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Identity
Theft
The recent security breach at credit card
processor CardSystems Solutions has many consumers
worried. Thanks to a well-placed computer virus,
nearly forty million credit card numbers were
stolen, and cardholders nationwide are justifiably
concerned about identity theft. Should a thief
steal your identity, he or she could run up
thousands of dollars worth of debt in your name
and it could take years to sort out the ensuing
financial mess.
Fortunately, a relatively new tool is available to
consumers to help alert them to potential
fraudulent activity on their credit record. Each
of the three main credit bureaus offer a
subscription-based credit monitoring program, as
do numerous banks and financial institutions. Fees
vary, but $50 or so per year is typical. The
bureaus will notify consumers of activity
conducted under their names, including the opening
of new accounts, changes of address, credit
inquiries from lenders, late payments and lawsuits
and liens. Notification can come in the form of
e-mail or even a message to your cell phone, if
you like.
Should you be notified of suspicious activity, you
can then call the appropriate agency, be it a
lender, the credit bureau itself or the police, if
necessary. The packages vary in both prices and
features, so interested consumers should shop
around to find a plan that works to fit their
needs.
A free alternative is to obtain a free credit
report. Thanks to a law passed last year,
Americans can obtain one free report from each of
the three credit bureaus per year through a
special Website. By obtaining one report every
four months, consumers can keep an eye on activity
under their name for free. This is not nearly as
effective as subscribing to a monitoring plan,
which will notify you when activity takes place,
but it is better than doing nothing at all. With
the recent security breaches by major credit card
processors, consumers who are worried about being
victims of identity theft have genuine concerns.
The credit bureaus are doing what they can to
help, and the monitoring programs and free credit
reports are a step in the right direction.
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