College Students at Risk
Communal living that makes personal information easily accessible, Universities that use social security numbers for identifying students and increasing number of credit card offers are just a few of the many ways students are being put at risk for identity theft.
Students assume that they don’t have anything to steal because they don’t have any money. But, identity thieves aren’t always after money. Since college students generally have no more than one credit card and a student loan or two, yet they are prime targets for identity theft because they have clean records. And, on top of that, their identities are usually pretty easy to steal.
Students are an easy mark for a number of reasons
• They’ve got favorable credit histories
• They give out Social Security numbers often – whether for school IDs, new credit card applications or rental applications
• Their personal information is easily accessible in high-traffic dorms
• They tend to post personal information on blogs and social networking sites such as Facebook
• They often access unsecured Wi-Fi networks, leaving them susceptible to file stealing
• They’re not terribly concerned about Identity theft. What, me worry?
What Can You Do to Protect Your College Student?
If you know a student who is preparing to head back to college in the fall or going off for the first time, here are five tips to help him or her set up some safeguards.
1. Outfit his or her dorm room or apartment with a paper shredder. Statistics prove that college students throw out all junk mail in exactly the same form it came in. Most don’t even open envelopes of pre-approved credit card offers. In some cases, college students throw out their student loan documentation or correspondences from the university containing social security numbers and other personal information without destroying it first. Dumpster diving identity thieves target dumpsters behind college dorm rooms or near campus mail facilities. Help the college student in your life greatly reduce his or her risk of identity theft by purchasing a shredder and explaining why it’s important to use it. You might even suggest a regular shredding party!
2. Teach your student the importance of reconciling his or her bank statement each month. With all the online banking that students are doing, they don’t realize the need to reconcile their bank statements each month. As a result, identity thieves have a greater chance of getting away with a crime on an existing account without ever being detected. This could create significant problems for students who keep just enough money in their bank accounts to survive. If even $50 was stolen from a bank account, and a student isn’t aware of it, an overdraft of available funds may occur resulting in fines and late fees on bills that were actually paid on time. Reconciling your bank statement and your checkbook every month is one of the easiest ways to spot existing account fraud and stop identity thieves. Remind your student that it’s not his or her own transactions that really need to be monitored as much as it is fraudulent activity that may go unnoticed. Also, it’s a great way to help them maintain their basic math skills!
3. Contact the university and ask them not to use your student’s social security number to identify your student or to post grades. With identity theft so prevalent these days, many universities are switching to systems that generate completely random identification numbers for student ID cards, but many universities still employ the age old practice of using student social security numbers to post grades and test scores. If this is the current practice at the university your student will attend contact the university and request that a different number be assigned to your student. Explaining the reason why you don’t want them to use the social security number might help them eventually change the school policy.
4. Consider purchasing a stolen identity coverage product, NOT just a monitoring service. Because some things about protecting your student’s identity are beyond your control (for example, will he or she even follow your suggestions) purchasing a product such stolen identity coverage is a worthwhile investment. The problem with identity theft is that, unlike a home invasion, identity theft happens silently and for the most part, invisibly. However, the damage can be just as costly and take months to clear up. And while alarms may tell you something has happened, they will be too late if your student’s identity is stolen!
5. Install security software on your student’s computer and teach him or her to use strong passwords. Most college students experience some form of communal living whether in dorm rooms or apartments shared with roommates, so it is important that your student’s computer (especially if it is a laptop) be equipped with additional security features to prevent friends or roommates from accessing your student’s personal information when he or she isn’t around. Even if your student trusts his or her roommates, a roommate’s friends may not be so trustworthy. Statistics prove that many victims of identity theft are at least casually acquainted with the thief. Teach your student the importance of creating strong alphanumeric passwords, and changing them frequently. Stress that passwords become pointless if they are shared with other people. Make sure your student also has security software that will protect his or her computer from viruses spread through email. Remember that being proactive and taking all identity theft prevention will safeguard the personal information and help protect against any fraud.
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Some critics of recently reappointed Federal Reserve Chairman Ben Bernanke argue that he was too slow to realize that the financial system was teetering on the brink of collapse during 2008. But Bernanke might have had another, more personal banking issue on his mind at the time, Newsweek reports: his wife Anna's purse was stolen in August 2008, and the thieves used its contents to access the couple's joint checking account.
A court affadavit filed in June shows that 10 people are charged in the fraud, which used the Bernankes' bank account to inflate the value of other accounts that then had money withdrawn from them. The 22-page document identifies a victim known as "B. B.," who had $900 stolen from his account, but another complaint against one of the alleged members of the ring used Ben Bernanke's full name.
The thefts affected more than 500 people in Washington, D.C., and Chicago, where the ring operated. Anna Bernanke reported that her purse was stolen from a D.C.-area Starbucks (SBUX) coffee shop.
The Bernankes are hardly alone in their conundrum, according to the Identity Theft Resource Center, which estimates that identity theft costs consumers and businesses more than $55 billion annually. Some 650,000 complaints of identity theft are registered annually, another source reports. Concerns about the crime have dramatically increased in recent years, as the amount of personal information stored online -- and vulnerable to hackers or security breaches -- has grown with online commerce.
The ringleader of the thefts was a 52-year old Maryland man, Clyde Austin Gray Jr., who has pleaded guilty in the scheme, which cost 10 banks $2.1 million. And as Bernanke would know, that's money the banks can ill afford to see walk out the front door.
But here's a question: Why would Bernanke -- who, as Fed Chairman, could be given extraordinary regulatory powers in the coming months and years -- have his account at Wachovia? Before it was saved by Wells Fargo (WFC), Wachovia was the bank that picked the top of the housing bubble to make a terrible acquisition, then tried to maintain a façade of solvency by under-provisioning for loan losses.
Let's hope it had more to do with his confidence in the FDIC guarantee than a lack of understanding about what was going on under the hood of Wachovia's pick-a-pay portfolio.
James Cullen edits and writes at CollegeAnalysts.com. He has no personal position in the stocks mentioned above.
Link: http://www.dailyfinance.com/2009/08/26/bernankes-other-banking-problem-identity-theft/
Source: www.DailyFinance.com
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The real Michele Sorenson lives a simple life in a small northern Minnesota town where she is the mother of two children and works as a certified public accountant. But half-way across the country in the Los Angeles suburb of San Bernardino, Calif., someone stole Sorenson's good name and turned her happy life into a nightmare by passing hundreds of bad checks, charging medical bills, bailing a prisoner out of jail, and even stealing a car.
Link: http://www.startribune.com/local/29622899.html?elr=KArks:DCiUHc3E7_V_nDaycUiD3aPc:_Yyc:aUU
Source: Star Tribune
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KEEPING A CLEAN credit record is imperative these days. Unfortunately, the task of ensuring one's credit record remains fraud-, identity theft- and mistake-free, can feel like a next-to-impossible feat.
That's where credit-monitoring services come in — they promise to do all the legwork for you. For $10 to $15 a month, these services, which are offered by credit reporting bureaus, banks and other third-party companies, provide customers with unlimited access to their credit report and score, plus e-mail notifications should any significant changes occur (be it a late payment or a new account opened in your name). Some even vow to reimburse for losses incurred fighting identity theft.
Link: http://www.smartmoney.com/deal-of-the-day/index.cfm?story=20080714-credit-monitoring-services&cid=1122&hpadref=1
Source: SmartMoney
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Why should I opt out of prescreened offers?
Prescreened offers of credit or insurance – sometimes called “preapproved” offers – are sent to consumers unsolicited, usually by mail on an irregular schedule. They are based on information in a consumer’s credit report that indicates the individual receiving the offer meets the criteria set by the company making the offer.
As a result, an identity thief can steal your “preapproved” offer from your mailbox, call the lender to accept the offer, and then start spending using your good name and credit. So it’s a good idea to opt out of receiving these offers to substantially reduce your risk of becoming an identity theft victim – not to mention noticeably less junk mail to wade through.
How do I let credit bureaus know that I want to opt out of prescreened offers?
Consumers can now notify the national credit bureaus online to remove their names from the lists that the credit bureaus sell to companies for preapproved offers of credit and insurance. By filling out one form online, you can then tell all the national credit bureau systems to stop selling your name and that you wish to opt out of these programs.
* The service is available by filling out a form online at http://www.optoutprescreen.com.
* The service is a cooperative venture of Equifax, Experian, TransUnion and Innovis.
* Consumers have a choice to opt out for either a 5-year period or permanently.
* If you have previously opted out of these prescreen lists, you may also use the online site to opt back in to receiving preapproved offers.
Previously consumers could only opt out of these prescreen lists by writing the credit bureaus directly or by calling a central phone number to “opt out.” That phone number is still active at 1-888-5-OPT-OUT (1-888-567-8688).
Consumers who choose to opt out of the prescreened offers may also wish to register online at the National Do Not Call Registry to add their phone number to the list that most telemarketers check before calling you with sales solicitations. For more information, see http://www.creditreporting.com/donotcall.html.
Another way to further reduce direct mail and phone solicitations is to contact the Direct Marketing Association (DMA). The DMA is the oldest and largest trade organization for the direct marketing industry. More information for consumers is available at: http://www.dmaconsumers.org/consumerassistance.html.
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