How Do I Avoid Identity Theft

Archive for the ‘Corporate Identity Theft’ Category

Identity theft can be one of our worst nightmares, since the stolen identity is always used for illegal purposes. Apart from having your identity stolen from you, you could also become a target of litigation from parties hurt by the actions of the identity thief.

So what should you do if you ever become a target of identity theft? This article provides information on what to do after you discover that your identity has been stolen.

What To Do After Identity Theft
Here are some steps to take once you discover your security has been compromised by an identity thief.

1) Let The Credit Rating Agencies Know
The credit rating agencies should be told about the theft as soon as possible. Creditors will need to contact you before they give loans to anyone approaching them for credit on your behalf. Try to get the fraud alert extended to seven years from the current 90 days. File all credit reports you receive, since it is crucial as evidence to show identity theft.

2) Keep An Eye On Credit Reports
Keep monitoring credit reports, so fraudulent accounts in your name are not opened. Keep reviewing your credit reports and look into the credit companies you have not had any dealings with.

3) Close Dubious Accounts
If you feel that some accounts have been opened by the identity thief, or there has been unauthorized access to the accounts, close them. Have the credit card companies and your bank notified by mail, so that you have a record stating that they were formally notified.

4) Opening New Accounts
Use new personal identification numbers and passwords if you wish to open new accounts. Ensure that the passwords are such that someone else cannot guess them.

5) Stopping Doubtful Transactions
If you feel that any transaction related to your account or credit card number is fraudulent, use fraud dispute forms available at the bank to state your claim. If you want the bank to consider your request, you need to prove that you have been a victim of identity theft. You can submit a copy of the police report or submit proof that your signatures have been forged.

6) Report To The Police
Report the identity fraud to the police as soon as possible. Get an affidavit from the police station to prove the crime, since banks and credit card companies will ask for the affidavit to be submitted before they take action to close accounts that have been compromised.

The above steps will help you close fraudulent accounts opened in your name and keep further fraud from being committed in your name. Report the identity fraud as soon as you discover it to the proper authorities.

Identity theft is a menace to modern society and something that can happen to anyone at any time. What makes identity theft harder to tackle is the fact that victims rarely find out about it till it’s too late. In the U.S., most victims realize that their identity has been stolen almost 12 months after the crime. The longer the thief has access to your identity, the harder it will become for you to clear the resulting mess.

If you think there is nothing you can do except hope the next identity theft victim is not you, you cannot be more wrong. Being alert can help you catch identity theft as early as possible, and the damage might be contained.

The Warning Signals

Here are some signs to watch out for with regard to identity theft.

1) You don’t receive credit card statements regularly.
One of the ways identity theft is made easy is unlocked mailboxes. The identity thief can simply take out the credit card statements from your mailbox and walk away. If you think your mail is being tampered with, that is one of the signs of identity theft.

2) You receive statements regarding an account you did not open.
If you receive calls regarding an account you did not open, or your credit card company calls you regarding a credit card you never applied for, this may be another warning signal for identity theft.

3) Debt collectors contact you about unknown loans.
Debt collection agencies contact you to ask you to clear debts you knew you never had.

4) Inflated credit card bills
If your credit card bills seem inflated and you don’t remember purchasing the items billed to you, you should consider the possibility of identity theft.

5) Missing Checks
If your checkbook has missing checks, this could be another warning sign of identity theft.

6) Discrepancy in Credit Reports
Your credit reports show loans you never took and accounts you did not open. Monitoring credit reports regularly can help you detect identity theft early.

7) You are contacted by police over illegal activities you were not involved in.

The identity thief can use your name when arrested by the police or has any kind of trouble with law enforcement agencies. This should alert you to the possibility of identity theft.

How To Confirm Identity Theft

The warning signs mentioned above could spell trouble; on the other hand, they may indicate a commonplace problem in your mailing address, or the credit card billing system that can be sorted out in a phone call.

How do you make sure that you are a victim of identity theft? The best way to do it is by tracking your credit record. Every U.S. state has provisions for making your credit record available to you for free, you just need to apply to the proper authorities.

Never ignore the warning signs above, even if they seem too small to be of any importance. Becoming aware that you are a victim of identity theft is the first step towards resolving the problem.

Businesses face similar financial identity theft risks to those we face as individuals, but the potential losses can be much larger on a commercial scale.

The identity thief and the confidence trickster share much in common. It is easy for a confidence trickster to say: “I work for XYZ Corporation, just charge it to their account.” And in the rush it can be tempting for businesses to accept these instructions, if the person appears to be credible and to know the usual procedures. After all, most businesses are keen for more trade and are unlikely to turn away a customer that appears to be credible.

If the thief has a little inside information, like an order number or order form in the correct format, a business card, or some more official-looking identity document, and if there is nothing inherently unusual or suspicious about the transaction, the chances are high that the thief will often be believed. Customer service people keen for business are much less likely to turn down what seems to be a credible business deal than would a suspicious accountant from the back room.

Smaller transactions are more susceptible: a taxi fare, a routine stationery purchase. They are also much less likely to be detected by a larger company through their internal audits. But identity thieves can be much more ambitious. Orders for goods to be delivered and charged to someone else, or sales of services, such as advertising that will never be published, are fertile areas for identity thieves.

Perhaps we think the world has become too sophisticated for a confidence trickster to get away with a deal like the legendary “sale of the Brooklyn Bridge” confidence trick any more. The longevity and huge ongoing scale of the famous Nigerian letter or email requesting an advance money transfer scam tells us that people and businesses today are as gullible and greedy as ever. A recent BBC report estimated this scam costs the British economy 150 million pounds each year, and that is the cost to just one of the many countries affected by this quarter century old scam.

The best defence against commercial identity theft is to have routine verification and documentation procedures in place. The larger the transaction size, the more important these procedures become. Just having a supervisor approve transactions over a certain amount can give a cooling off period and a second opinion opportunity to detect identity theft. Credit authorization procedures in most companies require at least some investigation before the transaction is completed. Procedures to verify unusual delivery instructions make identity theft more difficult. Many companies refuse to pay an invoice that does not have a matching company order number. More sophisticated transaction approval procedures assess risks according to past experience, and flag potential problems for closer attention.

But the simplest defence is just good customer service: if staff know a customer well it will soon become clear if an impersonator is not part of the customer’s usual team or is not doing business in the customer’s usual way.

Finding the right balance between growing their sales and fraud prevention is an ongoing challenge for companies. The use of information systems for fast data access and communication has made the early detection and prevention of commercial identity theft a lot more effective.

If you have lost important identity or financial documents, such as your credit card, you are immediately at risk of identity theft. Your passport or driver’s licence, or your social security number details, may enable an identity thief to pass himself off with your identity. Your credit card may enable a thief to undertake financial transactions in your name.

If your mail appears to be getting tampered with that may be an indication an identity thief is active. If your bank or credit card statements are not arriving as normal your alarm bells should certainly start to ring. A common identity theft tactic is to intercept these statements to delay your ability to see what is happening to your financial affairs.

A strong sign of identity theft is when bills begin to arrive for purchases you have not made. Keeping these from your attention is another reason why identity thieves may take a close interest in your mailbox.

Your mail, or part of it may have been redirected to another address, either through a redirection order being lodged in your name with the postal service, or by notifying a change of address to the people sending mail to you, especially your bank. If you suspect something is wrong with your mail deliveries, check whether this has happened.

If bank and credit card statements and bills are being intercepted in this way, there are other subtle signs of a developing problem that may still get through, such as thank you letters, receipts and follow up promotions from companies you have had no contact with.

The first really serious indication you may hear of a growing debt problem is when credit managers, financial institutions, debt collectors or solicitors try to contact you. This may be by telephone if your mail is still being tampered with.

You may encounter unexpected problems with financial services, such a hire purchase, loan, credit card or mortgage application that indicates your credit status has deteriorated. You can order a copy of your credit file from credit reference agencies to see whether it shows dealings with companies and transactions that you have no knowledge of.

You may be turned down for a state benefit of some kind or social security payment on the grounds you are already receiving it – because an identity thief has already claimed it in your name.

You may find that someone has taken out a mobile phone in your name, possibly signing up for an expensive contract.

As soon as you feel there is sufficient evidence of an emerging problem you should initiate a review of your financial affairs, and begin talking to unfamiliar companies that seem to think they are doing business with you. The earlier you can detect identity theft and take action the less damage will be done to your reputation.

It was already late at night and you were walking down the street alone. The wind is blowing briskly through the tall buildings you are passing by. Then, a person appears, out of nowhere. He/she proceeded to run by you and knocking you over, made a grab for your wallet and disappeared through a corner.

It could be a scene from a movie, only it happened! However, this type of stealing, person-to-person, may well exists in movies exclusively for the next years to come.

Why, you may ask.

Nowadays, thieves no longer care to rob a person, bank or any other establishment because they just use an individual’s information to obtain employment, credit and bank accounts and other means of obtaining money or credit

Such activity that has now alarmingly reached millions of victims in United States and Canada is known as Identity theft. It has shown up in news reports for the past several years. Campaigns and laws have been passed all to combat it and build up public awareness.

Last September 2003, the FTC reported that identity theft victims suffer terribly from the said crime. They spend more than $1,400.00, and 200 hours to clear up their personal and financial reputation.

Once identity theft crime becomes more flagrant, victims may have to spend more than this, and not only in terms of time and money. They may end up spending more in terms of frustration.

If you do not have money to spend, or rather, waste just to pay for being a victim of identity theft, then you must know the exact definitions of identity theft, how it works and how you can become a victim. By knowing and defining identity theft to other people, too, they will come up with more ways to combat against it.

Identity theft or ID theft this insidious crime of obtaining and using another individual’s personal data. By personal data it means, the name, address, telephone number, phone card or credit card and Social security number. This act is done without the knowledge of the victim and is usually followed by a criminal act.

The criminal acts of an identity thief may range from committing financial fraud using the personal information. Indeed, identity theft is done by someone, pretending to be another and purchases products using that person’s credit account, obtaining money from bank accounts and ordering goods and services using another’s credit name.

The victim of identity theft is usually left with the bill for the purchased/ordered goods and services. Sometimes, victims are surprised when they find out that they are application for loans were denied because without their knowledge, they have accumulated too many loans because of the handiwork of an identity thief.

Stealing people’s identity is a serious crime. The frauds and deceptions being done using another individual’s identity is another unlawful act. Once identity thieves steal other people’s identity they usually do the following:

- make purchases or order goods without the intention to pay
- apply for credit
- open bank accounts
- apply for loans
- apply for government benefits
- obtain cable or utility services using the another person’s (victim) name
- forge checks or bank drafts
- use victim’s accounts to obtain money through wire transfers using the victim’s accounts
- and other similar acts of fraud.

Individuals are not the only targets of identity theft. They also target business establishments, especially those medium and small limited businesses. Businesses can also be the targets of identity theft.

Corporate identity theft happens when an individual applies for credit or buys goods under the pretense of being a company director of a certain company. Beforehand, they con the government agencies concerned with registering business companies. They file for change of names and address.

They use the said address to direct suppliers of goods they bought, when the bill arrives, they have long disappeared. The company, then suffer the brunt of such criminal acts.

Aside from people with good and well-established credit reports, identity theft also victimizes those without much credit. Sometimes they stead college students’ identities to set up fake credit accounts.

Presently, many efforts are being done in order that people be aware of identity theft. There are also federal laws passed that already define identity theft as a serious criminal act instead of just a fraudulent activity. This is a big step in the fight against rampant identity theft.

Individuals must be proactive so as not to become a victim of identity theft. We must be doubly sure that all our personal documents and information are protected and are not passed on into wrong hands.

Avoid being a victim of identity theft, beware and be cautious!