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Identity Fraud Costs You More Than a Name
Most people's worst nightmare is to be a victim of identity fraud.
Simple information like a date of birth, social security number and
account number can lead to account takeovers, credit cards opened in
your name, and unpaid debts to collections. Identity fraud takes
several unexpected forms, and it's very easy for your personal
information to be lifted for these criminal purposes.
There are several common ways identity fraud is carried out. Online
identity theft, considered to be the most popular form of identify
fraud, is only one. Another method has been nicknamed "dumpster
diving," which involves stealing mail by rummaging through someone's
garbage for identifying documents.
These often include discarded receipts and paid bills, which all
have identifying information on them that thieves find useful. One
method used to fight identity theft is quite simple and effective:
Consumers can reduce the risk of becoming the victims of identity
fraud by buying and using a paper shredder. That way, no information
of potential importance leaves the house intact.
"Phishing" is the act of criminals fishing for your personal
information online. They send lures in the form of emails from
trusted companies asking questions or rich residents from afar
claiming you have just inherited millions. To reel you in, these
people ask you for personal information, such as your account
number, so they can confirm information or wire you money. A good
rule of thumb in fighting identity fraud is that if you think the
offer seems too good to be true, turn it down. If you think it is
unusual that a bank would be sending an email to verify information
they already have, it is. Don't answer these questions.
Of course, the biggest way identity theft gets perpetrated is the
most recognizable. Hackers take a more direct approach to fraud.
They break into computers and steal the information they need.
Again, there's a good way to fight identity theft of this type:
Purchase good virus protection and firewall software to block
unwanted intruders from your computer.
A series of three-year surveys that ended in 2006 show that, while
there has been a decrease in the number of victims of identity
fraud, the cost rose to $56 billion dollars last year. More
statistics show that:
The average time a victim takes to fight identity theft is 600
hours.
3/4 of victims who responded to the survey said that the crime
involved someone getting their hands on a credit card.
The impact of online identity theft and identity fraud is similar to
that of violent crimes for the victims.
This problem stretches far beyond just your backyard. Identity fraud
is a problem in every country on the planet, costing local economies
billions of dollars. For example, British statistics show that the
economy suffered a 1.7 billion pound loss due to identity fraud.
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