Financial Perspectives – Summer 2008

Identity Crisis

Identity theft. You’re at risk when you give your credit card to a department store clerk, write a check at the grocery store, make a purchase online or even mail your tax return.

However it happens, someone uses your identity to commit a crime. And if it does, it can cost not only money, but months – even years – to restore your good name. In the interim, identity thieves can:

• Open bank accounts in your name;
• Establish new credit card accounts;
• Obtain loans and cash;
• Make purchases using existing accounts or new accounts in your name;
• Create new credit lines and then not pay the bills;
• Drain your bank account by using counterfeit checks, stolen credit/debit cards or fraudulent electronic transfers; and
• File bankruptcy in your name to avoid paying debts.

It seems there are new tactics every day. More traditional methods range from simply snatching your wallet or purse or stealing documents from your trash to watching you enter numbers at an ATM or checkout counter. Others involve contacting you by phone or e-mail posing as a representative of a legitimate organization, then manipulating you into disclosing personal information. Many schemes, such as fraudulent prize offers, can be perpetrated through several channels – via the U.S. Postal Service, e-mail, fax or even in person.

The Internet, of course, is rife with identity-theft schemes – many of which involve software programs – to obtain personal information.

Stay Ahead of Identity Thieves

Being proactive about protecting yourself can save you significant money and time – not to mention helping to prevent the stress of regaining your rightful identity.

Do:

• Keep all personal information, including passwords and account numbers, in a safe place.
• Secure your purse or wallet at work and elsewhere.
• Make sure no one is lingering nearby when you give personal information over the phone or in person, or enter it into an ATM or other device.
• Use only secure mailboxes for incoming and outgoing mail.
• Shred personal documents before discarding.
• Ask companies with which you do business about their security procedures.
• Keep an eye on your children’s identity information and teach them how to keep personal information confidential. Children make attractive victims because their nonexistent credit records offer identity thieves a blank slate.

Don’t:

• Carry your Social Security or unnecessary credit cards with you.
• Give out any potentially sensitive information to sources you don’t know.
• Enter personal information on websites you don’t know to be legitimate and secure.

For more information about identity theft and how to prevent it, visit raymondjames.com/safeguarding_your_identity.htm or ftc.gov/idtheft.

If you think you are the victim of identity theft:

1. Contact the Federal Trade Commission at ftc.gov or 877-438-4338.
2. Contact one of the three major credit bureaus. You only need to call one – that company is required to contact the other two.
3. File a police report and retain a copy for your files.
4. Close any affected accounts by telephone, follow up in writing and retain copies of all correspondence.
5. Call your bank, other issuing institution or a check-verification company if your checks have been lost or stolen.

Equifax
equifax.com
800-525-6285

Experian
experian.com
888-397-3742

TransUnion
transunion.com
800-680-7289

Raymond James & Associates and Raymond James Financial Services are wholly owned subsidiaries of Raymond James Financial, Inc. (NYSE-RJF).

The information contained in this newsletter has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. We may, from time to time, have a position in the securities mentioned and may buy or sell such securities in the course of regular business.

Before making an investment decision, always consult with your financial advisor. Articles in this publication are presented to help broaden your perspective on investment opportunities and the investment process. Whether a particular subject is applicable to your situation or not should be determined by you and your financial advisor based on your financial objectives, time horizon, risk tolerance and current portfolio structure. There is no assurance that the trends mentioned will continue in the future. For additional information about topics in this edition of Financial Perspectives, please contact your financial advisor today. Thank you.