Paper Shredders and Identity Theft
Identity theft is serious business. If someone steals your personal information, i.e. your name, address, driver's licence or credit card number, etc... then they can use your details to create a whole new identity for themselves and run up a lot of debt in your name and for which you may be responsible.
It is essential therefore that you take steps to protect yourself from identity thieves. The FTC says that as many as 9 million Americans become victims of identity theft every year. The first you will learn of it is when you receive an unpleasant letter, credit report or statement claiming payment for charges that you knew nothing about.
Trying to reclaim your identity is very time-consuming and expensive, so the best thing you can do for yourself is to try and ensure that your identity is not stolen in the first place.
So how is your identity stolen and what can you do to prevent it?
For people trying to steal your identity, the personal information about you on letters and bank statements is a gold mine. They will go to extraordinary lengths to get hold of it. Using one or more of the following methods.
Dumpster Diving - they can get information just by going through your trash outside your home or office. It is essential therefore that you destroy, tear up or shred any perspnal information. You can do this by hand or if you have a lot of documents to get rid off then with one of the cheap home paper shredders available.
Phishing - they can send e-mails claiming to be from a bank etc... and ask you to fill in your information on forms. Check that any e-mail is indeed coming from your bank before clicking on any links.
Skimming - thieves can get your credit card numbers by using special devices they attach to legitimate card scanning machines, e.g. ATMs - so check that the ATM you are using looks normal.
Changing Your Address - if they get your information they can then divert billing statements to another address - once again make sure you shred your personal documents before throwing them out.
Old-fashioned stealing (from mailboxes) and picking your pockets - here you just need to be vigilant at all times.
How your personal information can be used by identity thieves.
Open credit card accounts in your name, change the billing address on your credit cards and then charge your account, open a telephone account in your name, use your name to obtain electricity, or cable TV etc., write counterfeit checks in your name, open a bank account, clone your debit card and remove money from your accounts, take out loans in your name. Scary stuff !
So what can you do ?
First shred or destroy all personal information by hand or with a document shredder before putting it out in the trash! Make sure you keep a close eye on your accounts and statements each month. You can also check your credit report regularly. If you have your identity stolen it is essential that you file a police report, inform creditors and banks, check your credit reports, and immediately challenge any transactions that you did not authorize.
