Avoid Credit Card Fraud and Identity Theft to Avoid Debt
Also, identity theft criminals aren’t below what is known as “dumpster diving” to get what they need. Perpetrators will gladly riffle through your trash to find personal information you have discarded. Paper documents contain your name and account numbers.
For some criminals this is all they need. The quick solution is to shred sensitive documents before throwing them out, however only 69% of people say they do so. Don’t make it easy for criminals to make you their next victim, invest in a shredder.
To make it even more simple and save some trees get rid of your paper trail all together and switch to electronic documentation. That way there’s nothing for criminals to steal and you don’t have to take the time securing your information.
The added benefit here is that unlike paper documentation you can refer to only once a month, an online account can be accessed and managed anytime from anywhere with an internet connection.
Many people see the computer as the place where they are most likely to be victimized by identity theft and fraud. This is a common misconception, though 16% of fraud cases are initiated on the internet. The internet is actually a part of the reason that identity theft and fraud have actually decreased slightly over the last year.
On the internet you have numerous options for securing your information that’s stored electronically. You should always use the available internet anti-spyware and anti-virus ware to protect your computer. Also make sure that any website you use to access your accounts uses SSL, or secure sockets layer, for transmitting sensitive documents. This added layer of protection uses 2 keys to encrypt their data.
Unlike paper documents, passwords must be known to access much of the information online that identity theft criminals try to get to. It’s just one more avenue of protection for you and one more blockade for criminals.
Another advantage of the internet which has helped lower identity theft is fraud monitoring. Many businesses do so to protect themselves and their customers from breaches in security. The reason monitoring is so important is the swiftness in detection that it offers. Sometimes it can even stop the problem before the perpetrator is able to use your information.
For those who have been victims of identity theft they know how important this feature is. The longer the criminal has access without you knowing it the longer they can steal from you. On average, the response time to fraud has decreased from previous years due in part to this fraud monitoring which alerts individuals quickly.
There are three common categories of identity theft and fraud; existing credit card accounts, existing non-credit card accounts, and new account and other fraud. In the cases of existing accounts the criminal will breach the account to victimize an individual.
For example, they will do what is called “shoulder surfing” at an ATM to get your account info then drain that account. This is also known as account takeover and a change of address is involved in two thirds of these cases to obtain additional information.
With new account fraud, the criminal will actually use your information to start a new account that they have complete access to. The good news is this type of fraud has declined over the last year and accounts for only 1% of the cases. The majority of those who caught the fraud discovered the problem online, again showing the internet’s importance in controlling identity theft and fraud.
Your credit report is an important tool in keeping yourself from being a victim of identity fraud. If anything has changed in your financials it will show up on your credit report. You can obtain a free report once a year from all three credit bureaus; Transunion, Equifax, and Experian.
In addition, there are now service providers who will monitor your credit report for changes and notify you if there are any. This aids you in early detection which is key in stopping identity theft and fraud.
If you do find yourself a victim of identity fraud you should contact the Federal Trade Commission right away. They can be reached by phone toll-free at 1-877-438-4338 or online at www.consumer.gov/idtheft. You also need to immediately notify the service providers to any account that has been access illegally.
They will give you information on what steps you need to take next to correct the problem as quickly as possible. Regardless, the compromised account should be closed and another opened, if possible, to avoid any possible future problems.
The problems that arise from identity theft aren’t restricted to monetary loss. Fraud costs you hours of your time which is just as valuable. New account fraud required the victim to spend an average of 40 hours correcting the situation.
However, some people reported spending as much as 1,200 hours. That is time taken away from family, friends, and work.
It’s a further invasion of your daily life. But not only did fraud cause the headaches of lost time and money, but victims have also had to deal with losing access to their own accounts, not being approved for loans, having collection agencies hassle them, criminal investigation and more.
A staggering 68% of those with new account fraud experience these additional problems that can cripple you with credit card debt and other financial problems.
Identity theft and fraud can happen to anyone, but it’s more likely to happen to those who don’t take precautionary measures and don’t educate themselves on the dangers.
Don’t let yourself become a victim like the 8.4 million, or 3.7% of the population, that were affected by fraud last year. There are a number of ways that you can protect yourself and you should exercise them all.