Fraud Protection Services
Posted by Gail | Filed under Credit Wise
Emma wrote recently to ask me:
I have a question about Fraud Protection services that are offered by credit card companies – basically, you pay a set fee each month and someone supposedly watches your credit report. Is this a worthwhile service, or just a money grab? The reason I ask is that I had my wallet stolen over the weekend (and they got my SIN, and pay stub which shows my address and well, everything) and when getting my cards reissued, one of the credit card companies offered this service. I signed on for the first 30 days (free) but will need to pay $14.99/month afterwards. So, long story short, am I wasting my time and money with this service?
Identity theft and fraud are problems that are growing so quickly that an entire industry is springing up to help people deal with them. It’s been estimated that if you’re ID is stolen, it could take up to 600 hours to get it all straightened out. That’s 75 continuous working days! The solution: to have your credit monitored by a service so you don’t have to do the work yourself. The question: Are you prepared to lay out $180 a year or more to have someone “watch” your ID, just in case?
Credit report monitoring is sold by fuelling consumers’ fear of fraud. Those who have already been victims are the easiest touches. While touted to be the best way to protect yourself from ID theft, credit report monitoring only watches one window through which an ID thief may climb to grab your good name. Other services exist, which review online public records for signs of SIN/SSN fraud, stolen credit-card account trafficking and other types of ID theft. Too new to really assess how useful they are, it is worth noting that neither the U.S. Federal Trade Commission nor any consumer group focusing on ID theft issues currently endorses these credit-monitoring services.
If you’re interested in using a credit report monitoring service, you should ask some questions.
Do you offer protection against theft of my Social Insurance/Security Number? You may think it’s a given that a body’s credit information is anchored to their SIN/SSN so that your credit file won’t be mixed up with a like-named body elsewhere, but that ain’t necessarily so. Credit bureaus sometimes create “temporary fragmented files” using your SIN/SSN but with a different name and address (think about when a woman marries and changes her name, or when you buy a house or move) and this weakness in the system is just the window fraudsters are waiting to climb through. The credit monitoring service will never pick up the overlap as long as the credit bureau keeps your credit file separate from that of the ID thief so you’ll never know what’s happening UNTIL a collection agency tries to collect from you for thief’s bad accounts.
How many different information services will you monitor on my behalf? Your credit monitoring service needs to cover as many information sources as possible since creditors do not always report to all credit bureaus.
What will you alert me of, and how often? You want a service that alerts you to any activity on a dormant account, increases in credit balances, changes to existing accounts, and the appearance of a negative on your record. And you want those notifications within 48 hours of the change.
If you decide that those fraud protection services aren’t offering you good value for the money, then you need to take some steps of your own to protect your ID. Since it’s been estimated that lost or stolen wallets, chequebooks, and credit cards account for about 30% of cases in which ID thieves prosper, it is extremely important that you do whatever you can to keep your personal information safe. Why would you carry your SIN/SSN card in your wallet? Memorize the number and put the card away somewhere safe. Do not put your telephone number and address on your cheques, and protect your PIN numbers and credit cards from prying eyes. Don’t carry unessential documentation with you; your wallet should hold the bare minimum of information about you.
Don’t assume that because you’re among family and friends that your ID is safe. Half of all credit fraud is committed by people in your immediate sphere, so don’t leave your mail, statements, wallet lying around at work or at home. Shred everything you’re putting in the garbage. And be careful who might be listening or watching when you enter information in your computer, order by phone, or have discussions about your money.
Review your bank and credit card statements thoroughly so you spot anything unusual right away. If you’re banking online, make it a habit to check your account every day. Cancelling paper statements and opting for online statements is another way to protect your personal information assuming your computer is secure. Never use a public computer to do money business since thieves have sophisticated tracking software which they use to steal passwords.
Have a wireless network at home? Make sure you’ve incorporated password-protection and encryption. And when you’re accessing information via public hotspots, use a personal firewall. Be aware of phishing scams. Never respond to email requests for personal or financial information, or that prompt you to click a link to provide your personal or financial information.
Even your smartphone can be a widow for thieves. Since anything you delete from a smart phone isn’t really deleted (the menu is erased is all), when you move from one phone to another, all your info is there for the grabbing. Ditto if you lose your phone. So you have to be as sensible about how you dispose of an old phone as you would be about how you dispose of an old desktop or laptop.
You know, sometimes when you get me started on a topic, you just can’t shut me up so….Next Tuesday: More about Protecting Yourself Against Fraud
January 27, 2009 at 8:01 am
I wonder how one can find out if someone is using their OHIP card. The only way I found out this was happening was when a doctor’s office called to confirm my appointment. Apparently someone was using my OHIP data for years! It was only then that I notified OHIP Fraud office.
January 27, 2009 at 8:14 am
Online banking is really good for monitoring our bank accounts and credit cards. I log into my accounts every morning and night to make sure that everything is as its supposed to be – bills being paid and no transactions that aren’t mine or my husbands.
January 27, 2009 at 8:58 am
I carry the bare min as Gail said…I have been doing that for several years, when all those cases of ID fraud started to pop up.
What I recommend to carry on your wallet (this is what I have)
Driver’s License. Debit Card (in case of emergency)
If needed (GAIL YOU READY —> IF) Visa/Master Card / Cash (only the amount needed for that day.
What not to carry:
Health Card, SIN, Passport, Birth Certificates, Citizenship IDs, those small wallet size Marriage Cert.
In regards of Credit Monitoring Service… I feel that if you carry the min amount of ID… you might not need it (and it’s very expensive). I am not sure if they will be able to help you thru, I would love to hear some experiences on how they help.
I monitor it myself, I get my Credit Reports every 3 to 4 monhts for free from Equifax / Transunion and they mail it to my home. I make sure that the accounts shown on the credit are correct, and that everything looks good… There have been instances where I found mistakes on my C-R and I have contacted either Transunion / Equifax and made the changes.
As Shelley said…. check your online banking….that’s the best way to keep on top of your finances and monitor that there is nothing wrong with your accounts.
January 27, 2009 at 9:48 am
Emiliano: I didn’t know you could get your reports more than once per year for free. Good to know! Thanks.
I totally agree about limiting what is in your wallet. Not only is it not neccessary to carry so much, it’s very costly to replace it all.
I work for a FI and you would not believe the amount of people who leave their wallets in the car regularly!?! If I had a nickel for every time a client said “Just a minute, I have to run to the car to get my wallet.” I’m sure I could max my tax-free savings act! lol!
Carry minimum ID and if you know you are going to walk the dog at the park, don’t bring your purse. Take what you need in your pocket and leave the purse at home. Parking lots are huge targets for break & enters. Common sense…
Gail is so right about being caution around family & friends. I have been a victim of fraud by a loved one. It’s not fun and it’s very hurtful. The only person you can truly trust with your finances & information is YOU.
January 27, 2009 at 11:15 am
Yes this definately hits home for me. Its been a crazy start to the year. It started off with my Grandma passing away, flying across country to go to her funeral, getting back home only to discover someone had accessed my ebay and email acount. About a week later after blocking use of my credit card my husbands card was used. Our wallets didn’t need to be stolen. Im assuming they got the information from my ebay account and possibly email.
We don’t pay for identity protection and our credit card company was the one that notified us of the fraudulent use.
Im not willing to pay the extra for protection that is already there.
January 27, 2009 at 12:21 pm
Wow, all of this is making me realize that I have not protected myself very well.
Dorreen – how awful. Is all their medical information merged with yours now??? How did they sort that problem out?
January 27, 2009 at 2:21 pm
I have lost my wallet too many times to risk carrying anything non essential (I am laughing, but it’s sad really). I haven’t actually lost it in years, but the lesson stayed with me.
ONE bank card, a bit of change, and my driver’s license – that’s it! The credit card only comes along when I am travelling long distances or know I need to stop for gas (pay at the pump is mandatory here now and OH SO MUCH FASTER than the bank card). NEVER the SIN card, birth certificate or provincial medical card in my wallet. If I need those for an appointment, then I carry them separately as an item to be returned to the special document binder the moment I get home. …It’s not superior organization that keeps it this way, it’s survival in my forgetful universe!
January 27, 2009 at 2:34 pm
Hard to decide not to carry your health card with you….like wearing clean underwear just in case…..HA!
Hang on to your red and white cards! The green ones have expiry dates and are a pain at times to get them renewed. The red and white are good for life so baby them…..you don’t HAVE to turn them in for a green one.
January 27, 2009 at 2:47 pm
I would actually say to bring your health card with you at all times. That is your access to medical care, and who knows when or if you will need it?
For instance, if you decide to leave it at home, and you are in an accident or decide to go and visit a walk-in clinic before returning home, you could be up a creek. Many will ask you to put a deposit down or pay for the visit, and you will have to prove you have the appropriate coverage of a provinicial health card.
I agree with leaving SIN and passports at home however.
January 27, 2009 at 2:54 pm
To Saver Queen:
OHIP Fraud Squad did all the work. The doctor claimed it was a ‘mistake’ was the only thing OHIP told me. I suspect that some shady former owner of the now defunct King Street Medical building in downtown Toronto may have ’skimmed’ my OHIP data and others – but this is my ‘hunch’. And no – no one’s medical information was merged with mine, but I had to get a new OHIP card & Photo I.D.
January 27, 2009 at 3:31 pm
I carry the minimum ID after I lost my SIN card a few years back. Luckily I found it later, it was under my car seat, but after that I’m careful. I also keep a close eye on my various accounts, like many others.
At the time I also called the major credit bureaus and asked them to put a watch on me. For a set period of time (several years, I think) they would call you to confirm your identity if anyone used your SIN to apply for credit. It was free, so may be worth looking into.
January 27, 2009 at 6:28 pm
In the US, you can write to each of the credit bureaus using a specific form letter and have your credit frozen. No one can access or apply for new credit while the freeze is on. It does cost money each time you freeze/unfreeze it (about $10) but that’s nothing compared to the inconvenience you would have to deal with in the event of identity theft. You can see the information for California here:
http://www.privacy.ca.gov
January 27, 2009 at 6:32 pm
I definitely agree, don’t carry your SIN in wallet, your passport, or birth certificate,however, not carrying your health card, could be a big mistake. Especially, if you get into an accident. The hospital will stick you will the bill for whatever expense you incur until you produce your health care.
I normally, don’t even carry my CC when I’m in the city, if I travel, I do for the sheer reason to proof that I booked a room or airline tickets.
January 27, 2009 at 8:49 pm
Make sure to read the “fine print” when agreeing to any service that’s “free” for the first ….whatever time frame. Unless you specifically call and request the service be cancelled, many companies will automatically start billing you for the service.
January 28, 2009 at 6:21 pm
This is a response to Catherine’s keep your red and white health card. If you get a letter in the mail advising you need a picture health card, you need to get one. Your health card will be void for places like the optometrists and such if you are covered under OHIP. At a dr’s office, they can not deny you service, but they may as you to pay because your card is invalid. The point of the expire date is to avoid cards being bought and sold to people who are not qualified to receive services and take advantage of our “free” system. Getting expensive medical services including surgery.
February 2, 2009 at 6:46 am
[...] my blog last week on fraud prevention services, I promised more. So here we [...]
September 22, 2010 at 6:29 am
Credit card companies thrive because of a large number of users and they should be able to protect their clients against ID theft. These companies may wrongly charge you for something that you did not purchase because someone else has used your account number – they should provide added protection or screening so that the number of fraud victims will decrease. Anti-fraud services mean well I suppose and we also need to protect our finances by reporting any anomalies right away.
October 30, 2010 at 1:17 am
l lost my walet few weeks a go at ajax go station and i cant get over it, because i have so many things in it (memories). I hope God will touch the person’s heart and return it to me, or even give me a clue where i can find it. It hurt so much i can not founction, also i wish i could get this message accros to this person. Please someone help me on this, I do not wish this incident on my worst enimy