Downtrodden Economy Means More Scams and Identity Theft
At a glance, the numbers may seem reassuring: experts say overall ID fraud was down for the past several years, decreasing by more than 12% between 2004 and 2007 (see this study).
But crime experts are warning that with the recent headline-making economic events may come an increase in criminal activity…and that you could become a victim.
Consumers have gotten wiser to ID fraud in the wake of online, phone and ATM theft news in recent years. Unfortunately, so have criminals–and their tools of the unsavory trade are more sophisticated than ever. Know what to look out for in order to protect your identity, yourself and your family.
An Uncertain Future
Downturns in the economy have historically ushered in greater crime than in financially secure times. The reason for this is twofold, according to crime experts. On one side is the criminal‘s sense of desperation, fueled by a tougher economy (and more savvy potential victims). On the other is the average consumer, who is may be more distracted due to his or her financial concerns and ironically, could make an easier victim.
Defense: the Best Offense
So how do you protect yourself, particularly now that you may be more worried about your finances than ever?
Experts advise that a twofold approach–combining a good anti-theft program with your own watchdog efforts–may be your best bet. Credit monitoring protection programs can alert you to unexpected activity in your bank account or against your credit cards. This heads-up can be invaluable to protecting your assets from the hands (and computer) of an experienced ID thief.
At the same time, do your own legwork in watching for anything out of the ordinary, ID crime experts say. You can do this by practicing the following habits:
- Print out and look over your credit report on a regular basis.
- Track your own spending habits to determine your spending pattern throughout the month.
- Check your bank and credit card activity (you can usually do this online) every two to four weeks in order to identify any activity that is out of the ordinary.
To Thwart a Thief
Certain events may also tip you off to ID theft or the potential for it. Keep the following in mind:
- IMMEDIATELY report a lost credit card, even if you believe you lost it in your own house or on your grounds. Have the card canceled and order a replacement.
- NEVER throw away receipts of any kind in a public place. Shred receipts you do plan to throw away. If you lose a receipt, keep a sharp eye on your accounts for the next several weeks.
- Get in the habit of banking at the same ATM each time you perform a transaction. By becoming familiar with “your” machine, your eye may catch criminal add-ons to the machine (such as camouflaged cameras that watch you input your PIN number).
- Don’t accept help from seemingly well-wishing strangers. If an ATM “keeps” your card and the person behind you offers to watch the machine while you go inside to make a report, ask him or her to report it for you instead. If the person refuses, stand where you can see him or her and wave over the next bank worker who enters or leaves.
- If you receive an “urgent” phone call from a bank or credit card company asking you to call a certain number to verify your account, look up the bank’s phone number yourself instead. It may not match the number you’ve just been given. This is a common method among credit defrauders; by giving you a phone number to call, the caller appears to be legitimate, fooling you into a false sense of security.
- NEVER give your personal information out over the phone.
- Do not open e-mail attachments that claim to come from your bank. Again, call and report the incident.
The state of the economy may seem unsettling, but keeping an eye out for any suspicious occurrence can help keep the odds in your favor. Your own well-developed self-protection plan is an investment in your financial future. Stay on top of the best anti-theft methods…and keep a criminal’s hands out of your accounts.
