In 2007, 6,864 New Jerseyans became victims of identity theft. In complaints of this crime to the Federal Trade Commission, the Garden State ranked fourteenth in the nation per 100,000 residents. “It’s a real threat and it’s growing,” says James Kearney, chairman of the Financial Planning Association of New Jersey. Unauthorized use of credit cards topped the FTC’s list with 1,909 complaints, followed by 1,291 cases of fraud in acquiring phone or utility service, and 818 bank-fraud incidents such as forgeries and applying for loans billed to others.
The good news is that recent federal legislation limited consumer liability, and in late 2007 the state Senate passed an act allowing victims to seek restitution for time and money spent to restore their financial health. “It’s not the huge financial risk people think it is,” Kearney says. “Nearly every card has a cap at $50 or less. The disaster is cleaning up your personal information. It’s not one phone call.” The key is to avoid becoming a victim. “Criminals are after anything they can get: birth date, spouse’s name, mother’s maiden name. Change your passwords weekly if you can,” advises Domenic DiPiero, president and founder of Newport Capital Group in Red Bank. “Never store personal information online, and update your computer software regularly.”
PREVENTION
• Get credit reports directly from credit bureaus.
• Shred documents containing account or social security numbers as well as pre-approved credit card offers.
• Opt out of those unsolicited offers at 888-567-8688 or optoutprescreen.com.
• Never give out credit card info over the phone unless you initiated the call.
• Never dispose of bank-transaction receipts in a public trash can.
• Install a firewall on your home computer.
• Be sure PDAs and laptops are password protected.
• Don’t use your social security number as a password.
• Don’t reply to e-mails that request personal information.