In the course of searching and reading up on data security breach stories, and how data encryption software like AlertBoot can help prevent these, I come across comments such as, "Ha! My credit is shot anyway! Let the hackers have my Social Security number; we'll see how far they can go with THAT." How far can they go? Pretty far.
In the course of searching and reading up on data security breach stories, and how data encryption software like AlertBoot can help prevent these, I come across comments such as, "Ha! My credit is shot anyway! Let the hackers have my Social Security number; we'll see how far they can go with THAT."
How far can they go? Pretty far.
There are many ways of misusing personal information like SSNs: Getting loans, applying for credit cards and mortgages, and other forms of ID theft based on obtaining credit. It's one of the many reasons why people steal this information, and why many companies (but not all) try to protect it. If your credit score is on the low side, chances are the SSN cannot be used for obtaining money this way. There are other ways, though. One of the methods that have popped up in the news over the past couple of years--always around this time of the year--is the filing of fake tax returns. If you read the following story, you'll see that two women stole $289,000 in tax refunds this year, and the money spread around 17 different bank accounts, at least. Their scam was helped by the fact that one of the perpetrators worked at H&R Block, and so pertinent information such as SSNs or TINs, addresses, etc. were available to the duo. However, past stories I've read have included instances where a similar scam was carried out by knowing a name and SSN only. The taxes were filed on-line, with fake earnings and deductions. The refunds were to be wired to bank accounts, instead of waiting for a check in the mail: the longer the wait, the greater the chances that the scam will be revealed. Of course, the chances of any given person being embroiled in such fraud are pretty small. The point is, however, that SSNs are used in many ways, and criminals are a resourceful bunch; when you add up all the different ways that stolen SSNs can be used, shot credit ratings or not, it behooves you to be concerned about the security of your personal information.
There are many ways of misusing personal information like SSNs: Getting loans, applying for credit cards and mortgages, and other forms of ID theft based on obtaining credit. It's one of the many reasons why people steal this information, and why many companies (but not all) try to protect it.
If your credit score is on the low side, chances are the SSN cannot be used for obtaining money this way. There are other ways, though. One of the methods that have popped up in the news over the past couple of years--always around this time of the year--is the filing of fake tax returns.
If you read the following story, you'll see that two women stole $289,000 in tax refunds this year, and the money spread around 17 different bank accounts, at least. Their scam was helped by the fact that one of the perpetrators worked at H&R Block, and so pertinent information such as SSNs or TINs, addresses, etc. were available to the duo.
However, past stories I've read have included instances where a similar scam was carried out by knowing a name and SSN only. The taxes were filed on-line, with fake earnings and deductions. The refunds were to be wired to bank accounts, instead of waiting for a check in the mail: the longer the wait, the greater the chances that the scam will be revealed.
Of course, the chances of any given person being embroiled in such fraud are pretty small. The point is, however, that SSNs are used in many ways, and criminals are a resourceful bunch; when you add up all the different ways that stolen SSNs can be used, shot credit ratings or not, it behooves you to be concerned about the security of your personal information.
Related Articles and Sites:http://www.chicagobreakingnews.com/2010/03/2-women-accused-of-using-tax-data-to-file-false-returns.htmlhttp://www.msnbc.msn.com/id/12137393/ns/business-consumer_news/