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How To Avoid Student Loan Fraud

How To Avoid Student Loan Fraud

Let’s face it, college is expensive. The College Board reports that in 2017-2018, the average cost of tuition and fees at private colleges was $34,740, $9,970 for in-state public colleges, and out-of-state public school attendees averaged $25,620. This is per year (and doesn’t include room and board, books, etc.). Needless to say, most students require at least some financial aid. 70% of students, to be exact. Wouldn’t it be life-changing if your child found out they were unable to obtain student loans because someone had already damaged their credit? It happens all the time, unfortunately. Here are some tips on how to avoid student loan fraud and steps to take should you discover it has already occurred.

What Is Student Loan Fraud?

Specifically, student loan fraud is when someone steals another person’s information and fraudulently applies for and receives student loans. These loans will show up on the credit reports for the individual whos identity was stolen. If this has already happened to a student who is applying for financial aid, the outstanding (and most likely delinquent) loans will show on their credit report (thus preventing them from obtaining aid).

A potential student borrower doesn’t have to have been affected by student loan fraud specifically to have their ability to obtain financial aid impacted. Thieves who apply for credit, standard loans or anything that can show on a credit report will prevent the affected student from being approved for aid.

Tips For Preventing Fraud

Fortunately, there are precautions you can take to prevent, or at least lessen the impact from, identity theft for potential students:

  • Request a credit report for the student from one of the major credit bureaus. Carefully check the report for any fraudulent activity (the report will most likely be very short). In fact, the student may not even have a credit report yet (this is a good thing as it means they most likely have clean credit).
  • When applying for student loans, be very careful with any e-mail regarding student loans, FAFSA or anything related. There are many current scams which offer to find aid or fill out FAFSA forms for you. Do not open any attachments or respond to any e-mails unless you are fully aware of who the sender is.
  • Place a credit report on the student’s credit file to prevent anyone from opening credit using their information. You will also be notified when any attempts to obtain credit are made.

What To Do If Fraud Has Already Occurred

Should you find that the student’s credit report has fraudulent activity, follow these steps:

  • If there were student loans applied for on the student’s account, contact the school the fraudulent loans were opened through and notify them. Also, file a report with the Department of Education. The affected student may be eligible to have these loans removed through a false certification discharge.
  • If a student loan application was denied, contact the school the loans were applied through.
  • If subscribed to an identity theft restoration service, such as ReclaimMyID, contact them immediately. They will get right to work in recovering your identity and the faster they learn of the fraudulent activity the better.

College is an important step in determining the future. No potential student who wishes to further their education should be denied the chance due to student loan fraud. Learning how to avoid student loan fraud will serve you and any potential student well when the time comes to apply for financial aid.

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Avoiding Identity Theft After A Natural Disaster

Avoiding Identity Theft After A Natural Disaster

In recent years, Americans have been subjected to numerous, devastating natural disasters. From hurricanes to wildfires, millions have had their entire lives turned upside down in the blink of an eye. The sad reality is that people will use these events to take advantage of those in need. Avoiding identity theft after a natural disaster is something you must make a priority should you find yourself in a similar situation.

Fraudulent FEMA Scams

In the aftermath of a natural disaster FEMA can be a lifesaver for many. Federal Emergency Management Agency (or FEMA) was established to help Americans before, during and after disasters. As you might expect, victims of natural disasters are often eager to receive help from FEMA. This creates the perfect avenue for potential scammers to act as fraudulent FEMA associates in order to obtain your personal information. Here are some often reported scams, via the FTC:

  • Callers claiming to be from FEMA, requesting your personal information.
  • FEMA benefits filed under your name, without your permission.

How To Avoid Being Scammed

In order to receive benefits from FEMA, you must initiate the request. Whether online or via telephone, you are the one who must get the ball rolling. This is one of the easiest ways to detect possible fraud, if you haven’t already filed with FEMA.

  • If you are contacted by FEMA (or someone claiming to be from FEMA) via telephone, and you haven’t initiated contact, do not provide any personal information.
  • If you have initiated contact but aren’t sure you’re speaking to a legitimate FEMA representative, contact FEMA at 800-621-3362.
  • Should you receive an e-mail from what looks to be FEMA, do not provide personal information. Contact FEMA via the phone number listed above to provide information they may require.

Being the victim of a natural disaster can be extremely stressful. It can be difficult to keep your focus during such trying times. We hope that these tips will help you protect your information should you face such trying times.

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New Medicare Cards Have A Special Identifier

New Medicare Cards Have Special Identifier

Americans who are enrolled in Medicare should be expecting a new arrival in their mailboxes very soon. The new 2018 Medicare cards are on their way.  You will want to keep a close eye on your mailbox so that your card doesn’t end up in someone else’s hands. Instead of using your social security number, new Medicare cards have a special identifier. This new addition is called an MBI or Medicare Beneficiary Identifier.

Your Safety Is The Reason For The New Identifier

Medical identity theft is a real problem in the United States. As reported by the Office of Civil Rights, last year 2 million Americans had their medical information breached. In 2016, 16.5 million people were affected. Obtaining an individual’s Social Security number is the key to criminals breaching protected medical information. With the addition of the new MBI number, instead of your Social Security number, you have an added layer of protection against medical identity theft.

Stay Alert

The new MBI helps protect you, but you still have to keep your eyes open for scams. The Ponemon Institute conducted a survey of previous medical identity theft victims in order to gauge the amount of time and money that is required to recover. On average, it took over 200 hours and $13,500 to fully recover from medical identity theft.

If these people were members of ReclaimMyID prior to the event, ReclaimMyID would have put in the work to restore their standing with no money out of pocket. Don’t let this happen to you, protect your family for $49.99 a year with ReclaimMyID.

However, you still have to keep your eyes open to avoid medical identity theft. Medicare and their employees will never contact you asking for your medical or personal information. If you receive an e-mail or a call asking for this information, do not respond and do not open any attachments.  You have to keep your information protected, so stay alert.

It is a step in the right direction now that new Medicare cards have a special identifier. You must still stay diligent in order to protect your information.

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Tax Identity Theft Awareness Week – Day Four

Tax Identity Theft Awareness Week – Day Four focused on businesses. Information on how to protect your business from tax ID fraud, warning signs and information about emerging scams was provided by the FTC. Here are the points that we found to be most informative.

How Does ID Theft Happen?

There are three main ways that ID theft occurs:

  1. Data Breaches – Information is obtained illegally, either electronically or physically.
  2. Malware – Viruses obtained on company computers which give access to criminals, who then steal your information.
  3. Phishing/Spear Phishing – E-mails intended to coax you into providing personal information which is then used for fraudulent tax returns, unauthorized purchases, etc.

Security Is Important.

Keeping your information, your employees information and your clients information secure is of the utmost importance.

  • Create a culture of security in your workplace.
  • Ask yourself important questions regarding data:
    • What kinds of info do you collect?
    • How long is it kept?
    • Who is it shared with?
    • Who has access?
  • Sensitive data should only be accessed by those who must use it for job duties.
  • Minimize network admin privileges.

Identify Warning Signs Of Business Identity Theft

There are a few common warning signs you may receive from the IRS that businesses may have become a victim of identity theft:

  • Notices about fictitious employees.
  • Notices about a closed or dormant business.
  • Your tax return is accepted as an amended one.

Emerging Scams

Each year there are new scams designed to take advantage of businesses and employees. Here are a few of the latest:

  • Phishing e-mails posing as the IRS.
  • Phishing e-mails posing as new clients.
  • Spoofing e-mails to payroll personnel (HR, for example) requesting all employee W-2 forms.
  • Requesting remote takeovers of tax preparer computers.

Tips

  • Provide top-notch security software.
    • Anti-virus
    • Firewall
    • File encryption
    • Secure WiFi
    • Backup Files
  • Educate employees about safe online practices.
    • Never download files or click links from unknown sources.
    • Inform employees of latest trends in phishing e-mails and schemes.

These are the highlights from Tax Identity Theft Awareness Week – Day Four. We hope that you’ve learned some new tricks to keep your business, your employees and your clients protected.

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Tax Identity Theft Awareness Week – Day Three

Active Duty Military

As Tax Identity Theft Awareness Week continues, brought to us by the FTC, today’s focus was on protecting active duty military. Here are the highlights from Tax Identity Theft Awareness Week – Day Three.

Protecting Our Military

Our active duty military personnel are at a disadvantage when it comes to monitoring themselves for identity theft. While overseas, most military have limited access to their accounts and this can leave them more prone to fraudulent activity. It is difficult for them to receive e-mails or notifications regarding their credit or financial accounts.

Active Duty Credit Alerts

For those deployed in the active military, you have the option to set up Active Duty Credit alerts, for free, with the three main credit reporting bureaus. Please contact one of the following:

  • TransUnion 1‑800‑680‑7289
  • Equifax 1‑800‑525‑6285
  • Experian 1‑888‑397‑3742

State that you are an active duty member of the military and ask for an Active Duty Credit Alert to be placed on your file. You will need to provide specific forms of identification.

What Will This Do?

Placing a credit alert on your account will require lenders to go through additional steps in order to verify that you are actually requesting credit. Generally, they will try and contact you (or a representative – more on that in a bit) via a telephone number you provide.

Find A Representative

When setting up your credit alert, you have the ability to appoint a personal representative. This will give the assigned person the legal authority to act on your behalf on credit issues. This makes it much easier if you should want to apply for credit while deployed.

Your Active Duty Credit Alert will stay on your file for one year. This is an extra layer of protection which will give you peace of mind while you focus on your duties.

The FTC has done an outstanding job bringing to light a vast amount of information regarding tax ID theft this week. We hope that this information from Tax Identity Theft Awareness Week – Day Three has been helpful. We support our troops and thank them for their service!

 

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Tax Identity Theft Awareness Week – Day One

Stess of ID Theft

Coinciding with the first day of tax season, the Federal Trade Commission has dubbed January 29 – February 2 as ‘Tax Identity Theft Awareness Week’. The goal is to provide Americans with facts about tax ID theft and tips to help prevent tax fraud. Here are the highlights from Tax Identity Theft Awareness Week – Day One.

Tax Identity Theft Webinar Provides Eye-Opening Statistics

On the first day of Tax Identity Theft Awareness Week, the FTC and ITRC (Identity Theft Resource Center) offered up the free ‘Tax Identity Theft Warning Signs & Recovery Steps Webinar’. Much of the webinar focused on “What is tax identity theft?” and how to avoid it. However, the webinar did provide some statistics that really got our attention.

We have covered extensively the sheer amount of time that can be spent recovering your identity, should it be stolen. What most people don’t consider is the psychological and physical effect having your identity stolen can have on you. In their 2017 study ‘Identity Theft: The Aftermath’, the ITRC found some extremely disturbing data. They conducted a survey of former identity theft victims and their answers bring a great deal of insight as to how a person can be affected.

  • How distressing was the misuse or attempted misuse of your personal info?
    • 75% were severely distressed
    • 17% were moderately distressed
    • Less the 2% were uneffected

Over ¾ of victims were severely distressed. This is staggering and leads into the next set of data…

  • Behavioral & Physical Reactions Caused By Distress
    • 48% encountered sleep disturbances
    • 37% felt an inability to concentrate
    • 35% felt fatigue
    • 34% encountered headaches
    • 27% encountered panic attacks
    • 25% sought professional help
    • 20% turned to family and friends
    • 13% wanted professional help but couldn’t afford it

Identity theft doesn’t just affect you financially, medically or criminally, it can cause mental, physical and behavioral issues.

This is why having an identity theft recovery service, such as ReclaimMyID on your side BEFORE an encounter is extremely important. These services will do all of the legwork to recover your identity, assets and put everything back together. Not only does this save you time, but it will save you stress and even help prevent physical or mental reactions to these stresses.

To learn more about Reclaim My ID, click HERE.

IRS Imposter Scams Remain A Threat

Many of us are aware of the numerous IRS imposter scams that have been ongoing for the past few years. Basically, someone will call you and pretend to be an employee of the IRS. They will inform you of an issue with your taxes that must be remedied immediately to avoid consequences or jail time. They will expect immediate payment and can be very forceful and believable. Many imposters will even go so far as to rig the caller ID to come up as IRS or with a 202 area code (Washington D.C.). Here are a few tips to help you avoid being scammed:

  • The IRS will almost always try and contact you via mail before making a phone call.
  • The IRS will never expect immediate payment via a pre-paid debit card or wire transfer.
  • Don’t believe e-mails claiming to be from the IRS. This is a common follow-up after an imposter phone call.
  • If you have any doubts, call IRS at 800-829-1040.

Imposter scams have been decreasing since October 2016, but it is still important to notify the proper authorities if you encounter one. Please contact the following with any information:

  • TIGTA = Treasury Inspector General for TAx Administration
    • Tigta.gov
    • 800-366-4484
  • FTC
    • ftc.gov/complaint
    • 877-FTC-HELP

These are the highlights from Tax Identity Theft Awareness Week – Day One. We will keep you updated with information from the rest of the week. Your security during tax season is our #1 objective.

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Weekly Security Habits You Need To Start

Weekly Security Habits You Need To Start

Everyone has routines that they follow throughout a given week. Whether it is taking out the trash on Wednesdays or vacuuming on Sundays, most likely you have things you do to keep your life on track. Well, protecting your identity should be something you make a habit of each and every week. We’ve compiled a few weekly security habits you need to start today.

Update Your Passwords

The most common password for internet logins is ‘password’. This also means that it’s the easiest to guess. If your passwords aren’t up to par, take a few minutes each week to review your logins. Create new, strong passwords to ensure your security on your favorite websites. You should have unique passwords for each website and they should be changed periodically. Often we save credit card and personal information on these websites, so we must ensure it doesn’t fall into the wrong hands.

Keep An Eye On Your Financial Statements

Monitoring your financials is extremely important. Make it easy on yourself and take one day out of the week to monitor bank and credit card statements. This also includes online wallets such as Apple Pay and PayPal. You’re looking for anything out of the ordinary or suspicious. It’s a great idea to also check your credit score if your credit card offers this free service.

Protect Your Social Media

Social Media has become such a large part of most people’s lives, but we often don’t put much thought into it. We post personal photos and our most personal thoughts. Are your security settings as strong as they can be? Take a few minutes each week to review your settings and review what is posted on your social media. You want to keep your personal information between you and the people you trust.

Spending just a few minutes, a few days a week, can add an extra level of security in your life. These are weekly security habits you need to start and stick to in order to protect your information.

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New Year’s Resolutions To Protect Your Identity

New Year's Resolutions To Protect Your Identity

New year, new threats to your identity. The old ones haven’t gone anywhere either. With each passing year, protecting your personal and financial information becomes more important. Many of us set goals to better ourselves at the beginning of a year. Well, it’s important to set new year’s resolutions to protect your identity also. Here are a few tips to keep you safe in 2018.

Keep An Eye On Your Credit

Did you know that you are entitled to one free copy of your credit report from each of the three major credit reporting agencies per year? That’s three separate reports. You can request a report from all three at once. However, if you spread them out, you can keep an eye on your credit throughout the year. Set a calendar reminder in your phone or e-mail for the first, second and third trimesters of the year. For example, one in February, one in July and one in November. You will be able to see how your credit score changes throughout the year as well as see if any fraudulent activity is listed.

Say No To Debit Cards

Many people use debit cards because they are easy. The money is taken directly from your bank account. There is no risk of spending above your means like there is with a credit card. However, the fact of the matter is that you don’t have the same protections with a debit card that you do with a credit card. If your credit card information is stolen, a fraudulent charge can be removed by your credit card company, no matter the amount. If a fraudulent charge is placed on your debit card, oftentimes you only have protection up to $50. As you can imagine, this can leave you out of a lot of money. So, ditch the debit card or at least use it with the credit function.

There’s no better time than now to add some new security measures to your repertoire. Follow these new year’s resolutions to protect your identity and you’ll be closer to doing just that.

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How To Identify A Secure Website

How To Identify A Secure Website

The sheer number of websites that are available on the internet is simply staggering. Every website wants to grab your attention in order to get you to visit. For example, listing extremely low prices on popular items or through a blog referencing common search terms, you are the object of their affection. The fact of the matter is that not all websites are safe to browse, let alone make a purchase or enter your personal information through. Learning how to identify a secure website is paramount to your internet safety. Making sure that a website is secure is extremely important, especially when online shopping but also as a general rule.

Two Ways To Identify A Secure Website

  • Check The Website’s URL – Secure websites protect your information through an SSL certificate. SSL stands for Secure Sockets Layer, a security technology which is a global standard. SSL encrypts your personal information when it is submitted through a website. In essence, it takes your information and encodes in in a way that only authorized individuals/parties can access it. One way to identify whether a website is protected through an SSL certificate is by looking at the website URL:
    • Secure websites will have a URL that begins with https://
    • Unsecure websites will have a URL that begins with http://

Finding the ‘s’ in the URL is how to identify a secure website.

  • Look For A Closed Lock Near The URL – Another “key” (pun intended) to identifying a secure website is to look for a closed lock symbol near the URL. This lock is an indication from the web browser that the site you’re currently visiting is secure through an SSL certificate. This lock is not just a symbol though. You can click the lock and view information about a specific website’s SSL certificate.

One of the most important factors in staying safe online is learning how to identify a secure website. Before you submit any personal or banking information, make sure the website has your protection in mind by following the steps listed above.

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How Much Time Is Spent In Identity Theft Recovery?

How Much Time Is Spent In Identity Theft Recovery?

Becoming a victim of identity theft can be devastating in many ways. Your sense of safety can feel compromised and your financial well-being can be jeopardized. One way that is often overlooked is the sheer amount of time that can be stolen from you as well. How much time is spent in identity theft recovery? We hope to provide you with a clearer picture and show you another reason why your security is so important.

What Is The Time Frame For Identity Theft Recovery?

Short answer: It depends. Let’s say you find one fraudulent charge in one of your bank accounts. You’d immediately identify your institution, close this account and open a new, secure account. You’d also check all of your other accounts/assets in search of additional breaches (as well as keep an eye on them daily for the foreseeable future). In this case, you would probably be done within the course of a day.

However, if you were the victim of a more severe case, with the thief using your information to obtain health care or open multiple new accounts, you could be looking at an ongoing issue. This may take months and tens of hours of mantime to restore your good standing.

The most extreme cases can take up to a year and hundreds of hours to recover.

How Can I Speed Up Recovery Time?

The first thing you can do is report any fraud as quickly as possible. The faster you identify a threat, the less time they have to do damage. You’ll also want to immediately file a report with the FTC (Federal Trade Commission) and flag your credit file for fraud with each of the credit bureaus.

The easiest way to save time is to have a membership with a reputable identity theft recovery service. For example, ReclaimMyID will do all of the legwork to recover your identity and your assets once you report a theft. This includes contacting your financial institutions, credit bureaus, etc. A modest yearly fee can save you hours of time and months of insecurity.

How much time is spent in identity theft recovery? We hope that the answer to this question is more clear to you now. Your time is precious, so don’t allow identity theft to steal it from you (along with your financial security).