October is Identity Theft Awareness Month

October is Identity Theft Awareness Month, and local groups are taking advantage of the opportunity to share information that might help combat such crimes in Bourbon and Vernon counties as well as information on what to do when these thieves strike.

Identity theft is a fast-growing crime, and it's one that often goes undetected until some damage has already been done. According to www.spamlaws.com, victims can spend from three hours to literally thousands of hours trying to repair that damage, and while many find out about it within three months, others may not find out for years.

Identity theft can occur in many ways, and safeguards like shredding documents that contain personal information, never giving your Social Security number or account numbers out over the phone and more have been among the advice commonly given in the hope of preventing identity theft.

A recently developed countermeasure is to freeze your credit file to keep thieves from establishing credit in your name, said a University of Missouri Extension family financial education specialist.

In the typical credit application process, the creditor requests your credit file or score from one of the three national consumer reporting agencies--Equifax, Experian or TransUnion. "This information helps the creditor determine if you are credit worthy," said Dr. Carole Bozworth. "With a security freeze on your credit file, creditors and lenders are denied access and the application for credit will likely be denied. That is a good thing if the applicant is actually an imposter applying for credit in your name."

With a freeze, your credit report becomes off limits to prospective creditors and others such as landlords, employers doing background checks, cell phone companies, utility companies and insurance companies. "One disadvantage is that a security freeze will not prevent access by any company with which you already have an account or business relationship," said Bozworth. "A security freeze will not prevent fraud involving already existing bank or credit accounts."

When you freeze your credit file with a specific consumer reporting agency, you will receive a personal identification number or password that can be used to temporarily lift the freeze as needed. If you have been a victim of identity theft in the past, there will not be a charge for placing a security freeze or lifting it in either Kansas or Missouri. The security freeze remains in effect until you take the steps to remove it and does not affect your credit score. Another advantage is that a security freeze provides greater protection and typically costs less than a monthly credit monitoring service.

Unfortunately, a security freeze does have some disadvantages, said Bozworth. Each consumer reporting agency typically charges $10 to set up a security freeze. Normally each agency also charges a $10 fee for lifting and for reinstating the freeze. A security freeze is only effective if activated at all three credit reporting agencies. If you are married, a freeze will need to be placed on both spouses' credit files to fully protect your household.

"One of the major drawbacks is that you need to have the freeze lifted well in advance of applying for credit, filling out a rental application, applying for insurance or giving permission to an employer to do a background check," said Bozworth. "A security freeze can take up to three business days to be lifted."

Placing a security freeze on your credit file is not the solution to prevent identity theft for everyone. "Evaluate your specific circumstances to determine if it is a protection option that might work for you," said Bozworth. "If you decide to proceed, contact each of the credit reporting agencies to get the state-specific instructions for enacting a security freeze on your credit file."

After identity theft has occurred

The Missouri State Highway Patrol offers these courses of action to take.

* Notify the credit bureaus, your creditors, your bank, and law enforcement.

* Notify the local postal inspector if you suspect an identity thief has filed a change of address with the post office or has used the mail to commit credit or bank fraud.

* In dealing with the authorities and financial institutions, keep a log of all conversations, including dates, times, names, and phone numbers. Note the time spent and any expenses incurred. Confirm conversations in writing.

* Send correspondence by certified mail (return receipt requested). Keep copies of all letters and documents.

* Be aware of phone scams that ask for confidential information like Social Security numbers, account numbers, or personal identification numbers, and those who want you to dial specific numbers while they remain on the line.

This gives them access to your long distance service!

* If someone is using your driver's license number from your stolen checks, you may need to contact the Missouri Department of Revenue's Fraud Unit.

* If you have a passport, notify the passport office in writing to be on the lookout for anyone ordering a new passport fraudulently.