How Safe is Your Identity?

cyber-crime-and-identity-theft

 

One scary moment of my life was answering a call from my credit card account manager who asked, “Mr. Lucas, did you recently purchase a dozen roses and four bottles of wine in New Jersey?”  Well, considering I’ve not been to Jersey, I had never used that card, and I don’t drink wine, my answer was, “No!”  I began immediately thinking about how bad this could be. Would I have to cancel my cards? Would I spend hours on the phone trying to clean this up? Luckily that’s all the further that theft went. I didn’t have to pay for the charges, and none of my other accounts had been compromised.

It is becoming increasingly harder to stay safe. In a world that’s wired to the internet and a culture dependent on a variety of electronic gadgets, identity theft is thriving. “You can’t prevent identity theft! No one can!” says financial expert Dave Ramsey. Even Todd Davis, the CEO of a large identity protection company, who shared his social security number publicly had his identity stolen 12 times, says the Phoenix News Times. While this may be a bit unsettling, understand that you can make it extremely difficult for the prowling identity thief. Don’t become the feeble gazelle faltering at the rear of the heard. When it comes to identity theft, there are three areas to consider.

Minimize the risk–There are a number of ways we can lower the risk of attack, and they all limit access to your personal data.

Get a shredder and properly dispose of old documents that have sensitive data; don’t just throw them in the trash. Anyone can drive around in the early morning hours and pilfer through your garbage. Don’t give out personal information to someone who calls you. If you need to give the info, then hang up and call their publicly listed number. Never trust that the person on the end of the line is who they say they are. And finally and most importantly, be cautious of what you put on the internet. From a person’s Facebook account or website it’s often easy gather all kinds of personal information. Even something as simple as, “Here’s my cat named fluffy!” Many people use their pet’s names as passwords.

Monitor your accounts. –Another big way to keep yourself safe is to monitor your existing accounts. If you can catch illegal activity when if first happens you can limit the damage.

Watch your monthly reports. Keep your receipts and match them with the report item for item, and if something appears that you didn’t buy then call. You can also check your annual reports for free at https://www.annualcreditreport.com. You can get reports for all three (Trans Union, Equifax, Experian) of the reporting agencies from them. Another simple step to take is reduce the number of accounts you have. It’s easy to miss unwanted activity if you have 10-15 different accounts to watch.

Maximize your protection. –One final way to reduce the time and money spent on costly clean-up is to purchase identity theft insurance.

You must change your mindset. No person or company can prevent an identity theft from occurring, but a good company can help manage the aftereffects, and repay stolen money. You insure the things that are valuable to you, your homes, and your cars, so why not insure your identity?  You can find a good identity policy for around $6.75 a month. Dave Ramsey recommends the Zander Insurance Group as a good provider of identity theft protection.