As internet use is increasing, we need to protect ourselves from the net crimes. In order to keep us safe from online scams we need to learn how to deter, detect, and defend against identity theft.
First learn what is 'Identity theft':
Identity theft is a term used to refer to fraud that involves someone pretending to be someone else in order to steal money or get other benefits.
"Identity theft" refers to crimes in which someone wrongfully obtains and uses another person's personal data (i.e., name, date of birth, social security number, driver's license number, and your financial identity— credit card, bank account and phone-card numbers) in some way that involves fraud or deception, typically for economic gain (to obtain money or goods/services). Criminals also use identity theft to fraudulently obtain identification cards, driver licenses, birth certificates, social security numbers, travel visas and other official government papers.
Unlike your fingerprints (which are unique to you and can't easily be given to, or stolen by, someone else for their use), your personal data can be used, if it falls into the wrong hands, allowing criminals to profit at your expense. Plus, according to the FTC, —on average, most victims don't even know their identity has been stolen until more than a year later.
Identity theft is the nation's fastest growing crime according to FBI statistics and identity theft/fraud is the fastest-growing category of Federal Trade Commission (FTC) complaints.
Identity theft statistics now show that one in four U.S. households has been a victim of identity theft in the past five years, according to a report, in which the federal government for the first time measures the full extent of the crime wave.
In the last year alone, 10 million people were victimized, according to a survey of 4,000 adults sponsored by the Federal Trade Commission.
Identity theft cost victims $5 billion in out-of-pocket expenses and nearly $48 billion in losses to businesses and financial institutions in 2002.
Identity theft can range from fraudulent charges on an existing credit card account to the use of a person's identity to open a new account, take out a loan, rent an apartment or commit a crime.
"This report serves as a reality check by confirming that millions of consumers each year are falling victim to identity theft," says Beth Givens, director of the Privacy Rights Clearinghouse, a non-profit consumer information and advocacy program.
Measuring the extent of identity theft has been difficult, in part, because people don't always report the crime to authorities. Only about 25% of the victims who participated in the survey said they had filed a report with local police.
"We've been using estimates of 500,000 to 700,000 cases a year," Givens says. "You can toss those out the window."
More Identity Theft Statistics Among the Report's Findings:
Nearly 25% of all victims said their personal information, such as credit cards, checkbooks and Social Security cards, had been lost or stolen, according to the report.
Just 11% of the survey respondents said they were aware that their personal information had been taken before discovering they were victims of identity theft.
The incidence of identity theft was highest in the South and West and lowest in the Midwest.
One-quarter of the victims said the misuse of their information occurred in one day, and 12% said the crime occurred over a period of more than six months.
Many experts and privacy advocates say the FTC report underscores the need for tougher legislation to combat the epidemic.
"Why is identity theft at epidemic proportions?" Givens says. "It's because lenders are making it too easy to get credit, and they're not doing a good enough job of examining applications."
Givens says that credit-reporting bureaus need to alert consumers of possible suspicious activity, such as a change in address. "Early detection is the key to recovery," she says.
Consumers also can report ID theft to the FTC by calling the agency's toll-free number: 877-438-4338.
The secure database can be accessed by local law enforcement agencies.
Tips to Prevent Identity Theft
- Know what’s in your wallet. Avoid carrying your Social Security number in your wallet or purse. This number provides access to personal information, and it should be stored in a safe and protected place. In addition, only carry the credit cards you need. This practice limits access to your accounts in the event that your purse or wallet is lost or stolen. It’s also a good idea to periodically photocopy your cards and keep a record of the customer service phone numbers associated with your financial accounts to speed up the process of cancelling credit cards, if needed.
- Shred, Shred, Shred. Open all mail and read it carefully—even the items that might appear to be junk mail could contain personal offers. Any items with personal information, such as pre-approved credit offers, bank statements or utility bills should be shredded before being discarded.
- Be suspicious of solicitors. You should never give personal information or your Social Security number to people unless you have verified that they are trustworthy. This advice applies to sharing information over the phone, in-store or online.
- Monitor your revolving accounts and credit score. Check your bank, credit card and other financial account information, along with your credit score, once a year to reduce the risk of unauthorized charges or credit applications. If you see a suspicious charge, immediately contact your financial institution.
- Take action against unauthorized actions. If you notice a new account has been opened in your name without your permission, immediately contact one of the three major credit bureaus—Equifax, Experian or TransUnion—and ask that a “fraud alert” be placed on your record. Once the alert is placed, the other two bureaus will be notified, and creditors will be required to contact you directly before opening new accounts or making changes to existing accounts. In addition, file a police report and submit a complaint to the Federal Trade Commission. You also might consider enrolling in paid services that monitor your credit report and alert you when someone applies for credit in your name or account information is altered.
- Surf the Internet Safely. Millions of people are online at any given time, some of whom are thieves looking to steal your identity. These hackers can be found collecting information from unsuspecting “pop-ups,” surfing unsecured networks or hacking into retail Web sites. Be sure to always use a secured network, and frequently update firewall protections on your computer. Also limit the amount of personal information you post on networking Web sites.
- Consider purchasing identity theft insurance. Several insurance companies offer identity theft insurance. Although it cannot protect you from becoming a victim of identity theft, this insurance provides coverage for the cost of reclaiming your financial identity, such as the expenses of placing phone calls, making copies, mailing documents, taking time off from work without pay and hiring an attorney. As with any insurance policy, make sure you understand what you are purchasing and compare prices, coverages and deductibles among multiple insurers.
Tips courtesy of: insure u online
Get a Free Copy of "the Identity Theft Protection Checklist" by submitting your e-mail at the provided space. This checklist will help you sort fact from fiction, and organize your life in a way that helps you stop identity thieves dead in their tracks.
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To know more about identity theft: The University of Oklahoma Police Department site
FTC'S Identity theft site is a national resource to learn about the crime of identity theft. It provides detailed information to help you deter, detect, and defend against identity theft.
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