Identity Theft and Credit-Card Fraud
By Lawrence N. Legg, CPA

Alert! The Internet revolution has brought with it challenges to your financial security. Credit and identity theft have become prevalent in this environment, and many federal, state and local law enforcement authorities have reported drastic increases in these types of economic crimes. It is generally advisable to check your credit with all the reporting agencies - Equifax, Experian and TransUnion - on an annual basis, or more frequently. You can order a "3 in 1" credit report for as little as $30, and it will contain valuable information that you should verify periodically. Additionally, Equifax offers a service called Credit Watch™. This service will notify you via e-mail of any changes to your credit file, as well as provide you with a identity-theft insurance policy that will pay for part of the costs you incur to re-established your credit in the event of a crime.

The precursor to identity theft is a change of address. The perpetrator of this crime will commence the process by completing a change of address form with the United States Postal Service. Although the USPS has implemented several controls to help prevent this, they are not always effective. Another angle the identity theft criminal will use is to steal your mail and apply for credit using a different address. One way to prevent this, of course, is to have a locking mail box.

Are you tired of junk mail and the regular "You have been Pre-Qualified" correspondence? The nation's credit agencies, by law, can sell your credit score, name and address, as well as other private information, to financial institutions around the globe. This process makes it easier for the credit thief to perpetrate a crime and ruin your good credit. The Fair Credit Reporting Act allows you to be permanently excluded from all pre-approved credit offer mailing lists and removed from the database. In order to apply for this exclusion, contact Opt-Out at 1-888-567-8688.

Our community is not immune to this alarming trend. The Local Law Enforcement is currently investigating several credit fraud and identity theft cases in our very own neighborhoods. If you believe you are a victim, be sure to contact the ocal Law Enforcement immediately. Second, contact the Federal Trade Commission at 1-877-438-4338. And, finally, you should make a fraud report with all three credit reporting agencies. Visit their websites or contact them at the following numbers:

Equifax 1-800-525-6285
Experian 1-888-397-3742
Trans Union 1-800-680-7289

Should you need any further information, please contact my office for more details at 954-927-1654.