Costly Free Credit Reports

By Heather Wells (Recovery Advocate)

Do an online search for “free credit report” and you’ll end up with a dozen or more websites promising online credit reports (and often credit scores) for FREE. Most of these companies even have the word “free” in their name, but don’t be fooled, there’s nothing FREE about their services. Many will entice people to sign up for a product that comes with strings attached. Most will request a credit card number to enroll and then will charge you if you do not cancel the service within a specific grace period.

A recent post (July 24, 2007) on the blogsite The Red Tape Chronicles written by Bob Sullivan explains that “one site, for instance, requires enrollment in pricey credit monitoring service, which can only be canceled online after precisely 23 days. Another automatically enrolls users in a discount travel service. And some hint that the real free credit report site established by Congress -- AnnualCreditReport.com -- isn’t all it’s cracked up to be.” He goes on to say that many of these sites actually can be traced back to the credit bureaus either directly or by affiliation.

There’s only one legitimate source where you can obtain your FREE credit reports and that’s http://www.annualcreditreport.com/. The law requires that each of the major credit reporting agencies-Equifax, Experian, and TransUnion-give you a copy of your credit report every year at no charge. This law was passed as part of the Fair and Accurate Credit Transactions Act (FACTA) and was a real milestone for consumer rights.

Increased consumer awareness and knowledge is a good thing. It’s a positive sign that more folks are interested in what’s being reported in their credit files. Everyone should check their credit reports at least once a year to make sure that all of the information contained in them is accurate and up to date. You should also check your reports for any information that is fraudulent, which could signal that you are the victim of Identity Theft. This includes accounts as well as personal information such as addresses and phone numbers.

So, before you give over your credit card number for something that is supposed to be “free,” don’t do it. Go to http://www.annualcreditreport.com/.

Freezing your Credit Report not a Panacea

by Doug Pollack

This week Terri Cullen of the Wall Street Journal (July 18, 2007) reported on how to use your credit report to protect against identity theft.

The article includes a lot of useful information on how to "interpret" your credit report and how to correct errors in your credit report. But it also touches on the option that is available in some number of states of "freezing" your credit report.

"As an additional barrier to identity theft, several states allow consumers to issue a "freeze" on their credit reports, meaning that the credit bureau cannot release your credit report to anyone without your approval. Very few lenders are willing to extend credit without seeing a copy of an applicant's credit report, so the freeze generally stops an identity thief from using your information to obtain a loan. If you live in a state that requires a credit bureau to honor your request for a freeze, you still have to initiate the freeze with each credit bureau independently."

While the idea of freezing your credit sounds like a failsafe way to avert identity theft, unfortunately this isn't the case. Identity thieves have become very clever and found ways to misappropriate your identity even with a frozen credit report. There are also a number of "inconveniences" that come into play when you choose to freeze your credit. As Mr. Cullen goes on to state:

"First, it's probably going to cost you unless you've already been a victim of identity fraud. Florida, for instance, allows a credit bureau to assess a $10 fee to place, temporarily lift or permanently remove a credit freeze. And you'll be incurring that fee each time you want to apply for new credit. It also takes a few days to get the freeze temporarily lifted, so no more impulse purchases using a retailer's offer of discounts in exchange for signing up for the store's revolving charge card. And there's the inconvenience of keeping track of the PIN that the credit bureau issues you when you first place the freeze. You'll need that PIN each time you want to lift the freeze."

And while a credit freeze can help keep an identity thief from opening most new accounts in your name, it’s not a means of protection from all types of identity theft. It will not protect you, for example, from an identity thief who uses your existing credit cards or other accounts. There are also new accounts, such as telephone, wireless, and bank accounts, which an ID thief can open without a credit check. In addition, some creditors might open an account without first getting your credit report. And if there’s identity theft already going on when you place the credit freeze, the freeze itself won’t be able to stop it. While a credit freeze may not protect you in these kinds of cases, it can protect you from the vast majority of identity theft that involves opening a new line of credit.

Can They Really Do That? Know Your Rights Regarding Debt Collection

by Heather Wells (Recovery Advocate)

How many people have experienced this scenario? You’re just about to sit down to dinner when the phone rings. The voice on the other end of the line sounds threatening, telling you that “this is an attempt to collect a debt.” You explain that this must be a mistake, that you check your credit reports regularly and pay all of your bills on time. However, “Mr. Smith” tells you that you are obviously a no good, worthless, cheap, despicable, sorry excuse for a human being who will pay up or else! This clip from the recent film Maxed Out is a perfect example of the unscrupulous practices that are common to many collection agencies.



Obviously, debt happens. It’s a huge problem for many consumers who legitimately have incurred debt that they were not able to manage. But, then there’s the other folks who are victims of identity theft who, before their dinner was so rudely interrupted, had no clue that their social security number had been used to open up an account that was subsequently ignored and not paid on. For both of these groups of individuals there are some laws to protect them when “Mr. Smith” calls in order to harass and belittle.

According to the Fair Debt Collection Practices Act (FDCPA) collectors are not allowed to use unfair or deceptive practices to collect on debts. Here are some things they can and can’t do:

1) Collection agencies must provide you with written documentation regarding the debt, including how much is owed, the name of the original credit grantor, and how to dispute the debt. This documentation is especially crucial for victims of identity theft who will need to submit a written dispute to the collection agency.
2) They cannot contact you before 8:00am or after 9:00pm unless you tell them it’s OK.
3) They cannot contact you at your workplace unless you give them permission.
4) Collectors may not threaten you or use obscene or profane language.
5) They cannot call you over and over again just to annoy and harass you.

So, the next time you get that call from “Mr. Smith” trying to collect, remain calm and tell him that you know your rights. It’s amazing how docile they can become once they realize they can’t bully you.

For more information on the Fair Debt Collection Practices Act go to the FTC website.

NBC's "To Catch An ID Thief" on Sunday

by Rick Kam
NBC's Dateline is doing a show Sunday, July 22, 2007 on ID Theft, based on the current series of "To Catch a Predator". Chris Hansen continues his mission to put a face on the crime of identity theft, working with CardCops, an organization specializing in monitoring ID thieves.



Date: Sun., July 22, 2007
Time: 7:00PM
Channel: 4, WNBC
Descriptor: New Episode, Stereo, CC

Lifelock Says You Can’t Stop All Forms of ID Theft

by Rick Kam

On June 11, 2007 an article in Wired Blog Network reports CEO of Lifelock, Todd Davis’ identity being stolen. Mike Prusinski, spokesman for Lifelock is quoted as saying,

“…there's no way to prevent all identity theft -- especially in cases in which a business (such as the check-cashing operation) doesn't run a credit report before providing someone with a loan or new credit card. It's a loophole," Prusinksi said. "We tell people that you can't stop every form of identity theft."”

Todd Davis was so confident in Lifelock’s identity theft protection solution, he regularly displayed his social security number on the company website. It was only a matter of time before an identity thief would use his social security number.

The Federal Trade Commission, Better Business Bureau, AARP, and law enforcement, as well as Identity Safeguards, all suggest protecting your social security number to reduce the risk of identity theft. It is the “key” to your identity. The ability to “freeze” or lock your credit will reduce the risk that an identity thief will be able to open fraudulent credit accounts, but it is not “fool proof” in stopping other growing forms of identity theft.

So how was Todd Davis’ identity stolen?

A plausible scenario would be that an identity thief saw Todd Davis’ social security number on the LifeLock website and decided to use it to commit the crime. There are many other ways an identity thief can access and use your personal information. For many individuals today, a government agency or company who has their information may lose it or have it stolen by identity thieves potentially exposing them to misuse.

While setting up fraudulent checking accounts or credit lines are the likely ways an identity thief will use stolen personal information, it is not the only way. Identity thieves also can set up cell phone accounts, obtain fraudulent driver’s licenses, or access medical services (note that medical ID theft is one of the fastest growing issues today). A credit freeze or fraud alert set by the credit bureaus (or Lifelock in Mr. Davis’s case) won’t necessarily protect them from these forms of identity theft.

The good news is you can reduce their risk of falling victim to many forms of identity theft by taking a few simple steps to protect your good name. The FTC offers good suggestions to reduce the risk and is a great consumer resource. My suggestion, consistent with that of many other security experts, is carefully protect your social security number in order to reduce your risk of identity theft.

Does Credit Monitoring Prevent Identity Theft?

by Rick Kam

Credit monitoring is an important tool in today's fight against identity theft. Many individuals subscribe to a service provided by all three of the major credit bureaus and their affiliates.

Is this an effective tool that prevents identity theft?

Unfortunately, the answer is no. Credit monitoring provides a useful tool to determine if there is an unauthorized change to your credit profile which may indicate misuse by an identity thief.

It does not prevent an identity thief from setting up fraudulent credit lines, changing your address, getting a job in your name, declaring bankruptcy, or committing crimes that become part of your records. All monitoring services will send you an alert when they detect a change to your credit profile. Only you can determine if that change was one you initiated or not. The assumption is if you didn't do it, you may be a victim of identity theft.

There are a couple of other drawbacks to credit monitoring. The first is it does not monitor other types of accounts for potential fraudulent activity. For example, it does not monitor your checking account. Many forms of identity theft go undetected (see my related posting on Lifelock). The other drawback is if you believe there is misuse of your personal information, all of the services provided by credit bureaus make you fix this yourself. Although many offer assistance ---this really translates to "do it yourself". The other issue is that it reports changes to your credit profile as opposed to being an early detection tool of identity theft.

So while credit monitoring is not perfect, it is one of the most prevalent tools consumers use today to protect themselves from ID theft.

You might ask, are there better tools on the horizon? Stay tuned for my next post on Identity monitoring.

Children are Victims of Identity Theft Too

by Doug Pollack

This excerpt from an MSN Money article titled "Your 5-minute guide to protecting your identity" published July 6, 2007 demonstrates the time consuming nature of dealing with an identity theft problem.

"Thieves may sell your information on the black market or use it to obtain money, credit or even expensive medical procedures. Unless you're vigilant in protecting your records, you'll have to work even harder to repair the damage to your credit. The average victim spends 30 to 40 hours rectifying the problem.

The article outlines numerous helpful tips for helping prevent the theft of one's identity. But something that is less "obvious" is that around 5% of identity theft cases involve children. They make particularly lucrative targets because it can take many years before they come of age and the identity theft becomes recognized.

A related Bankrate article notes that "...children's identities are used to obtain credit cards, get driver's licenses or open accounts. Often the information is sold for use by illegal immigrants or individuals attempting to restart their lives and avoid arrest." This makes it doubly important for families to protect not only their breadwinners but also their kids.

What is an identity theft “Recovery Advocate”?

By Heather Wells


As head of the recovery department at Identity Safeguards, my group and I provide assistance to thousands of victims of identity theft. We are made up of a collaborative team of Intake Specialists and Recovery Advocates who are dedicated to the recovery and restoration of our victim’s identities. We take on the hard work of identity restoration every day so our victims don’t have to.

This includes performing the core of our duties: restoring a victim’s good name and credit back to pre-theft status after an ID theft incident. From the smallest compromise to the most complicated of cases, we have pretty much seen it all. We have established connections with the Fraud Departments of many major creditors and are privy to the specific requirements and procedures they have for their fraud investigations. This is time-saving knowledge that victims working on their own or even those working with a recovery “advice” service cannot claim.

Our job also encompasses providing education about victims’ rights and offering information regarding preventative measures. Identity theft is constantly evolving and growing in complexity, so part of our responsibility to our victims is to be informed about the latest scams, procedures, and legislation. You’d be hard-pressed to find a more knowledgeable group of people!

But most importantly, as Recovery Advocates we provide our victims with support and reassurance throughout the recovery process. Having personal, one-on-one interaction with the same Advocate for the duration of their cases is one of the things the victims we work with appreciate more than anything.

We are hoping that this blog will educate, inform, and entertain!

Identity Safeguards Joins Blog World

I’m Rick Kam, president of Identity Safeguards. I’d like to welcome you to the Identity Theft Protection blog.

I founded Identity Safeguards with John Davidson in 2003 in order to help Americans protect themselves from identity theft. We are proud to be a pioneer and leader in this industry, delivering quality services, and doing so with integrity.

Combined with John’s 26 years in employee benefits consulting, I bring to Identity Safeguards over 25 years of experience both at IBM and management consulting. We joined our business skills and passion to address the problem of identity theft.

Our purpose in creating this blog is to provide you with a central location to learn about and discuss issues in identity theft protection, relevant legislation, and new identity protection tools. Our mission at Identity Safeguards is to be the voice for victims of identity theft while driving innovation in identity management and protection services. This blog will include posts from experts on our staff as well as guest experts from the ID theft prevention community at large.

We founded Identity Safeguards on the promise of protecting you and your good name. Having pioneered the market for identity theft solutions, today we are honored to provide over 2,000,000 American citizens with identity theft protection services. Identity Safeguards is proud to serve as a beacon for the victims of identity theft and has grown into the leader in identity theft prevention and recovery services.

Why Choose Identity Safeguards?

Identity Safeguards began when a few frustrated identity theft victims decided to educate and assist other victims in restoring themselves to pre-identity theft status. Now a national leader in corporate identity security, Identity Safeguards provides fully-managed identity protection and identity theft recovery services to individuals and businesses of all sizes throughout the nation. Identity Safeguards offers businesses proactive and response solutions both to manage the risk of a confidential data breach and to respond effectively by offering the appropriate remedies to businesses and consumers in the event such a breach occurs. In the event of a data breach turned Identity Theft Event, highly trained in-house “Recovery Advocates” fully manage Identity Safeguards' member victim cases in order to successfully restore victim's credit and life back to pre-event status. This highly specialized service, along with Identity Safeguards' Confidential Identity Protection Solution (CIPS) and Emergency Incident Response Service (EIRS), is what separates Identity Safeguards from those who offer less complete solutions. Identity Safeguards provides restoration services to millions of citizens in the United States. Hundreds of corporate entities, government agencies and non-profit organizations nationwide offer Identity Safeguards' proactive and response solution to a confidential data breach and employee benefits or consumer protection programs. Contact a representative to learn how Identity Safeguards can help you and your business plan for, protect against, and react to a data breach.

With hundreds of programs already in place, Identity Safeguards covers millions of Americans from the hardships of identity theft and fraud. Having already served hundreds of companies, we are able to leverage significant relationships to provide your company with an unparalleled level of service. After taking the time to learn about the services that Identity Safeguards has to offer, contact a representative to request more information in order to learn about what Identity Safeguards can do for your company.