Information on Identity Theft

Protecting Your Personal Top Secret
Service Members Must be Vigilant to Prevent Identity Theft
By Mitch Swanda, CFP, USAA Financial Planning ServicesPosted January, 2005
Imagine returning from a six-month deployment to find your credit cards maxed out, your bank account drained, and unfriendly letters in the mail seeking payment for products you didn’t order. This nightmare could happen to you if you become a victim of what the Federal Trade Commission (FTC) calls the fastest growing crime in America identity theft. Within the past year, identity theft affected more than 10 million individuals and cost consumers and businesses more than $53 billion in lost funds and recovery efforts.
Identity theft occurs when an individual uses your name, address, Social Security number (SSN), financial account numbers or other personal information to commit fraud or other crimes. Most identity theft incidents are financially motivated, as the culprits typically use your confidential information to open fraudulent bank or credit card accounts in your name, cash your checks, or use your good credit to secure loans for cars and other big-ticket items.
For victims of identity theft, it can take months or years and thousands of dollars to clear their names. And since evidence suggests that members of the Armed Forces could be at an even greater risk for identity theft than the average American consumer, the need for service members to keep personal information secure is even more critical.
Military Members Make Prime Targets
Why would identity thieves target military members? Consider that personal records of government personnel may be more publicly available than those of civilians, making it easier for ID thieves to obtain information they can use. And, due to frequent PCS moves or deployments, service members may be less likely to stay apprised of their financial accounts and credit report, making them less likely to recognize identity theft before it’s too late.
While no one can guarantee their own protection from identity theft, there are steps military members can take to reduce their risk and minimize the damage if their information is compromised.
Precautions Can Pay Off
If there’s a possibility of being deployed, draft a durable power of attorney with the help of your JAG office. This document will allow a family member or another person you trust to manage your financial affairs, including responding to identity theft if it occurs, during your absence. You also should arrange to have your mail picked up regularly while you’re away.
Separation from the military is another prime window of opportunity for identity thieves. Until recently, the government encouraged all former service members to file a copy of Department of Defense Form 214 (DD 214) with their county courthouse, which made your military service records available to the public. As a result of confirmed identity theft cases resulting from public access to these records, service members are now instructed to keep this form private.
Beyond these military-specific measures, adopting some precautionary habits in your everyday life, such as shredding old financial documents and giving out your SSN only when necessary, can help to safeguard your personal information and minimize your risk of identity theft.
Your financial services providers also may offer services to help you detect identity theft and counteract the effects. Some banks and other financial institutions offer services to help you monitor your credit report and alert you to irregularities. And some renters and homeowners insurance policies now offer protection from identity theft, reimbursing the policyholder for financial losses resulting from the crime.
If It Happens to You
If you suspect that you have become an identity theft victim, inform all organizations that may be able to help isolate the problem: your employer, your bank and other financial services providers, creditors, credit reporting agencies, and the Social Security Administration.
And as you work to prove your identity has been stolen and recover your losses, keep a log of all conversations and correspondence with these organizations, and make records of any additional expenses you incur during the process.
Stay Alert, Stay Informed
The more you know about identity theft, the more prepared you’ll be to protect yourself. The FTC and DoD created Military Sentinel (www.consumer.gov/military), which alerts visitors to common scams and recognized offenders, and provides an online form to report identity theft cases directly to government officials. Also, The USAA Educational Foundation, a non-profit organization providing consumer information to the military and the general public, offers a comprehensive guide on identity theft, available for free at http://www.usaaedfoundation.org/.