How to Avoid Identity Theft
It’s a pretty awful situation to imagine. You log into your bank account and see all these charges you didn’t make on your credit card, withdrawals you didn’t request from your checking, and your savings completely depleted.
Identity theft is a big problem. In fact, an estimated 25% of reported frauds in Australia are a result of online identity theft. Fortunately, there are steps you can take to avoid it and ensure that your financial records stay safe.
Guard Your Financial Information
Only use your credit card or bank account information when you are actually purchasing something – not for identification, nor as a guarantee when you intend to pay in cash later.
Keep your National Identification Number safe
The last place on Earth you should keep your National Identification Number is in your wallet. In short, if your wallet gets stolen or lost you would have some serious problems on your hands, and I’m talking about more than just bank accounts.
Your National Identification Number is the key that unlocks your entire identity. If you run across companies or agencies that ask for it simply ask them to give you an alternative, such as a separate reference number. Similarly, do not ever give your National Identification Number to anyone who calls you on the phone or emails you.
Go Paperless
Your mail is a gold mine for individuals who want to steal from you. Anything from account numbers to credit card information and insurance can be taken from your mailbox by just about anybody. You can avoid this problem by requesting that all your statements, like bank accounts and retirement funds, be digital.
Many banks and brokerage firms will give you the option to go paperless when logging on to your online account.
Of course, there are certain financial documents you should have a hard copy of. If this is the case, then print the documents at home and keep them in a safe place.
Don’t Shop When Using Public Wifi
Actually, don’t do anything involving money when using public wifi. Simply put, public wifi can easily be hacked into and you never know who can see what you are doing online.
Only Use Secure Checkout Methods
Do not give any information such as account information or National Identification Numbers over the phone or via email. Also, make sure to look for clues on websites in order to ensure that they are legitimate. When giving sensitive information, the URL in your browser address bar should change from “http” to “https” or “shttp”. The website will also encrypt your passwords and other sensitive information.
You may also want to check what the website says about how they store the information, just to be on the safe side.
Check Your Credit Reports Regularly
If someone steals your identity they can destroy your financial life – starting with your credit rating. Your credit rating is linked to just about everything you do, from applying for a loan to sometimes even getting a job.
Make sure to check your credit reports regularly in order to ensure that everything is as it should be. If you see any suspicious activity contact your credit card company or bank immediately.
If you are careful enough with your information, you can significantly reduce the possibility of identity theft, thus ensuring that your finances, and your entire identity, stay safe.
Image by Don Hankins
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Interesting tip on not using Wifi.. I also heard that bluetooth is a big security hole on your smartphone and should be disabled at all times. One thing I would also add is to the point about using “secure checkout methods”, is that you shouldn’t give out information over the phone EVEN if the callerID displays a legitimate name.
CallerIDs can also be spoofed!
That’s a very interesting point about caller ID – I simply avoid giving vital financial information out over the phone or by email under any circumstances, no matter who the caller appears to be!