Identity theft is a topic that has gotten increasing amounts of attention in recent years due to the rise of new ways to perform transactions, especially on the internet. The damage caused has been increasing many fold as well.
In the past, we were all told to protect our credit cards and checkbooks from thieves. It's not hard to figure out how they might be able to steal from you if they have your credit cards or checkbook. But now, with increasing use of Social Security numbers as identifiers, that too needs to be closely protected, as well as bank account numbers, and all manner of other personal information. There are 2 prime ways to be an identity theft victim:
1) account takeover
This refers to the theft of existing bank or credit account information and the use of that information to complete purchases or obtain cash.
2) true identity theft
This involves the theft of a Social Security number or other identification which is then used to open other accounts to obtain financial gain.
It has been shown to be very easy to get personal information about people. Some of the ways it is done include dumpster diving, that is digging through trash at the dump, or even outside your own home, stealing mail from your mail box, taking credit card copies left at a store or restaurant, and getting information from internet sites.
There are ways to protect yourself that are very easy to do. The most important is to examine the bank and credit card statements for your accounts. They are not just garbage, they are your key to keeping track of your money. This leads to the second excellent way to protect yourself: rip up or shred ALL documents that contain private information. If you are going to throw away a bank statement, shred it first. Here's one that almost got me. Almost every credit card statement I receive includes a page of checks that I can use to pay bills to transfer the balance to my credit card. Well, if you just throw that away, someone can pick it up and write themselves a check (or pay one of their own bills) and it goes on your credit card. SHRED everything that has your personal information! This also includes credit card applications you get as junk mail.
Anymore, every application I get is preprinted with my name, and almost certainly with some kind of code to attach that application to my credit report. Someone filling this out and signing my name with their address will get a card in my name, and I would never know it until the card company tracks me down to say I owe them thousands of dollars. Shred those applications when you throw them away. (As I strongly suggest you do!)
Get your credit report from all three credit reporting agencies at least once each year. Check it for errors and follow up on all errors to be sure they get corrected.
Another way to protect yourself is to be VERY careful who gets to see your private information. Take your SS# off your driver's license and checks; don't let identification, like driver's license, social security card sit around unattended or open to other's to see; be sure to keep all credit card reciepts and rip them up if you don't intend to keep them
Now, to be sure, there have been some protections against identity theft written into law. But the first defense is your own wisdom in protecting yourself. Even if you can't be legally responsible for someone else's theft, you still have to deal with the creditors banging on your door, or calling you demanding money. You might even have to hire a lawyer to represent you, which can be very expensive. So, the cheapest and most effective way to protect yourself is to use your head and keep an eye on everything that might have your personal information on it. Rip it up if you don't need to keep it, and keep it in a safe place if you do need to keep it.
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