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Re: Are You Who You Say You Are?
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 That's the very question your bank, cell-phone carrier, utilities provider and car dealer are wondering when they mull over your "identity score." Though most are unaware of it, an ID score is a three-digit number between 1 and 999 that quantifies a consumer's risk of being a victim of identity theft. Businesses are increasingly using this score to compile customer dossiers before giving the OK for account transfers and big purchases.
But according to SmartMoney.com, this rating system is raising some questions. For starters, privacy advocates say the compilation of such detailed customer information is troubling; ID calculations are based on how personal information (Social Security number, current and past addresses, phone numbers and so on) is used in transactions and credit applications. In addition, most of the data used to generate this score comes from one's credit report, which isn't always accurate to begin with.
Then there's the slew of unjust factors that can raise your score, making you appear more suspicious to businesses. Moving around a lot, changing your name, living in an apartment building and using an out-of-state cell-phone number on loan applications are all risk factors. Identity protection is clearly a good thing, but being a potential threat to a business by relocating, getting married or simply living your life is a bit off-putting -- especially when you're the one giving them your money.
So what exactly happens when your ID score is too high? According to Aleksandra Todorova's article on SmartMoney.com: "The consumer may be asked seemingly random 'challenge' questions. They're meant to be questions that fraudsters are unlikely to be able to answer -- but in some cases, they can tax the memory of the authentic consumer. You might be asked the house number where you lived seven years ago, for instance, or the color of the car you owned in college or the issuer of the mortgage on your first home. Further up the inconvenience scale, you might even be asked to visit a bank branch to show your personal identification or to fax information to prove your identity." Drawn-out delays before getting approved for a loan or getting booted out of your online trading account while the firm verifies your identity are obvious inconveniences -- whether big or small, that's in the eye of the beholder. But all of this begs the questions that SmartMoney's Todorova asks aloud in her article: Exactly how big of a problem is identity theft if businesses are willing to take such drastic measures? And where do businesses draw the line between customer profiles and customer privacy?
Do you agree with ID scores? Do you think identity protection is worth the price of your privacy? Share your thoughts here.
Message Edited by Renee_DeFranco on 06-29-2009 04:21 PM
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