Posts tagged as:

dumpster diving

Three Identity Theft Prevention Tips

April 21, 2009

in Money Management

Having your identity stolen is no picnic. It can cause serious damage to your credit, and possibly even your criminal record. Identity theft victims spend a lot of time and money trying to clear their names, and all too often they are unsuccessful.

We’ve all heard the expression, “An ounce of prevention is worth a pound of cure.” This certainly applies when it comes to identity theft. While in many cases identity theft occurs through no fault of the victim, there are things you can do to reduce your chance of becoming a target.

Tip #1: Keep Your Mailbox and Garbage Free of Personal Information

It may sound archaic, but dumpster diving is still alive and well. Some identity thieves still rummage through other people’s trash in hopes of finding personal information they can use. Fortunately, having your identity stolen from your garbage is fairly easy to prevent. Just shred anything that has account numbers, your Social Security Number or any other identifying information on it before tossing it.

Stolen mail also remains a popular source of information for identity thieves. Make it a point to check your mail as soon as possible after it’s delivered, and never leave it in the box overnight. You can also stop receiving unsolicited credit card and loan offers by calling 1-888-5OPTOUT. This will reduce the number of things in your mail that a would-be thief could use.

Tip #2: Use Your Information Wisely Online

Online banking and shopping are wonderful conveniences, but they can also provide opportunities for identity thieves. Some send “phishing” emails that are designed to look like they came from your bank, requesting information such as account numbers and passwords. Others set up fake online stores to steal information from people who shop online.

An important rule of thumb is to never, ever click on a link in an email that requests personal information. Instead, type the URL of the bank or company that the email claims to be from directly into your browser’s address bar. When you log into your account, there should be a request for information there if it is legitimate. If there’s any doubt, call the institution using a number from your statement or the phone book and ask.

When shopping online, only give your personal information and credit card number to companies you trust. Also, make sure that the page you enter information into is secure. If it is, there will be a lock icon at the bottom of your browser, and the URL will begin with “https” instead of “http.”

Tip #3: Watch and Protect Your Credit Report

Keeping an eye on your credit report may not prevent identity theft from happening in the first place, but it can help you catch problems quickly. As soon as you see suspicious activity, report it to the credit bureaus and have a fraud alert placed on your credit report. This will keep the thief from opening any more accounts in your name.

It’s also important to put a fraud alert on your report if you find out that your information has been stolen from a third party. Companies are required to inform their customers when their personal information has or may have been stolen from their files or computers. If you receive such a notice, call the credit bureaus immediately, request a report, and initiate a fraud alert.

Identity thieves are a persistent lot. But if you make it as difficult as possible to obtain and use your personal information, they will likely move on. There are plenty more identities out there that may be easier marks.

Related Blogs

  • Related Blogs on dumpster diving

Click to share this post with friends.

For more great content, remember to subscribe to my RSS feed. Subscribe

Definition of Identity Theft

April 13, 2009

in Money Management

There has been much talk about identity theft over the past several years, but it is not a new concept. Thieves have been stealing the personal information of others to use for their own benefit throughout history. But in today’s electronic age, identity theft has become rampant.

Identity theft is a form of fraud. It involves the use of someone’s personal information or documents by the fraudster, usually to obtain money in some way. But there are also other ways that a stolen identity may be used. Some illegal immigrants steal identities to prevent deportation. Criminals may use stolen identities to prevent their crimes from showing up on their records. Identity theft has even been used to obtain medical care and prescription drugs.

How Are Identities Stolen?

In the days before computers, identity thieves often resorted to dumpster diving. That means that they stole victims’ trash and went through it, looking for information they could use. They looked for such things as canceled checks with the victim’s bank account number, address and phone number, and discarded credit card offers. Some identity thieves also stole mail in an effort to find personal information. These techniques are still used today, but are usually less fruitful thanks to consumer awareness.

Pickpocketing is another age-old identity theft method. Stealing someone’s wallet could score the thief credit cards, a photo ID, and possibly even a Social Security Card. Newer techniques with similar goals include compromising credit card readers and remotely reading information from RFID chips used in some credit cards and passports.

The use of computers by businesses to store customer information has opened up new opportunities for identity thieves. Hackers can breach the security on such computers and find a wealth of personal information. Some companies also send information to credit bureaus on removable media such as tapes or CD-ROMs, creating another target for identity thieves.

Phishing has become a favorite activity of the high-tech identity thief. This involves posing as a trusted bank or company and sending emails to its customers, or to a general email list that may include some customers. These emails ask recipients to click a link and verify their information, but instead of taking them to the bank’s website, the link goes to a site owned by the identity thief. Once personal information is entered, it can be retrieved and used by the criminal.

These are the most common methods of identity theft, but not the only ones. Identity thieves are constantly coming up with new ways to get the information they need. That’s why it’s so important to keep an eye on our credit reports. By catching suspicious activity early, we can minimize the effects of identity theft if it happens to us.

Related Blogs

  • Related Blogs on dumpster diving

Click to share this post with friends.

For more great content, remember to subscribe to my RSS feed. Subscribe