People develop illusions on many things in their life. Some are harmless, but some may prove very costly. ID theft is a widely discussed subject these days. If you have some illusions about it, please get them clarified as soon as possible. Your small neglect may cost you a fortune.
People have following illusions about ID theft –
Online shopping with credit card is more dangerous than using the card in the restaurant – This is a misconception. When it comes to ID theft, using your card in restaurants is far more dangerous than using online. Online shopping these days has been made safer by many programs developed by software companies. However in a restaurant when you hand over your credit card to a waiter for payment processing, he may take it away from you for a while. While he processing it for payment, he may swipe your card in a skimmer in his pocket. In this manner he can capture all your credit card details and send them to an identity thief who will act swiftly to take away as much as he can. Checking bank balances online is more dangerous than receiving paper copies by mail – This is another misconception. Paper mail plays a big part in identity theft. It can be stolen from your mailbox or it can be rerouted to another address without your knowledge. It is always advisable to opt out of paper statements. Whenever you want a copy for tax purposes or otherwise, you can always take a printout from the online statements. If a representative from your bank calls you and you can confirm his number on your caller ID, it is safe to provide your information – identity thieves are much more innovative than you think of. It is easily possible to manipulate caller ID screens. Also, it is never advisable to verify your personal details on the phone. Banks never ask you to verify them in the first place. Once you check your credit report annually, you need not do anything else to prevent identity theft – Checking your credit report is a good step in monitoring your financial information. However, you will not do anything thereafter for 11 months! In addition to this precaution, you should always check your bank statements and credit card statements regularly to find out anything abnormal or irregular. ID theft is done by people who are experts in internet technologies – This is also another illusion. There are all kinds ID thieves around. They will use basic and simple tactics which you might not have dreamt of. They can check your garbage bin for letters which you throw away. Paper trails are more dangerous than electronic trails. So you up need to take some basic precautions like shredding your papers before throwing them. Also, lock your mailbox.
Identity theft is the fastest growing and most notorious crime. An attack on your personal details by methods which you would not have even dreamt of can destroy your life. You need to educate yourself more about protecting your personal information and should not make any assumptions about your safety
Chintamani Abhyankar, is a well known expert in the field of finance and taxation for last 25 years. He has written many books explaining inside secrets of the magic world of personal finance. His famous eBook Stop donating your money to IRS which is now running in its second edition, provides intricate knowledge and valuable tips on personal finance and income tax.
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