Katrina and ID Theft Issues

For almost two weeks now, we’ve heard about the cataclysmic devastation brought on by the havoc of Hurricane Katrina. While no price can be put on the human loss both in lives and in memories, history, etc., another issue in all this tragedy is the ongoing problem of identity theft.

Identity theft is a major problem anyway but this disaster presents unique opportunities for the identity thief and vigilance is absolutely important. As many people left their homes with only the clothes they were wearing, looters will be able to rummage through belongings with plenty of time and freedom to search thoroughly. This will give them the opportunity to steal social security numbers, credit cards, financial documents and all types of other information.

This morning on NPR’s Morning Edition, Evan Hendricks, editor of Financial Times. He has some good advice for survivors including making a note on your calendar to contact the credit bureaus in about 60 days to make sure no one is abusing your credit. He also advised people not to be hasty in canceling credit cards and other financial accounts. This could alter your credit for the worse.

This rule could also apply to businesses as well. Many small businesses were left in ruins throughout the Gulf Coast region much as homes were and it’s an opportunity to take small businesses to examine their security procedures with regard to financial information. Companies should make sure their records are secure as well as their credit information both in terms of business licensing but also in terms of credit numbers like Dun & Bradstreet. Credit ratings can be difficult enough to maintain without others trying to create problems and abuse the work businesses put in to protect their name and credit.

Online retailers should be particularly vigilant because many of these identity thieves will attempt to use credit cards and social security numbers to apply for credit with banks, get other cards, make purchases and find other ways to spend money online. You can’t necessarily check the driver’s license, but it is possible to put little checks in place and make sure the transactions are what they appear to be. Also, be prepared to suffer a few losses because inevitably, some will slip through.

Identity theft continues to be a major problem the further we go into the electronic age. With some thoughtfulness and care however, the impact can be minimized and that allows people to deal with the tougher important issues.

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It is repugnant that people use these catastrophic events to prey upon others.

However, we are all vulnerable to ID Theft. There are Five (5) types of ID Theft. Often we just think about the financial version, where people steal from our bank accounts and apply for credit in our name, however it was brought to my attn recently by an article in Kiplinger's Personal Finance that often a crime will be committed and the perp, that is arrested for it, will give as his ID someone elses information.

Sometime later the real owner of that ID will be arrested for missing a court date or have a real problem with that offense on his/her record. See the link at http://zbizpro.blogspot.com

We have to protect ourselves now, like we never have before.