Identity Theft

MoneyWatch for September 2009
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What would you do if one day you walked up to an ATM machine or a bank teller, ready to withdraw money, and then realize your account is completely empty? Well this happened to millions of people all over the world everyday. Identity theft, or fraud as it is often called, is on an incline of popularity in the last couple of years. Almost 10 million people in 2008 alone were victims of this crime, which is a 22% increase from 2007. Unfortunately, 71% of fraud happens within a week of stealing the victim’s personal information. Talk about working fast! This is because criminals do not want to linger, but rather hit and run before the victim realizes what has happened.

Since this crime happens to many different types of people, it should be explained that there is more than one type of fraud. There is credit card fraud, utilities fraud, bank fraud, employment fraud, loan fraud, government fraud, and several others. To deal with these many versions of identity theft, here are some helpful tips on how to solve identity problems:

1. Beware of the word “Prevent” – No person and no product can prevent identity theft…
2. There Are No Guarantees – Some identity issues cannot be fixed…
3. Watch for “Shoulder Surfers” and “Skimmers” – People can be sneaky over your shoulders…
4. Keep Your Social Security Card Safe at Home – Self explanatory…
5. Destroy Before You Dump That Old Computer – Professional thieves can use old information too to get what they want…
6. Choose “Forget Me” Instead of “Remember Me” – Don’t check the “Remember Me” box when you log into a website…
7. Don’t Rely On Fraud Alerts Or Credit Freezes Alone – This will not completely stop identity thieves…
8. Practice Prudent Posting – Any information you put on the web can be out there for many year to come…
9. Keep That Key – Don’t leave hotel keys behind…
10. Careful of What’s In Your Wallet – Make photocopies of the items in your wallet in case it is lost or stolen…

For more information on these tips and the explanation of the types of fraud can be found by visiting:

FIGHT IDENTITY THEFT: Identity Theft Tips for 2008
SPENDonLIFE.com: 2009 Identity Theft Statistics
United States Department of Justice: Identity Theft and Identity Fraud
Credit Identity Safe: Protecting Yourself From Identity Theft – 12 Tips to Stay Safe
IdentityTheftFixes.com: How to Avoid and Deal with the Problems

Statistics Provided by SPENDonLIFE.com

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Research assistance for MoneyWatch is from Cleveland State University Nance College of Business Administration. Information on the Nance MBD program is available here.