Credit Identity Theft

Credit identity theft is something that most people fear, as this can send you into spiraling debt, and you may end up with several overcharged credit cards that never personally signed up for. There are many ways that people can commit credit identity theft, and while the effects can be devastating, there are many things you can do to prevent it or minimize damage if it does happen. Whether you want to protect your identity, or if you suspect that someone has stolen your identity, read on for useful tips and information.

What is it?

Credit identity theft concerns several similar areas. First and foremost, it means that someone has the information on your credit cards. This means the numbers, your name, the card’s expiration date and the security code on the card. With this information, the thief is capable of using the credit card online and through several others ways to make charges and to obtain money from your account.

It also means that someone may have the proper information to start taking out credit cards in your name. This is the more dangerous, and more unlikely, definition, but it is very possible. You may not even know about these cards until months later when you receive calls asking for you to pay the credit card bill.

How Does This Happen?

Credit identity theft can happen from a variety of circumstances, but generally it is because you gave this information to someone without knowing the consequences. If you have ever received an email, call or if a legitimate looking businessperson asked for your information and you gave it, that was most likely what happened.

People can also look through your trash to find information if you don’t shred your documents, and they can collect this information from hacked credit card terminals.

Protecting Yourself

For most types of credit identity theft, it is relatively easy to protect yourself. Before giving your information to anyone, check with the institution to ensure you are giving it to a trusted party. If someone calls or comes to you, asking for information, be sure to verify any business information before giving out your social security numbers or other information.

You should also actively practice shredding to ensure all documents with your information is destroyed. This should stop most theft attempts.

Check Your Statements and Score

While the above will protect you against most types of credit identity theft, it is not 100% accurate. People can hack into your computer, assemble shredded documents, steal your mail or do other things that you cannot control or be aware of.

By checking your credit card statements and actively checking your credit score, you can ensure that all your credit activity is directly from you. If you find anything suspicious, then go onto the following section.

My Card Was Stolen

If you find out your credit card was stolen, then be thankful that you found out now. Sooner is indeed better than later with credit identity theft. Start by calling all the banks and issuers and telling them what you just discovered. They will immediately freeze all the cards, ensuring that no one can use the cards.

Next, if you have any useful information that can lead officials to find the thief, be sure you give it over. This can help prove that you are actually a victim, and it can help officials catch whoever did this to you.

Identity Theft Insurance

Doing all of the above can help your chances of relieving identity theft, but if someone really wants your identity, they will find it. Taking out identity theft insurance policies, before the event occurs, can help you recover some of the lost funds.

Many of these policies will help with the common charges you have to face when fixing your credit, such as missing work or copying documents. Other policies may even reimburse part or all of your losses, which can help if you land in devastating debt and cannot prove that your cards were actually stolen.

The policies are relatively cheap, and you should definitely consider getting one before you become a victim.

Conclusion

No one wants their identity stolen. It hurts financially, and it makes many people paranoid about sharing their information with anyone. By actively trying to protect your identity, and perhaps taking out an insurance policy, you can decrease the possibility of this occurring. Also, be sure that the moment you see weird activity, that you report it immediately to reduce any possible damage.