Last week I covered a few details about identity theft or IDT. While you might rest a little easier with the knowledge that your chances of an IDT experience are slim, you might lose a little sleep when you discover that fraud is prevalent and that the chances that you will be a victim of theft - or fraud - are quite a bit higher. Witness the headlines across the U.S. within the past two weeks:

1. In Post Falls, Idaho, the founder of a defunct northern Idaho group home was indicted by a federal grand jury on embezzlement charges. This man managed to bilk Medicaid and his employees' pension plan for $150,000 before he was caught.
   
   
2. In Chicago, Illinois, a woman who was an associate partner at a consulting firm stole about $241,000 from her employer to feed her shopping addiction.
   
   
3. In New Orleans, Louisiana, a former postal worker who swiped gift cards from holiday mails was sentenced to 16 months in prison.
   
   
4. In Boston, Massachusetts, a man plead guilty to federal charges that he cut at least 18 cables in an attempt to extort money from communications companies.
   
   
5. In the Virgin Islands (U.S. territory), the Motor Vehicle Bureau was charged with an audit which showed that the number of vehicle registrations issued didn't match with the number or amount of fees collected.
   
   
6. In Big Island, Virginia, the treasurer for the PTA (Parent-Teacher Association) was charged with stealing one-half of the total PTA treasury funds. Her children were sent to another school to avoid peer persecution.

The instances mentioned above are startling, because they don't involve high-powered CEO's or political entities. Outside the disgruntled cable abuser/thief and PTA treasurer (who was a volunteer), most of the incidents involved employers and employees. I don't know about you, but after reading these stories I began to wonder how a person could protect herself against petty theft/fraud. How can you tell when an employer steals your pension monies, when an employee siphons off your profits, or when a postal worker steals your mail?

Unfortunately - in many instances - we can't know we've been bilked until the act is done. Additionally, if you note the number of people involved with each incident above, usually more than one person is affected by a fraudulent act. As a possible fraud victim, you can avoid some scenarios if you take a few steps:

1. I mentioned the importance of your Social Security number (SS#) last week, and I'll mention it again this week. You do not need your actual card for any reason other than to obtain a driver's license and possibly your passport. Otherwise, keep that SS card in your safety deposit box, commit your number to memory, and give that number out only when absolutely necessary. Frankly, I feel that the only people who need my social security number are those individuals who handle some intricate financial affairs for me such as financial aid for a college education or for a paycheck. If you hire someone to fill out your taxes, you can add your SS# after they finalize the paperwork.
   
   Here's a for-instance on the SS# topic: A friend of mine entered an optometrist's office for his initial eye appointment and filled out the obligatory first-time visitor's paperwork. However, he didn't write his SS# on the papers, as he intended to pay for the appointment with cash (and he could have paid with insurance without giving out his number as well). When the receptionist refused to grant his appointment without his SS#, he told her that he didn't want the appointment. He returned home to find a message from the optometrist on his answering machine. The doctor had apologized and offered my friend a free initial appointment if he would return.
   
   While you may not receive a free doctor's visit when you refuse to give out your SS#, you may find that not that many people really need that vital piece of personal information. If someone asks you for your SS#, ask them why they need it and if they can operate without it. If, like my friend above, they give you grief about the issue, just walk away. If they really don't need the information, you'll hear from someone, as the bottom line isn't your SS# - it's profit from your business.
   
   
2. Use your credit card for as many purchases as possible - especially online purchases. You may reel from that bit of information, as many of you know that I'm a staunch advocate of minimal credit card action. But, if you pay cash, you don't have a secondary record that can be disputed with the help of your credit card company. Credit card transactions are powerful proof that shows when, where, how, and why a person used a credit card. Check your transactions monthly and follow up immediately on any suspicious activity. But - a caveat: You might think about paying those totals on a monthly basis so you don't end up in debt.
   
   
3. On that note, please learn how to access your credit report and read the results. Your access to a free credit report is available once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion. In other words, you don't need to pay anyone to view your credit standing unless you want to view your credit report more than three times during any given year. For a further explanation, here's a quote from AnnualCreditReport.com:
   
   "You are entitled to receive one free credit file disclosure every 12 months from each of the nationwide consumer credit reporting companies through the Central Source. It is entirely your choice whether you order all three credit file disclosures at the same time or order one now and others later. The advantage of ordering all three at the same time is that you can compare them. (However, you will not be eligible for another free credit file disclosure from the Central Source for 12 months.) On the other hand, the advantage of ordering one now and others later (for example, one credit file disclosure every four months) is that you can keep track of any changes or new information that may appear on your credit file disclosure."

For more information about your access to credit disclosures, read the FAQs (Frequently Asked Questions) on the AnnualCreditReport.com site. Next week, I'll go into depth about what your credit report reveals and how you can challenge an incorrect record.

Until Then,
Linda Goin