Kansans barred from theft protection
By Patrick Kelley
Originally published 02:26 p.m., September 25, 2007
Updated 02:26 p.m., September 25, 2007
Imagine that the state of Kansas did not allow residents to buy health insurance until they could prove that they had survived a catastrophic illness. What if no Kansan could buy car insurance without a police report of a previous accident?
No, it does not make any sense. But that is the state’s current approach to identity theft.
The Kansas City Star reported last week that one of the nation’s Big Three credit-reporting companies, TransUnion, will begin allowing people to block access to their credit reports without their permission. The purpose is to prevent thieves from collecting information to help them steal identities.
The service will be free to people whose identities have already been stolen, but people who have yet to be victimized can block their reports for a $10 fee. Think of it as identity-theft insurance.
That’s where Kansas comes in. In this state, consumers are required to produce a police report showing that they have been victims of identity theft before they are allowed to freeze their credit files.
That law makes as much sense as limiting crash-helmet sales to bicyclists and motorcyclists who can prove that they have been flung, at least once, head-first into a tree.
Freezing credit reports is insurance against catastrophic economic crime. It should be available before the crime can be committed.
Comments
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blulitespecial (anonymous) says...
Just saw the AG on television touting internet safety and fraud protection..It seems the state is contemplating one step forward,but taking two steps back.And still contemplating.This looks like a law that's 20 years overdue.And I should be able block it free.
September 26, 2007 at 4:19 p.m. ( permalink | suggest removal )
create (anonymous) says...
In insurance-speak, this is called a pre-existing condition only bass ackwards. Who's minding the store?
September 26, 2007 at 6:06 p.m. ( permalink | suggest removal )
blulitespecial (anonymous) says...
create- I got an idea-Why don't we "subrogate" damages to ID theft victims from the big banking,credit card,and credit reporting companies?By freezing assets equal to their political contributions to start with,maybe we can get their attention.Any politicians that whine about it has been bribed,and is scum.
September 26, 2007 at 10:35 p.m. ( permalink | suggest removal )
create (anonymous) says...
Ah, if we could only pull that off. Great idea.
September 27, 2007 at 10:25 a.m. ( permalink | suggest removal )
KristieR (anonymous) says...
www.lifelock.com
If you really are worried about ID theft and want a way to protect yourself against it, visit the above website and see if you are interested in their services. It's not free, no such thing as free, but it could be worth it.
Kristie (banker who has seen what ID theft can do to a person/family)
September 27, 2007 at 10:40 a.m. ( permalink | suggest removal )
suzyQ (anonymous) says...
To bad goverment is more worried about kepping big banks and credit card companies happy ,than doing the right thing.
September 27, 2007 at 1:44 p.m. ( permalink | suggest removal )
KristieR (anonymous) says...
You make is sound like banks make out like bandits in fraud situations. I can tell you that (if it's fraud), they lose the money, not the person defrauded. It might take time and effort to prove it's not you, but ultimately, you are not liable for the payment of the debt.
I work for a small, locally owned bank and we don't mass market pre-approved credit applications nor do we pull credit reports on anyone that hasn't physically applied for an account.
Why should you get to block your credit for free? Isn't that someone's business? Do you get to rent movies for free? Do you get to walk out of the grocery store with food without paying? It might be your credit history, but it's not a government run credit bureau.
September 27, 2007 at 2:12 p.m. ( permalink | suggest removal )
KristieR (anonymous) says...
Plus, there is a difference between FREEZING a file and putting a "fraud alert" statement on your file. The "extended" alert needs the police report. I don't see where it's only for Kansans, but everyone.
www.annualcreditreport.com
How do I request a "fraud alert" be placed on my file?
You have the right to ask that nationwide consumer credit reporting companies place "fraud alerts" in your file to let potential creditors and others know that you may be a victim of identity theft. A fraud alert can make it more difficult for someone to get credit in your name because it tells creditors to follow certain procedures to protect you. It also may delay your ability to obtain credit. You may place a fraud alert in your file by calling just one of the three nationwide consumer credit reporting companies. As soon as that agency processes your fraud alert, it will notify the other two, which then also must place fraud alerts in your file.
Equifax: 1-877-576-5734; www.equifax.com
Experian: 1-888-397-3742; www.experian.com/fraud
TransUnion: 1-800-680-7289; www.transunion.com
An initial fraud alert stays in your file for at least 90 days. An extended alert stays in your file for seven years. To place either of these alerts, a consumer credit reporting company will require you to provide appropriate proof of your identity, which may include your Social Security number. If you ask for an extended alert, you will have to provide an identity theft report. An identity theft report includes a copy of a report you have filed with a federal, state, or local law enforcement agency. For more detailed information about the identity theft report, visit www.consumer.gov/idtheft.
September 27, 2007 at 2:19 p.m. ( permalink | suggest removal )
blulitespecial (anonymous) says...
There's the point it-It is not someone else's business-It's mine and who I do business with.The real case I'm thinking about is an ID theft of a person that started here in a regional bank.In between this bank where the person was known and the clearing house,someone rerouted SS direct deposits to another bank and account.Things kinda snowball after Social Security theft doesn't it? It did.Somebody made out! The employee may or may not have got a cut.Might have been fraud in the bank,might have been in the clearing house.We found out from a third agency that this is what occurred.Took several months for that person to be able to buy their own food again.It can happen in the bank.It did happen here. Banks should verify changes.Credit companies should verify,but they can charge coming and going! It's my info.It's my money.It's my life.
September 27, 2007 at 2:54 p.m. ( permalink | suggest removal )
KristieR (anonymous) says...
Banks should verify changes ~ Absolutely! Was this a bank error or was a bank employee committing the fraud?
I always recommend that you open every single piece of mail you get. Even if you think it's just a credit card pre-approval solicitation....maybe it's an actual bill. Most often, you have so many days to dispute a bill or file a report and you don't want to miss the deadline.
For instance. One of our bigger depositors had a checking account. He NEVER opened his bank statement or balanced it. After about a year, his account went overdrawn (surprise) and he discovered an employee was forging his signature on various checks to the tune of $25,000. He filed a report, the guy was arrested and charged, ruled to make restitution, but the bank was not out much money because he didn't do it within a certain period of time. I doubt he will ever get that money back.
There is a reason you get statements. Open them.
September 27, 2007 at 3:26 p.m. ( permalink | suggest removal )
create (anonymous) says...
Years ago, I received a phone call from Master Card to say that they suspected fraud on my account. Their suspicion was based on the fact that I rarely used the card, and only to a couple of places in Emporia. Sure enough, someone had used my number to buy lots of expensive stuff at Eddie Bauer on line store.
The crook had merchandise delivered via UPS to the address of a house in Emporia where no one lived. Master Card alerted Emporia Police who did a great job of investigating. Master Card gave me a new number, but allowed my old number to be part of a sting operation. Before long, they arrested the culprit when he went to the house to pick up the UPS delivery. He was a college student employed by Walmart. He got my number at work and used campus computers to order things. My point is this: If Master Card hadn't been on top of things and alert to unusual charges, I'd be up that famous creek without a paddle. I'm glad they got involved in my business.
September 27, 2007 at 3:27 p.m. ( permalink | suggest removal )
KristieR (anonymous) says...
create~It really is in the cc best interest to monitor unusual activity, plus it kept you as it's customer. It's nice you had a responsible cc. company.
I used my cc to rent a hotel room while traveling for a family funeral. A few days later, my cc co. called to ask me if we had purchased $5000 worth of computer supplies off the internet. We said no, they rejected the transaction, closed my card, gave me a new one, and had no problems since. I did put an alert on my report though.......just in case.
September 27, 2007 at 3:36 p.m. ( permalink | suggest removal )
blulitespecial (anonymous) says...
All we could find out in the SS fraud case was that in between the bank and the clearing house,someone really did have the direct deposit changed to another bank and a dummy account.There was communication.I think it started in the clearing house.So the deposits were directed away from an established account.Didn't mean to sound harsh in my previous post! Just trying to get across that the average person shouldn't have to worry about 10 companies a day searching their credit,then one of them is hacked,or the infamous headline"3 laptops with private info stolen".
September 27, 2007 at 3:41 p.m. ( permalink | suggest removal )
KristieR (anonymous) says...
blu~no, that's o.k., I didn't take it wrong at all, but there is a big difference between having your info stolen by a general fraudster and a bank employee. The bank employee "pretends" to verify info and it would go undetected until the customer opens their statement and calls the bank to see why their deposit isn't there. I would imagine the bank would reimburse the customer in the case of employee theft. I know ours would......
We once got a letter that a computer at Wells Fargo had been stolen and my husband's private info was in their computer (student loan) and could potentially be used in a fraud case. WF paid for us to sign up for a year of monthly credit reports and fraud alerts. A good company will go out of their way to make up for their problems, but the human nature (theft) is one you can't predict. Where there is a will, there is a way.
September 27, 2007 at 3:56 p.m. ( permalink | suggest removal )
blulitespecial (anonymous) says...
How I stated that may not make much sense to someone in banking.That's pretty much how the family member relayed it to me.The bank couldn't say much,the person said.
September 27, 2007 at 3:59 p.m. ( permalink | suggest removal )
create (anonymous) says...
Kristie, your information has been very helpful and interesting. Thank you.
September 27, 2007 at 6:35 p.m. ( permalink | suggest removal )
RBSidentity (anonymous) says...
My only point is there does need to be some verification otherwise the stats for ID Theft in the state would be the highest in the country. This is a requirement in most other states. Also, in reference to some comments on certain companies that LOCK your credit. Beware first of all it is FREE and still is in KS to do without verification of your identity being stolen. You should never pay for this service and several companies offer it as a free service. It is simply a letter mailed every 90 days that states you think you are going to become a victim of identity theft and you request your 90 day fraud alert be renewed. Do this four times a year and don't pay $100+ per year per adult for what cost them under a buck. Wake up and read the fine print as well as between the lines.
www.myidback.com
www.idcure.com
www.truecredit.com
www.experian.com
www.equifax.com
all have links to accomplish this for free and two of the five will do it for you.
RBSIdentity-Kevin Duncan, CEO
September 29, 2007 at 4:32 a.m. ( permalink | suggest removal )
create (anonymous) says...
Thanks, RBS, you've provided us with a valuable service.
September 29, 2007 at 8:36 a.m. ( permalink | suggest removal )