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What is Identity Theft?
This article first defines what
identity theft is, it then explains how the thieves might obtain your details
and then explains how you can protect yourself.
Identity theft occurs when the thief
steals your personal information to do one or more of the following:-
- Take over your credit accounts/credit cards.
- Open new credit accounts/credit cards.
- Take out a loan in your name.
- Rent a flat/apartment in your name.
- Access your bank accounts.
They may also commit other crimes
in your name and at your expense.
When identity theft strikes the
effects can be devastating and because it often involves no physical theft it may
not be noticed by its victims until significant financial loss has already
occurred.
The ways in which your identity
can be stolen are:-
- The thieves go through your mail or trash, looking
for bank and credit card statements, pre-approved credit offers, and tax
information etc.
- They steal personal information from your wallet or
purse such as identification, credit, or bank cards.
- They might complete change-of-address forms to
redirect your mail for their own use.
- Obtaining your credit report by posing as a
landlord or someone else who has a lawful right to the
information.
- Acquiring personal information you share on websites
that lack Internet security.
- Buying personal information about you from an
inside source such as a store employee that gets your information from a
credit application or by "skimming" your credit card information
when you make a purchase.
- Getting your personnel records at work.
What is the scale of the
Identity Theft problem?
To give you some idea of the scale of the problem and its impact it
is estimated that more than 100,000 people are affected by identity theft in
the UK each
year, costing the British economy over £1.7 billion annually and the figure is
rising sharply. According to a Gartner study the 2006 victim population in the U.S.
was 15 million victims. That means every minute about 28 people become a new
victim of this crime, or to put it another way there is a new victim every 2 to
3 seconds. One study said that identity theft cost U.S.
businesses and consumers $56.6 billion in 2005.
In 2004, victims spent an average
of 330 hours recovering from this crime, often spread over a number of years.
Even after the thief stops using the information, victims struggle with the
impact of identity theft. That might include increased insurance or credit card
fees, inability to find a job, higher interest rates and battling collection
agencies and issuers who refuse to clear records despite substantiating
evidence of the crime.
How can you protect yourself against Identity Theft?
It is probably true to say that
you cannot totally prevent yourself from becoming a victim of identity theft. However,
by managing your personal information carefully you can substantially reduce
the likelihood that it will happen to you. The following tips should help you
reduce your risk.
Be careful about giving out
personal information. Whether on the phone, by mail, or on the Internet,
never give anyone your credit card number or other personal information for a
purpose you don't understand. Ask to use other types of identifiers when
possible.
Shred all rubbish containing
any personal information. Check everything that you are about to through
into the rubbish. If it contains any personal information, name, address,
credit card numbers for example on your receipts, bank details etc. then ideally
shred them with a cross cut shredder.
Cards. Minimise the number
of cards you carry in your wallet or bag. If you lose a card, contact the fraud
division of the credit card company immediately. Also if you apply for a new
credit card and it doesn't arrive in a reasonable period, contact the issuer.
Watch cashiers when you give them your card for a purchase. Also when you
receive a new card, sign it in permanent ink and activate it immediately. Keep
any credit cards that you leave at home in a very safe place. Don’t forget to
use them from time to time to ensure they are active, as you will want to use
these cards if your other cards are lost or stolen, until replacement cards are
obtained.
Reduce the amount of
information you carry. Minimise the information you carry in your wallet or
bag. If your keys are lost or stolen get your locks changed.
Late or missing bills.
Contact the creditor if your bill is late arriving, as this could mean an
identity thief has taken over your credit card account and changed your billing
address.
Safeguard personal information
in your home. If you are going to
have any none family people in your home such as service engineers, plumbers,
cleaners or you share your home with flat mates, then ensure your personal
information is safeguarded.
Passwords and PINs. You
must memorise your passwords and personal identification numbers instead of
carrying them with you. Don’t use easily
available information like your mother's maiden name, your birth date, your
phone number, or a series of consecutive numbers.
Check your credit report. You
can check your own credit report and doing so can help you catch mistakes and
fraud before they have a large impact on your personal finances. Make sure your
report is accurate and includes only those activities you've authorised. It's
also a good idea to review your credit report from each of the three major
credit reference agencies every year as it is possible that information is
reported to one but not the others.
Regularly checking your credit
report for changes you did not make is one of the best ways to combat identity
theft. It is possible to have this monitoring done for you automatically
alerting you within 24 hours of key changes in your Credit Report details like
when someone tries to get credit in your name. Having been alerted you can take action before
serious damage is done.
One company that provides a range
of such monitoring services such as Identity theft alerts is Equifax
Equifax has been providing information
to businesses and consumers for over 107 years (they started in 1899). Today,
Equifax is a global service provider with over $1.4 billion in annual revenue
and 4,600 employees in 13 countries.
Get Equifax Credit Watch Gold 3-in-1 Now!
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