Seven Tips to Protect Yourself

From Online Identity Theft

Guidance for Consumers and Business

 

1. Beware of e-mail requesting personal information. Don't reply to or click on a link in an unsolicited email that asks for your credit card, bank or brokerage account information, passwords or PINs, social security number, or other types of confidential information, even if it looks like the email comes from a financial institution with which you do business. When in doubt, log onto the main Web site of your credit card, bank or brokerage firm at the normal Web address you use or call your firm using a telephone number that you know or one from a previous account statement to inquire about whether the request for information is legitimate. Alternatively, you can obtain the main office address and primary telephone number for any brokerage firm through NASD BrokerCheck. You also can visit the Anti-Phishing Working Group's Web site to find out about some of the latest phishing attacks.


2. Leave suspicious Web sites. If you think a Web site is not legitimate, leave it immediately. Legitimate firms typically offer customers a number of ways to contact them.


3. Keep your personal and financial information secure online. Here are a few simple steps that you can take to make your information more secure when you go online.

• Keep your computer system up to date with the latest security patches.
• Use anti-virus and spyware detection software and be sure to update this software regularly, as new viruses and Trojan Horse programs appear frequently.
• Use personal firewall software. Firewall software should thwart intruders from getting access to your PC over a network.
• Never download software or files from an unknown source.
• Change your passwords on a regular basis. Never send your password to anyone in an e-mail. Try not to write down your password, but if you must, put it in a safe place.
• Avoid e-mailing personal or financial information.
• Read your firm's policies on online security. Review other tips and security instructions that may be offered to better protect your access.
• Before submitting personal or financial information through a Web site, look for the locked padlock image — — on your browser's status bar or look for "https://" [note the "s"] at the beginning of the Internet address. While a padlock image and "https://" does not mean that the Web site is authentic or secure, the absence of either the padlock or the https:// does mean that the site is not secure.
• Log off of any secure legitimate Web site after completing a transaction.
• Be careful when using Internet kiosks or other people's computers. Since you don't know what security precautions have been taken, you may be putting your confidential information at risk.
4. Know who you are doing business with. Before you open an account with a brokerage firm, use NASD BrokerCheck to make sure the brokerage firm and broker are properly registered and to verify phone and address information you receive from the firm or broker. Investments are a major financial undertaking and should be afforded the same degree of investigation and caution as any other major purchase you might make.


5. Order a copy of your credit report. It is a good idea to check your credit report every year. To guard against identity theft, look for accounts you did not open and any unexplained transactions. You can obtain a copy of your credit report from each of the three major credit bureaus, but you may have to pay for them.


Equifax (800) 685-1111
www.equifax.com

Experian
(888) 397-3742
www.experian.

Trans Union
(800) 888-4213
www.transunion.com


You may be able to obtain free annual credit reports from these three credit bureaus online at www.annualcreditreport.com or by calling (877) 322-8228 . The availability of these free credit reports will be phased in across the country over a nine-month period beginning with consumers residing in the thirteen western-most states on December 1, 2004. All Americans will be able to obtain free credit reports regardless of where they live by September 1, 2005. To learn when these free credit reports will be available in your state, visit www.annualcreditreport.com.


6. Review your account statements. This is your last line of defense. If you are victimized, the sooner you catch it, the better. Regularly review your online account information for unauthorized trades, cash withdrawals, or any other unrecognized activity; do the same as soon as you receive each monthly or quarterly statement. If you have moved, make sure to update your postal address with all of the firms where you have accounts. If you receive your statements by email and change your Internet service provider or otherwise change your preferred email address, make sure to update your email address with all of the firms where you have accounts. Immediately report any suspicious activity to your brokerage firm.


7. Act quickly if you believe you've been scammed. If you believe that you're a victim of one of these scams, you need to act quickly. For example, you may only have 60 days to report a loss or theft of funds through an electronic funds transfer to limit your liability.

• Identity Theft. If you believe your identity has been stolen, the Federal Trade Commission's Identity Theft Web site contains step-by-step directions of what you should do.
• Investment Scams. If you're the victim of a brokerage firm identity theft scam, contact NASD's Complaint Center, the Securities and Exchange Commissionor your state securities regulator.

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CONSUMER RESOURCES: Consumer Guide

This guide includes:

- Victim Response Tips
- Summary of Check 21- the new federal -- law about checking accounts
- Reduce Your Risk
- Resources
- Letter Forms


by Identity Theft Resources Center

Resources:

www.privacyrights.org
www.consumersunion.org
www.idtheftcenter.org

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