Jill Russo Foster

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Ghosting the deceased: Identity Theft Prevention

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…. grief-angel

Even after a loved one dies, they’re still not safe from identity theft or more specifically “ghosting.”

It’s reported that $2.5 million deceased Americans become victims of fraud – anything from new credit cards and loan applications to new utilities and cell phone accounts.  Just when the family is dealing with their loss, before they’ve even touched the probate issue, they now have to take additional steps to protect their loved ones.

How does it happen?

We give our loved one’s identity to the world on a silver platter.  For starters, most of the important identifying information can be found in the obituary.

  • Full birth name and married name
  • Mother’s maiden name
  • Home town
  • Date of birth
  • Nearest relatives and their relationships to the deceased
  • Last place of employment

It’s been reported that thieves take this information and purchase the deceased’s social security number for $10 from the Social Security Office’s Death Master File. With that, they have everything needed to set up new accounts, all while the family is still grieving.

You might be thinking, “Why do I care? It can’t come back on us because the person is dead.”  Well, by using your loved one’s information, they can take yours as well. Remember, your name is in the paper too, listing how you’re related to everyone in your family, your probable home town, and your approximate age. At the very least, it will cause the surviving family members stress when new bills arrive at the house along with collection calls.

What can you do about it?

  • Limit the information listed in the obituary column – in this case less is more
  • Send copies of death certificates to all three credit reporting agencies, as well as to the banks, investment firms and credit card companies used by the deceased. Ask them to place a “deceased alert” on all accounts – this is especially important if they’re going to stay open until probate is completed.
  • When closing accounts (including utilities, phone, cable, rental services, etc.), ask them to tag the account as “account closed – holder is deceased.” That way, the account will be flagged as  permanently closed. Closing an account may seem final enough, but it’s not. All paid services want you to continue service, so they won’t question a reopen request unless the word “deceased” is on the file.
  • Report the death to Social Security. If you let it go through normal processes, it can take months – in that time, an identity thief will have set up hundreds of accounts in your loved one’s name.
  • Cancel the deceased Driver’s License through your state’s Department of Motor Vehicles, so that duplicates will not be issued

Since deceased people don’t check their credit, I would recommend that you request a copy of their credit report from one of the three credit reporting agencies about a month after you’ve taken the above steps – just to double check their account status. Then check again a few months later.

Identity Theft is on the Rise

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It’s up to you to take precautions.

Take these steps to protect your identity:

  • Beware of solicitations asking for your personal information. They might call, email or text.  If you didn’t initiate the communication, don’t give out your information. If they claim to be from customer service, hang up and call the number found on your statement.
  • Review your bank and credit card statements and question any activity you are unsure of.
  • Be careful with your paperwork.  Take your receipts with you when you make a purchase or use an ATM.  When it’s safe to dispose of old receipts, statements, or other paperwork containing your personal information always shred them. Never just throw them away.
  • Review your credit reports a minimum of three times per year for incorrect information and dispute it.
  • Keep your home computers up to date with antivirus software.  Remember, it can get outdated quickly, so do your updates on a regular basis.
  • Change your internet passwords regularly.  Don’t use easy to guess passwords.
  • Make sure you pick up your incoming mail as soon as possible and never use your home mailbox for outgoing mail.  Always bring it to the post office or a mailbox.

None of these precautions will help you if someone has stolen your information from the database of a company you deal with.  But, if you are vigilant about your identity, you can catch any fraudulent activity early on.

Before you head out for your summer vacation…

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Take these precautions so you can enjoy a safe and worry-free trip.

Call your credit card companies to let them know where you will be.  Your credit card company will know it’s you making the charges and will let them go through.

Put a hold on postal mail, newspapers, and any other regular deliveries before you go. You don’t want mail piling up advertising a vacant house.

Clean out your wallet.  Remove all items that will not be necessary (that includes your checkbook).  Carry two credit cards, and if you are traveling with someone, have different credit cards in case one wallet is stolen.

If you need to use an ATM, use one at a bank (preferably in a lobby).  They are less likely to be tampered with.

Be careful when using hotel computers and Wi-Fi networks.   Do not access your financial accounts as identity theft can be right around the corner.

Beware of fake calls from the “front desk”.  If you receive a call from the hotel front desk telling you your credit card didn’t go through, it could be a scam.  Thank the caller, and then go to the front desk in person to straighten this out.  Never give your personal information over the phone to someone who calls you.

Taking a few precautions before, and during, your vacation may save you from financial troubles when you get back.

Clean out your wallet before you take a vacation

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Wallet lost on beachWhile you’re packing your suitcase, don’t forget to properly pack your wallet. You want to bring only those items necessary for your trip.

This is one of those little tasks many people forget before leaving home on a vacation, a long weekend, or any other trip.

For example, you might want to carry only one or two credit cards. If you’re traveling with a spouse, don’t carry the same credit cards.  If one of you loses his wallet and has to cancel the VISA card, you could still have your MasterCard or American Express.

What about the cards you leave at home? They should be locked up in a safe place (not left in a drawer). It’s impossible to keep your travels secret. The wrong people might know that your house will be empty for the next week.

But, back to your missing wallet. How did that happen? Did you forget it somewhere, or did you leave it unattended in the wrong place?

You may feel paranoid about leaving your wallet back at the hotel, but it’s much worse to keep your valuables in a beach bag while you’re in the water.  Most hotels have safes which allow you to lock up you valuables before you head to the beach.

What if you’re just at the beach for the day? Leaving your wallet in the car is not a great choice, either.  Parking lots near tourist destinations are popular targets. If you have to leave it in the car, keep it in a not-so-obvious place so it’s not easy to find in a smash-and-grab.

Taking a few simple steps to protect your wallet, and your identity, ahead of time can save your vacation, and hours of your valuable time. You don’t want to have to clean up an identity-theft mess after your vacation.

Don’t Pay a Service! You Can Easily Monitor Your Own Credit

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Credit Report Shock

Identity theft is one of the biggest fears plaguing consumers these days. It was interesting to catch a scene on a crime show recently where a waitress is caught hiding a portable credit card swiper under her apron, then using it to steal her customer’s credit card information. YES, this does happen in real life.

Identity theft isn’t the only thing that can hurt your credit. Banks make mistakes, family members make late-payments on jointly shared accounts, you might have a payment dispute with a fraudulent company. I could go on, but you get the idea. Life happens.

The only way to protect yourself is to consistently monitor your credit. Most people believe that you have to pay an outside company to have your credit monitored. I disagree! I do it myself.

Once you get in the habit of monitoring your credit, it gets easier and becomes an almost compulsive habit. You’ll feel that you have much more control over your life and finances.

How to Monitor Your Own Credit

1. Look over your credit report three times per year minimum. You can do this by visiting www.AnnualCreditReport.com and ordering one report every four months. It’s completely free.  If you subscribe to Quick Tips, you’ll get a reminder email with instructions in January, May and September.

2. Check your credit score at www.CreditKarma.com every month to see if there are any changes. This is also free. Monitoring changes in your score can alert you to hidden issues.

3. Monitor your bank accounts (checking, savings, etc.) to see if there are any unusual transactions.  Most banks have online access, so you can easily check any time you get online. My virtual bank accounts actually email me with every transaction, so that’s an added plus.

4. Monitor your credit card accounts. I get online and check each and every account to see what’s happening. I do this every week or so, just to be on the safe side. These days, people can even scan credit card information through your wallet or purse from a distance. It doesn’t hurt to be careful.

Yes, taking these steps can take up some time, but it’s well worth it. Even with my busy schedule, I am able to find the time to monitor my credit. I am comfortable checking my accounts and credit, and I don’t feel it’s necessary to pay for a monitoring service. You may not find that it’s worth your time, but remember, it’s absolutely free to give it a try.

Protecting your child’s credit

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If you have been a reader of this column, you know how important it to maintain good credit.  Unfortunately, it is not enough to monitor your own credit, you must protect your child’s credit as well.

Good credit is as important to your child’s financial future as GPA and SAT numbers are to career goals. Recently, I was asked by the parents of a newborn what they could do to keep their child’s credit /identity safe.

Unfortunately, the answer is not a thing. You probably don’t like that answer.  But it does make sense – let me explain.

To protect your personal credit / identity, I recommend that you place a credit freeze on your credit report so that no one (not even people you authorize) can view your credit without you unfreezing your credit.  You have to pay for the service, so you should only do it when you don’t think you will have a need to finance something in the immediate future.  Freezing and unfreezing can be costly to your wallet.

Well, you can’t freeze a newborn’s credit, or for that matter, a child’s credit.  If you think about it, your child has a social security number shortly after birth, but they do not have credit yet.  You cannot freeze credit if there is no credit to freeze.

To protect your child’s credit / identity, you will have to order their credit report at www.AnnualCreditReport.com periodically to make sure that no one has requested credit under your child name and social security number. Don’t wait until they are ready for their first loan or you may find out someone stole their identity years ago.

Put Your Identity on Ice with a Credit Freeze

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I am diligent about protecting my identity.  I monitor my accounts, pay bills from my account online, shred paperwork, opt-out of mailings, and so much more.  But even that may not be enough.

As a customer, I have been receiving notices that my personal information may have been compromised. I thought my identity was safe because I mostly purchase from, and use, well-known companies. But, they have not protected the databases they use to store everything they know about me.  You know the companies I am talking about – Epsilon and Sony to name a few. You’ve probably been getting these warning notices yourself via email and postal mail, and you’ve probably heard more than enough from the media.

What can you do to protect yourself? You can follow my list of things to do to protect you from identity theft.  If you need a refresher, visit www.jillrussofoster.com and look at past newsletter articles.

Put Your ID on Ice

If you are not planning on applying for new credit anytime soon, then the best advice is to put a credit freeze on each of your three credit reports. This will stop everyone (including you) from accessing your credit report for the purpose of obtaining new credit.  Yes, there is a fee for this service, but it can be well worth it.

What if you need to apply for a loan or a new credit card within the next month? I assume you have a specific need, like a new car, home, or school loans.  In that case, you should not use a credit freeze until your loan is complete.  When you apply for credit, the creditor should be able to access your credit without you unfreezing your credit because you will have to pay a fee for that. However, do use a credit freeze if you’re just planning on shopping early summer sales. The freeze will not only protect your identity, it will prevent you from opening unnecessary store credit accounts at the mall.

Credit freezes are  great and can prevent identity theft.  They can prevent identity theft even if someone steals your wallet right out of your hands.  But think before you leap, freezing and unfreezing your credit can be costly.

In case of emergency…

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I did a talk last week about financial organization. We all know that we need to keep our financial paperwork in order but sometimes we forget the basics.

The first step is to know what is in your wallet or purse. If I were to take your wallet away from you right now, could you tell me what’s in it? All of it? Most people can tell me most, but not each and every item.

Why is this so important? If you lost your wallet or purse, could you quickly call to cancel your credit cards and replace each and every item? Probably not! Did you know that the sooner you cancel your credit cards, the less liable you are for purchases made in your name?

Take an inventory of everything in your wallet or purse. Start with your credit cards. I suggest that you make a copy of the front of each card. Make sure to write the toll free customer number for each card on the copies you made (that number is found on the back of the card). You should also make copies or keep records of other items in your wallet that you will need to cancel or replace. That could include your driver’s license or any club cards you might have. Make copies of those as well, or create a list. Then keep these copies in a safe place where you can easily find it. I’ve spoken before of having two copies in case of a home disaster like a fire or flood. You might want to keep one copy in a locked home safe and one copy in a safe deposit box at your bank.

Keeping a record of what is in your wallet or purse is one step towards financial organization. Do it this week to be prepared in case of an emergency.

The Winning Prize Scam

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Right now, people are struggling with their finances.  Some are looking for easy solutions and that is where the scammers come in.

The  “winning prize” scam typically starts with a notice that you have won a sum of money.  This should be your first clue, since you probably haven’t entered any contests.  If you follow the instructions, you will eventually receive a check in the mail for a few thousand dollars.  You are instructed to deposit that check into your bank account and wire a “prize fee”  to the sender.  For example, if you get a $3,000 check, you may be asked to wire $2,500.  Do you think you’ve won a $500 prize?  Think again!

After you send your money, you will discover that the check they sent you is no good.  Not only are you out the money you paid them, but you are liable for all the bank fees associated with depositing a bad check.

I can’t tell you this strongly enough – when you win something, you will NEVER have to pay fees.  You should never be asked to give up any money in advance or ever.  A legitimate win will be subject to taxes – but those would be paid with your tax returns.  If you are contacted, be cautious and never give any money in advance to receive a prize.

Do-It-Yourself Identity Theft Protection

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Have you received a letter from your bank or credit card company lately telling you that your personal information may be compromised?  We’ve been getting these letters on a regular basis at my house. If you read further, you’ll see that these companies are trying to sell you identity theft protection for a monthly fee.  It’s a good idea to guard against identity theft, but buying protection is not the most cost effective plan for your personal finances.

You can monitor your own credit and stop identity theft for minimal money. Simply put a credit freeze on the credit reports offered by the three major credit reporting agencies.  A credit freeze prevents anyone from accessing your credit report (including you). If someone is trying to open a new credit account in your name, potential creditors will not be able to access your credit report. Creditors don’t give out new credit without it, so the thief will be stopped in his tracks.

How do you freeze your credit report? Contact all three credit reporting companies and pay a small fee to  freeze your credit report.  No one, including you, will be able to access your credit.  That means if you want to finance a car, you will be denied since the potential creditor cannot access your credit.  Don’t worry – you can unfreeze your credit for a fee when you need to.

Bottom line: The cost to freeze and release the freeze is substantially cheaper to you than the $10 plus dollars a month for credit monitoring.  Credit freezes can stop new accounts from being opened by thieves even when they have your personal information. The only effort required on your part will be planning for your  upcoming credit needs so you can freeze and unfreeze your credit accordingly. How often do you need to open a new credit account? Most of us do it very rarely, so it’s easy to plan ahead.