Having your Social Security number used by someone else doesn’t seem too likely does it? It may seem to you that this crime is pretty uncommon. It’s not.

ID Analytics, a credit fraud information service, puts that number at one in seven Americans. This includes people whose SSNs were used by strangers and those whose SSNs were appropriated by people they knew, the most common being family members. More specifically, their study found that out of 290 million Social Security numbers, 40 million are assigned to more than on individual. It also asserts that up to two million older adults unwittingly “share” their SSNs with their children.

How terrible is that that many cannot trust their own family members not to use their personal information. Sometimes it is due to a breach in the family unit, such as a divorce, but other times it is simply due to the child feeling entitled to use the parents’ information. Of course, it is sometimes the other way around, usually with a parent using an underage child’s information since the child will have a perfect credit record and the parent can begin with a clean slate.

It’s disheartening to think that you can’t share your SSN with family members, but you really shouldn’t share it with anyone unless he or she has a compelling reason to require it. For example, employers are bound by law to ask for it when they hire you for a new job. The Naples Daily News, a Florida based publication, suggests a “golden rule” for identity protection: “Think, Slow Down, and Verify.”

In addition to finding out why a person or organization is requesting the information, you should also determine where it will be stored and how it will be disposed of when it is no longer needed. Make sure you have satisfactory answers to all of these questions before you disclose the information – if you ultimately decide to do so.

Like your name, your Social Security number accompanies you for life. It has the added factor of being unique to you and used for most financial transactions. You can’t just cancel it and get a new one like you can with a credit card – so use as much caution as you possibly can.

Consider purchasing identity theft protection as an added level of security as many of them help monitor your Social Security number on legal and illegal databases and can inform you of how and when it is being used so you can verify it is you using the number or report unauthorized uses to authorities and take precautions to protect your identity.

A Social Security number is seen by identity thieves as the key to the castle so make sure you are doing all you can to protect it, especially if your one of the 40 million.

While doing some research on the Internet, I came across a somewhat obvious fact that had not seemed obvious to me until that moment. According to bankinfosecurity.com, when an individual experiences identity theft, he or she usually does not continue to do business with a financial institution if the financial institution is at fault. Makes sense; doesn’t it? But I never really thought about that.

According to Joanna Crane, an identity theft expert, “Victims now have an expectation of assistance [when theft occurs].” When a consumers private information is compromised they often blame their financial institution especially when fraudulent transactions occur and even if its not the banks fault in any way. “Oftentimes they will switch banks,” Crane says in an interview with BankInfoSecurity.com’s Tracy Kitten. “Thirty percent will switch credit card companies after an account takeover,” she adds.

By not meeting these goals, banks lose customers, which should be an incentive for them to step up their game so to speak. However, many consumers feel they still aren’t doing enough, especially as the number of victims per year remains at between 8 and 10 million.

Crane reports that identity theft incidence continue to increase because medical fraud is on the rise. She also speculates that the companies which use healthcare information need to be more proactive than banks were in preventing identity theft and resolving it quickly. “The industry wants to address it before it grows to the level that financial information identity theft has,” she said.

Of course, companies becoming more proactive is a great thing, but consumers need to become more proactive as well. Many don’t realize that they have been a victim of identity theft until several weeks after the crime occurred. Sometimes it takes a year or longer. This has got to change, consumer complacency around identity theft needs to end.

What needs to be done is people need to check their credit reports at least three times per year (free from annualcreditreport.com) and actually review in detail the report. They need to have a proactive stance towards the protection of their personally identifiable information, from protecting their social security number, passwords and account numbers to shredding documents, being aware of ones surroundings and securing their computers and phones.

Consumers should also strongly consider purchasing identity theft protection. The advanced data monitoring of many of these services simply provides a level of protection that we could not do on our own and being informed promptly of any identity theft attack can make a night and day difference when it comes to dealing with the situation.

In short, identity protection services help to keep your information safe and provide assistance, guarantees and/or insurance should you or any other protected family member become a victim of the crime whether it is due to negligence on the part of your financial institution or some other other company, or some other situation that is beyond your control.

January is a time when things start to settle down and it’s time to take stock of your life for the new year – and where you see it going. One of the things you should take stock of is your finances, and what you can do to make your money life better. Should you take on extra work, start a college fund for the kids, or increase or change your investments?

As your financial plans become more sophisticated, so does your need to protect your investments. Important things to think about are dividend rates and diversification – but identity theft protection is important to. You could lose a lot by not putting together a sound financial plan, but that same goes for letting someone pretend to be you and then not expecting to suffer any consequences.

You could lose your money and your good name right at a time when things are starting to look promising – and it could take you weeks or even months to recover who you are. Rare situations even have people fighting for years or a decade to clear their name. This is not something you should have to worry about as you look ahead to better days to come. Unfortunately, it is a reality to about 10 million Americans every year, most with minor issues to fix but others with increasingly more difficult identity theft situations.

There are several myths about identity theft protection plans, including the idea that they are expensive and that they do not offer services for everyone. Simply browsing this site should put some of those fears to rest. There are a huge variety of plans offering all kinds of policies and many different price ranges.

It’s good to start the new year with a plan of where you want to go, but it’s better to start it off with financial peace of mind, too. Why not find yours or at least do a little research to get you started.

Wishing you a Happy New Year!

Tax time has long been a popular time for identity theft, with forms filled with personal information flying through the U.S. postal system. Some of them come from legitimate taxpayers and some of them come from individuals pretending to be legitimate taxpayers and looking to cash in on ill-begotten refunds. To help individuals who have been victims of this type of identity theft, and to help prevent future crimes, the IRS has instated some new rules for tax year 2011.

*Tax returns from past identity theft victims will be red flagged, and extra checks will be put in place automatically to insure that the return is legitimate before it is filed.

*Most tax returns will have to be filed electronically so that the computer system can pass them through electronic filters for manual review if anything appears to be suspicious. Some returns that are flagged will still be processed, but it will take longer for them to clear the system.|

*Some taxpayers at high risk for identity theft will receive a six digit personal identification number from the IRS. These individuals must include this PIN with their tax returns. If they do so, their returns can bypass the filters for extra review so that they can get their refunds in a timely manner. If they fail to do so, the return will be rejected and the person will have to refile by mail. This will continue every year until the IRS no longer flags the account as high risk.

People will be notified if they will receive PINs via a letter in the mail. It is important not to lose this letter if you receive it, and to supply it to your tax preparer if you decide to use one. The number will change every year, so you don’t need to hang onto it for the next tax season, but it’s a good idea to keep it with your records in a secure place.

While these new rules may seem inconvenient, they are a positive step. It is good to see that the IRS is acknowledging the prevalence of identity theft during tax time and trying to do something about it. In previous years, it was tough to prevent if the thief filed a return before the legitimate taxpayer filed. The duplicate return would not be acknowledged until the taxpayer filed, and he or she would be left with the burden of proof.

Take the time to learn how you can protect your identity with our identity theft tips.

Happy Cyber Monday!

Can you believe it is almost time for holiday shopping again? The season seems to come earlier and earlier every year – partially due to department stores chomping at the bit to get the music playing and the decorations hung – with the exception of Nordstrom’s, which promises to hold out this year until the day after Thanksgiving before filling its aisles with Christmas trees and Santa Clauses.

Getting your shopping done early can save you a lot of time and aggravation, especially if you do it online – unless, of course, you become a victim of identity theft. Use caution when shopping and you should be able to keep yourself safe. Here are some rules to follow when shopping online:

How to Protect Yourself from Identity Theft Online

* Seek out reputable sites. There are fake ones out there – unfortunately – and there are a lot of them. What better way to get your address and credit card information than to sell you a fake product? Look out for nontraditional URLs, especially ones based in other countries, which can’t be regulated by the Federal Trade Commission. Also, watch for unsecure sites (no https or lock icon), ones flagged by your antivirus software, ones with bad reviews from the Better Business Bureau, and ones that are chock full of pay per click or pop-up ads. Not a pro at telling real from fake? Stick to the old standbys, like Amazon.com, which you can use to buy practically anything.

* Don’t fall prey to phishing. Make sure you are on the real site and not a fake one. Don’t fall for those phoney emails that send you to a fake site.

* Don’t give away your Social Security number. While you will need it to open a bank account or get a job, you should not need it to make a purchase. If a site asks you for it, just browse on by. If you are purchasing something that requires it – like perhaps a stock certificate or a savings bond – it’s best to do so in person so you know who you are working with.

* Shop on a secured network. While it may be convenient to make your holiday purchases while sipping a latte at Starbucks, you will pay a price for the ambiance. Places like coffee shops and libraries may operate on unsecured wireless networks, which means any hacker with a small bit of technical knowledge can access the information sent through it. Instead, hit the drive through and enjoy the coffee and shopping from the comfort of your password protected home or office machine.

* Make sure your internet security and virus protection is working properly and up-to-date.

* Keep your passwords safe and secure and ensure they are strong passwords. See this post for more password safety tips.

So go ahead, find some deals on Amazon and get a head start on your holiday shopping…. but do so safely by following the above tips. Online shopping is a safe activity for people when they are careful, use a bit of caution and a lot of common sense.

Stay Safe and Happy Holidays!

One argument that people make against purchasing an identity theft protection plan is that their credit cards already offer such a service for free. If, say, Visa or MasterCard notices purchases being made that are a little out of the ordinary, it contacts the card owner and sometimes blocks the card. This is great – unless you are actually overseas and purchasing a yacht and your transaction is not approved – but it is not complete identity theft prevention by any means. And it barely scratches the surface of the problem, seeing as a recent study by IdentityHawk found that credit card fraud only accounts for 20% of identity theft cases.

Other common causes of identity theft mentioned in the study were selling personal information on the black market, theft of debit cards, coming in at early 20% each as well. Several other reasons accounted for less than 16% of total thefts. IdentityHawk determined that while credit protection is good, the verdict was that it is just not enough.

In order to really keep your identity safe, there are a lot more avenues that have to be guarded. One super important one is your Social Security, which credit card companies have little to do with. You can cancel credit cards easily, but you cannot easily obtain a new Social Security number. This number is tied to your tax records and to your employment history, so a lot more damage can be done with it, and this damage can affect you for years.

So, go ahead and take advantage of the debt protection that your credit card company gives you. Why not, if it’s free anyway? But make sure you go further with a true identity theft protection plan that protects all of your sensitive information, instead of simple a tiny portion of it. And call your credit card company ahead of time if you do plan on buying that yacht.

If you’ve been keeping up with this blog at all, you know that identity thieves love Social Security numbers. The SSN alone is considered by thieves to be the Golden Key to the Palace. They can use them to open accounts, get passports, and even obtain a drivers license. How wonderful! But did you know why this number has become so versatile, and that it was never intended to be this way?

How the SSN became the universal number to use to identify people was simply because it was a cost saving measure. It began simply as a way to track a person’s earnings and Social Security benefits when the program started in the 1930s. It was a no brainer for the IRS to start using it as an identifier to track how much money a person made. Since the number was tied to salary statistics, employers began using it to easily keep track of employees. Then the military caught on and started using it too, and so on and so forth. Now you need it for everything from job applications to daycare registration sheets. Or do you?

In a lot of cases, you can refuse to give out your SSN and insist that the person asking for it accepts another type of identification. First, ask the individual why he or she needs the information. A lot of times, another item will be just as good, such as a passport or a driver’s license. If you’re starting your own business, you don’t even need to use your SSN. You can instead apply for an Employer Identification Number, or EIN. That way, if you end up hiring people, your Social Security number will not come up on your payroll records.

When anyone asks for your SSN, you are within your rights to question it. It could save you from being a victim of identity theft – whether it is the intention of the organization or it is due to a data breach. Guard that golden number closely. It is only your vigilance that will truly protect you from identity theft.

All cases of medical identity theft are quite serious, but a recent one takes the cake. It could have been a matter of life or death, literally. A so-called doctor in Toms River, NJ, allegedly set up a company called Visiting Doctors of New Jersey. The premise was to provide medical professionals to people who were not able to leave their homes. Good idea indeed but as you probably guessed this one comes with a twist, a horrifying twist.

While legitimate medical doctors were hired, the so-called doctor, Patrick Lynch, neglected to pay them for their services, which resulted in a mass exodus. Instead of closing down the business, Lynch stole the identities of said providers, i.e. legitimate doctors, and kept running the practice by himself using their names and credentials. He allegedly prescribed drugs, treating patients and ordered procedures while posing as a licensed physician – which, of course, he wasn’t.

The good doctor: Patrick Lynch, was charged with aggravated identity theft, which means identity theft that is associated with another crime; in this case, healthcare fraud. He could receive 12 or more years in prison.

What this case brings to light is the abundance of fraudulent job ads that are out there; either they are for companies that don’t actually exist – or in this case – companies that have no intention of actually paying their employees. While this is a severe case, obviously, it is quite common for a scammer to post a job ad to gain applicants’ personal information and simply add that individual to a spam mailing list or something of that sort.

To avoid this type of fraud, look for three things in a job ad: the name of the company; a contact phone number or email; and a contact name. If at least one of these is present, it’s likely the job is legitimate, but it’s always a good idea to do some further research. For example, see if the company has an official website, and apply directly through that channel if possible.

You have to remember to be vigilant to protect yourself from identity theft and to always be the one to initiate contact before passing over personal and private information. In other words, regardless if its an email, ad or phone call don’t trust it as legitimate until you have proven to yourself that it is. Keep your guard up and stay safe!

If you’re in the military, you could find yourself at special risk for identity theft, especially if you are deployed overseas. Since you’re not around to visit your financial institution or check mail at your home address, you could become a prime target for fraud. You’re also more likely to not learn about this fraud until significant damage has been done to your credit. The military is aware of this and people are speaking out. In fact, DOD personal finance office director, Dave Julian, said of identity theft protection, “We equate it to service readiness.”

There are some things you can do to protect yourself from identity theft while deployed overseas.

1. Sign up for online banking. Since you can get online from pretty much anywhere in the world, nowadays, there is really no excuse for not managing your accounts over the Web. Even if you’re not making any transactions, it’s important to check your balances at least monthly, if not more often. If you really can’t do it yourself, perhaps due to security concerns, recruit a friend or relative to help you.

2. Place an active duty alert on your credit report, if you can. This alert, which can stay on your report for one calendar year, with the option to renew, tells creditors that you are on active duty and are not likely to be trying to open any new credit. Creditors are asked to contact you before opening new accounts or increasing credit lines. If you are out of contact, you can appoint someone else.

To set up an active duty alert, send a letter to each of the credit bureaus including copies of your driver’s license, Social Security card, military ID, orders of deployment and proof of home address. Simply state that you would like to set up an active duty fraud alert. You don’t have to pay any money for this service.

3. Consider granting a person power of attorney managing your financial affairs while you are deployed. That way, this individual can keep a close watch on your accounts. Just make sure you choose the person wisely. It has to be someone you trust completely. Many military members have been burned in the past, arriving home to find their account balances gone. Talk to your attorney as well, we are not lawyers nor is this legal advice.

4. Get identity theft protection. This is a super important thing to do if you’re not going to have the time or resources to monitor your credit properly. While relying on a friend or relative is a good backup system, you’ll have more peace of mind with an official identity theft protection plan in place.

5. Make plans for your mail. Whether you are forwarding it, holding it or having it taken care of by a loved one be sure to have a plan in place as it can be dangerous in the wrong hands.

6. Be aware and stay as safe as you can while overseas. Just make sure you come home….. your family and friends will appreciate it.

It can be nerve wracking to be contacted by the Internal Revenue Service. It is almost always not for a positive reason – refund checks excluded. It can be even more stressful to be contacted by the IRS through email, since this contact, if you respond to it, can quickly make you a victim of identity theft. If you’ve ever been contacted by the IRS legitimately, you know that the organization communicates with people through the mail, not online. If you didn’t know that, be sure you do now. A popular practice of thieves is to send phishing emails to taxpayers saying that there was a problem with their returns.

One recent case was reported in the Columbus Dispatch. Individuals received emails stating that their tax returns were rejected and that they had to click on a link to fix the problem. This is especially strange given that most Americans made their tax payments or received their refunds several weeks if not months ago. If you receive such an email, you should forward it to phishing@irs.gov and delete it without clicking on anything or opening any attachments. Be assured that the IRS will find you if it really needs to get in touch with you.

You can also contact the Federal Trade Commission at 1-877-382-4357 to speak with someone about the crime and to find out about additional current scams. If you’ve already been victimized by phishing, this is still a good call to make, and you should change passwords and account numbers related to any personal information you unwillingly shared with a thief.

Don’t feel too bad if you were a victim of a scam. Over 11 million Americans shared your shoes last year. However, the smart ones signed up for identity theft protection to prevent it from happening again, and the really smart people signed up to prevent being victimized instead of doing so after the fact.