How to Prevent Identity Theft
A proactive approach is the best way to prevent identity theft, credit card theft and identity fraud. By implementing a basic identity protection plan, which includes procedures to protect and restore your stolen identity, you can protect yourself from identity theft.
What steps can you take to prevent identity theft? In order to protect yourself from identity theft, the first thing you should understand is the risks you face and which ones could be the most costly. For example, credit card theft is a common problem but in most cases the cardholder is not liable for unauthorized charges. To determine the extent of your personal liability however, you should read through the cardholder agreement. You may me liable for up to $50 in unauthorized charges.
If you lose your credit card, it is relatively easy for someone else to use it. If you notice that your credit card is missing or if you become aware that someone may have access to your credit card information, the first thing you should do is contact the credit card company. Retrieve the most recent credit card statement and analyze the charges. Do you recognize all of the charges? It is important to review your bill and report any unauthorized charges as soon as possible. Most companies require written notice of unauthorized charges within a certain period of time. As stated previously, you will not be liable for unauthorized charges provided you report them in accordance with the cardholder agreement and within the required period of time.
A more costly form of identity theft occurs when someone, pretending to be you, opens up new accounts in your name. Although this is less common than credit card theft, the financial loss from this type of identity theft can be much greater. This type of ID theft can occur if you lose or misplace personally identifying information that can be used to open up new accounts. For example, if you lose your wallet, someone could potentially get your Social Security number, your driver license number, your address, credit card numbers and much more all at one time. Another way many people unknowingly become a victim of identity theft is by providing personal information to unknown companies over the Internet.
What steps can you take to protect yourself from identity theft? By understanding the risks you face and which ones can be the most costly, the first thing you can do is become more aware of your personal financial information. As described above, you should review all of your billing statements for accuracy and report any unauthorized charges as soon as possible. The sooner you discover and report credit card theft or identity fraud, the less likely you are to lose money and a tremendous amount of time trying to restore your stolen identity. Avoid carrying your Social Security number and anything else with personal information around with you. Be careful about providing personal information, such as bank or credit card account numbers, when you receive email messages requesting it. You can also protect your identity by implementing a basic identity protection plan through a company which can help identify fraudulent credit card applications and applications for mortgage loans and auto loans. An identity protection company can also monitor non-credit related transactions and opt-out of mass-mailings on your behalf to help reduce your exposure to fake companies that try to access personal financial information via fake email messages.
A proactive approach is the best way to prevent identity theft, credit card theft and identity fraud. By becoming more aware of the problem and by implementing a basic identity protection plan, you can protect yourself from identity theft now and in the future.
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