Identity Theft on the Rise
June 28th, 2008 | by Editor |Canadian financial advisors and Certified Financial Planners often field questions from clients that are concerned about media reports of frightening topics like identity theft. We’ve culled some advice from these professionals on this topic.
The crime of identity theft is on the rise. Recent surveys show there are currently 7-10 million victims per year.
Generally, victims of credit and banking fraud are liable for no more than the first $50 of the loss. Even so, they are often left with a bad credit report and must spend months regaining their financial health.
Identity theft attack forms include:
• “Dumpster diving” in trash bins for unshredded credit card and loan applications
• Stealing mail from mailboxes to obtain newly issued credit cards, bank and credit card statements.
• Accessing your credit report fraudulently, for example, by posing as an employer, loan officer, or landlord.
• Obtaining sensitive data from personnel or customer files in the workplace.
• Finding identifying information on Internet sources, via public records sites and fee-based information broker sites.
Follow these steps to help ensure your information stays secure:
• When creating passwords, do not use your mother’s maiden name, your birth date, middle name, pet’s name, or consecutive numbers. Combine letters and numbers.
• Install a firewall on your home computer to prevent hackers from obtaining personal data from your hard drive. This is especially important for DSL or cable modem users.
• Install and update virus protection software to prevent a worm or virus from causing your computer to send out sensitive information.
• Get a document shredder and use it for all personal documents before throwing them out. This $25 investment is well worth it.
• When shopping online, do business with companies that provide transaction security protection, and that have strong privacy policies.
• Each month, carefully review your credit card, bank and phone statements for unauthorized use.
• Store canceled checks in a safe place
Some helpful anti-scam resources:
PhoneBusters 1-888-495-8501, www.phonebusters.com
The Competition Bureau, 1-800-348-5358, www.cb-bc.gc.ca
RCMP – Reporting Economic Crime On-line, www.recol.ca
Canada Revenue Agency Charities Directorate, 1-800-267-2384
Canadian Council of Better Business Bureaus, www.canadiancouncilbbb.ca