Personal Safety, Article 2 - Think Smart

Article 1 was easy enough. Now let's try Article 2.

Article 2 builds off of the first article and deals with thinking smart. Again, some of these things might be intuitive but are well worth a review. There is a LOT of information here so be patient as you read through it. Incidently, these suggestions only work if you use them!

The number 1 rule in thinking smart is avoid the "it can't happen to me" thinking. The truth is, it can, it does, and it will. In the world of disasters Murphy's Law rules. Anything that can go wrong, will go wrong.

Here are some ways you can think smart and avert a disaster or minimize the damage if one does occur.

1. Review your insurance coverage.
  • If it has been a while since you've done this there's a good chance inflation has stripped your policy of some of its protection. Your home has increased in value as have your contents and any buildings that are on your property.
  • Unless you have Federal Flood Insurance, your home is probably NOT protected from flood. By the way, did you know sewer backups are generally NOT covered? Special endorsements are usually required for sewers and drains.
  • Other endorsements that might be needed are earthquake or ground subsidence (where underground mining has occurred). Jewelry, antiques, firearms, furs and other valuables also require additional endorsements for coverage. These coverages are generally NOT a part of your homeowners insurance.
Ask your insurance representative to review your coverages with you and make certain you are up to date.
  • Video the contents of your home and place the tape or disc in a safety deposit box or safe (away from your home). Make certain you record every item in every room. And don't forget to drag out that old '62 Fender Stratocaster from the closet or Aunt Hilda's family silver that you inherited. Make certain you record EVERYTHING! That way, there is no argument when it comes time to settle up.
  • Do you have enough life insurance to replace your earning power should something happen to you?
  • Do you have sufficient car insurance? That policy you took out ten years ago may not be adequate to cover today's skyrocketing medical costs.
  • Do you have an umbrella policy? This is a low cost option that extends the coverage on your home and auto. A two million dollar umbrella policy typically runs about $25.00 - $29.00 per month. Smaller increments are, of course, available.
2. Get a CLUE. A CLUE report that is. CLUE stands for Comprehensive Loss Underwriting Campaign and it is your insurance "score".

The CLUE database is compiled by a company called Choicepoint. All the major insurance companies participate so if you file bankruptcy and suddenly find no one will insure you, it's because the information has been entered into the CLUE database. Yep, that's right. Your finances impact your insurability.

The Fair and Accurate Transaction Act (FACT Act) now requires that you have the right to review your report for free and inaccuracies must be fixed. In February, 2005, data thieves stole information from Choicepoint on more than 145,000 people. The data included names, addresses, social security numbers, etc. If you have not reviewed your free CLUE report, you can do so at: Choicepoint

You are eligible to receive one free report every twelve (12) months.

Incidently, if you are in the market for a new home, it would be a very good idea to get a CLUE report on that home before you buy it. If it has a history of claims, particularly water related, you may not be able to insure it after your purchase!

One last thing. If you have a little water damage from a small appliance leak, don't, I repeat DON'T, contact your insurance agent unless you know you will be making a claim. That information may go into the CLUE database even if you decide not to file a claim and your insurance may be dropped or you may suddenly find it difficult to sell your home because prospective buyers won't be able to get insurance. Mold is a nasty word to the insurance industry and water translates to mold.

3. Credit Report. Like the CLUE report above, your Credit History is also tracked by four (4), that's right, four (4) credit reporting agencies. You are probably aware of the big three, Equifax, Experian, and TransUnion but there is also a fourth credit reporting agency, Innovis/CBC. Unlike the big three, Innovis/CBC is a little more difficult to work with. Here's the story. The FACT Act (See Item 2 above) gives you the right to receive a free copy of your credit report once every twelve months. In fact, there is a web site dedicated to downloading the big three reports. The URL is:

https://www.annualcreditreport.com/cra/index.jsp

You can access it by clicking here

What it does not provide you is your credit score. You have to purchase that. Typically, the cost is around $9.50 US per site.

You won't, however, find Innovis/CBC located there. You will need to send them a request in writing. Their website is: http://www.innovis.com/customer_assistance.htm and their address is on the website. You can access it by clicking here.

Despite their web site's assertion to the contrary, you do NOT have to pay for your credit report as long as you only request one every twelve months. Don't bother calling their customer service line. Option 1 gives you only slightly more information than the web site and then it hangs up on you. So much for customer service.

According to the FACT ACT, you are also entitled to a free credit report if you've been denied any of the following:
  • a loan
  • an insurance policy
  • a job based on your credit report
  • if you're applying for unemployment or receive public assistance
  • or if you currently reside in a state that already offers free credit reports from each credit-reporting agency (Colorado, Georgia, Maine, Massachusetts, Maryland, New Jersey and Vermont).
A recent survey by US PIRG found that 79% of these reports had errors and 25% had errors serious enough to result in the denial of credit so keeping track of your credit reports and scores is extremely important.

If you ask that your report be sent by mail, which is probably the safest route, ask the agency to truncate your social security number for additional security.

4. Opt Out. You can opt out of the big three credit reporting agencies by going to http://www.optoutprescreen.com or clicking here

To opt out of Innovis/CBC, include your request when you write to them about your credit report. Their address is listed on the URL or link in item 3 above.

You can opt out of Choicepoint by contacting them at their web site, which is http://www.choicepoint.com/ or by clicking here.

If you click here, you will be taken to privacyrights.org. They maintain a list of addresses that you can use to opt out of credit card and bank notices. You should also ask your credit card company to stop sending you convenience checks. There is no signature verification required on those checks so theives can simply sign your name and cash the check. It's another opportunity for identity theft and you don't need the hassle.

5. Protect you Social Security card, number and information. Protect and store you social security card with your other important and confidential documents. A safety deposit box or safe is always a good choice. There is no need to carry it with you unless you have a specific need to show the card to your employer. Identity theft often begins with a stolen social security card.

You should always check you social security statement to ensure it contains no errors. If you are not already receiving your statement and would like to receive it. Just click here or go to the Social Security web site at https://s044a90.ssa.gov/apps6z/isss/main.html.

6. Protect your personal information. Probably the best advice here is to purchase a paper shredder. Yeah, I know, it's low tech but so is dumpster diving. You can buy personal paper shredders all day long for $30 - $60 US. We have a little Office Companion that's been around for six years or so and gets a work out just about every day.

There are any number of con artists out there that are trying to steal your personal information. Pretexting, phishing, spear phishing, spoofing, email hoaxes, hacking, and skimming are just a few, a very few, ways in which criminals can gain access to your personal information. You need to understand how you can be violated so you can understand how to avoid it. What can you do?
  • Shred documents
  • If your computer accesses the internet via high speed modem, make certain you have a firewall in place. The same is true if you use a WiFi connection.
  • delete emails from individuals you don't know. Particularly if they have attachments.
  • don't fall for emails that tell you to update your information. Delete them or call the company using the number listed in the the phone book.
  • Make certain web purchases are secure.
    • How do I do that? There are two things you need to do.
      • You need to make certain the address says https - That little s on the end is very important. Typically, data is transmitted in plain text. It passes through any number of other computers, servers, routers, and switches (referred to as nodes). Each of these nodes represents a potential location that your data can be captured. If it's in plain text, it's easy enough to read. Ah, but when that little s is added to the http, it means the data is encrypted making it much tougher for someone to casually extract your information.
      • The second thing you can do is look for the little lock in your toolbar.
        • If you are using Internet Explorer, it will look like this,
        • If you are using Mozilla Firefox, it will look like this,
        • if either icon is displayed, click (or double click depending on the browser) on the lock. It should display a window identfying it as a secure site. It it doesn't, there is a good chance you're being spoofed.
        • Here is an example from Mozilla Firefox using the JC Penny web site:

7. Protect passwords and pins.
  • Never share your passwords with anyone else.
  • Never leave a website that you've logged into with hitting the "exit" button first.
  • Never carry your debit card pin number on you and never write it on your card. (Hey, people actually do these things!)
  • Never allow someone to look over your shoulder when you are accessing a site.
  • Make certain passwords are non-intuitive. Never use your name, birthday, street address, or anything else that easily identifies you.
  • DO USE combinations of alpha numerics, upper and lower case, and even odd characters like the * or # keys if the site will allow it.
8. Protect your credit cards.
  • In addition to signing your credit and debit card on the back. Write Picture ID Required on the front and back using an indelible felt tip pen.
    • You will not violate your contract with the card issuing company. Your contract is actually the receipt you sign in the store, not your signature on the back of your card. If someone steals your card it will be difficult to use it if the card is requesting picture ID. Of course, that will not stop online or phone purchases from being charged but it will make it more difficult for them to use it in person.
  • Make a copy of the front and back of your credit cards and keep the copy in a safe place (safety deposit box or safe).
    • If your cards are lost or stolen, you will not only have the customer service number (located on the back of the card) but you will also have the account number.
    • by law, you can only be held accountable for $50 US if fraudulent purchases are made on your card. Unfortunately, most folks carry four, five or more cards so the dollars could add up if someone is using them.
    • Make a police report and provide your card issuer with a copy of the report if they request it.
9. If it sounds too good to be true, walk away.

Offers of 100% return on your investment, unsolicited offers to pay you huge sums of money, something for nothing offers, and notices advising you that you've won some foreign lottery (when you've never played it) are all examples of schemes designed to separate you and your money. Listen to your gut. If it doesn't feel right, it probably isn't.

Here are some 2005 statistics from Consumer Sentinel1:
  • A total of 431,118 of the Consumer Sentinel complaints were fraud-related.
  • Internet Auctions was the leading complaint category with 12% of the overall complaints, followed by
  • Foreign Money Offers (8%),
  • Shop-at-Home/Catalog Sales (8%),
  • Prizes/Sweepstakes and Lotteries (7%),
  • Internet Services and Computer Complaints (5%),
  • Business Opportunities and Work-at-Home Plans (2%),
  • Advance-Fee Loans and Credit Protection (2%), and
  • Telephone Services (2%).
  • Consumers reported fraud losses of over $680 million; the median monetary loss was $350.
  • Internet-related complaints accounted for 46% of all reported fraud complaints, with monetary losses of over $335 million and a median loss of $345.

  • The percentage of Internet-related fraud complaints with "Wire Transfer" as the reported payment method more than tripled between calendar years 2003 and 2005, increasing by 12 percentage points.

  • Some 55% of fraud complaints where the company's method of initial contact was reported indicate Internet solicitations - electronic mail 35% and web 20%. 73% of all fraud complaints reported the method of initial contact.

  • The major metropolitan areas with the highest per capita rates of consumer fraud reported are the Washington DC area; Tampa-St. Petersburg-Clearwater, FL; and Seattle-Tacoma-Bellevue, WA.

The FBI has a great page on common internet frauds. You can view it at http://www.fbi.gov/majcases/fraud/internetschemes.htm or by clicking here.

Believe it or not, you've finally reached the end of Thinking Smart. Once again, we have offered you a LOT of information that is no cost or very low cost to you. If you employ the tricks listed above, you will go a very long way toward protecting yourself. If you are ready to move on to Personal Safety, Article 3 - First Aid Training, just click here.

1 Consumer Sentinel is comprised of over 1000 law enforcement agencies from Australia, Canada and the United States. Their database is managed by the Federal Trade Commision.




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