Protecting Your Identity Can Save You Thousands

2006-10-18

The money you spend for the purchases you make are understandably hard earned. For some, a few sacrifices have to be made along the way, just so they can buy or spend on a few necessities or even luxuries. And as hard it is for many to be able to come up with cash for these expenses, saving money for the rainy days can be just as difficult. So imagine how it is if you one day find yourself a victim of financial fraud. The last thing any person would like to be is in a situation where you lose a lot of your hard earned money from scams and criminal acts.

Financial fraud is on the rise and some have actually been going on for many years. As plenty of people still fall prey to these unscrupulous operations, it is but right to exercise caution to protect yourself against these schemes. These days, in the age of advanced computer software, fraud happen a lot quicker than you can blink and they can be quite harder to track too.

The most common fraud is identity theft. This happens when a criminal assumes your identity using your name or Social Security number and makes huge amount of purchases. The payments of these purchases remain to be billed to you. Thieves who take your identity can not only leave high in debt, but will also ruin your credit standing, making it impossible for you to obtain another credit card or a loan when you need it most.

How are these people able to steal using your identity? It takes just a couple of information, which they gather when you are not being very careful. They gather these from discarded bank statements or bills, when they dig through your trash, con you for the information or use sophisticated software.

How will you able to protect yourself?

Everyone needs to be careful and take the following measures:

Make use of a paper shredder. If you don’t have this, don’t just throw bills, banks statements and pertinent financial documents in the trash without first tearing them up to pieces. This also includes solicitations and credit card applications that have not yet been approved.

Your expired credit cards still have some important information. Do not just throw this away immediately. Cut it to pieces before putting it in the trash bin.

When making use of cards in ATM machines, be sure that nobody behind you can see the numbers you punch. In the same manner, don’t just divulge your card’s pin number or your credit card account number to anyone. Don’t also write it down for anyone to read.

Keep your Social Security card safe. If possible, do not carry it around with you, unless you need it for something like filing taxes or availing of bank loans. Your Social Security number must be well-guarded as well. Do not just freely give it the numbers out to anyone who ask (e.g. a vendor or salesperson).

When you receive unsolicited calls from companies asking for information particularly of your credit card, never give out your number. Similarly, never give out pertinent information via email.

Have your mailbox locked so that your financial records are not prone to theft. If you discover them as stolen, report these to the companies and then request for another copy.

If you are moving or changing address, notify the company of this immediately.

Do not leave your card or receipts just lying around or within easy access from other people.

If possible, ask for a credit reports from reputable credit bureaus so that you can check for identity theft.

Be on the look out for the following scams:

1. A contest where you’re promised a prize when you test or purchase their product
2. An investment or business opportunity that promises an immediate or high return of investments
3. A phone call from someone who claims to be an employee of a financial company and proceeds to ask several personal questions.
4. An offer from unscrupulous individuals who promise to clean your credit line.
5. An email notice asking you to login to your bank’s site to verify a mix up in your accounts.

As a precaution, if you feel you have been a victim of identity theft, you must immediately report this to proper authorities.

Copyright 2006 Finance News Today. Articles can not be copied, reproduced or redistributed without written permission from Finance News Today. To request reprint permission please email us at info@financenewstoday.com