I was going through my mail the other day after weeks of neglect. (I'm also a CPA and have been completely focused on April 15!) I was surprised to see account opening documents for my 27-year-old son at Merrill Lynch and TIAA-CREF. (He allowed me to open the envelopes — I'm not a snoop!)
As my kid never has any money, it was no shock to find out he didn't open these accounts. One was a joint account with a woman he had never heard of. Ugh. I knew what would follow would be a ton of phone calls and documentation.
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First, I got on the phone with my son and contacted Merrill Lynch. Whoever stole his identity also stole the identity of the joint account holder. They knew his address, his alternate address (our home address), his Social Security number and birth date. Pretty scary stuff.
My son asked how they got his info. The fraud officer replied that "there are a million ways." Reassuring. I asked why they would open a deposit account and not a credit card account. He said that this particular ring was opening accounts to launder illegal money. Frightening as this whole thing is, at least it seems there is no potential financial liability.
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As for the endless maze of phone calls, my son now needs to contact:
• TIAA-CREF
• Credit agencies: Experian, Equifax and TransUnion
• Social Security
• Federal Trade Commission
• Local police
For additional protection, he should also notify:
• Internal Revenue Service
• California Franchise Tax Board
• Department of Motor Vehicles
• U.S. Passport Service
My son will need to place a fraud alert on his credit file with the three credit agencies. This ensures that whenever someone attempts to open an account or credit under his name, he will be contacted by phone for verification.
This identity theft hit home — and underscored how unsafe our personal information really is.
As advisers, what can we do? What can we recommend to our clients?
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First, they should check their credit reports regularly. The three major credit agencies provide one free report per year. Contacting one agency every four months allows for regular monitoring. Second, it is probably a good idea to add a fraud alert with the credit agencies. Better safe than sorry.
Sheryl Rowling is chief executive of Total Rebalance Expert and principal at Rowling & Associates. She considers herself a non-techie user of technology.
