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Do Web Services Really Help Protect You From Identity Theft?

The headlines have recently been flooded with stories about identity theft and identity fraud. It’s no wonder with over 8 million victims of the crime in the last year reported by the Department of Justice. The stories are endless. People are being rejected by employers because someone stole their wallet, committed a crime, and it showed up on their background check. Those who have had stolen checks and credit cards experience bad credit problems sometimes for years after the incident. Identity theft and, consequently, fraud can alter a person’s life dramatically.

The Big Discovery

If it hasn’t happened to you already, could you imagine being pulled over by a police officer discovering there is a warrant out for your arrest? Before you have a chance to argue, you are being handcuffed, booked, and escorted to a cell possibly with a handful of real criminals. It’s a true story that happened to Renee White of Warren, Ohio last year when she was pulled over by police and arrested because a woman named Tammy Johnson had forged stolen checks with White’s identification.

A more common identity theft crime is when personal information is used to establish credit, such as in the more recent case of pro golfer, Justin Leonard. A convicted criminal, Joel Bridger, stole his Social Security number and driver license information over the Internet, created falsified identification, and opened credit card accounts in Leonard’s name. If Bridger could steal the identity of a pro golfer, how easily do you think this could happen to you?

The Identity Theft Marketplace

The federal law forcing credit bureaus to provide free alerts to identity theft victims has created a stir between credit bureaus and several identity theft prevention services. Capitalizing on fear and the victims of identity theft may leave Americans with a bad taste in their mouths, but let’s take a closer look at what these companies really can do to help protect you from identity theft and fraud.

Identity theft protection services can’t guarantee that you won’t have your identity stolen (regardless of what they say). They are more effective in preventing identity fraud. So, how do identity protection services work then?

Most importantly, they do all the leg work for you. They set alerts with the credit bureaus for you and alert you if someone is attempting to access your credit reports, which helps prevent others from opening accounts in your name. One web based company, My Background Check, offers both credit and criminal background checks every ninety days, alerting you if there is any new or erroneous information that appears. The theory behind these services is similar to what doctors tell you about cancer: the sooner you catch it, the easier it is to cure.

If someone steals your Social Security number and other information to open credit card or other accounts, the creditor won’t be able to access the report without your permission. Identity theft can also occur by someone stealing your mail. Another benefit of this service is that authorized only access prevents pre-approved credit offers from loading your mailbox. We all could use less junk mail!

Do it Your Self Identity Protection

So, why not do all this your self? Setting fraud alerts on your credit reports is fairly simple to do your self; however, in order to conduct a thorough county, state, and national criminal check on your self is quite time consuming, particularly if you try to do this periodically.

Conducting county criminal investigations by pulling your own records from court houses where you live would be the easiest way for you to ensure no one has used your identity to commit crimes locally. However, if someone committed a crime in a place you did not live, you would only discover it if you are cited by a police officer or an employer conducts a criminal background check on you. Then you would need to conduct national crime as well as federal and state sex offender searches.

The Reality Behind It All

The most important thing to know is how to reduce your chances of identity theft. Many people believe that the internet and other automated systems increase risks of stolen identities. This is another, more recent, means of stealing identities; however, the majority of identity theft occurs where your actual documents are. According to the recently publicized study by Javelin Research Group, 79% of identities are stolen by someone who obtains the information in your home, in the mailbox, or by stolen wallets. Only 12% of identities are stolen by internet hacking or data breaches. It is important that your documents are kept in a secure place or shredded, and you don’t leave mail sitting in your mail box.

Identity theft services are convenient. After all, who has the time to do all this work? But don’t expect miracles. If you leave your wallet sitting out where someone could steal it…then you may have opened the door to identity theft. If a telemarketer (who really isn’t a telemarketer) calls you and you give him/her your debit card number for the Super Do-it All Kitchen Cleaner and they go on a shopping spree instead of shipping your product…really, have you been cautious enough?

Do some research before giving out your personal information and be careful where you leave vital personal documents. Shred any documents that have account numbers or other personal information on them. Identity theft prevention services combined with your own precautions will reduce the chances of identity theft.