The Dangers Of Identity Theft
Copyright 2006 Prepaid Solutions
Identity Theft is a real and growing problem. So what is
identity theft exactly? Basically, identity theft is when
someone uses your social security number, your bank credit card
number, your driver's license number or any other form of
identity without your knowledge or permission.
Many people have fallen victim to identity theft through many
different means. Some of these ways are easily preventable due
to their common sense obvious nature. Other ways identities are
stolen are more dubious and discreet.
What Identity Theft Can Do To You
We often take our liberties for granted. What you know life to
be can suddenly change if you've been a victim of identity theft.
While you've been busy with your day-to-day life someone could
have stolen your personal information and racked up debts or
committed fraud - all with your name on it. What happens then
can be anything from being denied employment, credit or even
being arrested for a crime you didn't commit.Identity theft is
that serious.
Victims of identity theft can spend years paying back debts or
fighting to restore their credit as well as their reputation.
Finding out you are a victim of identity theft can be
frightening and a source of anxiety even after you've resolved
the issue.
According to a survey conducted by the FTC (Federal Trade and
Commission) 4.6% of Americans involved in the survey responded
that they had been a victim of identity theft within the past
year. That means about 10 million Americans dealt with some form
of identity theft - from using existing credit cards to setting
up new accounts or giving false identification when arrested for
a crime.
It doesn't stop there. The cost of clearing up the theft ranged
from an average of $500 to $1200 per victim. It took them on
average 30 hours to resolve the issue while also costing time
and money for businesses and agencies who assist these victims.
With all the tools available to potential thieves along with our
increasing reliance on paperless money transfers (credit cards,
debit cards and online payments) we are incredibly susceptible
to having this nightmare come true.
How can you reduce the risk and what do you do if it happens to
you or your family?
So, the question becomes, how can you protect yourself from
someone stealing your identity?
To protect yourself from identity theft, the first thing you
should do when considering how to divulge information about your
identity to someone you do not know or may not trust is to use
your common sense. Never make one-sided assumptions or take
things for granted where your identity is concerned.
Credit card company statements and bank statements you receive
in the mail contain your account information including your
account number. Any of these items need to be shredded with an
inexpensive shredder you can buy at any office supply store. Do
not throw credit card statements, old credit cards or bank
statements, etc. in the trash as that presents an easy way for
someone going through the trash to steal your account
information and use it as if they were you.
Another thing you can do to protect yourself against credit card
fraud and unauthorized credit card usage is to sign the back of
your card as "Check ID". If a store clerk asks to see your card,
he or she will check the signature on the back and compare it
with some other form of ID you have. This safeguard will not
work where a purchase can be automatically completed (like at a
gas pump).
When you are buying items at a store or withdrawing money from a
bank or ATM machine using your ATM debit card always protect the
visibility of your PIN number as you punch it in.
Do not carry your social security card with your number on it in
your wallet. Keep your social security card or anything with
your social security number on it in a safe place where no one
has access to it but you. If you must dispose of anything that
has your social security number on it, do not forget to shred it.
When online, do not open files sent to you by strangers or even
files that are from someone you know but were not expecting to
receive any from them. Do not click on hyperlinks or download
programs from people you do not know either. Opening a computer
file from an unknown source could expose your system to a
computer virus, a Trojan or spyware. These types of programs
could be ones that could log your keystroke information
containing your credit card numbers, passwords or other
sensitive information as you type it in.
If you use Ebay or Paypal, read the company website policies
concerning how they handle communication to you about your
account information. Never trust an email you may receive out of
nowhere from Ebay or Paypal asking you to "update your account
information" as this is more than likely a ploy to steal that
information and use it illegally.
Use a firewall program and a router while you are online if you
have high speed internet that leaves your computer connected to
the internet 24/7. The router and the firewall program both make
it much more difficult for a hacker to see your computer's
actual IP address which means that you have a better chance of
safely sending and receiving sensitive information over the
internet. Windows XP operating system SP2 has a built in
firewall which you should make sure is enabled in your settings.
When you are shopping online, always use a secure browser and
shop from a web site that offers secure transactions when
shopping online. Most browsers in use today have this protection
feature including the popular Internet Explorer and Mozilla
Firefox browsers. Secure website shopping carts you visit will
show up as "https://thestoresdomain.com" in the web browser
address bar.
Practice keeping your computer clean from spyware or Trojan
programs that log keystroke information by using virus
protection software and spyware monitoring and removal software.
These programs should be updated regularly, and updates for
you're operating system and other software programs should be
installed regularly to protect against the compromise of your
computer files and password information. Ideally, virus
protection software should be set to update itself frequently.
The Windows XP operating system will update itself automatically
if you enable this feature, which you should.
The consequences of identity theft once thieves have your
information can be quite severe and range from going on a
spending spree to taking out auto loans in your name. For these
reasons and others, it is a good idea to monitor your credit
report periodically. A credit report can be obtained from Trans
Union Corp. New laws have made it easy for you to get at least
one free credit report that you can use to see if accounts have
been opened in your name.