Posts Tagged: Identity Theft Resource Center


20
Jan 16

The Lowdown on Freezing Your Kid’s Credit

A story in a national news source earlier this month about freezing your child’s credit file to preempt ID thieves prompted many readers to erroneously conclude that all states allow this as of 2016. The truth is that some states let parents create a file for their child and then freeze it, while many states have no laws on the matter. Here’s a short primer on the current situation, with the availability of credit freezes (a.k.a “security freeze”) for minors by state and by credit bureau.

The lighter-colored states have some type of law permitting parents and/or guardians to place a freeze or flag on a dependent's credit file.

The lighter-colored states have laws permitting parents and/or guardians to place a freeze or flag on a dependent’s credit file.

A child’s Social Security number can be used by identity thieves to apply for government benefits, open bank and credit card accounts, apply for a loan or utility service, or rent a place to live. Why would ID thieves wish to assume a child’s identity? Because that child is (likely) a clean slate, which translates to plenty of available credit down the road. In addition, minors generally aren’t in the habit of checking their credit reports or even the existence of one, and most parents don’t find out about the crime until the child approaches the age of 18 (or well after).

A 2012 report on child identity theft from the Carnegie Mellon University CyLab delves into the problem of identity thieves targeting children for unused Social Security numbers. The study looked at identity theft protection scans done on some 40,000 children, and found that roughly 10 percent of them were victims of ID theft.

The Protect Children from Identity Theft Act, introduced in the House of Representatives in March 2015, would give parents and guardians the ability to create a protected, frozen credit file for their children. However, GovTrack currently gives the bill a two percent chance of passage in this Congress.

So for now, there is no federal law for minors regarding credit freezes. This has left it up to the states to establish their own policies.

Credit bureau Equifax offers a free service that will allow parents to create a credit report for a minor and freeze it regardless of the state requirement. The minor also does not have to be a victim of identity theft. Equifax has more information on this offering here.

Experian told me that company policy is not to create a file for a minor upon request unless mandated by state law. “However, if a file exists for the minor we will provide a copy free to the parent or legal guardian and will freeze it,” said Experian spokesperson Susan Henson.

Henson added that depending on state law, there may be a fee ranging from $3 to $10 associated with the minor’s freeze. However, if the minor is a victim of identity theft and the applicant submits a copy of a valid police or incident report or complaint with a law enforcement agency or the Department of Motor Vehicles (DMV), the fee will be waived.

Trans Union has a form on its site that lets parents and guardians check for the presence of a credit file on their dependents. But it also only allows freezes in states that reserve that right for minors and their parents or guardians, and applicable fees may apply.

Innovis, often referred to as the fourth major consumer credit bureau, allows parents or guardians to place a freeze on their dependent’s file regardless of state laws. Continue reading →


19
Mar 14

Are Credit Monitoring Services Worth It?

In the wake of one data breach after another, millions of Americans each year are offered credit monitoring services that promise to shield them from identity thieves. Although these services can help true victims step out from beneath the shadow of ID theft, the sad truth is that most services offer little in the way of real preventative protection against the fastest-growing crime in America.

Experian 'protection' offered for Target victims.

Experian ‘protection’ offered for Target victims.

Having purchased credit monitoring/protection services for the past 24 months — and having been the target of multiple identity theft attempts — I feel somewhat qualified to share my experience with readers. The biggest takeaway for me has been that although these services may alert you when someone opens or attempts to open a new line of credit in your name, most will do little — if anything — to block that activity. My take: If you’re being offered free monitoring, it probably can’t hurt to sign up, but you shouldn’t expect the service to stop identity thieves from ruining your credit.

Avivah Litan, a fraud analyst at Gartner Inc., said offering credit monitoring has become the de facto public response for companies that experience a data breach, whether or not that breach resulted in the loss of personal information that could lead to actual identity theft (as opposed to mere credit card fraud).

“These are basically PR vehicles for most of the breached companies who offer credit report monitoring to potentially compromised consumers,” Litan said. “Breached companies such as Target like to offer it as a good PR move even though it does absolutely nothing to compensate for the fact that a criminal stole credit card mag stripe account data. My advice for consumers has been – sure get it for free from one of the companies where your data has been compromised (and surely these days there is at least one).  But don’t expect it to help much – by the time you get the alert, it’s too late, the damage has been done.  It just shortens the time to detection so you may have a slightly improved chance of cleaning up the damage faster.  And you can get your credit reports three times a year from the government website for free which is almost just as good so why pay for it ever?”

FRAUD ALERT BREAKDOWN

Normally, I place fraud alerts on my credit file every 90 days, as allowed by law. This step is supposed to require potential creditors to contact you and obtain your permission before opening new lines of credit in your name. You merely need to file a fraud alert (also called a “security alert”) with one of the credit bureaus (Equifax, Experian or Trans Union). Whichever one you file with is required by law to alert the other two bureaus as well.

Most consumers don’t know this (few consumers know the names of the three main credit bureaus), but there is actually a fourth credit bureau that you should alert: Innovis. This bureau follows the same rules as the big three, and you may file a fraud alert with them at this link.

Fraud alerts last 90 days, and you can renew them as often as you like (a recurring calendar entry can help with this task); consumers who can demonstrate that they are victims or are likely to be victims of identity theft can apply for a long-term fraud alert that lasts up to 7 years (a police report and other documentation may be required).

Continue reading →


13
May 10

Stolen Laptop Exposes Personal Data on 207,000 Army Reservists

A laptop stolen from a government contractor last month contained names, addresses and Social Security numbers of more than 207,000 U.S. Army reservists, Krebsonsecurity.com has learned.

The U.S. Army Reserve Command began alerting affected reservists on May 7 via e-mail. Col. Jonathan Dahms, chief public affairs for the Army Reserve, said the personal data was contained on a CD-Rom in a laptop that was stolen from the Morrow, Ga. offices of Serco Inc., a government contractor based in Reston, Va.

The laptop was one of three stolen from the Serco offices, but it was the only one that contained sensitive personal information, Dahms said.

Serco held the data on reservists as part of its contract with the U.S. Army’s Family and Morale, Welfare and Recreation division. As a result, Dahms said, some of the data on the missing laptop may belong to dependents and spouses of U.S. Army reservists.

Continue reading →