Unexpected charges create ID theft fears

January 2, 11:45 AMNY Consumer Affairs ExaminerAsa Aarons

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As many as nine million Americans have their identities stolen each year. With that much criminal activity, there’s plenty to worry about and obvious reasons to protect your personal information. But don't let a very real threat produce needless consumer paranoia.

I field a steady stream of calls from anxious consumers who fear they're potential victims of ID theft. Some are justifiably concerned. But others are letting fear overwhelm their judgment. One consumer planned to file a police report about an alleged unauthorized $100 debit from his checking account. Another was worried a licensed New York State mortgage broker would make unauthorized use of his Social Security number and other personal information.

Identity thieves get information in many ways, including rummaging through trash, hacking into computers, stealing wallets and copying credit and debit card account numbers as your card is processed. But odds of an identity thief posing as a state regulated mortgage broker are low. So are the odds that a relatively modest electronic debit was an act of theft rather than an act of forgetfulness.

While it's always a good idea to study bank and credit card statements carefully, many consumers forget about recurring charges. These charges can appear any time throughout the year. But they're especially common in January and February, when annual fees for magazines, clubs and other bills may come due.

Many consumers give permission for companies to bill their credit cards or debit their checking accounts when they register for service. But they may not read enough of the fine print to realize their accounts will be automatically renewed when they expire. As a result, they're confused by the charges.

To add to the confusion, the legal name of a business often differs from the one under which it does business. That makes it hard for consumers to recognize charges on their credit card or debits from their bank accounts—increasing fear of fraud.
So if you spot a suspicious charge, take a deep breath. Before you call the police, close the account or try to enlist the aid of anyone and everyone to track the probable crooks, ask yourself a few questions.

• Did you approve a membership renewal for club or subscription?
• Did you authorize an online auction service to take money from your checking account?
• Did you purchase an online subscription for genealogy research services, library access or other premium services?
• Did you pledge any contributions to a charitable organization?

If you're still unsure, look through your records or do a quick search online for more information about the company that charged your account. Many credit card charges also list a number you can call for more information.