Identity Theft: What is it and How to Avoid it

Innovational technology such as the internet and credit cards has made it easier and more convenient than ever to purchase items. Unfortunately, with great innovations in technology there is always the opportunity for criminals to strike. If you have credit cards, bank online, purchase items over the internet, etc you should be aware of identity theft, IDTheftDefense.com

What is Identity Theft?

Identity theft is when another entity steals your personal information for fraudulent purposes. Identity theft usually includes credit card fraud in which your credit card numbers are stolen (many times through phishing or hacking campaigns) and then used to purchase items over the internet.

Two Ways Identity Theft Occurs:

First, of the most popular ways hackers and criminals can steal your identity to commit fraud is via the internet. Many hackers try to “phish” for identity information. They send out emails that look legitimate, maybe from Paypal.com, Ebay.com or one of the major banks such as Chase. An email might state that your account information is incomplete and that you must visit their website to fill in personal information. In these emails there is a link, however the link doesn’t go to the site it claims to, instead it goes to a hacking database. Victims of this scam are unaware that they are actually giving all their personal information to hackers.

Second, identity theft occurs doesn’t even have to do with individual customers. Many large companies keep profiles of each of their customers, however hackers know there is plenty of personal information that companies are holding and hack their computers. Many banks, credit card agencies, government agencies, etc are victim each year of hackers breaking into their system and stealing information that includes personal information.

How to Avoid Identity Theft:

While no one is immune to identity theft, there are steps that can be taken to defend your risk. One way to cut your risk is to make sure you never click on any email and input your personal information. If a company that you do business with asks for personal information, contact them formally.

Another, defensive strategy to reduce the risk of identity theft is your credit report. Your credit report is a great tool to use to determine if you are a victim of identity theft. It is wise to check your credit report twice a year. Every six months review your credit report to make sure everything looks correct. For instance, if you see a new loan opened under your name that was not taken out by you contact the lender immediately to confirm that identity theft has occurred. Besides contacting the lender, it is important to also contact all three major credit bureaus and inform them that you believe identity theft has occurred.

The three national credit bureaus include Equifax, TransUnion and Experian and there respective contact information can be found online or in your local phonebook.

"It is also an excellent idea to sign-up for a proactive credit monitoring service for your credit history protection," recommended by IDTheftDefense.com