By Joe Palumbo III
According to the Federal Trade Commission, an estimated 10 million people are now new victims of identity theft each year. Thefts range from one-time opportunistic thieves to organized crime rings racking up millions in fraudulent charges each year.For the unfortunate victim, this means on the average 175 (stressful) hours and approximately $800 (unbudgeted) to clear up their credit report. Even more disheartening are those consumers who aren't victims per se, but still pay out heavily – in the form of higher interest rates and fees – thanks to the increase in fraud. And for this we can blame the lenders.The credit industry is making more money signing up new clients than it is from fraudulent accounts. Credit card companies and financial institutions are becoming increasingly lax in their verification procedures. Why? Lenders say it is too expensive for them to verify every credit application by phoning the consumer. As consumers we all inherit the right to ask credit bureaus to put fraud or security alerts on our credit reports. Most times these alerts are placed by consumers who have already been victims of identity theft. And incredibly enough, lenders frequently ignore these alerts. Unless major changes in current policies are made, we may all be victims of identity theft in our lifetime – pretty frightening.So how's business with regard to identity theft and the credit industry? My recommendation and advice is to protect your identity at all costs, no different than the insurance you have on your home or car. Any help needed or questions you may have, visit www.advancecredits.com and click on identity theft, or call 1-888-670-0241.Joseph J. Palumbo III is a managing partner for the Palco Group. The Palco Group deals in asset management, real estate, sales training and business consultation. Palumbo can be reached at 718-461-8317, or at palcogroup@aol.com.
