Can anything be worse than an unexpected car repair? The timing usually stinks. Being without a car, while it is repaired, is a nightmare; and the cost of working on today’s vehicles is expensive. However, I trust those life issues aren’t enough to get you to move on a surge of adrenaline and act without clear thought when a postcard or phone call comes claiming that your car warranty has expired.

Car warranty messages are of two varieties. First, let’s discuss calls which are clearly fraudulent. These calls will suggest that you provide a bank account number or credit card number and your car warranty will be immediately reinstated. Then crooks on the other end of the line take your financial information and defraud you.

The second type of call involves scam artists. Perhaps you’ve received a postcard that said, “Urgent Message!” or “Your Car Warranty Has Expired!” and the postcard directs the recipient to call a number. In most cases, a price is quoted and the consumer must give an immediate down-payment, by credit card, and the transaction must be finished in one phone call or the deal can never be completed. In other words, you must pay for the warranty without reading information describing coverage. When callers ask about coverage, the answers range from “Just like your old warranty,” “Just like the warranty when the car was new,” or “This warranty covers everything you’ll ever need.” Typically the cost is way out-of-line and the coverage is much less than expected.

Here are some helpful reminders:

• * Never give out personal financial information where a call has not    been initiated by you;
• * Check out any car warranty company by calling your local car dealership or the Better Business Bureau;
• * Always get information in writing, and consult someone else about the provisions, before making a deal or signing paperwork;
• * Slow down! Don’t be hurried by the word, “Urgent!”
• * Seniors, especially, are being targeted by this scam. Let’s ‘Watch out!’  for one another.

Source: District Attorney Scott Storey, Office of Jefferson/Gilpin Counties, Colorado

Let’s talk about a problem that often is not discussed—your child’s or grandchild’s vulnerability to identity theft. This crime can often go unnoticed until your child applies for their first credit card, a school loan, or a job. Sadly, many times this crime is perpetrated by a family member.

I was told this awful story. A 19-year-old male went to apply for his first credit card, shortly after becoming married. He was denied credit. When he ordered a credit report he was shocked to discover that his mother, who had left the family when he was 10 and been estranged, had used his Social Security number to open credit accounts which were all in default. He was left with the long process of trying to clear his name.

Approximately 6 weeks following the birth of a child, from information provided in the hospital at birth, your child will receive their Social Security card in the mail.  If this information can be stolen, credit can be opened in the name of a child. Unknown to many is the fact that credit issuers & credit reporting agencies may not have a way to verify the age of an applicant and information provided is taken at face value.

Here are some reminders for parents and grandparents:

• Never carry the Social Security number of a child in a purse/wallet;
• When registering a child for school, ask if providing a SS# is optional and what would happen if you don’t provide it;
• Teach your children to never give out personal information over the phone, on any Internet site, or to any organization;
• If you need to show a Social Security card for a child to participate in sports, provide the card then return it to a safe place. If a photocopy is needed, show the original card and place the photocopy in a sealed envelope. Write your name in colored ink across the flap of the envelope so when it is returned you can tell if it has ever been opened;
• Suppress the credit of your child (Information Sheet—Addendum)

Newborns receive a Social Security number weeks following their birth.  Social Security Numbers are the key to obtaining credit.  The three major credit reporting agencies do not know us by name but rather by our Social Security numbers.  Consequently, should ID thieves fraudulently obtain your child’s Social Security number, they can open credit in a child’s name.  Unfortunately this information is usually not discovered until the child applies for credit the first time or applies for a job for the first time.

You may be able to suppress the credit of your children until they reach the age of 18 (the age where children are considered legally capable of enforcing a contract).  Suppressing their credit will block access to your child’s credit report and can be an effective means of preventing some forms of Identity Theft.

To suppress the credit of a child, send a request in writing by Certified Mail, with ‘Return Receipt,’ to each of the three major consumer credit reporting agencies:

Include the following in your request:

• State that you are writing on behalf of your child, as the legal guardian, list the child’s Social Security number and include a photocopy of your government issued ID;
• Provide your child’s full name, with middle initial and generation,
            such as Jr.;
• Enclose a copy of the child’s Birth Certificate;
• Ask for credit suppression until the child’s 18TH birthday.

Four to six weeks after your request, obtain one copy of your child’s credit report on www.annualcreditreport.com  to ensure that the credit has been suppressed.

Source: District Attorney Scott Storey, Office of Jefferson/Gilpin Counties, Colorado