One Simple Line of Defense

Do you know someone with an identity crisis? No, we don't mean that crazy neighbor who thinks he’s Abraham Lincoln. The identity crisis of interest here concerns the very serious crime of identity theft.

Awareness of identity theft has reached an all time high. Many people personally know someone who has been victimized. Others are aware of the problem through frequent television commercials highlighting the issue. Either way, identity theft has taken a place in the spotlight and on many consumers’ minds.

So are you worried about your vulnerability? A smart consumer will definitely show some concern and proactively minimize security flaws, even though it’s likely impossible to prevent any chance of identity theft. Consider that locking a car door does not guarantee no one will break in and steal from the vehicle; but taking a moment to secure the car will deter many casual thieves. Only someone foolish would leave the vehicle completely vulnerable with valuables inside. Similarly, sensible individuals should take note of any simple steps to help guard their identity.

One simple preventative measure involves setting up fraud alert notices on your credit accounts. This alert system doesn’t take much time or effort to set up and places a major roadblock in front of any fraudsters. If a fraud alert is enabled, when anyone tries to open up credit in your name, the lender will be notified that a phone call needs to be made before finalizing the process. The lender is expected to call the owner and get a verbal confirmation from the individual. Once the verbal confirmation has been established, the credit can be offered as would normally take place.

Consider the scenario of a thief applying for an auto loan in someone else’s name. With a fraud alert set up, a call will go out and the credit owner will be asked if they really want the loan. The loan will be safely rejected and the crime halted.

On the other hand, there are a few negatives associated with fraud alerts. The main inconvenience associated with these alerts is that instant credit becomes less than instant. Waiting for the verification call creates a more time-consuming process and demands a degree of patience. Another issue is that the fraud alert stays on a person’s record for only a limited time. Experian, one of the main credit reporting agencies, allows individuals to place an initial 90 day security alert. Once that time period lapses, the fraud alert must be renewed for the protection to continue. Long term fraud alerts are possible, but only for established victims. To qualify for a seven year fraud alert, a person must provide a valid copy of a police or law enforcement report concerning a crime committed against them.

If you want to go ahead and enable fraud alerts, consult all three of the major credit bureaus, Equifax, Experian, and Trans Union. At Experian.com, for instance, these alerts can be set up through a simple application.

Sure, a master criminal may be able to find ways around such systems. But, protecting oneself is often a matter of removing opportunities. A common house thief may be deterred by a simple alarm system sign posted at the end of your drive way. In the same way, an identity thief, testing the softness of a particular target, may look for easier prey after initially being denied credit due to the safeguard of fraud alerts.