New Law Can Help Prevent Identity Theft

Last week, the Department of Justice busted what they say is the biggest identity theft case they’ve ever prosecuted.  Thieves are accused of hacking into retailer computers and stealing 40 million credit card numbers, including those for BJ’s Wholesale, Office Max, and Sports Authority.  The good news is the state legislature has passed a new law to help protect you from identity theft.

“It startled me.  You feel invaded,“  said Jan McCloud when she found a surprise in her mailbox.  “We found a bill from Sears and I don’t have a Sears card, nor does my husband.“

She says someone had stolen her identity and ran up a bill for clothes and shoes.  Because she’s a victim, she’s had her credit report frozen.  That means no one can open an account in her name unless she gives a passcode.

Said McCloud, “So now whenever I open up any kind of account, I have to use that password.“

But now you don’t have to be a victim to freeze your credit.  Jim Ritchie was one of the state Senators who spearheaded the state’s new identity theft law.  Said Ritchie, “They have to freeze that when you need it frozen, because you’re afraid you might be a victim of identity theft.  If they’ve made errors, they have to correct them promptly.“

While a freeze can protect your credit, McCloud says there are some drawbacks to be aware of.  Said McCloud, “I was the victim, but I’m the one that’s having to jump through hoops in order to use my good credit.“

And it can take up to three days to unfreeze your credit, so you need to plan ahead.

The law has other protections.  It requires credit bureaus to notify you if an application for credit does not match your current address and it stops credit card companies from activating accounts until they verify them with you. 

Those are measures McCloud says could have prevented her identity from being stolen and saved her hours in phone calls.  “I have probably spent maybe 10-12 hours already and I’m not finished yet.“

South Carolina’s new identity theft law takes effect January first.  But you can contact all three credit bureaus and ask for a credit freeze in the meantime.  It costs $10 to freeze and unfreeze your credit. 

The credit bureaus, many banks and other companies also offer credit monitoring for $10 to $50 a month.

Share your indentity theft stories and follow links to the credit bureaus in Amy Wood’s blog.