Storm-demonium®…….Don't Get Taken by the Storm 

By Patrice Ann Winovich, CPIA

Hurricane season is in full swing and named storms are not the only perils of destruction that are taking aim at unsuspecting residents. For the last two years we have witnessed the massive destruction of hurricanes mainly in the Gulf States, with Florida being number one. When families are ripped apart, property is destroyed and areas are flooded with strangers, both to help and to steal; storm stricken areas are hot beds for identity thieves where they can easily walk away with personal information about you and your family. They didn't have to steal your purse or wallet, they didn't have hack into a website, they only need to walk around and pickup pieces of paper that were blown around by the storm; and now you have been victimized twice.

Florida ranks sixth in the nation for identity theft, and it is the fastest growing crime in the state. How did it get so out of hand and why do these crooks look for new ways to take your identity? True the internet, primarily Google, a popular search engine are to blame, but only 9% of all identity thefts occur over the internet. Another reason identity theft is on the rise is due to the consolidation of the banking and credit card industries. In other words, everybody is a potential victim.

What can they do with this information? They can open new accounts, rent an apartment, apply for a mortgage, get a car loan, establish services for utilities, write fraudulent checks, steal and transfer money from a bank account, obtain employment, establish a new identity and obtain citizenship.

During the pandemonium and the after storm activity identity theft is the last thing a storm victim is thinking of. Matters of importance turn to filing insurance claims, contacting FEMA and sifting through storm ravaged personal items. The truth is most people don't worry about identity theft until they have become a victim. In areas that are storm stricken it can take months or even a couple of years to know the true impact an by then it is too late to prevent identity theft. A victim will spend on average about $900 out of pocket and 175 hours over almost two years cleaning up the problem. 

According to a Federal Trade Commission survey, it is four times more difficult and five times more costly to clear up the problem once someone has opened new accounts in your good name. You will face cancelled services, denial of credit card usage and maybe criminal charges if someone has committed a crime for something you did not do. Now you have to deal with the court system, creditors and collection agencies in an effort to prove you were a victim and innocent.

So how can consumers cut their chances of becoming a victim twice……..it starts with preparing your home for storm-demonium. Those of us who live in Florida, Texas, Louisiana and the Carolinas are familiar with preparing for hurricane season. We diligently buy water, canned goods, extra batteries and secure our homes with hurricane shutters if we have them. Consumers need to prepare their home in other ways and consider that intruders may storm the area undetected looking for information that can make you and your family a victim twice. Here are some pre and post storm tips to do's so you are not taken by the storm. 

Whirlwind Tips

• Organize your finances and personal papers so they are safe. Some people are organized and others never will be, but the truth is we keep way too many papers that we do not need.

• Now you know what to keep and for how long. How do you safe guard this information from thieves looking to steal your identity? First, you don't have to keep all this information in your house.

• Banks can provide one stop shopping for your convenience and protection. Meet with a bank representative and set up the following:

  • Set-up online checking and request cancelled checks not be returned to you. You can always review transactions on line and request any needed documentation from the bank.

  • Consider having your mortgage, credit card payments and car payments taken directly from your checking or savings account monthly.

  • Request direct deposit for your payroll, pension, social security or dividend checks.

  • Open a safety deposit box to keep documents marked forever, and your will, insurance papers, deeds and anything else you feel is important.

  • Some banks now offer credit watch services for free, but before you sign up be sure these services monitor all three credit reporting agencies and not just the one your bank reports to. The cost is about $12.99 per month.

Annually order copies of all three credit reports free by going to www.annualcreditreport.com  or calling 877-322-8228. Don't forget to request for all family members, too.

Effective July 1, 2006, Florida will become one of 24 states that will allow you to request a security freeze on your credit report. This will block access to your report unless you give written permission. The freeze will cost $10.00 per credit report and it needs to be done with all three. If you are 65 years or older the service is free. Consumers will also have to pay $10.00 if they want to remove the security freeze. It is more effective then credit monitoring and the only tool that stops identity theft before it happens.

Make copies of important documents and mail them to a trusted relative or friend in another state; especially insurance documents and birth records and any information you may need to make a claim.

Memorize your social security number and those of your family members. If too many develop a coded system to carry with you that is not easy detected by thieves. They can be written down backwards or add letters to the numbers.

If your medical insurance card carries your social security number make a copy of the card and black out the numbers with a marker. When you need to go for medical services they can make a copy of your card and hand write the number in.

Buy a shredder and shred information you no longer need. Dumpster diving or trash picking is a favorite way crooks steal your information.

Opt out of credit card offers all together. Call 888-5-Opt-Out. If you need to shop for a better credit card rate go to www.bankrate.com. 

Sign-up for a credit monitoring service, but the key is to be sure the monitor all three agencies and not just their own. With some services you can monitor and access the information using your cell phone if you have internet capabilities.

Some homeowner's policies offer Identity Theft protection. The limits vary from company to company and some will pay up to $50,000 in out of pocket expenses less a deductible. Check with your insurance agent for details.

If an area is storm stricken, the post office will hold the mail for the area and forward it to a new or temporary zip code until service is restored.

Don't scan and store important documents on a CD or DVD. Many people assume this is the best way to safe guard important documents but extreme environmental conditions can shorten the life of optical media. In addition, information stored on a disc is only good for a few years.

To protect important papers such as wills, insurance contracts, deeds, passports, bank account numbers, credit card account numbers and companies, family records, social security cards, stocks and bonds; seal them in a waterproof, portable container or in a plastic bag and put them in your washing machine until after the storm. The washing machine is waterproof and will keep the documents safe.

Victimized

If you are a victim of identity theft there are steps to take to clear your good name.

• File a report with your local police department. Many creditors, banks and insurance companies will want a copy of the report to take the matter seriously or to file a claim.

• Call any one of the three credit reporting agencies and they will call the other two. Request that a fraud alert be placed in your file. This alert is only good for 90 days. 
  
  Equifax
  
  Fraud #: 800-525-6285
  Credit Report #: 800-685-1111
  
  Experian
  
  Fraud #: 800-311-4769
  Credit Report #: 888-397-3742
  
  Trans Union Corp
  
  Fraud #: 800-680-7289
  Credit Report #: 800-916-8800

• Draft a Notarized Affidavit of Fraud. This is a letter that you write describing the dates, types and amounts of any fraudulent charges. This is a must if you need to attend any court proceedings.

• Don't close out all of your credit cards, this can hurt your FICO score and you may have trouble opening new accounts. It is best to contact the affected accounts and have them give you a new credit card number. Always follow-up each phone call with a certified letter confirming the conversation.

• If your checking account has been compromised contact the bank and open a new account. If you are having trouble opening an account due to identity theft call Chex Systems at 800-428-9623. Many people don't realize that check fraud is more prevalent than credit card fraud.

• In the event of a death send a copy of the death certificate to all three credit reporting agencies. In 2004, over 700,000 families fell victim to identity theft after some one died. 

• Notify all of your utility companies and tell them you are a victim of 
  identity theft and that some may be trying to open accounts using your good name. Don't forget to notify your long distance and cell phone companies, too.

• If you have a passport contact your local passport office that someone may
  apply for a new passport using your identity.

• Notify the Social Security Administration's office if someone has 
  fraudently used your social security number call the SSA's Fraud Hotline at 800-269-0271.

• To find out if a thief has been passing bad checks call SCAN at 800-262-7771

• The State of Florida has a "Fight Fraud" website www.fightfraud.org.
  
  While no one can totally prevent identity theft due to the human element of the crime there are steps you can take to safe guard your identity and that of your families so that you don't get taken by storm-demonium. 
  
  Patrice Ann Winovich, CPIA is a licensed property casualty insurance agent,  author, national speaker, business consultant, corporate trainer specializing in insurance education and identity theft. She can be reached at 704-728-5571 or www.patricespeaks.com.