Subscribe to our mailing list

X

Managing someone else’s money: New protection from ID theft and fraud

By on November 19, 2018

If you manage someone else’s money, protecting your loved one from financial exploitation and scams is among your important responsibilities. Starting September 21st, 2018, a new federal law lets some financial caregivers request a security freeze, also called a credit freeze, on their loved one’s behalf. Taking this step can help protect them from identity theft and fraud.

Anyone can be a victim of identity theft

Identity theft happens when someone steals personal information, such as a Social Security number. That lets hackers, thieves, and even people you know open new credit cards and other financial accounts in your name. A security freeze restricts access to your credit reports and makes it hard for identity thieves to open new accounts in your name. Under the new law, it’s free to freeze and unfreeze your credit file at all three of the nationwide consumer reporting agencies – Equifax, Experian, and TransUnion.

Help for financial caregivers

But what about people who can’t manage their finances on their own? The new law lets people with certain legal authority act on someone else’s behalf to freeze and unfreeze their credit file. The new law defines a “protected consumer” as an incapacitated person, someone with an appointed guardian or conservator, or a child under the age of 16.

If you’re acting on behalf of a protected consumer, you must give the credit reporting agencies proof of authority before you can freeze and unfreeze the protected consumer’s credit. Proof of authority includes:

  • A court order (such as an order naming you guardian or conservator), or
  • A valid power of attorney.

To freeze or unfreeze the credit file of a child under 16, you must provide other proof of authority. 

You’ll also need to provide proof of your identity, which can be your Social Security card, your birth certificate, or your driver’s license or other government issued identification.

READ  New Research Report on the Geography of Credit Invisibility

To learn how to request a security freeze, read this blog

More resources to help you manage someone else’s money

  • If you’ve been named to manage money for an adult who needs help, the Managing Someone Else’s Money guides will walk you through four different fiduciary roles and provide tips on spotting financial exploitation and avoiding scams.
  • If you believe a credit reporting agency is not placing a security freeze properly, you can submit a complaint to the Bureau of Consumer Financial Protection at consumerfinance.gov/complaint.

If you think you or someone you know is a victim of identity theft, visit the Federal Trade Commission’s IdentityTheft.gov to get a personalized step-by-step recovery plan.

This article by the FTC was distributed by the Personal Finance Syndication Network.

The post Managing someone else’s money: New protection from ID theft and fraud appeared first on Personal Finance Syndication Network.

Last step, fill out the information below or call us for Priority Assistance.

What problems are you having with your report?

Your first name is required. Your first name is required to be at least 2 characters. Your first name cannot be longer than 50 characters.
Your last name is required. Your last name is required to be at least 2 characters. Your last name cannot be longer than 50 characters.
Your email is required.
Your phone is required. Your 10 digit phone number is required.
Your state is required.
Your age is required. Your age must be greater than 18. Your age must be less than 100.

By clicking on the "Contact Me" button above, you consent, acknowledge, and agree to the following: Our Terms of Use and Privacy Policy and to receive electronic communications. We take your privacy seriously. That you are providing express "written" consent for Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS - charges may apply), even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list. Consent is not required as a condition to utilize Debt.com services and you are under no obligation to purchase anything.

By clicking on the “Contact me” button above, you consent, acknowledge, and agree to the following: (1)That you are providing express “written” consent for Lexington Law Firm, Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS – charges may apply), or dialed manually, at my residential or cellular number, even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list; and (2)Lexington Law’s Privacy Policy and Terms of Use and Debt.com’s Terms of Use and Privacy Policy. Consent is not required as a condition to utilize Lexington Law or Debt.com services and you are under no obligation to purchase anything.

About Research Department

Here is where you will find important stories located from around the web which can impact you and your financial life.
%d bloggers like this: