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Now computers have made it very easy for identity thieves to wreak an enormous amount of disastrous effects in a very short period of time. With today's new technology, you can be in a lot of trouble in just a matter of days, and sometimes the trouble begins in just 1-2 hours. Understanding what information the criminal needs; how they can obtain it; and what they do with it will help you protect yourself and your family members from identity fraud.
Financial identity fraud is the most common type of problem that is now being encountered. This is a practice that is proving to be extremely lucrative for criminals. There are also four other major types of identity fraud.
- business/commercial
- criminal
- identity cloning
- medical
Business/commercial identity fraud is on the same par as financial ID theft. The only difference is that the criminals are stealing business information as opposed to the personal financial identification of an individual.
Criminal theft of an identity occurs when someone who is being arrested willingly gives the legal authorities ID information that belongs to someone else. This can result in charges being filed under an innocent person's name. If the perpetrator is released and then doesn't show up in court, a warrant can be signed against the wrong person. This can create serious problems before the matter is straightened out.
Identity cloning is the term used when someone is using the identity of another person on a daily basis. While this may not be technically considered ID theft, it can still result in a myriad of problems. Your reputation and good name can also be tarnished, through no fault of your own.
Medical identity fraud takes place if a person uses someone else's name to obtain medical treatment. This can happen with a hospital or at a doctor's office and it can affect you financially. It can also create many inaccuracies with your own personal medical records.
Financial identity fraud is what happens when someone uses the personal information of another person to transact business. This could range from obtaining new credit cards to siphoning money from bank accounts. These practices have created headaches and credit related nightmares for people in every country. Even when you realize what is taking place it can take months, or years, to sort through the tangled red tape and clear both your name and credit history.
Protecting your identity is becoming a growing industry. It is vital that you know how thieves can obtain your sensitive personal information. This is one of the best ways for you to protect yourself and prevent identity theft from transforming your life into a horror show.
Here are six common ways that thieves can gather sensitive information and some preventive measures that can keep you from becoming a victim of identity fraud.
- The first means of identity fraud is when someone gets information by sifting through your rubbish.. Never throw away anything with account numbers, social security numbers, usernames or passwords. Anyone can go through your rubbish and retrieve these papers. Even if you tear documents and financial statements into bits they can be put back together if someone really wants to obtain your personal information. A paper shredder that also shreds credit cards, CDs and DVDs is a great investment. This is the only way to keep your ID numbers and other personal information safe from prying eyes.
- The second way they can latch onto your identity is by stealing credit card information when you are swiping their credit card at a store or restaurant. This is called skimming and is hard to prevent when someone really wants to get the information and you have to give them your card for payment. It is a good idea to check the activity on your credit cards more than once a month when the statement comes.
- The third method an ID thief can use is to dupe someone into giving out sensitive information through emails. This is called phishing, but always remember, a legitimate institution will never ask for sensitive information via email.
- A fourth identity fraud method is pretty basic, some crooks resort to old- fashioned theft. If you get your wallet or purse stolen, it is very important to inform all credit card companies and banks. You also need to notify the authorities to let them know that your driver's license and other personal information is missing..
- A fifth way of stealing an identity is by actually changing someone's address. Billing or bank statements contain a lot of good information in them. Be concerned if you're not getting any mail for a few days.
- Number 6 on the list occurs when thieves use false pretences to obtain personal information from various institutions. This is called "pretexting" and it is the reason institutions ask you those seemingly inane and rather silly questions before letting you access your accounts. If you are prone to writing your computer user-names, passwords and other information on pieces of paper you had best keep them in a secure place. It is best not to engage in this practice, but if you must then you should try to use a code so that others cannot easily go online and clean out your bank accounts. Never write any PIN numbers down on the backs of your cards and do not keep PIN numbers and credit/debit cards in the same location.
There are a growing number of companies that will keep an eye on your credit scores and financial transactions. For a monthly fee they will warn you of any strange activity that is occurring and take steps to prevent it. If you feel the consequences of identity fraud really warrant this type of interaction then it is going to be worth the cost of the fee for you to have peace of mind.
If you are diligent with your personal information and regularly monitor your financial records and credit scores then you will greatly decrease your risk of identity fraud. As with everything else in life, there are risks and rewards- you simply have to decide how much you want to risk.
Posted: 23 September 2009