The Biggest Identity Theft Scam...?

Bob - I protect my assets using a three tier defense system.

First is my external asset - a great credit score. To defend my credit, I have frozen my credit record at Experian, Equifax and TransUnion. Doing so thwarts identity thieves who attempt to establish new credit lines in my name(ie - identity thieves). I have also frozen my wife's credit, at the same 3 agencies, for the same reason. The cost is negligible, the freeze is easily removed when applying for a new card, and IT security professionals at the respective agencies are guarding our credit from identity thieves.

Secondly, is to defend my existing credit line which encompasses credit cards in my wallet, existing bank accounts & current brokerage accounts. These can only be protected by routinely monitoring them for inconsistencies as you have said. It can be a daunting task unless you use software.

I monitor my credit cards, bank and brokerage history using Quicken. This software effortlessly downloads individual transactions & populates my respective registers. A quick glance at each register tells me I'm OK. The additional benefit is that I see what the size of my upcoming credit card bill will be. I can then budget accordingly. It all seems to work as I have an 812 FICO score.

Thirdly, I protect my credit by keeping bad guys out of my computer where data & passwords reside. These are the "keys to the kingdom". Bad guys can go anywhere with "the keys". Keeping my PC up-to-date with patches, regular malware/virus scans, locking down my router, doing encrypted backups comprise a personal security regimen which protects my credit.

So far, so good, no breeches. I remain vigilant because it is the wild west out there.

Remember "The Net" starring Sandra Bullock? The first time I saw a Lifelock commercial that's what I thought of.

Your timing on this article is amazing. I received a notice in the mail yesterday from "Medical Informatics Engineering" telling me there'd been a data breach in which my SSN, birthdate, etc. had been exposed. By way of apology, they were offering a free membership in Experian's "ProtectMyID Elite" services.

So is this just a scare tactic being used to promote Experian's service? Since the amount of verbiage spent on the ID protection service is far greater than that describing the alleged breach, I suspect so!

Years ago when I studied the installation of alarm systems and locks, the program also included info on ID theft protection. The conclusion was that no security or lock system and no ID is 100% theft proof. It also added that locks and security systems, although a deterrent to criminals, are a false sense of security for consumers/businesses. As a multi-millionaire businessman told me one time: "Good advertising can sell just about anything."

To get your free credit report from one of the 3 reporting agencies, look at the date when you last requested one from Experian, Equifax, or Transunion. A full year (12 months) has to pass before you can get another free report from that particular reporting agency. I requested a report from Experian yesterday only to be told I'd already received it. A year has not yet passed so I have to wait until next month to get a new one from Experian. Twelve months, folks.

Excellent and very thorough article, thanks for producing.

I have always been skeptical about how LifeLock works. This is really great information. Thank you!.

Bob, thanks for this important information. I am positive we would never get this truthful info from certain other Internet computer columnists, one, of which, has Lifelock as a oft-promoted sponsor.

I worked in the credit card industry & frauds for years. When I listen to these Life Lock ads on TV, they make me laugh. I've had my credit card number stolen a number of times in excess of $35,000. The first time it happened, my husband freaked. I told him, don't worry, I'll take care of it. One time we were staying in a hotel and this woman stole our number and went on a spending spree. I tracked her down and filed a police report. Most people do worry, because they don't know what to do. Putting a block on your credit is a great idea.

Fun reading ! Yes, I believe no one is safe (not paranoid, just realistic). My wife is ex-Fed employee, and we received notice that all Fed e-pay has been hacked and we are at risk for identity theft--but wait, they are providing "free" monitoring of our data for 18 months. I feel soooo secure and reassured!!

Thanks Bob; How long before we see the "mark of the beast", that will solve this ever growing problem?
:)

Here is a resource to help educate you about Identity Theft, learn from the best, and the #1 Risk Management Company in the WORLD - KROLL. www.kroll.com/ls

Here is why:

Kroll is the leading global provider of risk solutions. For more than 40 years, Kroll has helped clients make confident risk management decisions about people, assets, operations, and security through a wide range of investigations, cyber security, due diligence and compliance, physical and operational security, and data and information management services. Headquartered in New York with more than 50 offices across nearly 30 countries, Kroll has a multidisciplinary team of over 2,000 employees and serves a global clientele of law firms, financial institutions, corporations, non-profit institutions, government agencies, and individuals.

Still want to learn more:
www.gingermcnamara.legalshieldassociate.com

Some States FREE for SENIORS to FREEZE SSN (& otherwise, minimal) temporary or long-term easily lifted with pin for merchant or a global lift.

As Bob says, always risky giving personal info, but if you already use free online Credit Karma or our paid AAA-sponsored ID Protect at Experian, timely emails are sent re monthly activity on SSN/Credit Bureau/ID, & our paid service likely won't renew after Bob's article has been our user-friendly starting place/central liaison with the 3 bureaus/learning curve after pc hijacked by trojan despite good security & housekeeping, thankfully Vanguard fund prevented attempted hack, and yes our Citizens Bank attempts good security too.

Great information, Bob.
I had considered Lifelock at one time, and e mailed to them a specific question about coverage. What I got back was their legal agreement with pages and pages of mice type. If they couldn't (or wouldn't) directly answer a simple direct question, I dismissed them. The $1,000,000 promise is deceptive, as you stated.

Great article and just in time for me since I was involved in the OPM data breach. They are offering free credit reporting through CSID which is a company I never heard of. In fact, CSID was hired by OPM to notify affected federal employees of the breach. I have elected not to use the free services from CSID but I'm wondering how safe my information is that was given to them by OPM. It sounds like a lot of these ID Theft protections services don't protect the sensitive information they have on customers and prospective customers who were involved in a data breach from theft from ID thieves. I Know that CSID has at least my name and social security number and possibly other data and I don't want to have my information stolen again.

Identity theft is a frightening and confusing prospect for most people. But never, never, NEVER pay for identity theft protection! There’s a proactive, do-it-yourself identity protection solution, and it's available to anybody for free. This inexpensive guide tells you how to do it: http://IdentityProtectionForFree.com

EDITOR'S NOTE: I'd take that one step further. Never, never, NEVER pay for a book on identity theft protection! My article "10 TIPS: Identify Theft Protection" is free and tells you how to do it yourself.

See http://askbobrankin.com/10_tips_identity_theft_protection.html

Bob: I think your Editor's Note is a pretty funny response to my previous comment. Touche! But what I'm offering to consumers at IdentityProtectionForFree.com has been appealing enough to result in hundreds of sales of my guide so far (about two months into its launch).
There's a whole lot of confusion in our country about what identity theft is and what can and should be done about it. You and I know that LifeLock et al are largely scams (since these services lost the ability to place fraud alerts on behalf of customers beginning in 2009). It's really pretty flabbergasting to me that these services have survived and even thrived for so long, particularly with the most recent FTC comeuppance that LifeLock is dealing with. Sadly, it seems that a great portion of our country's population is simpleminded and easily led by media personalities like Rush Limbaugh, Kim Komando and other well-compensated LifeLock shills. I believe that the guide that I'm selling is a great value, and I've gotten a lot of positive feedback from customers about it. I also think that your "10 Tips" is a meaningful piece. But it really just skims the surface, with statements like: "Consider placing Fraud Alerts with the major credit bureaus, so new accounts cannot be opened without your knowledge. Call Equifax (800-525-6285), and they will pass along the request to both Experian and Trans Union..." I believe that most of the aforementioned simpleminded populace wants and needs a bit more detail than that! At any rate, it's been a pleasure making your "acquaintance" via this comment thread.

We just bought you a cup of coffee, Bob. [http://buybobasnickers.com/]. I'm glad I found your site yesterday. It's been a valuable resource to me already, and I'm sure I'll get a lot of value out of it in the future.
Best regards,
-Chris & Martha
Mystic, Connecticut
(As you may have surmised, "Robert Knox" is my nom de plume when commenting online...in honor of my first guitar teacher.)

Bob, It seems to me that the simplist, most important, least expensive step anyone can take, as I have, is to contact each of the 3 major credit bureaus (by phone or internet) and "lock" your file. This can cost about $5.00 each. It means no one can check your credit (or successfully apply for credit impersonating you). The disadvantage is that if you want to apply for new credit, or a mortgage, other loan type, etc., you are burdened with going through a temporary unlock procedure with each of the 3 bureaus. But I think this is worth the protection this affords.
In addition, I am paying IdentityGuard.Com about $12 a month for monitoring. They do not claim to prevent identity theft. I like their alerts system. They notify me of any postings to my file at any of the 3 majors. They give me access to my file at all 3 at any time. And they give me my current credit rating by all three, at all times. This service may cost more for new users. I've been with them a few years.

What do you think about both of these tips?

Regards,
Martin

Experience was busted for a scam like this in New York. They would go in and mess with your credit score, then transfer you to another Experian group that would charge you to help restore your credit score.......that they f@*ked up. Stay away from these scammers.