Understanding Identity Theft
Identity theft is defined as another entity stealing your personal and financial information and using it to commit fraud. Mainly a hacker or common thief will get access to your information and purchase goods or services that are then billed to your identity. While the problem has risen dramatically in recent years, many consumers are protecting themselves by understanding how identity theft and fraud work and then making sure they reduce the risk of these types of transactions. Here are some tips.
Practically every type of transaction that requires you to pass on information either through a check, credit card or ATM card can contribute to identity theft. While it is impractical to stop these normal day to day transactions, you should be aware of how identity theft occurs so that you don’t increase the risk of your information being stolen and used to commit a crime or fraud.
When paying for something with a credit card or ATM/debit card make sure you watch the transaction closely and take your receipt. Believe it or not, many identity thefts occur by people leaving receipts with names and credit card account information as garbage or for others to pick up. If you are paying by credit card make sure that your card is out in plain sight and not copied in any way. Don’t allow someone to take your card into a back room, where it can be digitally copied.
When inserting your pin (private identification number) make sure no one else can see you input the number into the computer. If you are paying with check and giving the cashier your check along with your drivers license and other important information, make sure that the business has a good reputation (don’t just pay by check with anyone).
Anytime that you submit information, whether it is personal or financial, make sure you know in advance who will see it. For instance, if you see a free offer for a trip and they are asking for personal information that seems out of the ordinary such as your social security number or maiden name, be on alert, there is usually no reason that these services or organizations should request this type of personal information.
It is also not a good idea to store all your personal information on a wireless phone, PDA (personal digital assistant) or laptop computer. These items are usually targeted for theft and if you lose or have this item stolen from you; thieves can access your personal and financial information and use it to commit fraud.
