Saturday, November 20, 2004
BY LESLIE BROOKS SUZUKAMO, Pioneer Press
Nearly one-quarter of Minnesota residents have been victims of identity theft or know someone who has, and eight out of 10 Minnesotans are afraid they'll be next, according to a new survey by AARP Minnesota released today.
Concern over the financial crime has prompted some state legislators and law enforcement officials to say they will push for tougher laws to punish offenders and protect ID-theft victims, who spend an average of 300 hours straightening out their credit histories after thieves mangle them.
Identity theft, which occurs when a thief uses another person's information to apply for loans, credit cards or leases, has become the nation's fastest growing crime, according to the Federal Trade Commission.
Nationwide, the FTC reports 27.3 million people were victims of identity theft over the past five years, including 9.9 million in 2002 alone. Victims paid $5 billion in out-of-pocket expenses to straighten out their financial histories, and businesses and financial institutions were forced to eat losses of $48 billion that year.
In Minnesota, identity theft complaints to the FTC increased 34 percent between 2002 and 2003, with the top three types of identity theft involving credit card fraud, bank fraud and phone or utility fraud, the commission reported.
"Identity theft is a shattering violation of privacy, a near-perfect crime — and most victims don't even know they've been robbed until it's too late," AARP state President Hubert H. "Skip" Humphrey said in a statement accompanying the survey. The survey results are to be released today at an AARP event at the Mall of America focusing on a wide range of consumer fraud. Humphrey is a former state attorney general.
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ARP Minnesota, an advocacy group for older people, conducted the survey because experts say that seniors are more likely to become victims of identity theft. They have long credit histories and own their homes, making them attractive targets, AARP spokeswoman Amy McDonough said.
One in 20 Americans has been a victim of identity theft and their numbers are growing because "crooks that used to use a crowbar are now using computers," Hennepin County Attorney Amy Klobuchar said.
Klobuchar said she will push for legislation that would require restitution of $1,000 for each victim from the ID thief, court documentation to help the victim clear his name with financial institutions, and up to 20 years in prison for ID theft involving child pornography.
Health care plans and other organizations need to stop using Social Security numbers on identity cards for clients, said state Rep. Jim Davnie, DFL-Minneapolis. Davnie, chairman of the DFL task force on privacy and identity theft issues, said he will introduce legislation to that effect, although some health plans have already stopped the practice.
In the AARP survey, 97 percent of Minnesota adults thought it was important for the state to strengthen laws and regulations to protect consumers from the rise of identity theft.
Among the measures Minnesotans want most are:
• Notification by businesses when they lose your identity, such as when Wells Fargo earlier this month reported that four laptop computers — containing the names, addresses, Social Security numbers of mortgage and loan customers — were stolen.
• Stiffer penalties for repeat offenders.
• A security freeze they can control on their credit reports to cut down on bogus credit cards and loans taken out in their name.
Sunday, November 07, 2004
Don't let holiday spending haunt you
(ARA) - Sometimes it seems like your credit cards and checkbook have a mind of their own -- you go into the holiday season with the best intentions of limiting your holiday spending, only to face the New Year with a mountain of debt.
The holidays can be one of the toughest challenges for your budget: You find the perfect gift for your mom, but it's $25 more than you planned to spend. Or your co-worker (who wasn't on your list) gives you a gift and you feel you need to reciprocate; add another $20 to your balance due.
As hard as it may seem to tame holiday spending, you don't want to spend the coming year paying off one month's worth of merriment. Here are a few steps you can take to make this New Year one you look forward to.
* Plan ahead -- Make a list of all the gifts you expect to buy, and set a realistic budget for these purchases. Talk to your family and friends about setting a price limit on gift exchanges. You may not want to be the one to broach the subject, but chances are the suggestion will be welcome.
* Stay focused -- As you shop, keep close tabs on your spending and compare your actual costs to your budget. Keep a running tally of how much you're spending and how close you are to your limits. When you want to splurge by ignoring the fact that you can't afford something and putting it on your credit card, avoid the temptation. "The rule of thumb is that your debt should be no more than 30 percent of your credit limit. Otherwise, creditors may view it as excessive debt and be concerned you may not be able to pay as agreed," says Maxine Sweet of Experian, a company that provides consumers with information and products to help them understand, manage and protect their personal credit profiles.
* Be an informed shopper -- The Internet makes it easier than ever to compare prices on just about any item. Better yet, around the holidays, many Web sites offer special incentives such as free shipping.
* Give gift cards -- They're easy to shop for, you can choose an amount that fits your budget, and the recipients get to choose something they really want. And, they're easy to wrap and ship.
* Monitor your ATM and charge cards -- "Identity theft is on the rise, and the busy holiday season is prime time for this type of crime," cautions Sweet. "Don't be an easy target. Pay extra attention to your cards and receipts. Check your monthly statements for any inaccuracies or fraudulent activity." If you carry a monthly balance, consider consolidating your debt on the card with the lowest interest rate.
* Review your credit report -- You can get a copy of your credit report from Web sites such as www.experian.com. Verify that all the information is correct, and that there are no unfamiliar accounts on the report.
If a quick review of your financial situation shows that you can't spend as much as you'd like on gifts this year, get creative. Just because you can't spend a lot of money doesn't mean that you can't make the holidays special for your friends and family.
If you just can't afford to buy gifts for the whole family, consider suggesting that your family draws names this year and buys for just one person, instead of getting gifts for your siblings, their spouses, and their kids. Similarly, how about starting a grab bag tradition among your friends in place of buying gifts for everyone?
Giving a charitable contribution in honor of your friends or family is really two gifts in one -- the charity gets a much-appreciated donation, and the honoree gets the satisfaction of knowing they've made a difference.
Finally, consider getting your friends and family together for a holiday party. Spending time with those you love is what the holidays are all about, after all. The party doesn't have to be fancy or expensive. It is just a way to gather those who are most important to you at this festive time of year.
Regardless of how much money you spend, you can make the holidays meaningful this year. Don't feel pressured to overextend your budget when a kind gesture or thoughtful word will be appreciated just as much as an expensive trinket.
For more information on checking your credit report, visit www.experian.com.
Courtesy of ARA Content
Tuesday, November 02, 2004
talks about fighting back!
We fill out forms all the time — for credit cards, loans, insurance claims, job applications, online purchases and more. We're constantly spreading around personal and financial information, and sometimes those details get into the wrong hands. Think it couldn't happen to you? Think again! Michelle Brown walked into an office one afternoon to fill out a simple rental form and handed it over to the receptionist.
In one instant, that random stranger also became Michelle Brown — she even had a driver's license to prove it! She stole Michelle's identity and wreaked havoc on her life in unthinkable ways.
The Lifetime Original Movie Identity Theft: The Michelle Brown Story, based on this true tale, is sure to draw you in — especially with leading ladies Kimberly Williams-Paisley and Annabella Sciorra. It will be an eye-opener about identity theft and how to protect yourself. So stay tuned!
