Internet Security and Risk Management PART 1 of 2

Identity theft and financial crimes against millions of families have reached alarming proportions in 2010. Prof Steffen Schmidt interviews Internet security experts, Dr. Doug Jacobsen, and Computer Engineering PhD student Tom Daniels. He is joined by Michael McCoy who is the co-author with Schmidt on two identity theft books and thousands of ID theft prevention education and certification workshops throughout the world.

The experts he talked to agree that everyone should freeze their credit and keep small balances in bank accounts which can easily be plundered by unauthorized people.

The following is from the US Federal Trade Commission:

Many states have laws that let consumers freeze their credit in other words, letting a consumer restrict access to his or her credit report. If you place a credit freeze, potential creditors and other third parties will not be able to get access to your credit report unless you temporarily lift the freeze. This means that its unlikely that an identity thief would be able to open a new account in your name. Placing a credit freeze does not affect your credit score nor does it keep you from getting your free annual credit report, or from buying your credit report or score.

Credit freeze laws vary from state to state. In some states, anyone can freeze their credit file, while in other states, only identity theft victims can. The cost of placing, temporarily lifting, and removing a credit freeze also varies. Many states make credit freezes free for identity theft victims, while other consumers pay a fee typically $10. Its also important to know that these costs are for each of the credit reporting agencies. If you want to freeze your credit, it would mean placing the freeze with each of three credit reporting agencies, and paying the fee to each one.

You can find more information about credit freeze laws specific to your state by going to:

http://www.consumersunion.org/campaigns/learn_more/003484indiv.html

The experts advised Schmidt that folks need to freeze their credit and keep small balances in bank accounts and instead buy short term CD's or Money Market Accounts ASAP.

View the original article here