IDENTITY THEFT ADVICE FROM THE FEDERAL TRADE COMMISSION
Common methods of identity theft:
Dumpster diving. Collecting bills and other sources of personal information from trash bins.
Skimming. Stealing credit/debit card numbers by using a special storage device when processing your card.
Phishing. Pretending to be financial institutions or companies and sending spam or pop-up messages to solicit personal information.
Changing your address. Diverting billing statements to another location by completing a "change of address" form.
"Old-fashioned" stealing. Theft of wallets and purses; mail, including bank and credit card statements; pre-approved credit offers; and new checks or tax information. Stealing personnel records from employers, or bribing employees who have
Deter identity thieves:
- Shred financial documents and paperwork with personal information before you discard them.
- Protect your Social Security number. Don't carry your Social Security card in your wallet or write your Social Security number on a check. Give it out only if absolutely necessary or ask to use another identifier.
- Don't give out personal information on the phone, through the mail, or over the Internet unless you know who you are dealing with.
- Never click on links sent in unsolicited e-mails; instead, type in a Web address you know. Use firewalls, anti-spyware, and anti-virus software to protect your home computer; keep them up-to-date. Visit OnGuardOnline.gov for more information.
- Don't use an obvious password like your birth date, your mother's maiden name, or the last four digits of your Social Security number.
- Keep your personal information in a secure place at home, especially if you have roommates, employ outside help, or are having work done in your house.
- Detect suspicious activity by routinely monitoring your financial accounts and billing statements.
Signs that your finances require immediate attention:
- Bills that do not arrive as expected.
- Unexpected credit cards or account statements.
- Denials of credit for no apparent reason.
- Calls or letters about purchases you did not make.
Inspect your credit report and financial information.
The law requires the major nationwide consumer reporting companies -- Equifax, Experian and TransUnion -- to give you a free copy of your credit report each year if you ask for it. Visit www.AnnualCreditReport.com or call 1-877-322-8228 to order your free credit reports each year. You also can write: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
The three consumer credit reporting companies have toll-free numbers for placing an initial 90-day fraud alert; a call to one company is sufficient:
- Equifax: 1-800-525-6285
- Experian: 1-888-EXPERIAN (397-3742)
- TransUnion: 1-800-680-7289
Placing a fraud alert entitles you to free copies of your credit reports. Look for inquiries from companies you haven't contacted, accounts you didn't open, and debts on your accounts that you can't explain.
To learn more about ID theft and how to deter, detect, and defend against it, visit ftc.gov/idtheft.
Source: Federal Trade Commission
RISK MANAGEMENT A HIGHER PRIORITY FOR GOVERNMENT ENTITIES
Fairfax, Va.-based Public Entity Risk Institute (PERI), a nonprofit risk management training and educational organization, says that risk management operations within government entities have gained a heightened importance according to its survey on Cost of Risk, published last year. The survey was a joint project with the Public Risk Management Association (PRIMA) to assess risk management functions performed by all the various governmental entities.
"Our purpose in conducting this survey was to determine how government entities were addressing risk management challenges," explained Gerard J. Hoetmer, executive director of PERI. "These findings show that risk management operations have assumed a higher priority as more risk management departments now report to senior officials. Equally compelling is what the results tell us about how risk management budgets are spent and what cost cutting measures were used most often."
The Cost of Risk survey collected information on property/casualty trends and public government practices during fiscal year 2004, from respondents in 48 states. Survey participants included municipalities, county governments, school districts and state or state agencies. For the first time, responses were received from special districts, joint power authorities (JPAs) and pools and colleges and universities.
Among the other survey findings featured were breakdowns on how various government entities distribute risk management budgets and what percentage of the total operating budget accounts for liability, workers' compensation and property costs. The survey report also incorporates data from the PERI Data Exchange, which is a database of public sector liability and workers' compensation claims data. The survey is available at www.riskinstitute.org and www.primacentral.org.
FITCH LOOKS AT EFFECTS OF REINSURANCE PROPOSAL
Fitch Ratings says it does not believe that individual (re)insurers' financial or competitive positions will be materially altered under the National Association of Insurance Commissioners' reinsurance task force's proposal to revamp regulations governing reinsurers' collateral requirements and cedants' corresponding ability to take reinsurance credit in their statutory financial statements.
Fitch views the proposal as a credit neutral for primary insurers, a modest positive for unauthorized reinsurers and a modest negative for authorized reinsurers.
The agency expects collateral levels to decline under the proposal as reinsurers pressure cedants to accept minimum collateral levels required to receive reinsurance credit in their statutory financial statements. In exchange, Fitch expects primary insurers to negotiate corresponding price reductions as the cost of funding collateral requirements declines and available capacity increases. This decline will occur over time since collateral requirements for reinsurance transactions entered into prior to the proposal's effective date will not change.
The dollar amounts involved are significant. Collectively, U.S.-domiciled life and non-life (re)insurers reported $605 billion of ceded reinsurance recoverables and $218 billion of collateral on recoverables from unauthorized reinsurers at year-end 2005. Over time the proposal's implementation would reduce the collateral supporting primary insurers' reinsurance assets, the agency believes that the proposal's minimum collateral requirements are well in excess of historical default rates and thus provide more than adequate default protection.
