identity theft is the fastest growing crime in America. according to the federal trade commission, the number of identity theft incident has reached 9.9 million a year. these crimes are estimated to have taken the average victim $500 and 30 hours to resolve.
from stolen credit cards to total identity kidnapping, these ugly and prevalent crimes are hard to prevent and often difficult to correct. although it is hard to truly avoid becoming a victim of identity theft, below are a few ways you can guard against this damaging crime.
types of identity theft
identity theft is becoming increasingly personal these days. a recent study found that 32% of identity theft victims found a family member or relative was responsible and 18% had been victimized by a friend, neighbor, or in-home employee. most cases can be resolved fairly easily if they are caught early. creditors and banks usually hold you responsible for only the first $50 of fraudulent charges. the most serious cases of fraud can take several years and many resources to resolve.
preventitive measures
in this world of sophisticated technology, it can be tough to keep your identity safe. the best security policy is to be aware of fraud and cautious about where you share personal information. check your account statements carefully each month and keep an eye out for suspicious activity on your credit report. a paper shredder can also be a powerful tool for making sure personal information and pre-approved credit offers don't end up in the wrong hands.
if your identity is stolen
if you suspect that your identity has been stolen, the first step is to get all the facts about the damage. become your own detective - search your credit report and bank accounts for clues. ask your creditors to immediately cancel any fraudulent charges and put fraud alerts on your credit reports. if the theft is serious, file a police report. if fraudulent records start to show up on your credit report, contact the reporting agencies for assistance. sign up for a credit monitoring service to inform you of changes to your credit.
how identity theft occurs
identity theft is the fastest growing crime in America, impacting more than 9 million people each year. the more you know about this prevalent crime, the better prepared you will be to protect yourself. identity thieves can get hold of your personal information in a variety of sneaky and illegal ways:
your mail
- they go through your mail and take your bank and credit card statements, pre-approved credit offers or tax information.
- they complete a change of address form and reroute your mail to another location.
- they call your credit card company and ask to change the mailing address on your accounts. then they run up the charges on your credit card. because your bills are being sent to the new address, it may take some time before you realize what has happened.
stealing your information
- they steal your wallet or purse containing your personal identification and credit cards
- they dumpster dive, rummaging through trash bins for your personal information such as unshredded credit card and loan applications
- they surf at atm machines and phone booths in order to capture pin numbers
- they use hand-held card readers called skimmers to steal your credit card data at a restaurant or store
- they send out phishing emails pretending to be a bank or online business and ask you to update your account information
buying your information from a 3rd party
- they buy your personal information from "inside" sources. For instance, an identity thief may pay a store employee for a copy of your credit application
while pretending to be you thieves
- they use your name, date of birth and social security number, to open a new credit card account. they use the credit card and don't pay the bills. or, sometimes they make the minimum payment every month so that the activity can go on unnoticed for months
- they establish phone or wireless service in your name
- they open a checking account or apply for a job in your name
- they file for bankruptcy under your name to avoid paying the debts they've incurred as you
minimize your risk
by managing your personal information carefully and sensibly, you can help guard against identity theft. The following recommendations are a few simple precautions to keep your personal information safe:
- do not carry extra credit cards, your social security card, birth certificate or passport with you unless needed.
- when you order new checks, do not have them sent to your home. pick them up at the bank instead. if stolen, your checks can be altered and cashed by identity thieves.
- only give out personal information over the phone if you initiated the call. identity thieves may call, posing as banks or government agencies.
- shred your receipts, credit card offers, bank statements, returned checks and sensitive information before throwing it away.
- check with your employer, landlord and others who can access to your personal data to be sure that they are keeping your records safe.
- order your credit report to make sure it is accurate and sign up for a credit monitoring service to be alerted to changes by email.
- protect your social security number with extra care. don't have your social security number printed on your checks.
- follow your billing cycles closely. a missing credit card bill could mean an identity thief has changed your billing address.
- file away a list of all your account numbers-with expiration dates and telephone numbers. if your wallet is stolen, you will be able to quickly alert your creditors.
- when creating passwords or pin numbers, use a random mix of letters and numbers. do not use information that may be easily discovered by identity thieves.
