Identity Theft: Don't Let it Happen to You!
Could you become a victim of identity theft? It’s more likely than you
might expect. Identity theft occurs when someone uses your
identification–such as your Social Security number or credit card
number–without authorization to commit a crime. When it comes to identity
theft, prevention is the best defense, according to the National Crime
Prevention Council. The Iowa Society of Certified Public Accountants offers
these tips and observations to help you avoid becoming a victim.
How it works
Identity thieves may use your credit or debit card or bank account numbers
to make illegal purchases that are charged to you. Or, they may open a new
account in your name using your Social Security number. Another ploy is to
change the billing address on your credit card, so they can run up bills in
your name that you know nothing about.
Keep your eye on your wallet
How do they get your account numbers? The easiest way is to steal your
wallet, mail, or check. They can then use information on your bank
statements, Social Security card, ATM card, driver’s license, credit card,
or other pieces of ID to get important identification numbers and other
data, such as your date of birth.
If you suspect anything with personal information has been stolen, be
sure to alert the institution that issued the ID immediately. To speed up
the process, keep a list of your account numbers and organizations’ customer
service telephone numbers in a safe place so you can contact them easily
when you need to. Remember, too, that while credit card holders usually are
not liable for more than $50 of unauthorized purchases, debit card holders
have fewer protections and may be responsible for the entire loss. Find out
which forms of ID leave you most vulnerable and try to carry them with you
less often.
Don't trash your identity
In addition to theft, scammers often go through trash to find discarded
account statements that contain the information they need to make fraudulent
purchases. To prevent this, use a paper shredder to destroy documents that
contain personal information. Or, simply tearing apart the paper on which
your account number is printed can also deter thieves. In addition, be sure
to take your credit card and ATM receipts with you when you get them. Tear
these receipts before you discard them in order to destroy your account
number.
Get your credit report
If an identity thief has invaded your accounts, their activity will probably
show up on your credit reports. Under federal law, you can request a free
credit report from each of the three major credit agencies once a year, and
it’s a good idea to do that annually. Privacy rights organizations recommend
requesting a report from each agency every four months to get a regular
update on whether you have recently been the victim of identity theft. Make
sure all transactions are valid and that there aren’t any unusual purchases
or unfamiliar accounts. You can find more information on the Federal Trade
Commission Web site at
www.ftc.gov/bcp/conline/pubs/credit/freereports.shtm.
Protect yourself
There’s no one way to prevent identity theft entirely, but there are many
smart steps you can take to minimize your chances of becoming a target. Your
CPA can advise you on the best way to avoid being victimized by identity
fraud and on smart steps to protect your assets.
Access “Find a CPA.”
