Stealing user information

Have you ever been a victim of identity theft? If so, you’re not alone — identity theft is an unfortunate reality that is increasingly common. While many victims are able to deal with it quickly, some are forced to spend a month or more resolving the issues caused by identity theft. Even if the problems are resolved, the financial loss can be severe.

Identity theft can take many forms. With financial identity theft, it’s often a case of bank accounts or credit cards being accessed and used illegally. For example, the thief may take out cash or max out a credit card. This can have a serious impact on your credit score.

Fortunately, there are steps you can take to avoid it. Learn what the signs of identity theft look like, how to best protect yourself from fraud and what to do if you become a victim.

Identity Theft Basics

What steps are you taking to protect your identity? Credit and debit cards give you flexibility and purchasing power, but as with any sensitive information, they require extra security precautions. You wouldn't leave cash lying around, so it's important to secure your financial information as well. In order to lower your chances of becoming a victim of identity theft, review these basics.

Know your rights in the event of fraud.

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• Credit or debit? Credit cards make security breaches easier to address. With a credit card, you have plenty of time to notice unauthorized charges, notify their issuer, and have them removed.
• What about cash or prepaid cards? Unfortunately, if your cash is stolen, there's little that can be done except filing a report with the police. Prepaid cards are similar to debit cards, but instead of being linked to a bank account, they are linked to reloadable prepaid accounts. Treat your prepaid card like cash, and keep it in a secure place.

Take steps to safeguard your personal finances.

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• Protect financial documents and mail. Do you shred old bills or credit card statements? Shredding your documents helps protect any personal information from getting into the wrong hands. Similarly, if you are on vacation, place a postal hold on your mail until you return.
• Practice smart online security. Are you using the same password or a variation of the same one for several accounts? If so, that can make multiple accounts vulnerable. Use secure passwords, do not share them with others and change them regularly. If you need to enter financial information online, disclose it only on secure websites. Consider applications to generate passwords and store your sensitive online information.

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