Identity Theft
Identity theft is a growing problem in the United States and worldwide. A thief can use your personal information in a variety of ways to commit fraud and other illegal activities. Your personal information includes Social Security numbers, credit card numbers, driver’s license numbers, banking account numbers and other information that can be used to commit identity theft.
Identity theft can include stolen credit cards, stolen bank accounts and false tax returns. In addition to financial losses, victims of identity theft can also suffer from emotional distress, ruined credit ratings and wasted time trying to clear up their records.
The Federal Trade Commission (FTC) estimates that as many as nine million Americans have their identities stolen each year. Identity thieves use a variety of methods to obtain people’s personal information. Some of the most common methods include stealing mail, rummaging through garbage, phishing and using spyware. Phishing involves a perpetrator sending an email or pop-up message pretending to be a legitimate company. The message may ask you to provide your personal information such as Social Security number, credit card number or bank account numbers. Spyware is a type of software that is installed on your computer without your knowledge or approval and which records your keystrokes and collects personal information from your computer.
The best way to protect against identity theft is to be aware of the potential for fraud and to take steps to protect your personal information. Keep sensitive documents such as bank statements and tax returns in a secure place. Never give out personal information over the phone, through the mail or over the Internet unless you have initiated the contact. Shred all documents that contain personal information and never throw away old credit cards without cutting them up.
Be sure to monitor your financial accounts regularly and be sure to contact all three credit reporting bureaus (Equifax, TransUnion and Experian) to obtain copies of your credit reports at least once a year. Report any discrepancies and request credit freezes if necessary. You can also set up an alert with your bank to notify you of any suspicious activity on your account.
Finally, use strong passwords, change them often and never share your passwords with anyone. Always log out of online accounts and websites when you are finished as an added layer of protection. Remember, the best way to protect against identity theft is to be proactive in monitoring and protecting your personal information.
