Identity theft occurs when a criminal steals personal information from you. It may be your full legal name, your credit card or bank account numbers, your social security or driver’s license number, or other personal data that identifies you uniquely. The identity thief uses the information to apply for mortgages, loans, or credit card applications under your name. They may even use the information to access your bank accounts.
This modern crime is rampant today, and public concerns about it continue to rise. While perpetrators of identity theft are difficult to catch and prosecute, here are a few things you can do to protect your personal financial information and avoid becoming a victim to this malicous crime:
1. Don’t give your personal information to anyone over the phone. Callers who ask for your birth date or social security or other account numbers over the telephone are likely to be identity thieves looking for an easy mark.
2. Don’t send this information to anyone through e-mail or snail mail unless you initiated contact and know and trust the person or company you’re sending the information to.
3. Tear up or shred papers (like your mail) that have personal information on them before you throw them away. This applies to bank accounts, credit card statements, and unsolicited or pre-approved credit card applications.
4. Keep an accurate, up-to-date record (under lock and key) of all your account numbers, noting contact information if they should be lost or stolen. If they are lost, contact the company immediately to notify them and stop all transactions on the account. Be sure to record the service order or confirmation number of your report for later follow-up.
5. Unless you are using your credit cards, store them in a safe, locked place where no one can get to them without your knowledge. Store unused checks, your social security card, and your bank and investment statements in a secure location.
6. Keep copies of your purchase receipts and make sure you got the card back when you used it.
7. Monitor your credit report regularly, at least once a year. By law, you can order one free credit report each year. The major companies that you should contact are Equifax, TransUnion, and Experian. Review the reports careful to assure you are aware of all accounts they include and that the information about the account status is correct and up-to-date. Be sure to check the section listing recent credit checks, and be sure you know why the inquiry was made.
8. When you are withdrawing money from an ATM, be sure there is no one standing behind you who can watch you enter your PIN.
9. Make sure no one can hear you if you give your credit card numbers or banking information to someone over the phone.
10. When make a purchase on the internet, be sure the website and your transaction are secure.
11. Intall personal security measures on your PC. Use firewalls, virus protection, and adware to identify and remove unwanted cookies and spyware.
12. Password protect all of your internet accounts. Don’t use easy-to-guess passwords like your birthdate, phone number, or anniversaries. Change your passwords, at the least, every six months. Use a mix of letters, numbers, and symbols that people are unlikely to figure out. NEVER give your password to someone else unless you are completely comfortable with them accessing your accounts.
13. If you do have to write your passwords down to remember them, keep them under lock and key, and don’t share the information with anyone. If you keep them in a computer file, use password protection to discourage spying eyes.
14. Be very suspicious of calls from your bank or other institutions. They do not ask for personal information over the phone or by e-mail. Ask if you can call back or simply refuse to respond.
15. Get on one of the internet lists that remove your name from all pre-approved credit mailing lists. When telemarketers call, tell them to “Take my name off your list.” By law, they can’t call you again for a year.
16. Don’t leave your mail in your personal or post office mailbox for extended periods. This is an open invitation to the identity thief.
17. Order your new checks from your bank and pick them up personally rather than having them mailed to you.
18. Consider purchasing an identity theft insurance policy.
19. To be alerted if someone attempts to make credit applications or transactions under your name, register at a credit watch company that will routinely check your credit report for you on a regular basis and inform you when something in your report has changed. You can also purchase this service from the major credit reporting companies.
20. If you think you may be a victim of identity theft, report it immediately to the U.S. Justice Department and your local police. Also notify your credit card companies and the three credit report agencies to prevent further transactions under your name. Ask credit report companies to freeze your credit report by making a request via certified mail. They will not charge you the normal $10 fee if you are a victim of identity theft.