Title: Lessons in privacy

Highlight: College may be a safe haven in many ways, but identity theft is still a serious risk
Author(s): Jill Rachlin Marbaix
Citation: September 6, 2004 p 74-75
Section: Money & Business , Paying for College, News You Can Use
Copyright © 2003 U.S.News & World Report, L.P. All rights reserved.

Abstract: Advice to college students on how to protect personal financial information and prevent identity theft

Article Text: Students may go to college to study, but there's something many don't learn about until it's too late: identity theft. A growing peril in the electronic age, this particular brand of banditry usually entails stealing someone's identity by using his or her personal financial information--name, Social Security number, date of birth, and the like--to apply for new credit cards and loans. The victim isn't accountable for most of the money stolen but still must deal with the major headache of erasing bogus accounts from his credit record and doing battle with collection agencies. According to the Federal Trade Commission, close to 10 million Americans fell victim to identity theft last year, a 41 percent increase from 2002.

Financially inexperienced college students are particularly vulnerable. That's because roughly half of all colleges use Social Security numbers as student identifiers, and many post grades by ID number. And it's the Social Security number that unlocks the door to a credit history. "My advice to students is to be aware that you're in a high-risk environment," says Ed Mierzwinski, a consumer advocate with the U.S. Public Interest Research Group in Washington, D.C. "And be prepared to fight identity theft hard when it hits."

College and university computer systems are a gold mine of personal information about students, and several security breaches have occurred in the past few years. Servers at the University of Georgia, for example, were hacked last year, exposing key data about thousands of applicants and students. So far, no evidence of misuse has been found, but the school has tightened security procedures. At New York University, lax security settings led to the accidental leak of personal information not once but twice. "It made me feel like they weren't taking enough care that our identities and information were safeguarded," says Noah Young, 33, a political science senior whose data were left unprotected. NYU has since accelerated steps to enhance its computer security and has ceased using Social Security numbers as student ID s.

Already, a handful of states including California, New York, and Wisconsin have enacted laws restricting or prohibiting college and university use of Social Security numbers. Some schools, like Rutgers University, allow students a choice in picking a student ID number: their Social Security number or a random nine-digit number.

Exercise care. Students are also easy prey because they are barraged with credit applications. Half of all students receive preapproved offers for credit cards weekly, according to the U.S. Department of Education. They often just toss the credit offers in the wastebasket. Big mistake. "College students should do the standard things that people everywhere should do," says Beth Givens, director of the Privacy Rights Clearinghouse. "Protect the incoming and outgoing mail. Don't leave your mail around, pick it up promptly, and put it away in a safe place. Shred anything that would have your sensitive personal information." To shut off the preapproved application pipeline, you can call the hotline run by the three major credit bureaus (888-567-8688) and ask that your name be removed from the list.

Identity theft can go undiscovered for months, even years. And college students may not realize that even though they may have little credit in their own names, their identities can be hijacked. Thieves have even been known to apply for student loans, so keep a close eye on your loan portfolio. And be sure to check your credit record at least once a year to see if any credit accounts have been opened in your name. Reports generally cost around $9, but they are free if you have recently been denied credit. To obtain a copy of your credit report, you can contact the three major credit bureaus: Equifax (800-685-1111), Experian (888-397-3742), and TransUnion (800-888-4213).

College students who use the Internet regularly--and most do--must also be careful when downloading music or videos. Identity thieves have been known to attach special software to files that can grab any personal financial information stored on a computer. Or a student may unwittingly give away his or her financial dossier by falling for a "phishing" scheme: Scamsters send official-looking E-mails that purport to be from, say, a bank or online business, asking for credit card and bank account numbers and passwords. That's what happened when some Citibank customers recently received phony E-mails requesting account information, ostensibly to help clear up a "billing error."

It's personal. Perhaps the most disturbing part about identity theft is that it's often extremely personal. One study found that 16 percent of identity theft is committed by friends, family members, or coworkers. In East Lansing, Mich., last spring, a 22-year-old Michigan State University senior who worked in an apartment building with many student tenants was charged with allegedly stealing personal data off their leases--including info about their parents, who had cosigned the leases--and using it to obtain approximately $100,000 worth of credit.

The consequences of identity theft can be devastating for students as they get their adult lives off the ground. Your credit record is like a financial report card: It tells the world whether you pay your bills on time and how big a debt burden you bear. Credit grantors review it, and landlords peruse it when determining whether you'll be a responsible renter. Even some employers look at the credit reports of potential hires.

That's why it's important for identity theft victims to repair their credit as quickly as possible. Notify the credit bureaus that you have been victimized and request that a fraud alert be placed on your record, file a police report, and close any existing accounts that have been tampered with or opened by strangers. The FTC operates a clearinghouse ( www.consumer.gov/idtheft or 877-438-4338) to assist victims. The Department of Education also has a website at www .ed.gov/misused (click "ID Theft") for students.

What you don't know can indeed hurt you.