Q: "I'm hearing more and more about
identity theft, and I'm starting to get nervous.
How big of a risk is identity theft and how can I protect myself?
Clearly, identity theft has become a growing issue of concern. As
technology evolves, criminals are creating more and more sophisticated
methods of stealing your inner-most secrets … and your good credit.
However, not all identity theft is high-tech. In fact, many of the
most devastatingly effective ID theft tactics don’t require software,
programming skills or even a computer. Here are two very common sources
of identity theft, and advice on preventing them from happening.
Dumpster Diving: Dumpster divers use a strategy that is about
as low-tech as you can get. They simply pick through your garbage
in search of addresses, paperwork, receipts, bank and credit card
statements, etc. It’s amazing how much personal information gets
thrown into the trash.
Defense: Invest $10.00 - 20.00
into a personal shredder. Shred anything that has your name or address
on it before throwing it out. Shred any personal information that
is included on solicitation mail or promotion before tossing it into
the trash.
Phishing: Online criminals are creating emails that look
like an official email from your financial institution. These emails
ask you to click on a link and enter your login, password, account
information, etc. While they seem very realistic and convincing (often
looking exactly like the online website of the real company), these
are actually “spoof” emails that are sent out en-mass in order to
lure unsuspecting victims. This is called “phishing” because these
criminals are casting out “bait” to millions, knowing that a percentage
will bite.
Defense: Unexpected emails from
your financial institutions are most likely fake. If there is a problem
with your account, simply log in to the legitimate website through
your browser. Better yet, just pick up your last statement and call
the customer service line. Don’t pass personal information about
your account through email and don’t click on links within suspicious
emails. Legitimate financial institutions will never ask for account
information by email.
A regular review of your credit report is an excellent way to protect
yourself from an unexpected assault on your good credit standing.
If you discover a problem with your reports, further damage can be
halted by placing a fraud alert through any of the 3 major credit
bureaus. Additionally, if you see any unauthorized activity in your
financial statements, report it immediately. Fast reporting is a
vital step to preventing any long-term damage from identity theft.
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