Common Identity Theft Tactics & Prevention Tips

identity theft viewed through magnifying glass.Identity theft was the number one fraud complaint for several recent years, and it continues to plague consumers as criminals become savvier. The crime takes no skill or equipment to pull off, making it a tempting source of income for criminals.

However, when the average person thinks about identity theft, computer hackers and viruses usually come to mind. In reality, identity theft is as simple as rummaging through someone’s mail or carefully watching people in a busy government building where they fill forms with sensitive information.

Identity Theft Methods

Part of preventing identity theft is knowing the methods used. According to the most recent data, several million Americans fall victim to identity theft every year. Fortunately, this crime is often preventable, if only consumers were more knowledgeable on the matter.

Here are the most common tactics identity thieves use to gain access to personal information, and a few helpful tips for preventing these issues.

1. Stealing Mail

Some identity thieves steal mail from the garbage or straight from the mailbox. This is occasionally referred to as “dumpster diving,” but that term is misleading. Identity thieves are interested in personal garbage, so they generally won’t bother with an actual dumpster meant for commercial trash.

Prevention

Shred sensitive documents using a shredder. A quality shredder might run $100 to $200, but a cheaper $50 shredder will do just fine for personal usage. These costs are often insignificant compared to the cost of having your identity stolen.

2. Skimming Credit/Debit Cards

Skimming is described as one of the most significant problems facing the credit card industry. This identity theft tactic involves electronically storing a person’s card information during a transaction. It can happen nearly anywhere. For example, a rogue employee at a gas station could put through an authorized charge for gas, then scan the card again on a portable device for a second, unauthorized charge.

Unfortunately, skimmers are versatile. They can be illegally added to ATMs or gas pumps. When an unsuspecting victim scans his card, their information is captured.

Prevention

If the credit card slot on a machine looks suspicious, play it safe by using another. Don’t hand your card to a cashier unless absolutely necessary. In addition, check your statements on a regular basis. Catching an unauthorized charge quickly means less of a headache later on.

3. Phishing

Phishing is perhaps the most misunderstood method of identity theft. To phish, a thief pretends to be a financial institution or other reputable company. The thief might email victims using a very official-looking layout, complete with images the business normally uses. These emails usually ask the victim for personal information, like usernames, passwords, or credit card information because the business supposedly “lost” the victim’s file.

Phishing can also take place on websites. It’s not hard to make a website that looks identical to Paypal or another bank or credit union, for example. When the victim enters his login information, the damage is done.

Prevention

Never respond when a business asks for personal information through email and never click on links unless you’re certain you know the sender is who they say they are. There is never a good reason to do so.

Instead, call the business using a number you’re certain is legitimate. Go directly to their website to get their contact information instead of clicking on any links or calling the numbers included in the suspicious email.

In addition, whenever logging into an account online, look at the website’s URL. Ignore the website for a moment and just focus on the URL.

Legitimate URL: https://www.paypal.com/
Suspicious URL 1: https://www.paypall.com/
Suspicious URL 2: https://paypal.clickme.com/

4. Old-Fashioned Stealing

There’s nothing vague about outright stealing. If someone snatches your wallet or purse, it’s safe to assume they did so to turn a profit. In addition, pickpocketing is an art, and crime still widely practiced. If your wallet is missing, or more importantly, a credit card is missing from your wallet, don’t immediately assume you left it at home.

Prevention

Don’t carry credit cards in your back pocket. This is by the far the most dangerous place to keep them, aside from scattering them on a sidewalk. Keep track of purses and backpacks, keeping them zipped and on your body, not the floor. Purses and backpacks are still susceptible to theft, though, especially if the thief is brazen enough to simply cut the container’s straps and run.

If you do find a card or other personal information is missing or stolen, contact the card issuer or your bank to lock the account or have new account numbers issued. Here are some additional steps to take if your identity has been stolen.

Conclusion

If you believe you or someone you know has fallen victim to identity theft, remember that time is of the essence. Though most credit cards have a zero dollar liability clause, it’s less of a headache to change credit card numbers now than letting the damage build before taking action.

For more information on identity theft, visit the United States Federal Trade Commission’s website.

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Posted on March 17, 2021 by in Credit Monitoring

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