How to Prevent ID Theft

Identity theft is another word for fraud, and is when someone is pretending to be someone else to steal money or services. Identity thieves can be anyone, and aren't necessarily someone with a criminal background. It is illegal and identity thieves can target anyone.

Identity theft can happen two ways: account takeover and application fraud.

Account takeover is when someone acquires your physical credit card or card information and runs up charges on it. The victim is usually immediately aware because either their credit card is missing or they see the mystery charges on their account.

I recently went on vacation and my debit card was stolen. The thieves ran up about $300 on it before I was able to report it stolen. I bring up this point because not all ID thieves work alone. I had just purchased something, and before I could put away my card, a man approached me from the left and distracted me. From the right, another person I never saw swiped my card. The bank was able to reverse the charges, but it didn't change the fact I was nine hours away from home, none of my banks were in the area and I had no cash on me. 

With the prevalence of the internet in recent years, ID theft has become a lot more accessible to criminals. Some computer viruses have been developed to infect a person's computer and hack into their banking information. This has happened to my father, and the thief got away with several thousand dollars right before Christmas. 

Some employees, like those at restaurants, will take your credit card as payment. While they are running it, they will copy down your credit card number. This then allows them to use it on the internet to make purchases fraudulently.

Application fraud is when someone has obtained your social security number and other information and opens lines of credit in your name. Most victims don't realize this has happened for a while because either they do not receive the bill or the realize it when they receive the bill in the mail.

Thieves will go through your mail, which is also a federal offense. You know all that junk mail you get, full of credit card offers? We usually throw those away and don't think twice about it. Sometimes ID thieves will either obtain these from your mailbox or out of your trash can and send in the application. This credit applications already have your information on them, especially if they have the words "You've been preapproved!"

There's a lot a person can do to protect themselves from ID theft. Even though most banks will refund money that has been stolen, you don't want to risk it. You don't know all the information the person has stolen, so you want to take preemptive measures.

• You must always be aware of your surroundings. Whether you are making a purchase or withdrawing money out of an ATM, be aware of who is around you and who may be watching. You don't want someone to see your pin number as you enter it into the machine. ID thieves have been known to not only stand nearby but also use binoculars and cameras to steal this information. Block the screen with your body and also your hand when you are entering your information. Shield the screen as well so they don't see how much money you actually have in your account either. Also, keep your hand tight on your credit card. You don't want to fall victim to having your credit card stolen out of your purse or hand either. 
• Another part of being aware is staying on top of your finances. Check your bank account often for any questionable charges, and stay on top of your credit report. The law allows you to have a free credit check every year, so take advantage of this. A small discretion can turn into a huge problem later down the road.
• Pay cash at restaurants. If you don't see your credit card, you don't know what is happening to it. Keep it in your sight at all times and pay with cash instead.
  
• Don't give out any personal information. Some retailers will ask for your phone number or e-mail address when you make a purchase. This is never mandatory and you should politely decline.
  Other times, you may receive an e-mail from an address you don't know, or an address pretending to be your bank. They may ask you for your banking information, social security number, etc. Don't give out any information. This is called phishing and is used very commonly. If they needed to contact you for this information, they would have called you or written a letter. Besides, let's think logically; what bank needs this information anyway? They already have it on file.
  
• Shred mail. Never throw away credit card offers, even if you don't even open them. Take the extra few seconds and stick them in the shredder. Also shred any other mail or papers that have any personal information on them. This can include bank statements, tax information, insurance paperwork and check stubs. Remember, it is not illegal for people to go through your trash. Once it is placed at the curb, it is no longer your property, so protect yourself from anyone rumaging. If you are shopping, never throw away your receipt in the store or put it in the bag. Keep the receipt with you in your wallet or purse.
  
• If you do your banking through your home computer, use antivirus software. As I mentioned, hackers use viruses to steal your personal information from your computer. Avoid any questionable downloads, even if it is from someone you know. Their computer may have been infected with a virus and it is mass mailing everyone in their address book. Instead, you can call them and verify that they really did sent you a file before you download it. Antivirus software will throw up red flags if any malicious files are trying to access your computer.
• When choosing a pin number for your bank, or a password for anything else, there are a few guidelines to follow. Don't use the last four numbers of your social security number, your birthday, your pet's name, 12345, your mother's maiden name, your significant other's name, or your street name. These are all obvious and easy for a person to guess. Instead, use something only you would know, and use a combination of things. For example, your least favorite subject in school may have been social studies, and your basketball number was 42. You could create a password of soc42stud.
  

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