What You Should Know about Identity Theft

Monday, 31 December 2007

Learn how to protect yourself from becoming a victim, how to prevent  stealing your personal information and more. 

Identity Theft-An Overview

What is Identity Theft?
Virtually every week there is one or more news stories that highlight problems with personal information. Whether it's a retailer that loses credit card information or computer files inside a credit bureau that are compromised, it's unsettling to know that your information is vulnerable. So what can you do? The starting point is gaining an awareness of the risks and an understanding for the issues. So, what is identity theft?

	Identity Theft vs. Financial Fraud Identity Theft: Someone literally poses as you, using your personal information such as your Social Security number, to take actions and make financial transactions. For example, the thief can take out a mortgage or get a drivers license in your name. You are liable for whatever actions he takes. That's why it can take so much effort to undo the damage and clear your name. Financial Fraud: Commonly known as credit or debit card theft. Charges are made on your card to any retailer or business. The thief has not actually assumed your identity; they simply use your card to make transactions.

Identity theft happens when someone steals your personal information (like your Social Security number) and poses as you in order to make financial transactions or carry out illegal activities in your name. The thief can live a life in your name, ruining your credit and damaging your reputation. They could commit fraud or other crimes in your name and potentially affect every aspect of your life from getting a new job to a new mortgage.

Having your identity stolen can be a nightmare. Ask anyone who has fallen victim to it. And with millions of victims, the odds are you know someone who knows someone who's been affected.

Identity theft takes many forms. The Federal Trade Commission (FTC) reports that in 2004 the most common type of identity theft was credit card fraud (28% of total complaints) followed by phone or utilities fraud (19%), bank fraud (18%), and employment fraud (13%). By themselves, these incidents are often considered financial fraud, but each of these can be the first step to full-blown identity theft (see inset).

Regardless of what it's called, the problem sounds intimidating. But we believe that knowing about identity theft is the first step in preventing it from happening. In fact, there are many things you can do to protect yourself.

Knowledge is Good-Please Help Yourself
Keeping your identity safe comes down to having an awareness of the problem, exercising caution when giving out your personal information and taking steps to protect yourself. The FTC says that protecting sensitive information is your best defense against identity theft. Fellowes has gathered much of the information, tips and resources you'll need to know and use:

Since experts agree shredding is the best way to dispose of sensitive data, Fellowes also brings you information on these types of shredders that offer the best security.