Identity fraud is a serious crime with some severe counter effects. It might take the victims months or even years to repair, besides the hundreds to thousands of dollars spent.
What might happen if identity theft happens?
If someone succeeds in stealing your credit card, or gets hold of enough information about you to start applying for new loans and credit cards, you might face the following difficulties:
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Your credit score is going to be adversely effected.
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You can face difficulty obtaining a job
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You’ll be denied credit for things you apply for.
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It will be hard for you to obtain college loans, vehicle financing, credit cards, and mortgages.
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Identity fraud victims may even be arrested for crimes they haven’t committed, because someone else is living under their name as well.
How does identity theft happen?
Most of the people are really careful with their credit cards but there are many ways identity thieves are able to get personal information from people. Most of these thieves work for companies where they have access to individual records via a computer or through paper files. But it is also possible for hackers to hack into your system and retrieve the information they need to steal your identity.
Your mailbox also offers great opportunity for such thieves. If someone is successful to find bank or credit card statements, checks that have been voided but not ripped up, new credit card offers and tax related information, they usually have enough information to become “you”. People who go through garbage containers are known as “dumpster divers”, and will often be found looking for information in public trash areas and business dumpsters.
It is also legally possible for your landlords, employers, and businesses that must run reports prior to extending credit, to view your credit report without your consent. Identity thieves join these organizations as employees in order to get access to the personal information they need to do their crime.
Precautions
You can take these precautions to act smarter than your thief.
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Do not just throw your personal items in the trash after reading your mail, cleaning your desk at home or work, or cleaning out your car
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Receipts, utility bills, bank statements, loan statements and credit card offers and statements should be completely destroyed before you throw them away.
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Either burn your paperwork, or use a paper shredder and shred everything you are throwing away to eliminate the possibility of someone finding out information.
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Shred or cut your credit cards into many small pieces before throwing them away.
What to do if your card gets stolen?
In case of a lost or stolen credit card, it is important to report the situation to your creditor immediately. Your account will be put on hold by the credit card company to prevent any further purchases.
Credit card companies can also track the location where someone has attempted to use the card. Thus helping you to find the thief. When you go to a restaurant, be careful when you give your card to waiter as he has the opportunity to write down your card number and name. It is better to pay with cash whenever you are at a restaurant.
You should view your credit card statements and bank statements regularly to look for any purchases that you did not make, and call the credit card company immediately if you find something you are unsure of. It is always better to catch identity theft as soon as possible in order to control the damage done.
I agree that we should not just throw credit card receipts of any kind of mail, bill or medical record in the trash because we will know when identity thieves strike. Aside from having copies of our important documents shredded, we also need to secure all our passwords and account details. This also goes to uploading information on the Internet. Let us not give these ill-minded people a chance to steal our identities for their own benefits.