Protecting Yourself from Identity Theft By Gabe Hoffmann, SmithBarney No one can doubt the immeasurable benefits of the information revolution. Today, thanks to e-mail and the Internet, many of us are more productive, informed and connected than ever before. Unfortunately, as a result, we are also more vulnerable. The statistics are startling. According to a 2006 survey conducted by The Better Business Bureau and Javelin Strategy and Research, nearly nine million people were victims of identity theft, costing a total of approximately $56.6 billion. Identity theft can take many forms. It typically occurs when someone uses your name and confidential information to do something you didn’t authorize. Perpetrators may take out a loan, use your credit card, open a new credit card in your name or withdraw money from your account. A thief can obtain information about you by stealing your wallet, breaking into your car or home, going through your trash or illegally taking mail out of your mailbox. More sophisticated techniques include hacking into databases and websites, sending out fake e-mails (called “phishing”), buying website addresses similar to those of financial institutions and creating computer “spyware” programs that record your keystrokes. Here are some specific steps you may wish to consider to protect your personal information and reduce your vulnerability to identity theft: • Before giving out your date of birth, social security number or driver’s license number, ask why the information is needed. • Use a good shredder to dispose of anything containing your personal information including credit card solicitations and medical records. • Include only the last four digits of your credit card account on checks when sending a payment to your credit card provider. • If someone contacts you claiming to be from your financial institution and asks questions to verify your identity, don’t provide any information. Instead, call back to the financial institution’s main number (listed on your account statement or on the back of your card) to ensure that you’re speaking with an authorized representative. Be just as circumspect with an e-mail from a financial institution—if you hit “Reply” or go to a website listed in an e-mail, you risk falling into a trap. • Make sure you can identify all the transactions on your financial statements. Some thieves will put small charges on your card to see if you catch on before they start making larger purchases. • When conducting online transactions, look for “https” at the beginning of a website’s address—the “s” indicates that the information was transmitted in encrypted fashion from a secure site. • Take advantage of the free credit report you can get from Equifax, Experian and TransUnion, the three major credit bureaus. You can call 1-877-FACT-ACT (1-877-322-8228) or go to www.annualcreditreport.com. Review the accounts in your name—if you don’t recognize them, contact the credit bureaus immediately. Unfortunately, even the most cautious of consumers can still be victimized by identity theft. If it happens to you, here are a few steps that can help: 1. Call your financial institution immediately and close the compromised account. Ask what they recommend you do next. 2. Contact the fraud division of one of the three main credit bureaus to have a free 90-day security alert put on your file. The credit bureau will then notify the other two bureaus of the potential fraud: Equifax (1-800-525-6285) Experian (1-888-397-3742) and TransUnion (1-800-680-7289). You should also file a police report and submit a copy to the financial institution affected by the fraud as proof of the crime. The Javelin/Better Business Survey found the time it takes to recover from identity theft can be extensive (in some cases as much as 40 hours). Protecting your information to begin with is certainly the most cost- and time-effective strategy. Gabe Hoffmann is Senior Vice-President of Wealth Management for the financial firm Citi SmithBarney (Citigroup Global Markets, Inc). He is a resident of the Arboleda community in northeast Mesa, where he lives with his wife Mazie and three children; Garrett, Tyler and Lexie. Mr. Hoffmann can be reached at (480) 345-4731. SmithBarney is a division and service mark of Citigroup Global Market Inc. Member SIPC.