Identity Theft, Fraud, Checking, Credit and Non-Credit Data Glossary

These pages contain the most common words involving data security and information protection relating specifically to identity theft, fraud, checking, credit and non-credit data.

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What is the definition of...

• Account Takeover

  Account takeover takes place when an identity thief uses your personal information to convince a financial institution to give him/her full control over your account.

• Bankruptcy

  A proceeding in a federal court in which an insolvent debtor's assets are liquidated and the debtor is relieved of further liability. A bankruptcy will remain on a credit report for ten years after the last reporting date.

• Check Washing

  Check washing is another method identity thieves use to steal from you. They dip your check in acetone, which washes the ink off so they can write it for a higher amount.

• ChexSystems File Disclosure

  Part of the non-credit searches service that consists of a request for consumer file disclosure from ChexSystems. ChexSystems database is primarily used by banks not retailers.

• Consumer Reporting Agencies
  

  Check clearinghouse companies aggregate information and may perform collections on checks that have been returned for insufficient funds. They aggregate derogatory information dealing with check writing and other banking activity.  Some also report that activity to a network of retailers at the point of sale.  In doing so, the companies become Consumer Reporting Agencies and are subject to the Fair Credit Reporting Act (FCRA).  ChexSystems, SCAN (Shared Check Authorization Network), Certegy, and Telecheck are the major check clearinghouse companies.

• Consumer Statement

  A consumer may add a statement to their credit report explaining certain adverse situations appearing on their credit report including ID Theft. These statements are seldom considered in financial transactions and have no effect on an individual’s credit score.

• County Criminal Search

  Part of the non-credit searches service that consists of a seven-year criminal search in the victim’s current county of residence.

• Credit Monitoring Alert

  Credit monitoring alerts warn consumers when/if there has been suspicious activity reported on their credit file, as defined by the monitoring alert triggers. The primary objective of credit monitoring is the early detection of unauthorized activity to limit the amount of financial damage a consumer might suffer at the hands of an identity thief.

• Credit Report

  A credit report is a consumer’s credit history prepared by a credit bureau and used by a lender in determining the consumer’s creditworthiness. Credit reports are also used by potential employers and insurance agencies to determine risk.

• Credit Reporting Agency (CRA)

  There are three major credit reporting agencies: Experian, Equifax and TransUnion. They keep track of your credit records, and issue credit reports to those who have a legitimate reason for needing to know your credit history.

• Data Breach

  A data breach is the unintended disclosure of information that compromises the security of personally identifiable information and can often lead to instances of identity theft.

• Data Encryption

  Data encryption is the reversible transformation of data from the original (plain text) version to a difficult-to-interpret format, as a mechanism for protecting its confidentiality, integrity and sometimes its authenticity. Most web sites employ data encryption to protect your information during e-commerce.

• Data Minimization

  Data minimization is the practice of eliminating unnecessary information stored by a(n) business, organization and/or individual for the purpose of decreasing risk of information and, possibly, identity theft. Recommendations for proper data minimization include: 1) Don’t acquire information unless it is needed; 2) Minimize the number of places where information is retained; 3) Purge data once the need for it has expired.

• Derogatory Data

  Usually defined as a tradeline that is reported late, delinquent, over the limit, charged off, in collections, or in some way unfavorable to potential creditors. Judgments, liens and bankruptcies are also considered derogatory.

• DMV Search

  Part of the non-credit searches service that consists of a query into activity associated with the member’s driver’s license number as officially reported in the state in which it was issued.

• Fair Credit Reporting Act (FCRA)

  The FCRA is a U.S. federal law that gives everyone the right to see what the Consumer Reporting Agencies have on file in their credit report. It also outlines permissible purposes for obtaining a periodic free copy of a credit report. In addition, if there are any inaccuracies found, they have the right to dispute them.

• Fraud Alert

  A fraud alert can be put on your credit report at the Consumer Reporting Agencies for free if and when you become an identity theft victim. Its intention is to let everyone know that someone may be trying to obtain new credit in your name, so the process will be very closely scrutinized. In practice, however, this safeguard accomplishes very little as it is often ignored or missed due to abuse and excessive usage.

• Hard Inquiries

  Hard Inquiries result from a request for a consumer report due to an action that involves an application for credit or other services. When a company requests a copy of a consumer report for the purpose of granting credit, an inquiry is placed on that report for at least two years. Hard inquiries affect the credit rating of a consumer report.

• Identity Fraud

  Identity fraud differs from identity theft in that the thief uses personal information that s/he has made up, rather than information s/he stole from a real person.

• Identity Theft

  Identity theft occurs when a thief uses someone else’s personal information as his own, thereby creating a new identity of an existing person. The new identity then applies for any form of credit s/he can get. The most common things an identity thief steals are: your name and address, your Social Security (Insurance) Number, your driver’s license number, your employee ID number, your mother’s maiden name, and your account information, including bank accounts and credit accounts.

• Inquiry

  An account of a request for a consumer’s credit history by name of the requestor and date.

• Installment Accounts

  Accounts that have a fixed payment over a set period of time and are closed once the balance is paid in full. An example of an installment account would be an auto loan.

• No glossary terms found.

• Mail Fraud

  Mail fraud is a method identity thieves use to obtain your personal information. They steal your mail, which may include pre-approved credit card applications or any other information that will help them get credit in your name.

• Monitoring Alert Triggers

  Monitoring alert triggers include: New Tradelines, New Inquiries, New Derogatory Data, New Public Records, and New Change of Address.

• Mortgage

  A mortgage is a loan utilizing property as security for the payment of a debt. The account resulting from this method is reported to the debtor’s credit report.

• National Criminal Search

  Part of the non-credit searches service that consists of a query of currently available electronic databases that may contain criminal information.

• Opt-out

  When you opt-out, you notify a financial institution, insurance company, Consumer Reporting Agencies, or any other company that sells your personal information that you do not want your information shared. This is your right, it is always free, and it protects you from unwanted junk mail and phone calls, not to mention identity theft.

• Permissible Purposes

  Permissible purposes are guidelines set out in the Fair Credit Reporting Act that outline the allowable reasons for requesting a copy of a credit report. One of those reasons is if you’re a victim of identity theft.

• Personal information

  Personal information is any data the can be used to identify an individual. Examples of personal information are: names and addresses, Social Security (Insurance) Numbers, driver’s license numbers, employee ID numbers, mother’s maiden names and account information, including bank accounts and credit accounts.

• Public Records - Liens and Judgments

  Tax Liens, Property Liens, and Court Judgments related to financial matters that may be reported to one if not all of the three credit bureaus. The information may remain on the credit report up to seven years after the last reported date to the bureau.

• Phishing

  Phishing is the act of tricking someone into giving them confidential information or tricking them into doing something that they normally wouldn’t do or shouldn’t do. For example: sending an e-mail to a user falsely claiming to be an established legitimate enterprise in an attempt to scam the user into surrendering private information that will be used for identity theft.

• Pretexting

  Pretexting is the collection of an individual’s personal information under false pretenses typically over the phone or via e-mail.

• Revolving Accounts

  Accounts that do not need to be paid to a zero balance each payment cycle and the balance varies based upon the consumer’s use and payment of the account. An example of a revolving account would be a credit card account.

• Social Security Death Index Search

  Part of the non-credit searches service that consists of a query using the Social Security Number of the member into the Social Security Administration’s Death Index database.

• Social Security Trace

  Part of the non-credit searches service that consists of a query using the Social Security Number of the member into credit or other databases that associate the member with addresses, phone numbers, employment, and other demographic data.

• Soft Inquiries

  Soft inquiries are a result of companies requesting a consumer report for the purpose of solicitation, marketing, account review or a consumer’s request for their own report. Credit monitoring also appears as a soft inquiry and does not affect the credit rating of a consumer report. Soft inquiries are only viewed by the consumer.

• Terrorist Watch List

  The U.S. master terror watch list is used to stop suspected terrorists from entering the country. Many terrorist groups have been known to use ID Theft as a method to elude authorities and enter the country.

• Tradeline

  A tradeline is any account appearing on a credit report.

• No glossary terms found.

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