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Precaution best way to lower ID theft risk

The scam on data collector ChoicePoint has put 145,000 people, including 10,216 Floridians, in financial peril.

By HELEN HUNTLEY
Published February 26, 2005

As financial crimes go, it's one of the most chilling: A stranger steals your identity, goes on a spending spree and leaves you to clean up the mess, which may complicate your life for years. Your good name and your good credit are on the line.

ChoicePoint Inc., a data collection service that publishes the "CLUE" reports used by insurance companies, says thieves have stolen the personal information of 145,000 people from its files, including 10,216 Floridians. The thieves posed as legitimate customers. ChoicePoint serves not only insurance companies, but landlords, employers, investigators and reporters, including those at the St. Petersburg Times.

ChoicePoint collects the kind of data - names, addresses, Social Security numbers and birth dates - that thieves use to open credit card accounts and to order services such as cell phones. Identity thieves typically run up big bills in a short time, often delaying detection by having bills sent to an address other than the victim's. Debt collectors may come after the victims, but even if they don't, the victims end up with black marks on their credit that can only be corrected with hard work and perseverance.

ChoicePoint is notifying its victims, so if you don't hear from them by the end of next week, you probably weren't one of them. But that doesn't mean you can relax, because identity theft is one of the fastest-growing crimes.

"It won't be long before we all know somebody who has been a victim," said Craig Watts, spokesman for Fair Isaac Corp., which compiles credit scores based on credit bureau reports. Your score is a primary factor in determining whether you'll get credit and what kind of interest rate you'll pay. If you apply for a mortgage or car loan or just want to get a credit card, your credit score makes a big difference.

In addition, credit scores increasingly are being used for more. Some landlords and employers use credit scores to screen tenants and prospective employees and some insurance companies rely on them in setting rates.

All of us should periodically check our credit reports with at least one of the three major credit bureaus just to make sure there are no mistakes. Even honest mistakes can hurt your credit score and should be contested.

The toll-free numbers are: Equifax: 1-800-685-1111 (www.equifax.com) Experian/Credit Data Services: 1-800-749-7576 (www.experian.com) and TransUnion: 1-800-888-4213 (www.transunion.com)

A new law entitles consumers to a free credit report from each credit bureau once a year; Floridians will become eligible June 1 (www.annualcreditreport.com) Until then, you'll have to pay for reports unless you've been denied credit or you are a victim of identity theft.

When you get a credit report, examine it for errors and ask that they be corrected. A report also is the first place fraud will show up. Look for accounts that you didn't open, a change of address that you didn't authorize or a variation on your name that you never use.

"The earlier you can spot that kind of thing happening, the easier it is to resolve it and minimize the damages," Watts said.

If someone has stolen your personal information, call one of the credit bureaus to report the problem, order a copy of your credit report and ask for a "fraud alert" to be placed on your record. A call to one alerts them all; the Equifax fraud line is toll-free 1-800-525-6285.

An initial fraud alert will last for 90 days. Keep in mind that it will make it more difficult for you to get credit since a business must verify your identity before issuing credit.

If you suspect a problem, it may be worthwhile to sign up for a credit-monitoring service, which typically costs $40 to $60 a year. ChoicePoint is providing those affected by its theft with a year of free service.

If you have become a victim, the Federal Trade Commission recommends these steps:

File a detailed police report with your local law enforcement agency and make multiple copies you can send out to creditors on request. If police are reluctant to take a report, be persistent and show documentation of the fraud.

Start a file, keeping records of every contact you make. Follow up phone calls in writing. Keep copies of related documents and correspondence and use certified mail, return receipt requested.

Close fraudulent accounts. Ask the credit bureau for names, phone numbers and addresses if you don't have them.

Fill out fraud affidavits for creditors. You can find an affidavit at www.consumer.gov/idtheft/ Send creditors copies of supporting documents.

Contact the Federal Trade Commission at 1-877-438-4338 toll-free.

Contact one of the credit bureaus to place an "extended alert" on your credit report, which can stay on your report for seven years unless you cancel it. Keep the information on your alert current.

Continue checking your credit reports periodically. Ask each credit bureau to remove information related to fraudulent accounts and inquiries generated by fraud.

Helen Huntley can be reached at 727 893-8230 or huntley@sptimes.com

[Last modified February 26, 2005, 01:14:15]