What to Do When Your Personal Information May Be at Risk

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FDIC Consumer News – Summer 2005 – When the News Reports Your Personal Information May Be at Risk


Related Financial Services - The following list of company and services directories offer a wide variety of programs for consolidating bills and other similar services, such as a getting a mortgage refinance interest rate quote from a lender or an online quote for life or car insurance.

  • Debt Management Credit Counseling - Having trouble keeping up with your monthly credit payments? Compare debt management companies in this online list that can try amd help you get a grip on your personal financial situation.
  • Debt Settlement Negotiation - Too much debt? List of companies providing this alternative to bankruptcy that provides for debt negotiation and arbitration services for those that need to eliminate debt.
  • Personal Loan Companies - This type of lending is most often structured as an unsecured debt. This means your personal property or house will not used as collateral. Your approval (or denial) will usually be based upon your payment / credit history and your ability to repay the loan. This type of credit is also often called a signature loan.

When the News Reports Say Your Personal Information May Be at Risk

You've probably seen reports on the news or in the paper about major "security breaches" in which a retailer, credit card processing firm or some other company revealed that confidential account information was "lost" or stolen. Chances are that you worried about your credit card numbers, Social Security number or other personal data being in the possession of identity thieves who might commit fraud in your name. Here's what to know and do:


  • New rules require a financial institution or its service provider to notify customers of security breaches. Starting April 1, 2005, the FDIC and other federal banking regulators require that banks issue notices in the event of unauthorized access to sensitive data, including Social Security numbers, account numbers, passwords and other information that could result in "substantial harm or inconvenience to any customer."


    "If you receive one of these notices, your financial institution will spell out the steps you should take to protect yourself," said Kathryn Weatherby, an FDIC bank technology supervision specialist. "Or, if the situation is serious enough, your bank may replace your credit card with a new one and close your old account."

  • Keep a close watch on your credit card bills and bank statements. Look at your monthly statements as soon as they arrive and report a discrepancy or anything suspicious, such as a missing payment or an unauthorized withdrawal. While federal and state laws may limit your losses if you're a victim of fraud or theft, your protections may be stronger if you report the problem quickly and in writing.


    Also contact your institution if a statement doesn't arrive on time because that could be a sign that an ID thief has stolen your mail and/or account information to commit fraud in your name from another location.

  • Exercise your new rights to review your credit record and report fraudulent activity. Your credit report, which is prepared by a credit bureau, summarizes your history of paying debts and other bills. Under the Fair and Accurate Credit Transactions Act (FACTA), as of September 1, 2005, residents in all 50 states and U.S. territories, can get one free credit report each year from each of the nation's three major credit bureaus. The new law took effect in western states last December and has been gradually moving east.


    Experts suggest spreading out your requests throughout the year—get one free report every four months instead of three at the same time—to maximize your protection.

To get your free report, go to www.AnnualCreditReport.com or call toll-free 877-322-8228. Review your credit report for warning signs of actual or potential ID theft, such as mention of a credit card, loan or lease you never signed up for. If you already are a victim of ID theft or you suspect you are a target, FACTA gives you new rights to place a fraud alert in your credit files at all three major credit bureaus by calling or writing any one of their fraud departments.


"These fraud alerts will help prevent an imposter from obtaining new credit in your name because, at a minimum, the lender will be required to make a reasonable attempt to verify the applicant's identity," explained Weatherby.


For more information about protecting against ID theft, see the Fall 2004 FDIC Consumer News at www.fdic.gov/consumers/consumer/news/cnfall04/index.html.


Summer 2005 | Your Personal Information May Be at Risk | Don't Be Fooled by Fake Checks


FDIC Consumer News is published by the Federal Deposit Insurance Corporation


FDIC Consumer News is produced quarterly by the FDIC Office of Public Affairs in cooperation with other Divisions and Offices. It is intended to present information in a nontechnical way and is not intended to be a legal interpretation of FDIC or other government regulations and policies. Mention of a product, service or company does not constitute an endorsement.


Find current and past issues of FDIC Consumer News at http://www.fdic.gov/consumernews. Refer to this same index to locate the issues that are specially formatted for being reprinted in any quantity.


To receive an e-mail notice about each new issue of FDIC Consumer News posted on the FDIC Web site, with links to stories, follow instructions posted at www.fdic.gov/about/subscriptions/index.html.


Last updated on 8/15/2005

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