Myths about Identity Fraud
With the notion of identity theft popping up in advertising, websites and among your friends and coworkers, you've probably heard all about its horrors. Facing the possibility of your information being used to rack up huge bills or someone impersonating you to get out of a tricky legal situation is a terrifying thought. You have likely heard anecdotes about identity theft, but there are some myths floating around that you should investigate further to avoid unnecessary panic and to better arm yourself against the possibility of fraud.
Understanding Online Fraud
The largest mistake people make is assuming that online fraud is replacing paper theft. While you should never send secure information on an insecure Internet connection or to an unsecured website, legitimate businesses that you buy from will have encryption in place to safeguard you. Going paperless with your shopping, bills and bank accounts will not only help save the environment but will save you from worrying about mail theft and fraud, which is still prevalent. It is still more likely that the waitress at your favorite chain restaurant is collecting your credit card information in a “skimming” device when you trustingly hand your card over to pay for dinner than a hacker is lying in wait for you to put your information out over an unencrypted connection.
Hand in hand with the misinformation about online theft being a higher risk than old-fashioned trash diving or stolen wallets is the misconception that anonymous hackers are your worst identity theft fear. A partner, roommate, coworker or friend is more likely to misuse your information than someone you have never met running a phishing scam (read more about methods of identity theft in our article on How Thieves Get Your Information) or a key-logging program that records your passwords. Of course hacking and robbery still happens, but people you know may lose their scruples and create credit cards, bank accounts, etc. using information you entrusted them with. There isn't much you can do but choose who sees your information wisely, and perhaps ask your job what security measures they have in place to protect you from identity theft.
Vigilance and continual education will help you find out the truth about identity theft. Double-check websites you enter information on to make sure they are legitimate, don't give an unsolicited caller claiming to be from your bank or credit card company information (call the number on your card or billing statement, if it is actually from the company they will have a record of the issue), share as little financial information with people who do not need to know it as possible, and remember that your day-to-day life presents opportunities for misuse of your identity unless you take steps to improve your habits.
- Understanding Credit:
