WASHINGTON -- Pat and Thomas Halberstadt take all the right steps to protect their identity. Pat says she shreds documents before throwing them out. Actually, she shreds a document and then separates the shredded paper into different trash bags.
``If you want my (information), you have to work hard to get it," said the Illinois resident. ``I'm a worrier so I would like to know I'm doing everything I can to protect my identity."
That's why when the Halberstadts heard that the Social Security numbers of more than 26 million veterans had been stolen, Pat began to panic. Her husband is a Vietnam veteran, having served as a sergeant in the Army. The personal data on the veterans was taken home by a Department of Veterans Affairs analyst. The worker's computer, which contained the information, was stolen. The electronic file contained names, birth dates and Social Security numbers of veterans and some spouses, as well as some disability ratings.
``I'm scared to death about this identity thing," Pat Halberstadt said in an interview. ``I feel helpless because I've read that it takes two years to clear anything like this up. I'm 59 years old. I'm not sure I have two years in me to fight this kind of thing. I hear it can ruin everything for you. I'm just so frightened."
No question identity theft is a growing problem in this country. Thieves are increasingly using stolen Social Security numbers, credit-card account numbers and other personal identifying information to open credit accounts in other people's names. Victims of identity theft can end up spending months and hundreds of dollars trying to clear their credit-abused name. So considering that, I would be worried too if I were one of the 26 million veterans whose information has been compromised. But as I told Halberstadt, don't panic until you have reason to. One good thing is that the stolen data did not include any of veterans' health records or any financial information, the VA said.
``People whose information is stolen are not victims of identity theft," said Betsy Broder, assistant director for the Federal Trade Commission's Division of Privacy and Identity Protection. ``I'm concerned that some reports are saying this is the largest case of identity theft. No, it's the largest data breach. I'm not aware of any misuse of the veterans' information."
Broder said she's concerned that some veterans might close their credit card accounts or put a credit freeze on their accounts when it's not necessary. Closing a credit card account, especially one that you've had for many years, could hurt your credit score and that might mean you could pay more for a home or car loan. While a credit or security freeze is definitely something you should consider if you are a victim of identity theft, you may not want to deal with the inconvenience if you don't have to.
A credit freeze prevents access to your credit report and credit score. If a lender or business can't get access to this information, they aren't likely to issue new credit. This of course, prevents a thief from opening credit in your name. Obviously, a freeze not only makes it hard for a thief to get credit in your name, but you as well. For example, you will find it harder to take advantage of instant credit offers. To remove the freeze you may have to pay a fee and or use a personal identification number (PIN) to get access to your credit files.
Seventeen states have credit freeze laws, according to Consumers Union. To find out whether your state allows consumers to get a security freeze, go to www.consumersunion.org and in the search field type “states with security freeze laws." Definitely, this data breach means millions of veterans have to become proactive in protecting their credit. What a shame this has happened to this group of folks. I just wouldn't want them to become victims of a scam because of their fear, or spend sleepless nights worrying unnecessarily. But they do need to do some things. At a minimum, they should put a fraud alert on their credit reports.
Please note that a fraud alert isn't infallible. It's supposed to make creditors exercise more care to verify the identity of the credit applicant, but that doesn't always happen. To place a fraud alert, call the toll-free number of any one of the three major credit bureaus. You only need to make one telephone call because that agency will inform the other two. Here are the numbers you can call and in addition all three bureaus have identity theft information on their Web sites:
-- TransUnion: 800-680-7289 (www.transunion.com).
-- Equifax: 877-576-5734 (www.equifax.com).
-- Experian: 888-397-3742 (www.experian.com).
When you place a fraud alert, you'll receive information about ordering one free credit report from each of the companies even if you've already gotten your annual free reports. Every consumer is also entitled to one free credit report from each bureau every 12 months. You can order online at annualcreditreport.com, or by calling toll free 877-322-8228, or by writing Annual Credit Report Request Service, Box 105281, Atlanta, Ga., 30384-5281. If you are a veteran and you need more information, go to www.firstgov.gov or call 800-333-4636.
Pat Halberstadt says she will definitely become vigilant about watching her credit files. Still, she's worried. “Whether we are a victim of identity theft is kind of a crapshoot," she said. “No one knows how serious this threat is."
Listen to Michelle Singletary discuss personal finance every Tuesday on NPR's ``Day to Day.'' To hear her reports online go to www.npr.org. Readers can write to her c/o The Washington Post, 1150 15th St., N.W., Washington, D.C. 20071. Her e-mail address is singletarym@washpost.com. Comments and questions are welcome, but due to the volume of mail, personal responses may not be possible. Please also note comments or questions may be used in a future column, with the writer's name, unless a specific request to do otherwise is indicated.
(c) 2006, Washington Post Writers Group
