you if someone has rented or purchased property using your name, applied for a government-issued license using your name, has acquired a criminal record using your name, and many other potentially adverse kinds of information.
IDAlert
ID Alert is the newest technology in identity theft early discovery. This complex process uses artificial intelligence software that scans thousands of data bases for the use of a person’s name and social security number in combination with other personal data such as address or driver’s license number. The result is an ID Score that will provide valuable information to our ID Recovery Specialist who can alert the individual if the instance of these personal identifiers is used inconsistently or changes suddenly.
What we know about criminals who use identity theft as a way of life is that they will go through certain steps to create a false identity using the consumer’s information, or parts of the information. They will make an attempt to change their mailing address on certain financial accounts to delay notification that something is amiss. The very tactics that the thieves use to set up their victim can now alert us to the potential fraud. In some cases action can be taken to avert the identity theft before it happens.
As identity fraud usually precedes other types of fraud (such as credit card fraud), this type of proactive alert system is critical to mitigating the extensive, and expensive, damage perpetrated after an identity is stolen and manipulated. Given the considerable lag between when an identity is compromised and when that event is discovered, this service is a critical component in the defense against identity fraud.
ID Alert includes:
· Monthly national database screening
· Checks National Databases for potential fraudulent use of each person’s Social Security Number.
· Identifies name and address variations utilized in possible Identity Theft/Fraud
· Possible identification of “True Name” identity theft/identity fraud
· The most serious type of financial identity fraud is True Name Identity Fraud where the criminal assumes or co-opts a consumer’s personal details and masquerades as the consumer.
· The criminal may pose as the consumer to open or close accounts, obtain loans, write checks, buy autos, enter leases, etc. By using the consumer’s social security number and having other personal details, the criminal becomes a true imposter and can proceed to run away with the consumer’s credit worthiness.
· True Name Identity Fraud requires immediate and diligent efforts to gain back the consumer’s identity. Their entire financial position is placed in jeopardy and the longer the fraud continues the more difficult it becomes to unwind.
· Proactive notification from our ID Recovery Specialist, should IDAlert identify possible identity theft or fraud. And identity theft recovery will begin immediately.
· Updated monthly IDAlert Score which will aid the consumer in understanding how likely they are to become a victim of identity theft or fraud.
A fraud alert is free and easy to get, but doesn’t protect you! ID Alert will let you know when a criminal is operating with your personal information. Be smart, choose wisely, protect your good name!
