8 Easy Ways to Combat Identity Theft and Fraud and 7 Tools to Prevent Identity Theft Fraud.
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7 Tools to Prevent Identity Theft Fraud.
Identity theft fraud in America has reached epidemic proportions having surpassed 27 million cases and increasing every year.
Today I participated in a fraud risk assessment for the company I work for. This assessment is essentially a brainstorming session where people discuss the various ways employees could rip off the company. I was amazed at the expansive list of fraud scenarios we came up with. I was even More amazed at the detail in which certain people in the room described their “hypothetical” scenario. But that’s a whole different topic entirely…
The banks are taking identity theft fraud very seriously and have taken substantial measures to protect your identity and your accounts against scammers.
In any case, the exercise caused me to start thinking about the various ways individuals are ripped off. Although this is certainly not an extensive list, it’s not bad for a mini-brainstorming session.
1. Shred all documents containing personal information before discarding.
They have implemented a password protection for online transactions. When you use your online services, keep your secret password protected so only you know what it is.
This was a tough habit for me to start. For one thing, I bought a shredder that only cut up to 5 pages at one time and overheated after a few minutes of shredding. I recommend not buying the lesser quality versions if possible. That being said, I don’t recommend going without a shredder just because you can’t afford a good one.
All online bank transactions are now encrypted which converts your information into a secure code, protecting you against would be hackers.
2. Look Closely at the Links in Emails Requesting Personal Information.
This protects you agains the type of fraud referred to as phishing. One way to check for false links it to hover over the link and read where it will take you.
To protect yourself here are a few more things you should know about preventing identity fraud :
1. Never give out information such as checking and credit card numbers or your Social Security number to anyone you do not know.
My wife often receives phishing emails from EBay and Paypal with the link addresses pointing to a much different website. The best way to combat phishing in my opinion is to use another method of making the required change. For instance, if you receive an email from Paypal telling you to update your credit card information, go to their website and make the change there.
2. Notify your bank immediately if you lose or have your checks stolen. They can be flagged with a fraud notice to block payment.
3. Don’t give the PIN number on your ATM card to anyone and never write the number down and keep in your wallet. Always take your ATM receipts with you after a transaction.
4. Shred any financial papers you receive before disposing of them. This includes any solicitation notices that you may receive for any credit cards or mail from other financial institutions.
3. Make a Copy of Everything Cancellable in Your Wallet or Purse.
This is straightforward. Make a copy of the front and back of any credit card and other identity documents you carry. Also, if you don’t need a particular credit card or identity document, don’t carry it.
One piece of advice that may help: don’t be like my college buddy who kept the copies IN HIS WALLET. His wallet was stolen along with the copies leaving him to struggle through the credit card cancellation process.
5. If you don’t receive a regular monthly bill, call the company to find out why.
6. Check out the bills you do receive to make sure all the transactions are legitimate. If there is anything suspicious call the company immediately to stop any fraud from going any further.
7. Check your credit report at least once a year to make sure the information is correct.
4. Never Give Personal Information Over the Phone Unless You Made the Call.
This protects you agains the type of fraud typically referred to as pretexting. Ask the caller who they are associated with and if you can have their phone number to call back. If they mention a company, look them up online and call them on a number you know is correct. If you don’t recognize the company name and they give you a phone number, do a whitepages.com lookup to confirm their story. Although in this instance it’s very unlikely I would give them any personal information at all.
Another provision to help fight identity theft is the National Fraud Alert System. This allows consumers who reasonably suspect they have been a victim of identity theft can place an alert on their credit files. This alert will tell potential creditors that they must proceed with caution when granting credit.
5. Monitor Your Credit Report Regularly.
Thanks to the Fair Credit Reporting Act (FCRA), you can now download free copies of your credit report from the three major credit bureaus once a year. This is a good way to stay on top of unauthorized credit lines. Keep in mind that the information is typically 30, 60, or even 90+ days old depending on how often your creditors update the bureaus.
Scammers can get the information they need to assume your identity from a variety of sources. They range from stealing your wallet to digging in your trash. They may approach you in person, by telephone or on the Internet.
You can request your free credit reports at AnnualCreditReport.com.
6. Remove Your Name from the Credit Bureau Marketing Lists.
Removing your name from these lists will reduce the amount of unsolicited credit card offers you receive.
The sources of information about you are so numerous that you cannot totally prevent the theft of your identity. But identity theft fraud can be minimized by just becoming aware of the possibilities… [read more]
Unscrupulous people can use your preapproval offers to open credit lines in your name.
To opt out of the lists for all three credit bureaus, visit OptOutPrescreen.com or call 1-888-5OPTOUT (1-888-567-8688.)
7. Don’t Put Your Social Security Number on Your Checks.
This sounds obvious, but you would be amazed at the number of people who still have their social security number printed on their checks. Some banks don’t even allow social security numbers on their checks anymore because of the large liability associated with it.
8. Look for the Lock Symbol on Your Browser When Entering Personal Information on the Internet.
Most Internet veterans know to look for this lock symbol, but people like my grandfather may not. Depending on your browser, it can be on the bottom status bar, next to the address bar, or some other place in between. Even though I know to look for this symbol, I am often guilty of making a quick purchase without taking a second to stop and look for it.
As I mentioned earlier, this is certainly not a complete list. If you have additional suggestions for protecting yourself from identity theft and fraud, please leave a comment.
If you are interested in a more in-depth look at fighting identity theft, I recommend FightIdentityTheft.com which really goes into detail on this topic.
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