Are Constant Fraud Alerts On Your Credit Report Good or Not Needed?

Experian vs. Lifelock. According to AdAge, “Experian has filed a lawsuit against identity-theft insurance company Lifelock, charging it with ‘ misleading advertising and fraud.’” Part of their complaint is Experian stating that fraud alerts were not intended to be placed on credit reports all the time.

The obvious flaw the system is that today’s problem is you don’t KNOW until after the fact if someone is using your name, credit, and identity to commit fraud.

Considering how easily an identity thief can get your fundamental information changed on your credit report, the credit bureaus themselves should be in a constant state of monitoring and fraud alerts.

Until the credit bureaus make it more difficult for address and birthdate information to be changed on reports, I support the idea of having a frozen credit report if you’re not needing to apply for credit frequently and fraud alerts simply so you can be made aware if someone is using your identity.

LifeLock at a minimum is forcing the credit bureaus to look at how they might need to protect consumers better. Or so I hope.

Illegal Immigrants Use Social Security Numbers for Employment

An MSNBC article chronicles the plight of one man who found out his name and Social Security Number were being used fraudulently “when he was arrested on a warrant for unpaid traffic tickets at the border after a visit to relatives in Mexico.”

While we often hear about identity theft perpetrated as a way to conduct financial-related fraud, it is much more chilling and important to detect use of your Social Security Number.

The article also points out that “The most common start to identity theft is for the perpetrator get hold of someone’s Social Security number, which is part of the system used to record people’s earnings for federal retirement benefits.”

Update: In “It’s Easy to Buy an Identity” Chicago Public Radio reinforces the threat of this form of identity theft.

Of All Issues Identity Theft Tops Singaore Citizens Concerns

ZDNet Asia reports stunning survey results of citizens of Singpore – 83 percent of 891 respondents between the ages of 18 and 64 are anxious about identity theft.

The fear of identity theft TOPS fears about health issues and terrorism. The sad thing is, they’re probably right on in their priorities.

San Francisco Bay Area Tops Identity Theft List

KCBS reports a survey from the Identity Theft Resource Center that “finds San Francisco ranks number 7 in top cities most at risk for identity theft.”

It’s been interesting discussing the possibility of offering a centralized shredding kiosk with various people. Some say it’s not that big a deal for people to buy their own shredders.

But there are many people for whom buying a paper shredder would be a luxury that is not high on their list. With the rampant occurance of identity theft, still mostly due to paper-related issues and mail, I truly believe that shredding should become a public service. Maybe a “utility” like the gas and energy companies needs to be created for shredding!

USA Today Reports Low-Tech Identity Theft is Prevalent

Data breaches, such as the recent report of Art.com’s website being hacked, and online phishing threats get lots of press. A USA Today story from Associated Press confirms low tech is still the preferred method for fraudsters:

“While identity thieves used a wide combination of methods, fewer than 20% of the crimes involved the Internet. The most frequently used non-technological method was the rerouting of mail through change of address cards. Other prevalent non-technological methods were mail theft and dumpster diving.”

Yet another reason why the Self-Service Shredder makes a great service in public places so that everyone in the world can shred affordably!

UK Survey: Three-quarters of UK Residents Touched by Identity Theft

A survey in Great Britain revealed that “more than 19 million households throw away sensitive materials, either with the rubbish or the recycling, according to research,” as reported by Business Week.

75% of the people surveyed either have been victims of identity theft or know someone who has been.

The majority of identity theft is occuring in London, focused particularly on renters. This should not be surprising based on crime rates in cities vs. smaller towns. And it’s yet another reason why I think the Self-Service Shredder makes so much sense in every large apartment complex! Perhaps it should become a provided public utility along with the gas, water, and electricity.