Identity theft occurs when someone learns an individual’s Social Security number, bank account information, credit card number, or other personally identifying details and uses the information to go on a buying or borrowing spree. Law enforcement agencies, financial industry regulators, and financial institutions work together to prevent financial crimes like identity theft, but consumers need to take precautions to reduce their risk of becoming a victim. Here are some easy ways to protect yourself from financial fraud and identity theft.
Keep Your Personal And Credit Information Secure
The first step in a successful identity theft is usually obtaining some type of personally identifying information, such as an individual’s social security number, or financial information, such as a credit card number or bank account number, from the victim. To keep this information secure, never disclose this information to strangers over the phone, by fax, in response to a letter or an email, or to solicitors that arrive at your door. In most cases, legitimate companies will not ask for this information via these methods and will provide you with other ways of making purchases or obtaining financial information.
Guard Your Mail
Many pieces of mail contain confidential or personally identifying information, including bank statements, credit card statements, and checks. To keep your mail secure, try to use a locked mailbox or other secure location for your incoming mail and pick up your mail as soon as possible. When sending out mail containing these types of identifying information, place it in a blue Postal Service mailbox or take it to the post office instead of leaving it in your home mailbox. It is important to keep this information secure in your home as well as friends, family members, roommates and workers who come into homes make up a large percentage of identity thieves who find and use confidential information.
Shred Sensitive Documents
Throwing sensitive documents containing personally identifying information in the household trash can be the same as handing your credit card or social security card to a stranger. Identity thieves have been known to pick through trash bins looking for trash that contains this type of information. It is best to shred these documents using a basic household shredder before throwing them away to make it much harder for identity thieves to piece together your information.