I’d like to talk about ID theft and how it happens. Over time the credit reporting system accumulates personal information on an individual like your name, address, employers and social security number. When a SS number is associated with more than one name a sub file is created. This happens because credit reporting agencies allow for partial matching of personal information. With this inability to distinguish between fraudulent and normal variations and the consumer’s lack of expertise to identify and eliminate these variations allows the groundwork for loopholes that perpetuate a clear path for identity theft.
The ID thieves creates a combination of true and false personal information. This is referred to as Synthetic Identity Fraud. This sub file is not associated with the consumer’s main file and is not detected. A couple of commonly overlooked variations is the misspelling of a name. This would be considered a low priority as it has no real bearing on the consumers credit score so they only concentrate on those items which affect their scores. Only when credit is denied will the consumer be aware of the sub file. Most consumers lack the knowledge on how to read their report so errors will appear to be within acceptable limits.
The credit reporting agencies bear no cost of this crime. Again it is the consumer who comes out on the short end of this deal. The creditor also pay the price as the ID thieves do not pay the bills on credit obtained by fraud. The credit reporting agencies say there are safeguards in place and claim to offer remedies but they are nothing but smoke and mirrors.
Fixing these errors and mistakes are left up to the consumer. This is no small challenge as the consumer is the last consideration in the credit reporting process. Even with FCRA numerous watchdog groups and attorneys ready to take on the BIG 3 credit reporting agencies. They are not going to change the way our data is stored so as consumers we have to protect ourselves from ID theft and that is easier said than done. I help consumer keep a watchful eye on their credit report companies that monitor your credit for activity is recommended. Most charge a low monthly fee between $10 and $20 dollars per month and allow you to see your full report a few times a year.
If you go to Top 5 Credit Monitoring Companies and Reviews for Each
you will be able to determine which best fits your needs and budget.