Identity Theft

Identity theft involves someone using your personal information like your name, social security number, address, credit card or some other identifying information to obtain goods and services which you did not authorize, or to commit some kind of fraud or illegal act. Currently in the United States, over ten million people become victims of identity theft annually, and the number keeps on growing every year.

Identity theft is a very serious crime and when committed against you could possibly ruin your life. While a victim may be struggling to clear his or her name, in the meantime the victim may be refused loans, jobs, housing, cars or even education, and your credit rating might be ruined for a considerable length of time. Cleaning up the mess left by identity theft can be very stressful, time- consuming, and also expensive.

Ways to prevent identity theft

Almost all the studies done on credit reports have uncovered errors. The very first step to take to prevent identity theft is to order your credit report and check for anomalies. Since knowing about identity fraud committed against you would only come at a later date when it is obviously too late, the only way to start any preventive steps is to order your own credit report.

Believe it or not, identity theft can be committed by your very own relatives and friends, since they may have very easy access to your personal details. If they obtain credit in your name and continue to make payments, you may never know until you pull your own credit report. That is when you will realize that accounts have been opened in your name that you did not authorize.

Identity theft by strangers is what most people worry about. Tactics that strangers employ include hacking into computers to steal personal information, arranging with and paying employees of stores, banks and other financial institutions to sell them your personal information.

To prevent these violations, items like credit cards, check books, bank statements and other important financial information must be kept safe away from prying eyes. Shred all old financial documents that identify you one way or the other. Don't throw credit card statements into the trash just like that. Shred them. You need to be especially careful when shopping in the malls to make sure that your credit card is always returned back to you. Also, keep your receipts in order to compare them with your monthly credit card statements.

Be very careful about clicking on links in emails. Phishing is an online scam activity where unsolicited emails with links in them are sent in several hundred thousands to recipients in the hope that the recipient would click on one of the links. Clicking on the links would take you to   another website where you could be tricked into providing personal details and details about various types of accounts. These emails are sent disguised as official email from banks, insurance companies, credit card companies, mutual fund companies, etc, and even non profit organizations.

Steps to take as a victim of identity theft

If you have reason to believe you are the victim of identity theft you should immediately do the following:

You, as a consumer, must educate yourself with regards to financial matters and in this you would have to avail yourself with sources of information. The Federal Trade Commission (FTC) site is one such resource.

Guard against identity theft !

Do not for one moment think that identity theft is some kind of imaginary concept or that it could never happen to you. According to the Federal Trade Commission, about 10 million people a year are victimized by identity theft or fraud. We hear it almost on a consistent basis on the news that someone has stolen credit card records of transactions from some security company, which usually include personal details like social security numbers, dates of birth, addresses, etc. It cannot be stressed enough that precautions must be taken to minimize the chances of becoming a victim to identity theft. And bear in mind that it can happen to just about anybody. Identity theft is very real and can be devastating to its victim. It not only robs you financially, emotionally, and psychologically, but it also disturbs your peace. To learn more about this crime and to learn what steps to take in order not to be victimized or to know what to do when you are the victim of such a crime, please read the following article written by Tamara Baruhovich below.

Beware of the Newest Activity Online - Phishing:

By Tamara Baruhovich

Phishing is considered the fastest growing fraudulent activity online where unwary individuals have their identity stolen. This article provides information to help you identify these scams so you don't fall prey to them, as well as what to do if you discover you've been a victim of fraud.

No. I’m not talking here about the outdoor activity enjoyed by many. And no again; I did not misspell it. Phishing is the name given to the latest online scam where millions of unwary Americans are getting their identities stolen.

This fraudulent activity is considered the fastest growing crime of modern times. The favorite target groups of phishers seem to be very young children and senior citizens, as they do not often ask for credit reports, fill out credit card applications or solicit loans. This allows the thieves to go undetected for longer periods of time; but still, be careful. We all are potential targets.

Remember when throwing away unshredded documents with personal information in the trash bin was considered a big risk for identity theft? While this still happens, identity thieves have become more sophisticated in recent times, and this is how they do it…

Phishers create bogus e-mails that look as if they came from large, well-known institutions and banks, such as eBay, Paypal, Citibank, EarthLink, and Wells Fargo among others. These e-mails claim that you are due for an account update, or that the account number, password, social security number or other confidential information needs to be verified. Then they warn you, stating that if you do not do it within a certain period of time, that your account will be closed, terminated, the service discontinued, or something to that effect.

They even provide you with links to websites that look legitimate, because they hijack the real logos of these well known banks, and trusted institutions and companies. And that is the scary part… these e-mails look 100% legitimate, but they are not.

In some cases it goes even further… some of these phishers are installing spyware on your computer to monitor your online activities. So… should you leave the online world for good? Not necessarily.

These are a few things you can do to protect yourself from these scammers:

1. Do not respond to any e-mail that asks for personal information from you, such as account number, credit card number, user names, passwords, etc. If you suspect that the e-mail, indeed, be legitimate, contact your bank or institution to verify this.

2. When in doubt, visit the Anti-Phishing Working Group for an update of the latest scams, and tips to avoid becoming a victim. The website’s URL is www.antiphishing.org

3. Websites like www.paypal.com, www.citibank.com, and www.ebay.com, offer security tips and tell you what information they’d never ask for in an e-mail.

4. Get anti-virus software and keep it up-to-date.

5. If you suspect you have received a fraudulent e-mail, do not click on any links within it, and forward it to the FTC at uce@FTC.org

Finally, if you suspect you’ve been a victim of this fraud, get a copy of your credit report immediately to check for unusual activity. If you discover that you’ve been a victim of identity theft, close your account at once and…

- Call the Credit Bureau.

- File a police report.

- Call the FTC ID theft hotline at (877)IDTHEFT.

- Alert other financial institutions where you have accounts.

According to the Anti-Phishing Working Group, phishers send millions of e-mails a day, getting about 5% response. Even with this low response, it is estimated that about 150,000 Americans have fallen prey to these scams since May of 2004. Get informed. Do not become a victim yourself.

About The Author

Tamara Baruhovich is the author of "Straight Talk about Network Marketing" A no hype, no B.S. e-course that shouldn't be missed if you are serious about starting a successful career in Network Marketing! Get your complimentary copy here….......... e-course04@aweber.com

It is obvious that anyone can become a victim of identity theft, and about the best way to protect yourself is by taking a proactive stance in order to protect your identity from theft. A survey conducted by the Federal Trade Commission in September 2003 found that nearly 10 million people were victims of identity theft in 2002 alone. For more information on the FTC's and other recent surveys, go to www.privacyrights.org/ar/idtheftsurveys.htm.

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The contents of this website are for informational purposes only and do not constitute an attempt at providing financial advise. Please consult a competent and reputable financial advisor if you are seeking financial advice.