It's Not Auto Theft, But It's Just as Dangerous

Identity theft occurs when someone uses your personal information to get a credit card or loan or do other financial activities in your name. These fraudulent transactions can affect your credit rating and finances if they are not identified and handled immediately.

Take the Following Steps To Avoid Identity Theft:

• Guard your personal information. When someone asks for personal information, such as your Social Security or credit card number, find out how the information will be used and if it will be shared with others.
• Review your billing statements. If your bills don’t arrive on time, contact your creditors. A missing credit card bill might mean that an identity thief has changed your billing address and is using your account.
• Guard your mail from thieves. Pick up your mail from your mailbox as soon as possible. Place outgoing mail in mailboxes rather than leaving them out for pickup by your mail carrier.
• Do not give out personal information. Avoid giving personal information over the phone or through the mail. Thieves can pose as bankers, government officials, or others to get you to reveal your Social Security number or your bank account number.
• Keep items with your personal information safe. When you throw away receipts, credit card applications, or old checks or billing statements, make sure to shred them first.
• Carefully choose your Personal Identification Number or PIN. When you set up your PIN for your ATM or debit card, don’t use a number that a person could easily associate with you, such as a birth date, Social Security number, or phone number. Use a number that only you know and that you can recall easily.
• Check your credit. Order a copy of your credit report every year. Catch mistakes and fraud before they ruin your personal finances.

Alert: If You Think Your Identity Has Been Stolen

If you believe you are a victim of identity theft, take action immediately! Keep records of all conversations and correspondence in case you need to refer to them later or prove that you took action to minimize the damage to your credit.

• File a police report. Your bank and credit reporting agencies may need a copy of this report and its case number.
• Notify your bank. You may need to close your accounts and move your funds to new ones.
• Cancel all of your credit cards immediately.
• Your credit card companies will send you new credit cards with new numbers.
• Notify the three major credit reporting agencies to place a fraud alert on your credit cards.
• Report the suspected identity theft to the Federal Trade Commission at www.ftc.gov/bcp/edu/microsites/idtheft or 877-ID-THEFT (877-438-4338)

Caution: Before Deciding to File for Bankruptcy

• Reduce your spending. Consider a smaller home or vehicle. Slash your spending, and you may be surprised to find enough money left over to repay the debt you've built up.
• Talk with your creditors. Despite what you may have heard, your creditors are often willing to work out a payment plan to help you pay off what you owe. This is preferable to having a bankruptcy filing on your credit report.
• Talk with a nonprofit counseling agency. These agencies can help you create a plan that will handle all of your debts.
• Talk to an attorney. Be sure you understand the consequences of declaring bankruptcy.
• You may be able to borrow against a workplace retirement plan, stocks, other securities you own, or the cash value of a life insurance policy in order to pay off your debt. However, all of those options have serious implications. Make sure you analyze the potential risks and consequences thoroughly.