A recent survey revealed that nearly 20% Americans have encountered some type of identity theft. If you are one of them, you may experience lots of problems that could result in lowering of your credit rating and scarring your financial records forever.
How Credit Card Theft Occurs
Thieves begin by accessing your personal information: Social security numbers, bank statements, tax reports, credit card debit information and passwords, or checkbook. Keep this important information under lock and key. Do not let it lie around in your office or in the car. This makes it easier for the thieves to access your financial information. Find out the reason if anybody asks for your credit information, check out their privacy policy and keep a copy of it. Destroy all papers even if you think they do not matter. Do not hand over your credit card to anybody even your family members, unless you are interested in paying their debt from your own pocket. Many family feuds have turned into court cases with hard feelings on both the sides, just because one of them used credit card or debit card without a thought. While submitting an online application for a credit card, ensure the site is secured and they protect your privacy.
Recognizing Signs of Identity Theft
If your credit card bill is missing regularly or your mail is misplaced, contact the post office urgently. Ask the superintendent or manager of your apartment complex, if you can get a new key to your mailbox. A missing bill implies an identity theft might have taken place and the billing address has altered.
If you get credit cards (not offers) out of the blue from institutions to whom you have not applied. Contact these companies to check if you are the account holder. If not, telephonically cancel the card and then immediately send a letter.
If your credit application is rejected or your credit card terms are suddenly revised to higher interest terms, without any reason.
Creditors call and send you letters about purchases you have not made.
Protecting Your Credit Information
The best protection is regular awareness about the usage of your credit information. Select passwords carefully. Do not use commonly known information like your mother’s maiden name, your birth date, the last four digits of your SS#, or your phone number. If you need to use this information to open an account, change your password immediately, once the account is opened. Keep your credit information locked away even at home. Do not give any information unless you are aware of the use it will be put to and by whom.
The Best Defense for Your Credit Security:
Remain alert. Check your credit card statements each time and contact your credit card issuer immediately if you notice anything suspicious. If you doubt an unauthorized purchase, write a letter to your credit card issuer, giving information about the suspicious purchase and any reference numbers. The credit card issuer must look into your claim and send you a report of their investigations. You can also ask for a free annual monitoring report from every major consumer reporting agencies. The latest amendment to the Fair Credit Reporting Act mandates requires that these credit-reporting companies give you the reports as per your requests every year.