Credit Monitoring in the Age of Digital Data Thefts
Consumers need
increased focus on fiscal responsibility and identity theft
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Consumers
should keep track of their credit profile for two reasons:
to make sure they're treated fairly and to keep tabs
on identity theft.
Credit
scores are used for lenders to determine not only whether
or not to grant credit but also how much of an interest
rate to charge. The better the credit score is, the
lower consumers pay for interest. Consumers have to
keep their credit report without errors and up-to-date.
Consumers
are worried as identity fraud continues to grab attention
as the fastest growing crime in the country. To make
matters worse, the number of data security breach incidents
are increasing. In this fast-paced digital world, everybody
is a potential victim to identity theft and fraud.
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Checking your credit report is like going to the doctor.
If something happens you want to take care of it quickly.
You should check your credit report since so much depends
on its accuracy. Consumers must take a more active role in
maintaining and monitoring their credit health.
Everybody agrees that proactive monitoring your credit report
is vital in the information age. Various companies offer products
on credit monitoring and early warning services. What really
is their service and is it really worth the money you pay
for?
Identity Theft is a Huge Problem You Have to Fight Against.
The number of cases of identity theft reported to the federal
government has been doubling every year .However, what is
most worrying is that the data provided by reliable sources
are only the tip of the iceberg, since many cases go unreported.
Identity thieves are just as aggressive in robbing individuals.
Crooks are finding it easy to trick consumers into giving
out their personal information, then using it to steal their
identities. They've used fraudulent e-mails, Web sites and
even instant messages to try to trick consumers into entering
personal data.
it's important you know who's checking your credit report
and what information is being added onto your file. Unauthorized
accounts opened in your name or credit queries from unfamiliar
sources could mean someone is fraudulently using your identity.
Increasing Data Security Breaches - Everybody is Vulnerable
Data
Security Breaches in 2005 |
Company |
Accounts
potentially affected |
| ChoicePoint |
145,000 |
| Bank
of America |
1,200,000 |
| LexisNexis |
310,000 |
| DSW/Retail
Ventures |
1,400,000 |
| Ameritrade |
200,000 |
| Wachovia,
Bank of Ameria, PNC Financtial Services Group and
Commerce Bankcorp |
676,000 |
| Time
Warner |
600,000 |
| CitiFinancial |
3,900,000 |
| CardSystems |
40,000,000 |
Source: Washington Post
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Privacy Rights Clearinghouse
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ChoicePoint, LexisNexis, then.. Citi
Group. A string of recent failures of financial institutions
to protect personal information have increased consumers'
concerns about personal information security.
Even FTC chair was one of those victims. According
to an AP report, FTC chairwoman Majoras received a letter
from shoe retailer DSW informing her that her credit
card information had been stolen.
Federal Trade Commission helps millions of consumers
each year battle identity theft. It proved that everbody
is vulnerable to identity fraud and theft.
With dramatic Increase in data breaches consumers are
sitting ducks for identity theft. This is not a case
of people being careless about their passwords or documents
but of corporations handling personal data with weak
secutity.
It is almost impossible to prevent ID theft from happening,
even if you take every precaution to prevent it, particularly
when a business that has your personal information is
compromised from within. The single best defense against
prolonged damage from ID theft is to frequently review
your credit report information for signs of incorrect
information and accounts that you did not open. Early
detection and immediate action is the only way to stop
the damage that can be done when your personal information
is fraudulently used.
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All
About Credit Monitoring & Credit Monitoring Services
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What
is credit monitoring?
Early warning systems that quickly alert you by mail
or online to activity on your credit report such as
newly opened accounts. |
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Credit
monitoring services
To guard against fraud and keep your credit healthy,
Credit Monitoring service will be able to quickly alert
you to any changes in your credit report. You will get
updates of recent activity and a copy of your entire
credit report when you sign up. |
High Cost of resolving stolen identity
One study showed that identity theft victims spent an average
of $1,500 and 175 hours, actively trying to resolve their
identity theft-related problems in 2004.
Benefits of credit monitoring services
- Free credit report
- Detect suspicious identity theft activity early
- Catch credit report erros
- Know who's checking your credit report
- Increase chance of credit approval
- Pay lower interest
Limitations of credit monitoring services
- Most services monitor only one CRA's report.
- The monitoring and updating may not be timely.
- Cost more than when you monitor yourself
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