Useful Advice From An Elder Law Attorney—

Putting The Freeze On Identity Theft

By Nancy K. Crevier

Local elder law attorney Paul Lux is concerned about his elderly clients who often ask him about identity theft, and about the number of scams aimed primarily at those who have recently lost a spouse.

“They are overwhelmed with advertisements of companies that offer to protect their credit for a fee,” said Mr Lux. In another scam, clients who have recently been widowed receive a solicitation in the mail to verify the credit history of the deceased, he said. “They are asked to provide the social security number, date of birth, and other personal information so that credit can be canceled, which is unnecessary.” At first glance, the letter may seem legitimate, Mr Lux said, but upon closer inspection it is clearly a poor photocopy and should be immediately disregarded.

“If someone gets hold of a social security number they can get credit cards and use them in such a way that no signature is needed, such as buying online,” said Mr Lux. That can be a real problem when the person whose identity has been stolen tries to prove they did not make the purchases. It is a long process when fraud investigation is underway, he said, and it is not a certainty that the victim will ever be able to prove that the charges are not his or her charges.

“You might as well say, ‘Here’s my credit history,’ if you lose your social security number to identity theft,” said Mr Lux. “That thief can buy a house with a huge mortgage or refinance, not pay, and it looks like the victim is the person liable for the debt.”

Anyone with credit should also be aware, said Mr Lux, that not all identity theft occurs through outside solicitations. “What is true is that 75 percent of credit fraud is by family members.”

There is a simple way to avoid the headaches of identity theft, though, said Mr Lux. “State legislation has passed laws that freeze credit,” he said. “With a very simple letter to the three major credit reporting agencies and a check you can prevent identity theft. If your credit history is ‘frozen,’ any crook who gets a social security number will not be able to take out bogus credit cards under that number or take out mortgages with personal information after the date that the person freezes the reports,” he explained.

According to TransUnion, Equifax, and Experian credit reporting agencies, a security freeze prevents all third parties from accessing a credit report without the consent of the client, so that credit, loans, or services cannot be approved. TransUnion notes on its website, transunion.com, that even “companies that provide consumer data to TransUnion will not be allowed to update name, address, social security number, and date of birth information to your credit report,” and that if new credit is needed, a removal or temporary lift of the security freeze using a special PIN provided upon application will be necessary.

A security freeze request is not shared with the other credit reporting companies. Each must be contacted for directions on how to place a security freeze with that agency. All three of the major reporting companies charge a small fee for placing the security freeze, and charge a fee each time the freeze is lifted or removed. With a valid copy of an identity theft report, though, none of the companies charge for a security freeze requested by someone who is already a victim of identity theft.

To place a security freeze by mail, send a check for $10, a letter with your full name (including initials), address, social security number, and a copy of your driver’s license to TransUnion Fraud Victim Assistance Department, PO Box 6790, Fullerton CA 92834. If you are married, send $20 with information on both persons to whom the freezes will apply. Equifax requests a check for $10, a letter with full name, address, social security number, date of birth, copy of driver’s license, or a utility bill showing your mailing address mailed to Equifax Security Freeze, PO Box 105788, Atlanta GA 30348. Send Experian, PO Box 9554, Allen TX 75013 a check for $10.60, a letter with full name, address, social security number, date of birth, and copy of driver’s license, and a utility bill showing mailing address and other addresses within the last two years. Do not send originals of any documents, only copies, and all correspondence should be sent certified mail.

The requirements to place a freeze varies from company to company, and from state to state. Security freeze is available to all residents of the US, Puerto Rico, Guam, and the Virgin Islands. Complete details can be found at transunion.com, equifax.com, and experian.com.

Once the freeze request information is processed, a confirmation letter with a confirmation number or PIN will be issued via US mail. This letter must be stored in a safe place.

“Since most elderly people have no mortgage and one or two credit cards and don’t need anymore credit cards, I always tell them that if they ‘freeze’ their credit reports with the three major credit reporting agencies, they do not have to fear identity theft ever again,” said Mr Lux. “It is something that should be done by everyone, not just the elderly. If you need to ‘unfreeze’ your records to get a new credit card or to get or refinance a mortgage, you can do that and then freeze it again. Isn’t that easier than worrying about it?”