Fighting Credit Fraud and Identity
Theft
Unfortunately, these days
credit fraud is becoming a bigger
and bigger problem. What can you
do to fight back? First, learn about
how credit fraud and identity theft
can happen to you, then regularly
monitor your credit report for unauthorized
account use.
How does credit fraud and identity
theft happen?
It can be frighteningly easy for
a thief to get all the info he needs
to commit these types of crimes.
If a thief obtains your Social Insurance
number, home address and mother's
maiden name, that could well be
enough for him to get a fake driver's
license, take over your bank or
credit accounts, divert your card
statements to a different address,
or even apply for new credit card
accounts, all using your identity!
Thieves can often get this personal
information relatively by going
through your garbage, stealing from
lost or stolen wallets and purses,
and through phone and Internet scams.
Preventing credit fraud and identity
theft
-
Closely guard your personal data.
-
Never give out your Social Insurance
number over the phone unless you
know the company well and have placed
the call yourself.
-
Change passwords
to something other than your mother's
maiden name; choose something that
will be harder for a thief to obtain.
-
Carry only the cards you use. Leave
official documents like your passport
and birth certificate at home or
in a secure spot, like a safety
deposit box.
-
Shred all of
your financial documents before
you throw them away.
-
If you don't
get a credit card statement on time,
call the creditor immediately in
case your address has been changed
by a thief.
Pre-approved credit offers
If a thief intercepts your mail,
a pre-approved credit offer meant
for you could spell disaster in
the wrong hands. This makes checking
your credit report especially important,
because it will show you if there
are accounts being reported in your
name that you did not apply for
yourself. The thief could even go
so far as to make the minimum payments
for a while, until the card gets
maxed out, after which it would
go to collections (in your name,
on your credit report!)
In summary, the above suggestions
may seem obvious, but, surprisingly,
many people are very lax when it
comes to protecting themselves against
credit fraud. The bottom line: better
to be safe than sorry!
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