I am taking a Fraud Investigation/Forensics class and while we focus on accounting issues like financial statement fraud and employee fraud, we also highlight all fraud including consumer fraud and identity theft. Our teacher, Dr. Chad Albrecht, put together a homework assignment to harden ourselves against identity theft and scams. I thought I would share it with all of you that read our blog so you can take advantage of this knowledge and recommend that you follow these steps.
Steps to Minimize your Risk to Consumer Fraud
1. Opt Out of Pre-Approved Credit Cards by calling 1-888-567-8688. Since credit card companies only update their records every 3 - 6 months, it may take a few months for each credit card company to update you within their records.
2. Opt Out of Telemarketing (Reduces risk of telemarketing fraud): Call 1-888-382-1222 or go to
donotcall.gov. You must reregister every four years.
3. Go to your bank, credit union, or financial institution and proactively request that they do not share your financial information with third parties.
4. Check your credit report at least once a year. To do this go to
annualcreditreport.com. Do not go to freecreditreport.com (remember the commercials with the guitar guy) as they will charge you a monthly rate unless you proactively cancel your subscription.
Annualcreditreport.com is the official website that is sponsored by the three credit reporting agencies (Experian, TransUnion, and Equifax). This will help make sure that someone is not using your credit for their own purposes.
5. If you are going on vacation have the post office hold your mail until you return. You can do this by calling 1-800-275-8777.
6. Before investing in a company or donating to a charity make sure you visit the Better Business Bureau at
www.bbb.org. Remember, just because the company does not appear on the website does not mean the company is not fraudulent. Scammers will often change the name of the company in order to avoid detection. If the company does not have a history or is included in the Better Business Bureau database as having problems, it should send a definite red flag.
Finally, remember if something seems to good to be true — it probably is!
That's what he gave us. I think #3 is interesting. Previous to 1997 it was legal to give the information of your customers to whoever asked you for it. Well, in 1997 they made that illegal but allowed banks to sell your info to third parties. But anyone can opt-out of the selling of their own information. Side note: Wells Fargo seems to have a policy of not selling individual customers information to third parties. They may only give the info to other Wells Fargo entities, and you can opt-out of that if you would like.