Most people are willing to clean up their own mess after making poor choices with their money, but few find the thought of having to clean up someone else’s mess as acceptable. While most credit cards will protect an individual from having to pay fraudulent charges, there is so much more involved with identity theft than a few unauthorized credit card charges.
With any type of identity theft, there is so much work that has to be done from filing affidavits to writing and arguing with the credit bureaus that it takes identity theft victims years to restore their credit. In addition, someone could get unauthorized access to the victim’s bank accounts and begin opening accounts, renting an apartment, and more, all in the victim’s name.
Here are five tips to stay protected:
Avoid Scams
1. If someone solicits a consumer (especially via phone) and needs a decision “right away” then the answer should always be “No thanks.” The scammers do not want the intended target to take the time to think before making a decision, which will increase the odds in the scammer’s favor.
A common scam is for someone from the victim’s bank to call in order to verify some personal information, usually due to a “data breach.” The best way for a consumer to protect themselves is to never give away any information if they did not initiate the phone call. If there is some uncertainty or issue with an account, then the consumer should call the number on the back of the credit card or bank statement.
2. If an individual or company offers a “guaranteed” high return on an investment, then it is a scam. Think about Bernie Madoff, or even the recent housing bubble. The higher the return, the greater the risk. That is how gaming in Las Vegas works. That is how the stock market works. That is how real estate works. The greater the chance of doubling an investment, then the greater the chance of losing it as well.
Keep Personal Data Safe
3. Never send any personal information, such as a social security number or a bank account number, by email. Email is perhaps the least secure form of communication, next to shouting in a crowded room.
4. When making online purchases, make sure the web address starts with “https:” not just “http:” The “s” at the end means it is a secure website. Taking this precaution will limit access to any personal information to the intended website only.
5. Never share personal identification numbers (PIN) with anyone, not even a roommate. Keep credit card and debit card numbers secure and out of sight. If someone gets the information from the front of a charge card, they can buy almost anything online. If they also get the security verification on the back of the card as well, they may have unlimited access to the available credit on the Internet, until the card is disabled by the owner or the bank.
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