March 14th, 2015
Jackie here. In most instances, identity theft is considered a crime and that means that your local courts and legal system may be able to offer some assistance in identity theft resolution. The availability will vary greatly depending on where you live, but here are a few resources from the Identity Theft Resource Center.
Your Local District Attorney’s Office
Many district attorney’s offices offer some sort of victim assistance for ID theft. Contact your local DA’s office and ask what programs are available. Your local office may have group meetings, victim counselors, packets of local resources, helplines, or informative websites to provide information.
File for Restitution
If you want to file for civil restitution after ID theft (especially common when the perpetrator was local), your local court is the place to start. Restitution can help cover expenses related to the theft (including postage, time off work, photocopies, faxes, etc.). In order to file a claim, you’ll need to keep detailed records and save receipts.
Get Your Credit Report
As an identity theft victim, you’re entitled to free copies of your credit report during the resolution process. Your police report and records of other legal filings can be used to prove that you’re entitled to these free reports. Just a note, under the Fair Credit Reporting Act, each of the 3 credit bureaus is required to provide you with a free copy of your credit report, at your request, once every 12 months. Visit www.annualcreditreport.com or call 1-877-322-8228 to request your copy.
Letter of Clearance
If you’re a victim of criminal identity theft and are struggling with mistaken identity, a letter of clearance from the court can be used to prove your identity to law enforcement and help you avoid jail stays due to your identity theft.
For more tips about using the legal system to your advantage after identity theft, check out this great tip sheet from the ITRC.
February 26th, 2015
Jackie here. ITRC president Eva Velasquez recently shared some ID theft tips we can all take advantage of. Often it’s the little things you do that make the biggest difference in keeping your identity safe.
Password Protect Your Phone- Is your phone password protected? If you haven’t taken the time yet to set up this simple, but essential identity protection, stop reading and go do it. Setting up a password just takes a few minutes and can keep your personal information safe should your phone be lost or stolen.
Keep Your SSN to Yourself- When companies ask for your Social Security Number, ask them why. In many instances, they don’t actually need it. What should you do when asked for your SSN? Eva Velasquez offers a simple solution, “You are free to tell the company that you do not give out your Social Security number, and that you’ll be happy to provide different information, such as your phone number or address.” In certain instances, however, companies do need you SSN to provide you the services you request.
Take Your Mail to the Post Office- Don’t drop that tax form or check into the mailbox outside of your house. Take it to the Post Office instead. If you’re mailing anything that contains personal information (including checks, health insurance statements, and tax documents), send it directly from the Post Office.
Change Your Password- Change your passwords often and while you’re at it, make sure you’re choosing strong ones. Hint: your birthdate or address is not a good choice.
File Your Taxes Early- We’ve told you before and we’ll tell you again, file your taxes as soon as possible. If you’re waiting to file, remember that the thieves are not. “If a thief gets there first, your legitimate return will be rejected for having a return already filed under your Social Security number.”
Take these 5 simple steps today for a safer identity.
February 5th, 2015
Jackie here. Tax season is upon us and for some people that means returns are around the corner. While you’re hard at work preparing your tax documents, thieves are busy too, filing returns and claiming refunds that aren’t theirs. How can you protect your refund this tax season? Here are some tips from Time to get you started.
File Quickly- If you haven’t yet started on your taxes, start as soon as you can. Filing quickly can protect your refund by ensuring that you file under your identity before thieves do. Waiting until the last minute to file can greatly increase your risk of tax identity theft.
Minimize Your Risk- How big is your refund? If you’re getting back thousands this year, you might want to change your withholding to reduce the size of your refund. This won’t protect you from tax ID theft, but will minimize the amount of money that you have at risk should you fall victim.
Protect Your Information- All thieves need to file a fraudulent refund in your name is your birthdate and SSN. Protect these numbers. When possible, have tax forms (like W-2s, 1099s, mortgage interest statements) sent to you electronically. At the very least, bring your mail in as soon as possible; thieves often steal tax forms out of mailboxes at this time of the year.
Get a PIN (when it becomes available)- The IRS is launching a pilot program where taxpayers can obtain a personal identification number (PIN) to protect their identities. This special number must be included on all tax documents. Right now the service is only available to those that filed a return from Washington DC, Florida, or Georgia last year or those that were victims of tax ID theft. Get your PIN here if you qualify. (Once you opt in, you can’t opt out.)
Don’t Use Public Wi-Fi to File- If you file online, use a secure computer and a secure network. Never use public Wi-Fi to file your taxes.
Avoid Scams- Tax themed scams are rampant this time of the year. Remember, the IRS isn’t going to call you on the phone – they communicate via snail mail. Be very careful with the sharing of personal information to keep your tax refund safe.
For more tips about protecting your refund, check out this article from Time Magazine.
January 26th, 2015
Jackie here. It’s Tax Identity Theft Awareness Week. Tax identity theft is growing at astronomical rates (levels tripled from 2011 to 2012 and its just gotten worse from there). We all need to be on high alert for signs of tax ID theft. This week gives us all an excellent opportunity to think about our identities as we roll into tax season.
Help spread the word about Tax ID theft this week and keep your friends and family safe. Here are some simple things you can do in honor of Tax Identity Theft Awareness Week.
Attend a Webinar- Education is one of the best ways to protect yourself from all types of identity theft. On Tues. January 27th the FTC, AARP, and Treasury General for Tax Administration are teaming up for a great free webinar. Find the details here (webinar information is at the bottom of the page).
Share Some Tips- Are you on Facebook or Twitter? Sharing tax ID theft tips is an easy way to share this important message. Don’t worry; you don’t have to create the tips on your own. Use these from the FTC.
Start Working on Your Taxes- Filing early is one of the best things you can do to protect your taxpayer identity. Use this week to start gathering paperwork and crunching numbers so you can file as soon as possible.
How will you protect your family from tax ID theft this year?
January 9th, 2015
Jackie here. If you think that ID thieves are only after credit card information, think again. Medical records are highly valuable to thieves as they contain information that can be used to commit ID theft (SSNs, birth dates, etc.) and also information that can be used to obtain medical treatment fraudulently (insurance information, etc.). Thieves love medical records and this form of theft is growing rapidly (up 20% from last year, according to the Ponemon Institute).
The Problem with Digital Medical Records
One reason for the uptick in medical record theft is the conversion of medical records from hard copies to digital. Digital records can be stolen remotely by hackers and don’t take near the amount of space that actual paper files do.
There isn’t anything you can do about digital records; this is the only type of record offered by many practices and in many cases the digital records are required by law, but there are still ways to protect yourself from medical ID theft. Here are some tips to try:
Don’t Provide Your SSN without Reason- Many medical practices ask for SSNs even though they aren’t necessarily needed. If you’re asked for your Social Security number, ask why. Don’t provide it unless it is absolutely needed.
Don’t Share Your Driver’s License Number- Another number that is often requested, but rarely needed is your driver’s license number. If you are asked for it, see if there is another method of identification available.
Remove Unneeded Information from Old Records- Odds are you’ve already shared your SSN and driver’s license number with many medical providers. This doesn’t mean these numbers have to be a part of your record forever. You can ask to have this information removed.
Check Your Records- Obtain copies of your medical records from your doctors at least once a year and analyze them like you would a credit report. Look for treatments you didn’t receive, fraudulent charges, etc.
Don’t Just Toss Old Records- When disposing of old medical records, explanation of benefits forms, etc. dispose of them properly. Always shred or destroy records you’re tossing out and keep any records you need in a secure place.
Help Your Children- Young children and the elderly are especially popular targets for medical ID theft. Help those in your care to understand the importance of caution when sharing medical information and assist with checking records as needed.
Medical ID theft is a growing problem, but with a little caution there is much you can do to protect yourself and your family.
January 6th, 2015
Jackie here. We’re right in the middle of open enrollment season for insurance and that means that scammers are out in full force looking for opportunities to trick consumers out of their personal information. Be on the lookout for health care scams this time of year and use these tips to help spot and avoid scams.
Watch for Grammar and Spelling Errors- If you receive an email riddled with grammar and spelling errors, send it to your spam folder immediately. It is very unlikely that a legitimate company will send emails packed with errors. This is a great first level screening for any spam, healthcare related or otherwise.
Look Deeply at the Sender’s Address- Even emails that appear to be from your health insurance company could be from scammers. Hover over the sender’s address to see where the email is really coming from. – if the real address doesn’t match who is supposedly sending the email, use caution before you click any links or take any action.
Avoid Clicking Links- If an email asks you to click a link immediately to input personal information, don’t do it. This is a common tactic used to direct you to malicious sites that may install malware on your computer. Avoid clicking links in unsolicited emails.
ACA not “Obamacare”- Scammers often refer to the nation’s health law as Obamacare. While this is a commonly known nickname for the law (actually called the Affordable Care Act or ACA), you won’t see it on official insurance correspondence. If you see “Obamacare” know that the email is likely spam.
Call Customer Service Yourself- If you receive a call or email from your insurance company, call them back yourself using the number on your card. This is a great way to check in and make sure your coverage is setup and working without disclosing personal information to the caller. When in doubt, call yourself.
These simple tips will help you to avoid many of the healthcare scams this year. Check out more tips from the Identity Theft Resource Center (ITRC).
December 31st, 2014
Jackie here. One of the best ways to spot ID theft early on is to regularly monitor your credit. There are several ways to do this, but if you want to do it for free, you can visit www.annualcreditreport.com and claim your free yearly reports. Each person is entitled to one free report from each of the three credit bureaus every 12 months. You can get all three reports at once or spread them across the year.
The process is simple, but if you’re new to checking your credit it might seem a bit intimidating. Start by watching this helpful video from the FTC and then use some of the tips in this guide to navigate the process. Checking your credit is easy and is a wonderful tool for fighting ID theft. If it’s been a while, make the commitment to do it today.
The Only Source for Your Yearly Free Credit Reports
You can get your credit report from several different sources, but the only place for your free annual report that you are legally entitled to is annualcreditreport.com. If you don’t have reliable internet access, don’t worry; you can call 877-322-8228 or fill out an annual credit request form and mail it in.
Getting Your Report
When you visit annualcreditreport.com you’ll need to verify your identity and provide some personal information before you can access your report. Have all your information handy so you don’t have to scrounge for it while you’re filling out forms. The information you will need includes: Name, Address, Social Security Number, Birth Date, and Verifying Information – to make sure you’re really who you say you are, you’ll have to answer a few questions that only you would know the answer to. These can vary from person to person, but you should be able to accurately answer the questions. Some questions I’ve been asked include balances on loans (multiple choice), previous addresses, former employers, etc.
What Do You Do Once You Have Your Report?
Getting your credit report isn’t enough. You need to check it carefully for accuracy if you want to spot ID theft and other problems early on. Here are some things to check in your report:
Correct Information- Is your basic information like your name, address, and employer correct? Check all your basic information for accuracy and report any problems you find.
Accounts- Next, check your accounts. You should verify that each account listed is one that you actually hold and that information related to these accounts is accurate. Check your balances, look at your payment history, etc. If you find any accounts you didn’t open or find incorrect information relating to your accounts, don’t ignore it.
Finding an Error- What’s the Next Step?
Hopefully, your credit report doesn’t hold any surprises, but if it does, here are some steps to try:
Tell the Credit Reporting Company- Let the credit reporting company know about any inaccuracies you find in your report. You’ll want to do this in writing (and keep a copy of any correspondence you send). They have 30 days from receiving your request to investigate. After the investigation is complete you should receive written notice of the findings. You’ll also receive a new copy of your credit report if the investigation leads to any changes.
Contact All Three- If you find an error in one credit report, make sure that you check all your credit reports for a similar problem (and take the steps to fix
it on all three reports too).
Have you gotten your free credit report lately?
December 22nd, 2014
Jackie here. What can be done about data brokers? We’ve talked about the potential problems and benefits of data collection here on the blog many times, but the one thing that stands out is the limited amount of power consumers have to control their information. Even with stringent privacy practices, if you use the internet, pay with a credit card, receive supermarket loyalty points, look up health information online, etc., your data is out there.
If you feel like you’re fighting a losing battle for privacy, you’re not alone. So far, however, there isn’t a clear solution to the big data problem. I recently read an opinion piece from the NY Times that suggests that legislation is the key to resolving some of the issues with “Big Data”. What do you think? Is increased legislation necessary to protect our privacy in an online age?
A List for Everything
When it comes to data marketing there is a list for almost everything imaginable. There are lists of those with various diseases (like diabetes, depression, AIDS, etc.), lists of impulse buyers, lists of home owners, and certainly many more. These lists are filled with names of consumers and sold to interested parties including advertising agencies, potential employers, banks and creditors, insurance companies, and others. There is no way to know which lists you’re on and no way to edit the information on these lists, even if things are incorrect.
While it might not seem like a big deal if your name appears on a list of impulse buyers, should you make a list of those with a terminal illness, people with STDs, or methamphetamine dealers (yes, these are all real lists), you might find yourself struggling to get jobs, find credit, or obtain new insurance policies. Consumers cannot be certain how this data is used, so being able to control what lists.
What Needs to Happen?
The author of the NY Times articles suggests that data marketers be required to register with the FTC and that a requirement for notification to consumers as their names appear on sensitive lists should be required.
What steps would you like to see taken to protect consumer information?
December 19th, 2014
Jackie here. Letters to Santa might seem as innocent as they come, but in this new holiday scam letters from the man in red are actually a ploy to steal your identity. Scammers love to use current events and upcoming holidays to trick potential victims; this scam is an excellent reminder to keep your eyes open for tailored scams created just for a specific event. Here are the details:
The Scam: A Custom Letter to Your Child from Santa
The scam sells a custom written letter from Santa to your child. Right now the price is typically set at $19.95, but this could easily change. The initial sales offer comes via email with a link to click if you’re interested in purchasing.
Once you click the link, you are directed to a website selling the letters. There may be a free shipping offer that ends in just a few hours to encourage you to purchase immediately.
If you provide your credit card info, you’ve just shared some personal information with potential scammers. You’ll likely be out the money for the letter and have the potential to become a victim of ID theft or credit card fraud.
Also, be on the lookout for variations of this scam that provide free letters from Santa. While they may not need a credit card, they will ask for lots of personal information which can be sold to scammers. Learn more from the Better Business Bureau.
Holiday scams are abounding at this time of the year; be on the lookout for this letter from Santa scam and others like it.
December 12th, 2014
Jackie here. The Identity Theft Resource Center released their most recent victim impact study which sheds light on the many ID theft victims working to resolve their ID theft cases. We’ll share some of their findings here, but before we jump in I want to share the one quote shared on Twitter that stuck out most to me, “Behind each statistic is a person dealing with the emotional impact of identity theft.” We can talk about numbers all day, but when it comes down to it, each number represents a person who is working to restore their credit.
Now on to the study… Here are some highlights from the ITRC report (if you’re on Twitter you can also check out #IDTheftImpact for findings from the study and expert opinions on what this means for you).
No One is Immune from Birth to Beyond Death- In their 2003 Identity Theft Aftermath report the ITRC shared the quote, “No one is immune from birth to beyond death.” Although it’s been more than 10 years, this still remains true. They point out that even your finances can’t protect you. We often assume that ID theft strikes those with good credit or a bit of money, but more than a quarter of the victims in the study had household income levels below $25,000.
Check Your Credit- Experience is often the best teacher. Of the ID theft victims in the study 50% or more now check their credit regularly. Don’t wait to become a victim to take this advice. Learn from the experiences of those fighting ID theft and check your credit often.
Most Victims Learn about ID Theft from Others- Odds are you aren’t going to be the first one to know about your identity theft. Financial institutions informed 33% of victims about the problem. Other victims learned about their ID theft when receiving a bill for an account that wasn’t theirs (29.4%), after being contacted by a collection agency (26.6%), or when they were denied credit (17.5%). Just over a quarter (26%) discovered the theft by spotting unauthorized accounts on their credit report. Luckily, people are catching ID theft quicker than ever before with 48% discovering the theft within 3 months of it first occurring.
Identity theft has a real impact on each and every one of its victims. Take a look at the full report from the ITRC for more insight into the statistics.
December 10th, 2014
Have you started holiday shopping yet? This year, give your loved ones the priceless gift of a more secure identity. These fun ID theft themed gifts are perfect for everyone on your list, including that uncle that already has everything. You might not have a fortune to spend on your holiday gifts, but that doesn’t mean you can’t give a valuable gift that everyone needs.
Tablet Cable Lock
Stealing devices is big business for ID thieves and others. Not only is a stolen device easy to sell, it is often packed with your personal information that can be used to commit ID theft and fraud. For the device lovers on your list, consider the gift of a tablet cable lock. These little locks allow you to lock your device to table legs, desks, etc. You lock up your bike, why not your tablet?
RFID Blocking Sleeves
For an affordable and practical ID theft gift, an RFID sleeve is the perfect option. You can buy a 10 pack for under $20. Split it up amongst a couple friends for a really affordable gift, or give all 10 to one deserving pal. These little sleeves can be used to protect everything from credit cards to employee badges and more. Best of all, you don’t need a big special wallet to use these sleeves; put your card in and slip it right into the wallet you already have for enhanced protection.
I Love My Identity Tee
What better way to spread identity theft awareness than with a cute tee like this one. One of the best ways to protect against ID theft is vigilance (with checking credit, watching bank statements, keeping personal information secure, etc.). Your loved ones will remember how much they value their identity every time they put on this shirt, helping them to find the motivation to keep their identity safe all year round.
VPN for Secure Browsing on the Go
Do you have a friend that loves Wi-Fi? Free public Wi-Fi is certainly convenient, but not without risks. Help your friend protect their sensitive information when logging in to the internet away from home with a VPN. A virtual private network (VPN) can keep others from snooping on your internet activity at home or away. If you need help choosing a VPN for your friend, here’s a great list from PC Mag. Many cost just a few dollars a month, a small price to pay for more security.
DIY ID Theft Resources Kit
For those of you that like to DIY holiday gifts, consider putting together a packet of ID theft resources and information for your friends and family. This is a thoughtful and useful gift for anyone that needs to learn a little more about ID theft. Here are some resources you may want to use:
ID Theft Fact Sheets- You can print off informative ID theft fact sheets from several places including the Identity Theft Resource Center, the IRS, and the FTC. From ID theft basics to more advanced topics, you’ll find information for everyone on your list.
A packet of identity theft resources is a thoughtful gift on its own or can be paired with another identity protecting gift from this list to show just how important protecting your identity really is.
Crosscut or Better Shredder
Hopefully everyone on your holiday gift list has a shredder and uses it, but you’d be surprised. Shredding is an easy way to destroy personal documents before you throw them out. Everyone should use one. Don’t just buy a regular shredder; make sure it is crosscut or better (confetti cut, diamond cut, micro cut, etc.) to make it almost impossible to reassemble shredded documents.
What identity theft themed gifts will you give this year?
December 9th, 2014
Jackie here. The holiday season is here and that means friends, family, hot cocoa, and of course, holiday shopping. As the holiday shopping season heats up, make sure you’re protecting yourself from ID theft and fraud. You aren’t the only one busy this time of year; fraudsters love using the chaos of the holidays to make a quick buck. These holiday shopping tips will help keep your family safe from ID theft this year.
Use Your Credit Card
If you missed our recent article on credit cards vs. debit cards check it out before you head out holiday shopping. Credit cards offer more fraud protections than other payment methods, making them one of the safer choices for holiday shopping.
Save Your Receipts
During the holidays when you’re making lots of purchases it can be hard to remember what you’ve spent and where. Save all your receipts including those for online purchases.
Check Your Statements
With your saved receipts in hand, checking your statements will be much easier. Double check amounts and purchases for any inaccuracies. If you notice a problem, report it to your financial institution quickly. With debit cards, you only have 2 business days to report fraud if you want to limit your maximum losses to $50.
Beware of Shopping Apps
Shopping on your phone is certainly convenient, but if you aren’t careful you might be sharing more information than you intend. Mobile shopping apps can collect a great deal of information about you including address, phone number, driver’s license number, and even your Social Security number. Before you install a shopping app, make sure you check the permissions and if you’re uncomfortable, find another way to buy the items you need.
Limit the Information You Share
Keeping your identity safe is all about limiting the information you share. Don’t give out your credit card number in exchange for an opportunity to win a gadget or gift card. Watch your inbox for phishing emails and don’t reply. Be very cautious about the information you provide this holiday season.
Not All Charities are Charitable
If you plan on making a donation to a charity, choose wisely. Charity scams are common year round. This guide from the FTC will help you spot charity scams and choose legitimate options for your donations. It is admirable to give back during the holidays, but you want to be sure that your generosity is actually helping those in need.
For more tips for safe holiday shopping, check out this guide from the FTC.
November 6th, 2014
If you’re looking for a wonderful resource for all things identity theft related, head over to the Identity Theft Resource Center (ITRC). They have tons of free resources for identity theft victims, businesses, consumers, and others that are worried about ID theft. I was excited to discover that the ITRC president Eva Velasquez made a recent appearance on a San Diego radio show.
Listen to the full broadcast for yourself or keep reading for a few tips pulled from the show.
New Victim Every 3 Seconds- If you think you don’t need to protect yourself from ID theft, think again. According to Velasquez there is a new victim every 3 seconds. There are ways to minimize your risk, but there is no foolproof method to keep from becoming a victim with 100% certainty.
Some Types of ID Theft are Easier than Others to Resolve- Some types of ID theft are easily resolved while others can take much more effort. Simple credit card fraud is often resolved with just a phone call or two to your credit card company. More complicated cases can take many phone calls and several hours to resolve.
Thieves Keep Finding New Methods- Tax identity theft first became a headline-making issue in the 90s, but prior to that time, it just wasn’t something people even considered to be much of a risk. Thieves are going to keep finding new ways to use our information and data in the future. No one can predict with certainty how things will evolve going forward.
Not All Data Breaches are Equal- Some data breaches carry a larger impact for consumers than others. For example, a breach of payment information can be stopped by getting a new card (things are a bit easier with credit cards than with debit) while a breach of SSNs can lead to new accounts being opened in your name.
Use a Credit Card- If you can, use a credit card, especially when shopping online. Debit card fraud can clean out your bank account and make it hard to pay bills and access your cash while the issue is resolved. Credit cards make it a lot easier to resolve the problem and to keep access to your accounts should a compromise happen.
Ask Questions- If a company wants your SSN, ask why. Many times you won’t actually need to provide it. Ask companies how they plan to keep your information safe.
Don’t Check Email While Distracted- We are all at risk for phishing scams. Protect yourself by paying attention when checking your emails. If you’re distracted, wait to respond to emails that ask for personal information so you can take the time to research the sender and confirm that the request is legitimate.
October 9th, 2014
Jackie here. We take protecting identities pretty seriously around here, but is it really that important? Why should you protect your identity? Here are a few important reasons to keep your identity safe as well as tools you can use in the process. Let’s all renew our commitment to identity protection today!
A Victim Every 2 Seconds- Last year, someone became an identity theft victim every 2 seconds. That means in the time it takes you to read this sentence at least one person started their struggle with identity theft. ID theft can strike anyone, child or adult. To help you stay safe in all of your daily activities, check out these tip sheets from the Identity Theft Resource Center. Don’t forget to share what you learn. The millions of victims of identity theft last year were our friends, family members, and co-workers.
ID Theft Can Hurt Credit- What’s your credit score? While this little score might not seem that important, a bad one can have a negative impact on your life. Credit scores can influence your ability to find work, acquire housing, get loans, and more. Identity theft can negatively impact credit even if you always pay your bills on time. Protecting your identity will help you protect your credit score. If ID theft does ruin your credit, check out this helpful guide from the FTC about rebuilding credit after identity theft.
Scams Abound… and Are Always Changing- I’m amazed at the number of scams out there. On a daily basis I come across phishing emails, text message spam, offers of prizes (usually scammy ones), etc. Since you can’t keep up with all the current scams (and they are always changing), your best bet is to learn how to spot a scam on your own. OnGuard Online has prepared a one stop resource for all your scam education needs. You can learn how to recognize and protect yourself from many of the common scams floating around. We also post about scams frequently on our blog.
Easier to Protect than Correct- While some are able to quickly resolve problems related to identity theft, other victims aren’t as lucky. In 2012, the average victim reported spending about 9 hours clearing up issues related to ID theft, with some victims spending much more time. Of the more than 20 million victims that year, 7% were still trying to clear up issues more than a year after the problem. Keeping your identity safe from the start is much easier than trying to undo the damage after it’s done.
Only You Can Protect Your Identity Online- Much of our life is conducted online. From storing online medical records to banking transactions, and shopping, many of us keep troves of personal information online. The internet might feel anonymous, but in reality it is anything but. Marketers are constantly trying to gather information about you. It is your responsibility to protect your identity and your privacy online. If you want to increase your online privacy check out this fact sheet from the Privacy Rights Clearinghouse. It will teach you how your information gets out there and what you can do. The section on the risks of cloud computing is especially important for those of us that store much of our lives in the cloud.
What steps are you taking to protect your identity?
September 28th, 2014
Jackie here. When you swap your old smartphone for the latest and greatest new device, make sure you aren’t sharing your information with the world. If you sell, recycle, or trade your phone in, you may be sharing more than you want with the next owner, even if you’ve deleted old files. Here are some tips for safely disposing of your old phone.
Recently, the antivirus software company Avast reported that it was able to obtain erased files from old Android phones purchased on eBay. From only 20 phones they recovered more than 40,000 photos (including some very personal ones), more than 750 emails and texts, 250 contact names and addresses, the identities of 4 previous owners, and a completed loan application. Think about your phone for a minute; do you have information stored on it that could compromise your identity or lead to future embarrassment? The money you get from selling your phone might not be worth the ID theft hassle that could potentially follow.
Deleting Isn’t Enough
Although this investigation only involved 20 phones, the magnitude of information obtained shows just how much remains on your phone after deleting. Obviously, hitting delete doesn’t make things go away forever. What can you do?
If you really want to remove information from your digital devices (phones, tablets, computers, etc.) you need to take extra precautions to really remove the data. Here are some tips for securely deleting information from your phone (for more, check out this article from Consumer Reports).
Easy on Apple- If you have an Apple device, deleting is a breeze. If you enable a screen lock with passcode, all of your information is encrypted automatically and doing a factory reset will wipe your phone clean enough to sell safely. You can set up a passcode under ‘Settings’, then ‘General’, then ‘Passcode’. If you have iOS7, simply go to ‘Settings’ then ‘Passcode’. (To reset your phone before you sell it go to ‘Settings’, then ‘General’, then ‘Reset’).
Others Must Encrypt then Reset- The process is more complicated on other phones, but in general you’ll need to install encrypting software first and then reset your phone. You’ll find more specific details for each phone here.
Remember that even with these practices, the only way to be 100% sure all data is deleted is to destroy the device.
September 16th, 2014
Jackie here. The world of debt collection is often a treacherous one, for debt collectors and those that owe the debt alike. The selling of old debts is a common practice, and once those debts are turned over to a collection company, consumers may have a difficult time spotting debt collection scams.
One common scam involves contacting those with common names and pretending that they owe some obscure debt. Sometimes people pay without even questioning. In another scam the scammers obtain the names of real debtors and pose as a collection company to collect this debt. The debt is a legitimate one, so consumers often believe the claims presented by the scammer and may choose to pay up on this old debt. As scammers steal information from legitimate debt collection companies, both consumers and the actual owner of the debt are negatively impacted. What can you do to protect yourself?
If You Pay a Scammer, You Still Owe the Debt
Consumers are responsible for their debts, even if they think it has been paid. Paying a scammer won’t eliminate your financial responsibility for the debt in question so make sure you’re paying the right collector. One important step for verifying the debt is to obtain a verification letter concerning the debt. The collector should be able to tell you who the original debt holder was and when you made your last payment.
Find Out as Much as You Can
Asking questions can help you spot a fake debt collector. Ask questions about the specific collector, including their license number (Note: all states do not require a license), their address, what company they work for, their contact phone number, etc. The more information you have, the better able you are to research this debt collector and ensure the debt is real. A quick search online can often weed out fraudulent collections claims.
If You’ve Paid, Don’t Pay Again
If you’re being pestered about a debt you’ve already paid, you may be able to find resolution by contacting your original creditor. They can often provide you with a letter that states that your original account is in good standing which can be presented to the collector to resolve the issue.
For more tips, check out this article.
September 12th, 2014
Jackie here. We rely on our technology daily, but unfortunately devices can be stolen, key cards lost, and passwords compromised. In the search for a better way to protect sensitive information, researchers have long explored the possibility of implantable devices to connect our bodies to our technologies. If this sounds like something that will only exist in the distant future, think again. Some researchers believe that implanted microchips could become part of your body very soon.
One researcher implanted a small chip into his hand back in 2009. This chip was used to open secure doors at his job site and unlock his phone among other things. About a year later the researcher added a virus to his implant which could infect nearby computers just by walking past. To this day the researcher still wears the chip with no plans to remove it.
An Implant for Everyone
Implantable technologies don’t just have a place with researchers. Implanted devices have long been used in the medical community to treat various ailments. The technology could also be used by all of us to make devices more secure and to expedite payment and transactions. Technologies like Google Wallet could easily pair with an implant, making the need to carry cards practically obsolete.
These types of implants would likely be very small. The technology already exists to create them and they are about the size of a grain of rice. DIY implant kits are also being produced—although they may be illegal in some states.
What Are the Risks?
There is the risk of hacking and compromise with any new technology. Yes, chips could make our lives much more convenient, but would they compromise our privacy? How would hackers and thieves utilize this technology to their own benefit and how can we protect ourselves?
Don’t expect to be offered an implant at your next smartphone upgrade, but don’t be surprised if we start seeing this technology become more available in the next decade or two. What do you think about implanted microchips? Would you be willing to have one?
September 10th, 2014
Jackie here. More than a billion username and password combinations were recently stolen by Russian hackers along with more than 500 million email addresses. Here are some tips for protecting yourself in the aftermath of this heist.
Change Your Passwords Today
If you haven’t yet changed your passwords, do it today. You should change all of your passwords (and possibly your usernames) to your most sensitive accounts including bank accounts, email, and health insurance sites. While you’re at it, make sure that the new passwords are strong and unique. Include upper and lower case letters, symbols, and numbers when possible. Avoid words found in the dictionary.
Watch for Signs of a Problem
In instances such as these your information may have fallen into the wrong hands so keep a close watch on your accounts looking for signs of a problem. Don’t just be vigilant right now; you never know when your information might be compromised so always be aware. Unfamiliar charges, emails that appear to be from your bank or financial institution, and emails asking for personal information should be closely examined. Never click on links or reply with personal information to an unsolicited email. Instead visit the website of the company in question yourself using a known web address.
Check Your Credit Report and Card Statements
The best ways to deal with this hack are the same simple tactics we should use every day to protect against ID theft. Check your bank statements often and report any discrepancies to your bank. Also check your credit report at least once a year. You can get a free yearly report from www.AnnualCreditReport.com.
Learn more about the Russian hack here and get some tips from the FTC here.
August 26th, 2014
Aaron here, AllClear ID Investigator. It’s that time of year again; summer is coming to a close. Many parents are going shopping for their kid’s school supplies and that perfect new backpack. However, most parents probably aren’t thinking about what personal information is being stored in this new backpack, nor would most be thinking of identity theft if the backpack was stolen.
Identity theft is at an all-time high; it seems almost everywhere you turn you are hearing something about a data breach and resulting identity theft. If an identity thief was to steal your child’s backpack would they find the key to your credit history? These days, children have all sorts of personal identifiable information stored in their backpacks and it’s important to take the time to learn about how that information could be used if it got into the wrong hands.
Below is a list of what most identity theft suspects would be looking for if they were to steal a child’s backpack, as well information on how to protect yourself in case this does happen.
Most carriers have a simple code to access the actual account information. If a suspect were to get a hold of your child’s device they would potentially be able to order new services and wreak havoc on the account. Not only is the account at risk, but think about the contact information that your child may have on this device, and what risk occurs if this information was to get in the wrong hands. This type of intrusion causes issues like phishing emails, grandparent scams and malware installation. Not to mention the amount of notes and even passwords that parents and kids store in these devices.
Ways to avoid these issues: Make sure you educate your child on the potential danger of this type of technology. Inform them about creative alpha numeric passwords. Also explain why certain types of sensitive information should not be stored in their device (like their SSN or any passwords). You can have your child set up the Find Me app, this app erases all content should someone ever steal the smart device your child has.
Most everyone knows the risk of a laptop if it were to fall into the wrong hands. The same issues explained about the Smartphone can apply to this device as well. Now think about all the accounts that are tied to the parent and are also set up on the child’s laptop, apps like Netflix, Amazon, iTunes, and social media and most of these apps have it set to automatically log in once the child opens the device.
Now think about all of the files, and emails that maybe saved on the child’s laptop, all of this PII (personal identifiable information) is a scammers dream. Everything from credit card information, addresses of family members, as well as birth dates.
Ways to avoid these issues: Have your child make sure to log out of every online account that they have when they are done using it. Always make sure that no sensitive information is stored on a child’s laptop, and if it was handed down from the parent to the child, make sure to have all sensitive documentation deleted from the system. Make sure to educate on the importance of not storing user names and passwords on the device as well. Make sure that whatever password the child has up on the laptop is also shared with you.
Most children will use a Karabiner attachment for the backpack to store keys and identifying name tags showing ownership. The problem that this causes is the potential risk of having a thief /robber show up at the home while away working. The best way to avoid this problem is not to put any address information and just to put a work contact phone number with the child/Parent’s name on it, no other information is necessary.
Overall, child identity theft is a large issue and one we have done studies on in the past. While the options for protection are limited, the best protection starts at home, with you.
August 15th, 2014
Jackie here. When it comes to identity theft are you an expert or a novice? Check out this fun quiz from Credit.com and see how you rank. If you’ve been reading our blog regularly you’ll probably score pretty well. After the quiz, come back here for additional resources that can help you if you struggled with some of the answers along the way.
Passwords are the key to all our most sensitive online accounts. Your bank (and the money you keep in it) is only as secure as your online banking password. How secure is your password? This article from our blog will give you tips for making your passwords stronger.
Social Security Numbers
It seems like everyone wants your Social Security Number, from the doctor’s office to the electric company. Are you required to provide your SSN to everyone that asks? This fact sheet from the Privacy Rights Clearinghouse will help you determine when you must share your SSN and when you can safely decline. It’s usually a good idea to ask if another form of identification will suffice to limit how many people know your SSN.
The IRS uses mail as their primary method of contact. If there’s a problem with your tax return you can expect to hear about via US Mail. Tax identity theft is a growing problem, so be on the lookout for scams related to your tax return. Anyone can fall victim to tax ID theft, even someone with extensive identity theft knowledge.
Protect Personal Information
“Big Data” knows a lot about each of us. We need to learn to safeguard our personal information, not just to protect from ID theft (although that is important), but also to preserve our privacy. Learn to read privacy policies so you know what information is being shared and collected about you.
Is This Call Legitimate?
When you get a call, don’t automatically trust the caller ID. This article from our blog will help you understand caller ID spoofing and how to avoid it.
When was the last time you checked your credit report? Check as often as you can, but at least once a year. You can get your free annual reports from www.annualcreditreport.com, the only source for your free yearly report.
How did you do on the quiz? Do you have some brushing up you need to do? This quiz could be used as a tool to introduce id theft to teens and older children.
August 7th, 2014
Jackie here. We talk a lot about credit reports here on the AllClear ID blog. After all, they are an essential tool for discovering and fighting ID theft. We all know that credit reports have other purposes too; they are the gateway to our credit and play a big role in what loans we can obtain and what interest rates we receive for those loans. Similar to the credit reporting industry is another less discussed industry that also compiles information to create a personal score for you. These specialized scores are known as predictive scores, and unlike your credit score, they can’t be seen, modified or changed.
Some believe these scores are a help to consumers, providing tailored ads and personalized services, while others worry that these scores are a huge privacy violation (and a risk since they aren’t open and accessible). What do you think?
How Are Predictive Scores Created?
Credit scores compile information like your payment and account histories to create a score that showcases your credit worthiness. Predictive scores operate similarly, but they gather information differently. These scores use information like your purchasing patterns, online browsing history, public social media posts, public records, etc. to create specialized profiles of information. There isn’t just one predictive score out there; marketers have created a variety of different score profiles including those that determine your health status, profitability, predicted lifetime earnings, spending patterns, and more. With the huge amounts of data we share online each day, these scores can and do reveal a lot about each of us and are highly lucrative to both marketers and companies alike.
The Risks and Benefits of Predictive Scores:
As with most things, predictive scores carry both risks and benefits. Since the scores are used for marketing purposes, not borrowing eligibility, they aren’t governed by the Fair Credit Reporting Act. This means that consumers have no right to access their information and no way to correct any inaccuracies. One of the biggest risks carried with these scores is a loss of privacy. In efforts to gather information, various marketing companies track your every move, monitoring the websites you visit (using cookies), gathering purchase information, and more. Opting out is possible in some cases, but can be a difficult process. If you want to opt out, we’ve shared some tips on our blog you might want to check out. The Privacy Rights Clearinghouse also has a great piece on information brokers.
As far as benefits are concerned, consumers can receive discounts, personalized marketing information, and more from these companies. For example, you may receive a huge discount offer from a company after viewing their products online or see ads for hotels you regularly frequent. The troves of information gathered allow marketers to reach out to individual consumers with more precision.
Where Can I Learn More?
If you’re interested in learning more about predictive scores, here are a few resources to get started:
July 18th, 2014
Tamara here, AllClear ID Investigator. It’s a common occurrence for an individual to be notified that their personal information has been compromised in a breach or a data incident. Within each notification, the consumer is usually informed as to what type of personally identifiable information was involved in the incident. Sometimes, consumers wonder how a particular piece of information will be of any use to an identity thief. Here, I will outline why thieves might seek out different types of data, and what you can do to help protect that piece of information.
• Phone Number:
You might be thinking to yourself: what’s the big deal about my phone number being out there? Well, there are a number of things a thief can do with your phone number. One thing that can be done is to use your phone number on websites when trying to get the best rate for a mortgage, insurance, or an auto loan. Rather than the applicant receiving calls from agents responding to the quote request, you get those calls. There can be multiple calls a day, for an extended period of time. In that case, ask the caller to remove your number from their database. You may be able to contact your carrier to see what options you have about blocking certain numbers, but usually the calls come from different numbers. Another thing that can be done, which can directly affect you, is by using your phone number to access and take over your existing accounts. There are ways phone numbers can be spoofed to make it appear as if that is the number the caller is calling from. In this case, as with others in this article, it is recommended to set additional security factors on your existing accounts, as in a PIN or a password that would be required if any changes (such as a change of billing address, phone number, adding an authorized user, etc.) were requested.
• Dates and ZIP Codes:
Dates, dates, dates. All sorts of dates. Dates of employment, residence, birth, account duration, and education are sought by identity thieves. What can those dates be used for? Verification. ZIP codes, also. Many times, an identity thief may have some missing information, so a creditor will ask further questions to help verify the applicant’s identity. In some cases, the questions are based on this information. This information can be easily obtained, sometimes, just by going to the victim’s social media profile. To help protect that information, exclude it from your publically accessible online profiles.
• PIN Codes:
PIN numbers may be one of the more obvious numbers you should protect. If you’re using a machine where there is a skimming device attached along with a camera recording you keying in your PIN, then you’ve just given it away. While it may be difficult to determine if such a device if in use, it’s best to use machines located in the actual bank. If you’re ever in doubt, hide your strokes and/or change your PIN.
• Social Security Number:
Your Social Security number can be used in a number of different fraudulent ways. Whether it is to open a new line of credit, obtain government benefits, file taxes, for employment or to sell to other thieves, it is one of the most widely used numbers out there, but one of the bare bones of required number when it comes to identity theft. To help protect your Social Security number, one thing you can do is to be cautious of giving it out or putting it on forms. You could also set fraud alerts with the three credit reporting agencies.
• Financial Institution Account Numbers:
When a criminal has the full account number for any one of your accounts with a financial institution, it is pretty direct line into that account. Usually, once that is provided, only a couple of other personal identifiable factors are required to be verified (hence the mention above of the addition of further security factors to the account). If you ever discover that one of your account numbers was compromised, it is best to change that account number, or to at least notify your financial institution.
• IP Addresses:
IP addresses are sought after for a couple of different reasons. One is that your IP address can be spoofed by scammers, phishers, and other criminals to make it appear as if their activity is actually coming from you. Another is that your IP address can be targeted by scammers. A common scam is the Tech Support Scam, where you’re called up and notified by someone claiming to be a tech support rep from Microsoft (or some other company) who requests that you download a ‘fix’ for malware that is supposedly on your computer (they will also have you pay a fee). In that case, it’s best not to provide any information, and call the company via a verified number on their website or one of your statements to see if the request is legitimate.
• Driver’s License and Passport Numbers:
If your driver’s license or passport number is used for replication, criminals can then use it to commit fraud or other illegal activities. If they provide either number to police if they are caught, you might be linked to these crimes you did not commit. When informed either number was compromised, it is good to notify either the issuing state’s department of motor vehicles or to report it to the Bureau of Consular Affairs.
• Health Insurance Account Numbers:
These types of account number can be used fraudulently to receive medical care. The first step to take to help protect this number is to review any insurance statements and your accounts carefully. If you are charged for services you do not remember receiving, contact your insurance provider and whoever provided the services. In addition, inquire if there are additional security measures you can use to protect your account and have another account number issued.
All of this being said, data incidents and identity theft happen every day. The best way to protect yourself is to be vigilant in reviewing your credit reports, your existing accounts, explanations of benefits, online profiles, and keep an eye out for suspicious activity. If something seems a bit off kilter, dig a little deeper to determine whether or not it was fraud, and take action from there. The best thing you can do is take the precautionary measures to help prevent these numbers from being compromised in the first place.
June 13th, 2014
Jackie here. We recently shared a collection of links highlighting some important points from the FTC’s report about data brokers. The insightful report provides a unique look into an industry that is often shrouded in secrecy, unknown and misunderstood by many consumers. Let’s take a deeper look at the report and learn more about how the data collection industry gathers and uses our information.
Where Does the Information Come from?
Data brokers have a lot of information about consumers in their files. Where does this information come from? Brokers gather little snippets of information from a wide variety of sources; each piece of information alone is almost worthless, but when the many pieces are compiled together, they provide a much more insightful look into a person’s life. Some potential sources of information include bankruptcy filings, voter registration, web browsing activities, warranty registrations and consumer purchasing information.
You might be surprised to learn that data brokers even obtain information from the government. Six of the companies studied obtained information directly from the federal government, including census records, postal service information and even terrorist watch lists. State and local governments also provide information like professional licenses, property records and court records.
Interestingly, much of this data comes not from the original source itself, but from other data brokers. Of the nine data brokers studied, seven shared information with the others.
Not all of the information comes from outside sources. Data companies also use information people share online about themselves in blogs and social media profiles.
Do Data Brokers Have Information About Me?
Odds are your information is being collected by data brokers. One data broker has approximately 3000 data points for almost every consumer in the U.S. Another broker adds 3 billion new records each month.
How is the Information Being Used?
This does carry the potential for risk to consumers. The report shares a few powerful examples of how this information has the potential to cause harm to consumers. One potentially negative consequence of data brokerage could occur if a consumer flagged as potentially having diabetes is targeted by an insurance company for having an increased risk.
Furthermore, information in your file isn’t currently viewable or editable by consumers. Errors cannot be found, corrected, or remedied.
Who are the Data Brokers?
We often hear about “Big Data” and data brokers, but who are these companies specifically? The report shares information about nine of the data companies, the ones that were studied for this report. While not a comprehensive list of all the companies out there, this list provides a broad spectrum look at large, midsized, and small companies covering a wide range of data collecting activities. You can read more about each company in the report.
The FTCs new report provides a startling look into an otherwise secretive industry; hopefully the proposed regulations and industry changes will help consumers to have more control over their data and how it is used.
June 3rd, 2014
Jackie here. Sometimes it feels like our privacy is being assaulted on many fronts. And it can all be very confusing. You may have questions about your privacy rights or the best way to handle a privacy concern. When you have privacy questions or complaints, turn to the privacy experts at the Privacy Rights Clearinghouse. They offer an Online Complaint Center to address privacy questions, concerns and complaints.
If you plan on submitting a question, be aware that all requests must be submitted online. They take each question seriously and need time to research before replying so you can’t call in, even if you think the question is a simple one. Their focus is consumer privacy, basically how companies handle your information, not the government. They also can’t provide legal advice or take action for you, but they may be able to direct you to resources and others that can help.
If you don’t have a specific question, but do want more information about privacy in general, take some time and browse their website. They have a comprehensive set of Fact Sheets available that cover everything from cellphone privacy to data marketers and even debt collection. Check it out!
I’m excited to share this great privacy resource with you today. If you give it a try, comment and let us know how this tool works for you.
May 30th, 2014
Jenna here. This week was chalk-full of interesting and informative reads. We rounded up three of our favorite articles to share with you. We have information about the battle with Google to make old search results more private, a look at the preparedness of companies to fight the increasing number of hacking incidents, and a new (and scary) way hackers are accessing iPhones and iPads.
‘Right To Be Forgotten’: Google Releases A Form That Is Not About Forgetting At All, Forbes
Companies Unprepared as Hacking Increases, U.S. News and World Report
Hackers Use ‘Find My iPhone’ App to Lock, Hold Devices for Ranson, ABC News
May 29th, 2014
Ben here, AllClear ID Investigator. A new bill passed in Texas that will give parents and guardians the ability to better protect their children from ID theft. Texas Sentate Bill 60 will allow a parent or guardian to place a security freeze on the consumer file or other record created or maintained by a consumer reporting agency. This will make it more difficult for minors to become victims of fraud or identity theft.
Typically credit is the last thing on the mind of a parent when raising a child. It is not until 16-18 years of age that a child would typically start being connected with credit via authorized user accounts or student loans. With no established credit file before that point, minors are often victims of ID theft as thieves use their SSNs to establish a false credit file without anyone knowing it. In some cases, identity thieves have even been able to use a SSN before it has been issued out.
In a statement, Texas Senator Jane Nelson said “ A staggering number of Texas children have fallen victim to illegal child identity theft, putting them at risk for credit problems before they ever reach adulthood.” Prior to the passing of this bill, a parent was very limited at the tools necessary to help fight or detect identity theft. While child identity theft will never be eliminated completely, this bill certainly is a step in the right direction as it is designed to make it more difficult for children to become the victims of identity theft or credit card abuse.
May 28th, 2014
Jenna here. Over its 10-year history, Facebook has frequently made headlines for complicated and often controversial privacy policies. The tide may be changing for Facebook as CEO Mark Zuckerberg announced that the company will be givi9ng a privacy checkup to all of its 1,28 billion users. The checkup is an attempt to explain to users how their personal information has been shared. In addition, Facebook is changing their default settings for new users to make their profiles visible only to Friends, not the general public.
This announcement comes at a time when Facebook is continuing to push privacy boundaries. They unveiled a new optional feature for mobile phones that is able to listen to surroundings to pick up on music or TV shows and share them with friends on the social networking site.
Despite this, the privacy checkup feature may indicate that Facebook is moving toward increased privacy protection for consumers. Time will tell if this change marks a permanent shift in Facebook’s position on consumer privacy.
May 26th, 2014
Jackie here. We are all at risk for identity theft, but some may be at a higher risk than others. Recent data indicates that medical professionals, including doctors and nurses, are falling victim to tax identity theft at alarming rates—thousands are potentially affected across the U.S. this year alone.
The connection between the doctors, dentists, and other healthcare workers is yet unknown, but some guess that the personal information of medical personnel has been compromised in some way. In Connecticut alone almost 100 doctors have reported tax fraud. In Michigan, more than 300 dentists are reportedly victims of tax identity theft.
The IRS and other agencies are looking into the problem to find out the link for the increased risk of medical professionals and tax ID theft. While the problem is concerning, it is important to remember that identity theft is a pervasive problem that can strike anyone, doctor or not.
We must remember to remain vigilant about identity theft, whatever our professions. Medical professionals might be experiencing a dramatic uptick in identity theft this year, but that could easily change to electricians, accountants, engineers, or some other group of workers in the coming years. Stay on the lookout for ID theft at all times and keep yourself and your family safe.
For more information about the tax ID theft trend amongst doctors, check out this article.
May 23rd, 2014
Jenna here. Our favorite articles from the week have arrived. We have an informative piece about an eBay hacking incident, a look at how Facebook is changing privacy settings, and a new Facebook program that seems at odds with the company’s recent stance on privacy.
EBay Asks 145 Million Users to Change Passwords After Cyber Attack, Reuters
Facebook Changes Privacy Settings for Newbies, USA Today
Facebook Wants To Listen In On What You’re Doing, Forbes
May 21st, 2014
Jackie here. An important part of protecting yourself from identity theft is keeping tabs on your credit. Good credit or bad, we can all look for signs of ID theft (accounts you didn’t open, discrepancies in employment history, incorrect balances, etc.) on our credit reports. While you’re at it, look for ways to improve your credit score as well. Increasing your credit score can make it easier to qualify for loans and credit.
Do you want to increase your credit, but don’t know where to start? Here are some tips for boosting your credit score from the Better Business Bureau.
Know How a Credit Score is Calculated
Your credit score is determined using your history in a variety of different categories. Understanding each category and how it contributes to your overall score will help you decide where to focus your credit improvement efforts. Here’s a breakdown of the categories used and the weight each carries:
- Payment History (35%)- Do you pay your bills on time? One of the easiest ways to improve your credit is to make all of your required payments on time.
- Amount Owed (30%)- Are all of your credit cards maxed out? This category looks at the amount of credit you have available compared with the amount you owe. Paying down balances can help your improve your debt to credit ratio.
- Length of Credit History (15%)- This is a category only time can change. The longer your credit history, the higher your credit score.
- Types of Credit (10%)- This category looks at the mix of credit options you use. Having a good balance of credit cards, installment loans (like a car payment), and other accounts (like a mortgage) will boost your score.
- New Credit (10%)- Lenders view someone that has recently opened several new credit accounts to be a higher lending risk. The Better Business Bureau indicates that the impact of this category is especially strong in those without a long, established credit history.
Check Your Report
Understanding what is on your credit reports will help you to clean up errors, spot ID theft early on, and improve your credit. You can request a free report each year from AnnualCreditReport.com. Get your report every year and always check it closely. Learn what to do if you find errors by reading this article on our blog.
Pay on Time
You can’t change the past (you can clean up any errors or identity theft in your report), but you can make a commitment to improve your payment habits if your credit score isn’t as high as you would like. Setting up automatic payments or calendar reminders for your bills can help you to make every payment on time which will build your score.