Sharon Cabeen, vice president for financial literacy for the National Student Loan Program, says avoiding identity theft starts with establishing good habits, such as checking bank balances regularly.
Cabeen, who is based in the Atlanta office of the National Student Loan Program, has 30 years' experience in credit counseling and financial education. She joined the student loan guarantor six years ago, when it determined that its responsibility in guaranteeing and collecting student loans included educating borrowers on how to manage money.
Cabeen has been conducting identity security workshops on college campuses across Nebraska this week.
Q: For years, the press has stressed the importance of shredding documents with personal information, not using important dates or numbers as passwords, not carrying Social Security numbers in your wallet and so on. Why is identity theft still happening?
A: Our financial lives have grown complicated more quickly than we can react to. Ten or 15 years ago, banks and lenders had a much more paternalistic approach to helping us manage our money. Now many people use electronic methods of doing business. It's more convenient, but it takes more attention on a regular basis. I check my bank balance online every morning — those are the kinds of things you have to pay attention to, or things slip through cracks and identity theft happens. I also think people think, “It hasn't happened to me yet and it won't.” It's easier to just avoid the subject.
Q: So what are the good habits that people need to develop to avoid identity theft?
A: First, as I mentioned, regularly check your checking account balance online. Second, watch credit card and loan statements you receive, either in paper or online, to make sure everything is as it should be. Third, a shredder is a necessity in every household.
I'm one of those people who shreds everything with my address, phone number or any other information about me. People need to be much more careful about this, especially younger people who live with people who aren't family. It leaves the door open to more possibilities.
And don't put bills in your home's mailbox with the red flag up. Put them in a U.S. Postal box.
Q: How does identity theft fit under the concept of financial literacy?
A: It's part of developing good habits that affect your money life. The more you build routines into your life, the more organized your finances. You know where things are. If someone steals your credit card information, it literally hits your bottom line.
Q: Do you find that respect for identity theft varies among generations, and if so, why?
A: I haven't thought about it generationally, but generational differences are true in most issues. Older people generally are more fastidious about keeping things in order, even though they might not be as technologically savvy. I'm 61 and know people who have to balance their checkbooks to the penny. I've encouraged my son, who is in his mid-20s, to stay in touch with his checking account. We have to adjust their approach so they get the habit of being cautious.
This whole identify theft thing has taken interesting turns. Six years ago, it most commonly was done by people you knew. Now it's by people you don't know. It's gone from someone in the house, a roommate, for example, to a big organization.
Also, statistics show that in about 12 percent of cases, the identity theft was for nonfinancial reasons: a medical card for medical care; a passport for travel outside the country. That's a small percentage, but if someone has your driver's license number, you might end up with a criminal record. There are nonfinancial impacts. That's why you need to keep safe all personal information that's used to access financial information. It does get complicated.
Contact the writer:
444-1050, pat.waters@owh.com
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