Imagine that you are looking at your checking account or credit card bill. As you go down the list of charges, you come across a couple that you do not particularly remember. Then you see a charge for an obscenely large amount of money that you are absolutely certain you didn’t make. You are now the victim of identity theft.
Identity theft happens every day in the United States and, according to the Federal Trade Commission, affects 9 million Americans every year. It occurs when an individual uses your full name, social security number or credit card number without your knowledge or permission.
Identity thieves can obtain this essential information in a variety of ways, so it is important to know their methods to protect yourself.
The easiest way for a thief to gain your information is by dumpster diving. Thieves will go through trashcans in search of old bills, financial statements or even credit cards. You may think that cutting your card into a few pieces will deter thieves, but skilled thieves can easily piece these together.
Instead, you should completely shred your documents, bills and credit cards, and spread the shreds over different trash bins. If you want to be extra vigilant, you can scramble the credit card data completely by running a strong magnet across the magnetic strip of your credit card before shredding it.
Another type of identity theft that has increased dramatically in recent years is skimming. Skimming is when thieves use tiny credit card readers called skimming devices to obtain data from your magnetic strip. This can happen in bars, restaurants and even retail stores.
Skimming devices can also be incorporated into ATMs to steal the data of those who are withdrawing money. These little machines, which often inconspicuously appear to be a part of the ATM or credit card reader itself, can collect thousands of credit card numbers in mere hours. While there is no easy way to protect yourself against skimming, you can find out if you are a victim of skimming by checking your statements regularly to verify all charges.
Phishing, another type of identity theft, is when thieves send you emails that appear to be official messages from a bank, financial institution or website, such as PayPal. They then ask you to “update your account information” or to call a specific number with an official-sounding automated message. The phone call then directs you to input your personal information, including social security numbers or credit card numbers. If you ever receive an email that seems suspicious, call your bank immediately using the phone number on the back of your card or from the bank’s official website to confirm if the email is legitimate.
While these are three of the most common ways identity thieves gain access to your information, they could also resort to old-fashioned methods — by stealing your card from your wallet or purse. If this happens, you should immediately call your credit card company, inform them of the situation, dispute any unauthorized charges and cancel your card if necessary. You may even consider filing a police report, which will give you certain legal rights.
While no one is immune to having their identity stolen, taking these steps can help you protect your financial well-being.
