As the bills from holiday shopping start rolling in, officials are urging consumers to take the time to check annual credit reports to ensure the splurging was for their loved ones and not for the loved one of an identity thief.
A U.S. Department of Justice report recently released revealed that identity thieves are increasingly using personal information to rack up charging on existing credit cards of unsuspecting victims. According to the report, 8.6 million households had at least one member who experienced identity theft, compared to 6.4 million households in 2005. The report also revealed that victims lost an average of $5,650, compared to $2,800 in 2005.
"Part of the increase is because some feel that desperate times call for desperate measures in that some people turn to this crime just to keep their lights on," said Mike Prusinski, senior vice president of LifeLock, a national identity theft protection company. "I have heard from numerous law enforcement agents around the country talking about family members, taking advantage of family members and parents using the personal information of their children because they have fallen on hard times financially."
He said consumers should take a proactive approach to guarding their personal information against loved ones and criminals alike. Getting a paper shredder is an easy and affordable step that Prusinski said anyone can take.
"Shred everything," he said. "It used to be we just told people to shred financial documents, but now we need to shred everything because criminals have gotten so good at social engineering. They see an envelope from your bank, so they know what bank you use, then they go to public websites to find out even more information from tax returns, divorce agreements and mortgages, something of which could have your Social Security number, so then they go and apply for a loan or go into your bank and withdraw your money. It can happen that quickly, so people need to take steps now before it happens to them."
He said parents should annually credit reports of their children, even the youngest ones.
"If you get a letter back saying that no credit history exists, then that is good news," he said. "If it shows a history, then do your research and find out what the problem is."
Prusinski said it was important for consumers to be proactive and "Stop the attitude of ‘I'll believe it when I see it' or ‘It won't happen to me' because clearly the numbers are going up."
Reducing the risk of becoming a victim starts with education, he said.
"Use the Internet and look into what identity theft is and all the ways criminals are stealing information and how they use that information," he said. "Get that basic understanding, and then be proactive about protecting you and your family from becoming the next victim."
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