Fight And Win The War Against ID Theft
By Scott Mitic
Winter 2008-09
Identity theft in the military is on the rise, and its impact on members of the military can be devastating.
According to the Federal Trade Commission, millions of Americans have their identities stolen each year. Identity thieves can use your information to obtain credit cards, loans and public utilities in your name. They may also create a false identification using your name and sell this identity to criminals or illegal immigrants. Many ID theft victims spend hundreds of dollars and hours repairing damage to their good name and credit record.
For members of the military, the results are especially disastrous. For example, one Army sergeant was thrilled to be enjoying some time at home after three overseas deployments. His peaceful break was cut short when his wife confronted him with a Department of Treasury letter that said his federal tax refund had been redirected to pay back child support. This was alarming news, since he didn't have children.
It turned out that his brother had stolen his Social Security number and used it to avoid paying his child support bill. In fact, his brother also had used his information on other occasions, causing the sergeant’s credit report to show two wives, three aliases, more than 15 bad debts and about 40 addresses.
The sergeant has since cleared his record. But the fight was costly, and he spent years trying to clean up the mess. He learned that credit reporting agencies and others are not set up to help military families deal with this crime. He had to fight even to file a police report because he lived on a naval base where the local police did not have jurisdiction, and his brother lived thousands of miles away. Finally, a federal agent stepped in, and the identity thief eventually was arrested.
Military members are especially vulnerable to identity theft. Until recently, the Department of Defense (DoD) printed Social Security numbers on military ID cards. Moving forward, as cards expire, the DoD will partially truncate all but the last four digits on new cards. By 2010, all members of the military will enjoy this layer of protection. This change, however, does not protect military personnel whose Social Security numbers are currently in plain view on their cards.
Another problem for military members is that their information resides in government and private computer networks nationwide. Data breaches reported since 2005 have exposed almost 2.9 million current and former military members to identity theft, according to the Privacy Rights Clearinghouse. Several government-related data breaches have resulted from lost or stolen laptops which contained inadequately secured information.
While identity theft inflicts a huge impact on all victims, it can prove especially difficult for servicemembers to clear identity theft while serving in various parts of the world. Their inability to act may result in serious financial consequences. Soldiers out of the country on deployments may not learn about the crime until they return home, only to find that they may be turned down for home loans, employment opportunities and more.
Here’s how military members can win the war against identity theft:
Place an active duty alert on your files when you deploy. Effective for one year, these alerts require businesses to verify applicants' identities before issuing credit. Call the toll-free number of one of the nationwide consumer reporting agencies (Equifax, Experian or Trans Union) to automatically place or remove an alert with all three.
Use online banking services to monitor and track your bank account activity. For all your financial accounts, receive your monthly statements online instead of receiving a monthly paper statement. This will reduce your chances of someone stealing your statements from the mail or trash.
Pay attention to data breach notices. Due to state laws and company policies, many organizations notify victims when a data breach has occurred. Be sure to read this correspondence carefully and take advantage of any assistance offered.
Be aware of phishing scams. Identity thieves prey on members of the military, especially if they know you are away from home, by sending fake e-mails saying that you need to provide personal information or your accounts will be suspended. You may be inclined to send what they want in order to avoid any account disruption – but don’t fall for it. Exercise caution when responding to e-mails and instant messages from unknown sources, and always verify a company’s legitimacy before handing over your sensitive information.
Secure your identity when living in the barracks. Many ID theft victims say they knew and trusted the people who stole their identities. When living with others, it’s better to be safe than sorry. Keep your paperwork, including identity documents, bills and account statements in a secure place. Always shred your personal mail and receipts before tossing them.
Check your credit report regularly and follow up on any mistakes or unfamiliar items. Go to www.annualcreditreport.com for a free credit report; other sites may require a fee or registration for credit monitoring. The Military Sentinel website (www.consumer.gov/military) allows servicemembers to enter consumer complaints.
By understanding the risks and taking extra precautions, you can ensure that your financial and identity records stay secure, even when you are away from home.
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Scott Mitic is chief executive officer of TrustedID (www.trustedid.com), which creates new solutions that help eliminate the most dangerous and costly forms of identity theft. He may be reached at smitic@trustedid.com.
