Are You Protecting Yourself Against Identity Theft?

by: Natalie Jamison, Women & Wealth advisor at RBC Dominion Securities

Most of us take some measures to protect our personal information from identity theft and fraud, but as fraudsters become more sophisticated and creative with their scams, there is an even greater need to safeguard our information

Try asking yourself: Do I always shred or thoroughly destroy bank or credit card statements, transaction records, insurance forms, and credit offers that I get in the mail? Do I periodically request a copy of my credit bureau report?  Do I pay close attention to my billing cycles and carefully review my bank account and credit statements as soon as I receive them? Am I familiar with common scams employed by fraudsters, such as ‘phishing’?

Even if you answered ‘no’ to these few questions, there’s good news – taking some very simple, often overlooked, steps can help to reduce your risk

Identity fraud occurs when a thief obtains access to the personal information of someone else and uses it to perform financial activities in that person’s name. With that information, they may try to open new credit card accounts, charge existing credit cards, write cheques, or obtain false loans or mortgages.

Unfortunately, there’s no shortage of unscrupulous people out there who will stop at nothing to obtain personal information – they may even rummage through garbage or recycling bins, steal wallets, and impersonate bank representatives on the phone or online

The following 10 tips may help to reduce your chances of falling victim to identity theft:

1. Do not give out personal and confidential information on the phone, through e-mail, or over the Internet unless you initiated the contact or know the person you’re dealing with. Before providing any personal information, ask how it will be used and whether it will be shared.
   
   
2. Destroy documents that contain your personal information, such as receipts, bills, and bank statements. Remember, fraudsters are known to pick through garbage, so be sure to make good use of your shredder if you own one.
   
   
3. Examine your bank and credit statements thoroughly and verify that all your transactions are listed correctly. Call your financial institution right away if you see an unusual transaction.
   
   
4. Be aware of the methods used to steal your identity. In addition to stealing mail and personal documents, some thieves use scams, such as ‘phishing’ to trick you into handing over your information. Phishing involves the use of e-mails intended to lure people onto phoney web sites, often resembling your financial institution’s site, where you may be asked to provide your personal information. No legitimate employee of any financial institution will ever ask for this type of information by e-mail.
   
   
5. Carry only essential identification information, and try to avoid keeping your SIN number, birth certificate and passport in your wallet or purse. If possible, keep this information secure.
   
   
6. Familiarize yourself with your billing and statement cycles and be sure to follow-up if your bills or statements don’t arrive on time. Ensure that you promptly clear your mailbox after delivery.
   
   
7. Guard your Personal Identification Number (PIN) and passwords. Memorize them and never share them with anyone, including friends and family – these are for your eyes only. Avoid choosing a PIN that’s easy to guess, like your birthdate or address.
   
   
8. Use a firewall, anti-virus, and anti-spyware software to help protect against unwanted intruders and malicious programs that could compromise your personal information.
   
   
9. At least once a year, request a copy of your credit report from both TransUnion and Equifax. Review it carefully and report any inaccuracies.
   
   
10. Contact the authorities and your financial institution immediately if you notice any unauthorized or missing transactions

Remember that anyone can be a target of a financial crime. In the end, the best defence against identity theft and fraud is care and diligence.

Posted in: Financial