Identity Theft

How "You" Can Be Someone Else.

In today's world of identification of self by number and password it doesn't take the internet to be relieved of cash and posessions. Those tempting credit card applications you receive by snail mail, those sign-ups at staged events, the use of credit cards and cash cards can all be portals to your hard earned cash- and more!

Every year, thousands of people are victims of identity theft so what is it exactly and how can we protect ourselves? It is estimated that more than 100,000 people are affected by identity theft in the UK each year, costing the British economy over £1.3 billion annually. In Canada the estimate is $2.5 billion (CDN) and in the US it is estimated at $5 billion (USD).

Identity theft is the unauthorized collection and use of your personal information, usually for criminal purposes. Computers and the internet are convenient for companies and consumers but they can also scatter your personal information more widely, making life easier for criminals.

Amazingly even your name alone can be used to defraud on a simple level if the scammer is dealing entirely anonymously. If you add your date of birth, address, credit card, Social Insurance Number (SIN) and other personal identification numbers and it can be used to apply for a passport, open unauthorised credit card and bank accounts, redirect mail, establish cellular phone service, rent vehicles, equipment, or accommodation, and even secure employment. Sadly if this happens you could be left with the resulting bills, a poor credit rating, charges, bad cheques, and taxes.

In the UK the Home Office recommends:

-Keep your personal information secure.

-Your identity and personal information are valuable assets. Keep them secure.

-Regularly obtain a copy of your personal credit file from one of the three credit reference agencies to see which financial organisations have accessed your details. It is particularly helpful to check your personal credit file 2-3 months after you have moved house.

-Be extra careful if you live in a property where other people could have access to your mail. In some cases a bank or credit card company could arrange for you to collect valuable items such as new plastic cards or cheque books from a local branch.

-If you suspect your mail is being stolen, contact the Royal Mail Customer Enquiry Line: 08457 740 740. Check whether a mail redirection order has been made in your name without your knowledge.

-If you move house, tell your bank, card issuer and all other organisations that you deal with immediately. Ask the Royal Mail to redirect any mail from your old address to your new one for at least a year.

-Consider using the Mailing Preference Service to limit the amount of unwanted mail you receive.

-Keep all your plastic cards safe.

-If your plastic cards are lost or stolen, cancel them immediately. Keep a note of the emergency numbers you should call. Further details can be found at the Card Watch website.

-When giving your card details or personal information over the phone, Internet or in a shop, make sure other people cannot hear or see your personal information.

-Never carry documents or plastic cards unnecessarily. When not in use keep them in a safe place.

-Keep your documents safe.

-Keep your personal documents in a safe place, preferably in a lockable drawer or cabinet at home. Consider storing valuable financial documents such as share certificates with your bank.

-If your passport or driving licence has been lost or stolen contact the issuing organisation immediately.

-Don't throw away entire bills, receipts, credit-or debit-card slips, bank statements or even unwanted post in your name. Destroy unwanted documents, preferably by using a shredder.

-Check statements as soon as they arrive. If any unfamiliar transactions are listed, contact the company concerned immediately.

-Keep your passwords and PINs safe.

-Never give personal or account details to anyone who contacts you unexpectedly. Be suspicious even if they claim to be from your bank or the police. Ask for their phone number, check it is genuine and, if so, call them back. Be aware that a bank will never ask for your PIN or for a whole security number or password. Keep them secure.

-Don't use the same password for more than one account and never use banking passwords for any other websites. Using different passwords increases security and makes it less likely that someone could access any other accounts.

-Keep your passwords safe and never record or store them in a manner which leaves them open to theft, such as in your purse or wallet.

-If you receive a suspicious e-mail purporting to be from a bona fide institution which requests personal details, contact your financial institution for advice.

Similarly the Government of Canada recommends how to fight identity theft:

-Minimize the risk. Be careful about sharing personal information or letting it circulate freely.

-When you are asked to provide personal information, ask how it will be used, why it is needed, who will be sharing it and how it will be safeguarded.

-Give out no more than the minimum, and carry the least possible with you.

-Be particularly careful about your SIN; it is an important key to your identity, especially in credit reports and computer databases.

-Don't give your credit card number on the telephone, by electronic mail, or to a voice mailbox, unless you know the person with whom you're communicating or you initiated the communication yourself, and you know that the communication channel is secure.

-Take advantage of technologies that enhance your security and privacy when you use the Internet, such as digital signatures, data encryption, and "anonymizing" services.

-Pay attention to your billing cycle. If credit card or utility bills fail to arrive, contact the companies to ensure that they have not been illicitly redirected.

-Notify creditors immediately if your identification or credit cards are lost or stolen.

-Access your credit report from a credit reporting agency once a year to ensure it's accurate and doesn't include debts or activities you haven't authorized or incurred.

-Ask that your accounts require passwords before any inquiries or changes can be made, whenever possible.

-Choose difficult passwords — not your mother's maiden name. Memorise them, change them often. Don't write them down and leave them in your wallet, or some equally obvious place.

-Key in personal identification numbers privately when you use direct purchase terminals, bank machines, or telephones.

-Find out if your cardholder agreement offers protection from credit card fraud; you may be able to avoid taking on the identity thief's debts.

-Be careful what you throw out. Burn or shred personal financial information such as statements, credit card offers, receipts, insurance forms, etc. Insist that businesses you deal with do the same.