In the computer age, one of the most frightening crimes is identity theft. Here’s a look at how you can protect your personal information to avoid the frustrations and financial setbacks associated with identity crimes.
What Is Identity Theft?
Identity theft occurs when someone uses another person’s identifying information to pose as that person. It can manifest itself in a variety of ways, including these:
- Opening new credit: A thief who discovers your SSN can apply for loans and lines of credit as you. That person can then run up debts and leave you with the headache of contesting all the charges of your credit score and (possibly) paying some of the bills. In some cases, despite laws, consumers have listed identity theft as a reason they had to file for bankruptcy.
- Using existing credit: A thief who discovers information for your bank account or credit card can use that information to drain your accounts or make massive purchases (remember: you don’t have to present a physical credit card to buy stuff online; only the card number is needed).
- Getting medical treatment: The crime known as medical identity theft occurs when someone uses your information to get treated for an illness or injury. This can be especially dangerous to you because it could mean that incorrect patient history information ends up in your file. In emergency situations, that could cause you serious harm.
This article from Get Rich Slowly notes that the 2010 Identity Fraud Survey Report found that 11 million Americans were victimized by identity theft in 2009, for a total cost of $54 billion. The average person reportedly spent 21 hours resolving issues and had to pay $373 to do so.
How to Keep Your Information Safe
In general, it’s best to take some precautions to avoid the nightmare of identity theft:
- Keep your Social Security card in a safe spot (NOT your wallet).
- Avoid writing your SSN on checks; if any institutions currently use your SSN as your account number, ask them to change it.
- Never disclose your SSN over email or over the phone, even if the request seems legitimate.
- Make sure any web sites that require your SSN (such as online lenders) have secure servers.
- Check your free credit report www.annualcreditreport.com every year to make sure nobody else is using your identity.
- Shred documents with identifying information (like bank statements and medical bills) before disposing of them.
- Know who does need your SSN: employers, banks and some government agencies.
- Know that some businesses that request your SSN do not actually require you to give it to them. When you’re asked for yours, ask why they need it, how they’ll use it, whether the law compels you to provide it, how they plan to protect it and what might happen if you refuse to provide it.
