Advice on Identity Fraud

Identity fraud can happen to anyone; however, taking steps to protect your information can stop you from becoming a victim. The consequences of identity fraud include denials for credit, and it can take several months or years to clear your name and remove fraudulent information off your credit report.

Credit Checkups

Paying attention to your credit accounts and checking your report regularly helps you catch signs of identity fraud early. Every consumer can acquire free reports each year from Annual Credit Report. Take advantage of this free opportunity and keep a close eye on your personal file. Unfamiliar accounts and reporting errors can ruin your chances of qualifying for a mortgage or auto loan because negative information (regardless of legitimacy) lowers your credit score.

Signing up for credit report monitoring is another way to stay on top of your credit report. These services closely monitor your credit activity, and opening an account in your name raises red flags and the service automatically sends email alerts.

Considerations

Credit card companies may detect identity fraud before you do because they monitor credit activity. Making a large purchase or using your credit card in another state may prompt a call from your credit card company. They'll verify the legitimacy of charges and investigate unknown activity. But sometimes, identity fraud falls through the cracks, which is why you need to carefully read account statements each month and regularly check your statements online.

Privacy Information

Giving someone access to your personal information can contribute to identity theft. Thieves and con artists have a way of appearing trustworthy or honest. They may telephone your home or send emails requesting personal information such as credit card numbers or a Social Security number. Do not fall for their tricks. Regardless of how legitimate a request may seem, keep sensitive information private. This advice extends to online purchases. Legitimate online retailers will have a security logo or lock box on their website to ensure a safe transaction. Only purchase from websites that feature a secure logo.

Warning

You may prefer a clutter-free environment and choose to discard bank statements and credit card statements at the end of each month. While discarding unnecessary paperwork helps keep a clutter-free space, inappropriately discarding of sensitive information puts you at risk of identity fraud. Use a paper shredded to completely destroy private paperwork.