Identity Theft: Credit Monitoring and Freezes (With Links to Credit Agencies)

While you can never definitively protect yourself from identity theft, there are steps you can take that make it harder for criminals to access and use your sensitive information. One such step is placing credit freeze requests with all three credit bureaus.

Credit Freeze vs. Monitoring

Credit monitoring involves scrutinizing your credit report for changes. These changes could include legitimate and/or fraudulent credit inquiries, new credit accounts, a new reported address or an account that has been turned over to collections.

There are credit monitoring services that will automatically notify you of changes to your report for a fee, or you can monitor your credit for free by requesting and reviewing your reports regularly. However, the disadvantage is that both these approaches are purely reactive. Monitoring only notifies you that you have already fallen victim to identity theft.

Preventive measures, such as a credit freeze, provide much better protection. Also known as a security freeze, this measure blocks access to your credit report and other information, thereby preventing new account fraud, which occurs when someone applies for new credit using your identity.

When someone submits a tenant application or credit application (for a loan or credit card), the creditor will request a copy of the applicant's credit report. If the credit report is blocked, then the creditor is unable to review it and will typically deny the application. Therefore, a credit freeze is a method of stopping fraudulent activity before it occurs.

Who Should Freeze Their Credit?

Data breaches are increasingly common and the likelihood that a person’s credit report and other sensitive information have already been exposed is high. Regardless, it is best be proactive about preventing identity theft, especially if you rarely need to grant a new creditor access to your credit activity and history. I strongly recommend that all consumers consider placing security freezes on their credit since recovering from identity theft can be a long and difficult process, and though there may be little expense resulting from a breach, whatever expense there is is almost certainly greater than the time expense necessary to implement a freeze.

When it comes to seniors and their family caregivers, extra protection is crucial. Seniors may suffer periodic long or short term incapacity or illness, during which they are unable to monitor their own credit report.  Seniors may be more distracted by grief and loss and are more susceptible to periodic or sustained cognitive impairment. Caregivers, too, deserve attention.  A busy family caregiver may not have the time or energy to monitor their own credit report, let alone their loved one’s credit activity. A credit freeze provides invaluable peace of mind.

A certain group of vulnerable consumers, regardless of age,  which includes incapacitated individuals and those who have been appointed a guardian, should absolutely be protected by a credit freeze. Since these consumers are unable to monitor their own credit or protect themselves from fraud, caregivers with durable financial power of attorney (POA) or court-appointed guardianship can request security freezes for their on their behalf.

How to Freeze Your Credit

The three nationwide credit reporting companies are Experian, Equifax and TransUnion. You must contact each of these bureaus to request separate freezes. Freezing security freeze with one of them is not sufficient, since creditors do not report to all three.

Each credit bureau permits consumers to request a security freeze online, by phone or by mail. You may also temporarily lift a freeze (aka “thaw” your credit) and permanently remove a freeze via these methods using the account and/or personal identification number (PIN) you have established with each bureau. To help you get started, the webpages and contact information for the three bureaus are listed below.

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Experian Credit Freeze

1-888-EXPERIAN (1-888-397-3742)

Experian Security Freeze

 P.O. Box 9554 Allen, TX 75013

 Experian Credit Freeze Application

You can find a complete list of information/documentation that must be submitted with your written request at Experian.com.

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Equifax Credit Freeze

1-888-EQUIFAX (1-888-378-4329)

1-800-349-9960 (automated line)

Equifax Information Services LLC

P.O. Box 105788

Atlanta, GA 30348-5788

Equifax Credit Freeze Application

When submitting a request by mail, you’ll need to fill out an Equifax Security Freeze Request Form and include copies of proof of identity and proof of address documentation.

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TransUnion Credit Freeze

1-888-909-8872

TransUnion

P.O. Box 160

Woodlyn, PA 19094

Transunion Credit Freeze Application

Written requests should include your name, address and Social Security number as well as a six-digit PIN to associate with your TransUnion freeze.

FTC Report to Congress Details Fraud Reports from Older Consumers

The Federal Trade Commission (FTC) recently sent a report to Congress, Protecting Older Consumers 2018-2019: A Report of the Federal Trade Commission. The FTC "conducts research and analysis, publishes information about patterns and trends, and engages in coordinated efforts to protect older adults from financial loss and assist them with other consumer issues such as identity theft protection." The agency identifies "patterns and trends" and "works closely with stakeholders to learn about the top issues concerning older adults. According to the report, nearly 3.1 million consumers reported some form of financial scheme, 1.5 million reporting fraud, 444,383 reporting identity theft, and all others totaling 1.2 million. Consumers reported losing nearly $1.6 billion to fraud. About 45 percent of fraud reports filed in 2018 included consumer age information. Consumers who said they were 60 and older (older adults) filed 256,404 fraud reports with reported losses of nearly $400 million. 

Key findings from the 2018 data include:

• In 2018, older adults were still the least likely of any age group to report losing money to fraud, but their individual median dollar losses remained higher than for younger adults;
• Compared to 2017 numbers, reported median individual losses among consumers 60 and over increased, and the increase was particularly large for people 80 and over;
• Older adults were much more likely than younger consumers to report losing money on tech support scams, prize, sweepstakes and lottery scams, and family/friend impersonation;
• Phone scams were the most lucrative against older consumers in terms of aggregate losses, and online scams were a distant second;
• Gift cards became the payment of choice for scammers, but wire transfers persisted in the top spot for total dollars paid. 

There was good news in the report; the overwhelming majority of  fraud reports filed in 2018 by consumers 60 or older did not indicate any monetary loss.  Older adults filed "no-loss" reports about fraud they had spotted or encountered at nearly twice the rate of consumers ages 20-59.  Moreover, it remained true through 2018 that older adults were less likely than younger consumers (ages 20-59) to report losing any money to fraud.  This suggests that older adults may be more likely to avoid losing money when exposed to fraud, more inclined to report fraud when no loss has occurred, or a combination of these or other factors. The FTC fraud survey  found that the rates of victimization for the various categories of frauds included in the survey were generally lower for those 65 and older than for younger consumers. 

On the more bleak side of the data, older consumers who did report losing money, reported much higher individual losses. In addition, the median individual losses reported by older consumers rose significantly in 2018. In 2018, median reported losses were fairly stable for younger adults as compared to 2017, but increased for older adults. Consumers ages 80 and older reported the largest median losses of $1,700 as well as the largest increase as compared to 2017. The median dollar loss for this 80 and over age group was more than four times the median loss amount reported by consumers in their 20s and 30s and more than two to three times that of other age groups. This striking growth for people 80 and older was driven in large part by increases in reported median dollar losses on prize, sweepstakes and lottery scams, and family and friend imposter scams (often called the “grandparent scam”). For people ages 60-79, a surge in reports of losses to imposters posing as the Social Security Administration during the second half of 2018 contributed to the upward trend in median losses.

As the nation’s primary consumer protection agency, the FTC has a broad mandate to protect consumers from unfair, deceptive, or fraudulent practices in the marketplace.  It does this by, among other things, filing law enforcement actions to stop unlawful practices and, when possible, returning money to consumers. The FTC also protects the public through education and outreach on consumer protection issues. Through research and collaboration with federal, state, international, and private sector partners, the FTC strategically targets its efforts to achieve the maximum benefits for consumers, including older adults. Protecting older consumers in the marketplace is one of the FTC’s top priorities. Unfortunately, in numerous FTC cases, older  adults have been targeted or disproportionately affected by fraud. For example, the FTC has brought numerous enforcement actions in federal court to stop deceptive technical support schemes that affected older consumers. As the population of older adults grows,the FTC’s aggressive efforts to bring law enforcement action against scams that affect them, as well as provide useful consumer advice, become increasingly important.

The FTC submits an annual report to the Committees on the Judiciary of the United States Senate and the United States House of Representatives to fulfill the reporting requirements of Section 101(c)(2) of the Elder Abuse Prevention and Prosecution Act of 2017. The law requires the FTC Chairman to file a report listing the FTC’s enforcement actions “over the preceding year in each case in which not less than one victim was an elder or that involved a financial scheme or scam that was either targeted directly toward or largely affected elders.” Given the large number of consumers affected in FTC actions, this list includes every administrative and federal district court action filed in the one-year period. Appendix A to this report lists all of the FTC’s enforcement actions over the preceding year. In addition to the list, the FTC files this report to provide detail on the agency’s efforts to protect older consumers, including its research and strategic initiatives, its law enforcement actions that noted an impact on older adults, and its targeted consumer education and outreach.

Beware Social Security Scam

The Social Security Administration posted  a warning on its blog about a scam involving phishing.  According to the post, the scam begins with an email misrepresenting itself as a government-sponsored program "protecting" consumers from identity theft and financial fraud. 

According to the blog:

The subject line says 'Get Protected,' and the email talks about new features from the Social Security Administration (SSA) that can help taxpayers monitor their credit reports, and know about unauthorized use of their Social Security number. It even cites the IRS and the official-sounding 'S.A.F.E Act 2015.' It sounds real, but it’s all made up.

The blog post offers a couple of tips to identify communications a scam. If the email ended up in your junk folder, it could be a scam. Also, the post suggests you mouse over the URL and see if it is really from SSA, or from a .com site instead.

Always remember-if in doubt, don't click on the link and don't provide personal information.

Protecting Your Deceased Loved Ones From Identity Theft

We've all been warned about protecting ourselves from identity theft, but one group of victims can't take action to protect themselves—the dead. Identity thieves steal the identities of more than 2 million deceased Americans a year, according to fraud prevention firm ID Analytics. Fortunately, there are steps that you can take to discourage identity thieves from targeting a deceased loved one.

 

Part of the reason the deceased make prime targets for scam artists is that it can take up to six months for credit agencies to be notified about a death. As soon as possible, you should send copies of your loved one's death certificate through certified mail to the three major credit reporting agencies—Equifax, Experian, and TransUnion. Along with a certified copy of the death certificate, you should include papers certifying that you are the executor or person representing the deceased; the decedent's full name, date of birth, and Social Security number; the decedent's most recent address; and the date of death. You should also request that the credit bureaus put a "deceased -- do not issue credit" alert on the decedent's credit files.

In addition, you should send copies of the death certificate to any banks, insurers, credit card companies, or other financial institutions where the deceased had accounts. You should also cancel the decedent's driver's license by notifying the state motor vehicles department.

One way that identity thieves find victims is by looking through obituaries. When writing your loved one's obituary, try to avoid information that might be useful to identity thieves such as date of birth, mother's maiden name, or the decedent's address. Think about what information someone would need to open a bank account and avoid including that in the obituary.

Once the proper agencies and institutions have been notified, you should continue to monitor the decedent's credit report for a year to make sure there are no problems.  A free copy of the three credit agencies’ reports is available annually to executors or trustees.  Go to: www.annualcreditreport.com.

For more information from Bankrate about protecting a deceased relative from identity theft, click here.

CNA's Face Prison for Stealing Nursing Home Residents' Identities and Defrauding Government

Three former nursing home aides face prison time for stealing residents' identities and conning the government. The Georgia women obtained residents' personal identification information from the nursing home where they worked as certified nursing assistants, and they used the information to file fraudulent tax returns, according to court papers and evidence introduced at trial. The DOJ did not name the facility where the women worked.

One of the defendants, Kimberly Banks, was convicted after a one-week trial in January. She received a 192-month prison sentence on Thursday, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.

The other two defendants, Donalene Mosely and Arneshia Austin, entered guilty pleas to conspiracy prior to trial, according to the prosecutors. They received 37-month and 21-month prison sentences, respectively. The three former CNAs also have been ordered to pay about $275,000 in restitution.

Of course, repayment may not be forthcpming. The women used refunds from the fraudulent returns to make car and mortgage payments, buy products online, and throw a “red carpet party,” the Department of Justice stated in a news release. They raised more than $600,000 by filing nearly 200 false returns.

This is the second nursing home identification theft case to come out of Georgia recently. In January, Yolando Blount received a 27-year prison sentence for her role in a similar but unrelated scheme.