Identity Theft and Paper Shredders

Identity Theft and Paper Shredders

What is Identity Theft and How to Prevent It?

There are a number of government recommendations for how to protect yourself against Identity theft. Identity theft is when someone uses your personal information, such as your name, credit card number, etc... without your permission, to commit fraud or to create credit cards and bank accounts in your name or other crimes.

According to the FTC up to 9 million Americans are victims of identity theft each year. You probably will know nothing about it until you receive a rather unpleasant credit report or credit card statement and discover charges you didn’t make.

Identity theft is big business it is also a total hassle if you are a victim of it. Sometimes you may have to spend hundreds of dollars and hours trying to repair the damage to your name and credit record. So it is a good idea to do all you can to prevent people stealing your identity.

How can thieves steal your identity?

For identity thieves your personal information is like gold dust, but how do they get hold of it.

Dumpster Diving. People can get information from your trash from the bills or statements you throw away. So make sure you shred any information, either by hand or with a home or office shredder. There are lots of different paper shredders available but the best for a home office would be a good quality crosscut shredder. If you have a larger office you might want to consider a heavy duty shredder or even an industrial shredder.
Skimming. They can steal credit or debit card numbers by the means of special devices attached to legitimate card scanning machines.
Phishing. They can send you e-mails pretending to be a bank etc... and get you to enter your information in forms.
Changing Your Address. Your billing statements are diverted to another address by filling in a change of address form.
Plain vanilla stealing - wallets, purses etc... mail, pre-approved credit offers, new checks or tax information, personnel records, or even bribe employees who have access to such information.
Pretexting. Using false pretenses to get your personal information from financial institutions, banks, telephone companies, etc.

Your personal information can be used in a variety of ways.

They can :-

• open new credit card accounts in your name.
• change the billing address on your credit card so you no longer receive bills, and then charges purchases to your account.
• open a phone or wireless account in your name
• use your name to get services such as electricity, heating, or cable TV.
• create counterfeit checks in your name.
• open a bank account and write bad checks.
• clone your ATM or debit card and drain your accounts.
• take out a loan in your name.
• get a driver's license or official ID card issued in your name but with their picture.
• use your name and Social Security number to get government benefits.
• file a fraudulent tax return using your information.
• get a job using your Social Security number.
• rent a house in your name.
• get medical services in your name
• give your name to police during an arrest.

What to do ?

Monitor your accounts and statements each month, and check your credit report regularly.
If your identity is stolen you must file a police report, check your credit reports, notify creditors, and dispute any unauthorized transactions immediately.

Apar from being very careful about who you give your personal information to you can also buy a shredder and use it to destroy all your personal information before throwing it in the garbage.

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