Make sure you have proper protection against ID theft

On Wednesday, online retailer eBay announced hackers had stolen encrypted passwords, names, email addresses, physical addresses, phone numbers and dates of birth of millions of active eBay users. The company then sent emails suggesting these users change their eBay passwords.

It’s the latest and greatest caper in the 21st-century crime of cyber theft, but as consumers, what can we do to protect ourselves? I was one of the unfortunate folks caught up in the Target data breach during which millions of shoppers had their credit and debit card information stolen. I promptly signed up for the free year of credit monitoring offered by Target and breathed easier thinking I was protected. But I quickly learned, maybe that wasn’t true.

The free monitoring from ProtectMyID only monitors your credit with Experian, not the other two agencies. You get an email whenever there is activity on your credit file such as an address change or an application for credit. While it can help alert you to new account fraud, it doesn’t prevent theft on any accounts, new or old.

Some experts have criticized Target for giving shoppers a false sense of security, including a recent Consumer Reports story suggesting that anyone concerned about ID theft may want to take additional steps of placing a security freeze or fraud alert on their accounts.

A security freeze prevents lenders and card issuers from viewing your credit history, and since almost no one will offer you credit without seeing your credit history, it stops thieves from opening accounts in your name. The drawback is that no one — not even the people you want to see it — can view your credit history until you lift the freeze. In Georgia, it costs $3 each (or $9 total) to freeze your history with the three credit reporting agencies. Each time you "thaw" an account to allow someone access, you pay $3. If you are already a victim of ID theft, there is no charge for a security freeze. Insurers, law enforcement and existing creditors can still view your account, and you must request a freeze from each credit reporting agency. Visit consumer.georgia.gov for more information.

If you suspect you may become a victim of ID theft, you also can set up a 90-day fraud alert through one of the credit bureaus. When you or someone else attempts to open a credit account in your name or increase the credit limit or obtain a new card on an existing account, the lender must take steps to verify that you have authorized the request. If the creditor cannot verify this, the request should be denied. You only need to request a fraud alert from one of the three bureaus and it will be communicated to the other two. A fraud alert is free.