Identity Theft Crisis

It is estimated that each day a number of individuals will have their identity stolen. Identity theft is a horrific problem that is sweeping the world. Identity theft is a crime, but in many cases it is hard to find a person to punish. For this reason, there are many lives that are turned upside down due to identity theft. While it may be difficult to associate good news with identity theft, there is some. Identity theft can often be prevented and if it should occur there are always ways to fight back.

The first step in preventing yourself from becoming a victim of identity theft is to know how it occurs. Identity theft most often occurs when a person has illegal obtained credit card numbers, bank account numbers, social security numbers, and other personal information that they have no right accessing. This information can be obtained by hacking into your computer, scamming you into providing the information, or even through your garbage.

The worst case of identity theft is when an individual obtains your social security number and drivers license. These items could allow a person to do just about anything. They could open new bank accounts, get new credit cards, buy a car, or even get a job in your name. This type of identity theft is hard to notice because a new address is often set up for all new accounts and purchases. It is not uncommon for an individual to not know that they have had their identity stolen until a copy of their credit report is requested.

Stealing credit card numbers is another form of identity theft that is having a negative impact on millions of individuals. When a person obtains your credit card number they can use it to purchase just about anything they want. Large purchases are often made in a small amount of time. This allows an individual to purchase items with your credit card and receive them at a fake location before you are likely to even notice the purchases on your bill.

Not all cases of credit card fraud and identity fraud can be prevented, but the majority of them can be. If you keep valuable personal information, including credit card and bank account numbers, on your computer then you encouraged to make sure that your computer is protected with up-to-date anti-virus software. This will help to prevent a computer hacker from getting your information. If you throw out your old credit card or bank statements you are encouraged to shred the documents first. This would make it virtually impossible for someone rummaging through your trash can to come up with anything valuable.

If you have your purse or wallet stolen you are encouraged to notify your credit card companies immediately. The same approach should be taken if you misplace your wallet or purse in public. After only few hours later your credit cards could be maxed out. Informing your bank and credit card companies of lost or stolen account information will help to guarantee that you will not be responsible for any purchases that were made on the stolen cards.

Why let yourself become a victim of credit card and identity fraud when it is so easy to prevent it? Keeping yourself aware of your surroundings and your finances is the best way to stay safe and keep your credit in good standing.

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Don’t wait until your identity has been “stolen” to worry about it. Identity fraud is a severe crime with serious repercussions that can take months or even years for victims to repair, not to mention hundreds to thousands of dollars. If someone has stolen a credit card, or has obtained enough information about you to start applying for new loans and credit cards, your credit score is going to be adversely effected. You will likely have difficulty obtaining a job (employers are making credit checks a regular part of the interviewing process), you’ll be denied credit for things you apply for. You will have a hard time, if not find it impossible, to obtain college loans, vehicle financing, credit cards, and mortgages. In some cases, identity fraud victims may even be arrested for crimes they haven’t committed, because someone else is living under their name as well.

How does identity theft happen? Most people are fairly careful with their personal information, so how can someone steal the “identity” of another human being and get away with it?

There are many ways identity thieves are able to get personal information from people. In some cases, the thieves work for companies where they have access to individual records via a computer or through paper files. Sometimes, a person doesn’t even need access to the information, they’ll just hack into the computer system and retrieve the information they need to steal someone else’s identity. One of the most traditional ways for someone to obtain your personal information is by going through your mail. Whether they steal it right from your mailbox or find it in the garbage, if someone finds bank or credit card statements, checks that have been voided but not ripped up, new credit card offers and tax related information, they usually have enough information to become “you”. People who go through garbage containers are known as “dumpster divers”, and will often be found looking for information in public trash areas and business dumpsters.

There are people and businesses in the world that have a legitimate right to access another person’s credit report. These people include landlords, employers, and businesses that must run credit reports prior to extending credit. Identity thieves often become employed at these organizations in order to obtain access to the personal information they need to do their crime.

Opportunities for thieves to find your information are endless. Identity thieves are smart; you have to be smarter.

There are a few cautionary things you can do to help prevent identity theft. After reading your mail, cleaning your desk at home or work, or cleaning out your car- do not just throw your personal items in the trash. Receipts, utility bills, bank statements, loan statements and credit card offers and statements should be completely destroyed prior to throwing away. Invest in a paper shredder and shred everything you are throwing away to eliminate the possibility of someone finding out information. Alternatively, you could burn your paperwork. When throwing away credit cards, shred them or cut them into many small pieces.

It used to be that people felt it would be difficult to use another person’s credit card. After all, you have to sign your name when making a purchase with a credit card, right? You need to protect your credit cards in the same way that you protect your cash. Merchants rarely check that the signature on the back of a credit card matches the signature that is signed on a receipt when a purchase is made.

If you have lost a credit card, or it has been stolen, report the situation to your creditor immediately. The credit card company will put a hold on the account to prevent any purchases from going through- and they can also track the location where someone has attempted to use the card. This will help in the efforts to find the thief. When you are dining at a restaurant, be mindful of paying with a credit card. Most waiters will take your card to the register to process it, and the card is out of your sight during this time. How do you know the waiter or someone else isn’t writing the numbers and name down from your credit card to use it for online purchases later on? Consider paying with cash whenever you are at a restaurant.

The biggest precaution you can take on a regular basis is to view your credit card statements and bank statements as soon as you receive them. Look for any purchases that you did not make, and call the credit card company immediately if you find something you are unsure of. If identity theft is caught early on, it can often be stopped before it gets out of hand. Also keep track of whether or not you’re receiving your statements every month. If you are missing a credit card statement, call the company to verify the address it’s being mailed to. It’s possible that someone filled out a change of address form at the post office or with the credit card company, and is receiving your statements at a different address with intent to use the information.

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