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Protect Yourself from Off- and Online Identity Theft
Identity fraud, also known as identity theft, refers to any time a person uses personal information that is not his, usually to establish a bank account, apply for a loan, or purchase items using fraudulent credit card information. Within this definition, experts also distinguish between “new account fraud,” in which the perpetrator creates a new credit card or bank account that the victim is responsible for, and “existing account fraud,” in which the perpetrator uses an already existing account. Both types of identity fraud can result in monetary losses, lengthy legal proceedings to repair your credit, and difficulties establishing utilities accounts, applying for loans, or making large purchases. With so many consequences, it is no wonder that nearly 80% of U.S. residents surveyed fear identity fraud.
The Internet Security Issue: Identity Theft More Prevalent Offline
Unfortunately, most people also make the incorrect assumption that there is a link between an increasing reliance on the Internet to do business and identity theft. According to a 2005 Gartner survey, 3 out of 4 web shoppers are more cautious about identity theft online than off. However, as recent reports show, this generally held attitude could not be further from the truth.
According to a survey by Javelin Strategy and Research, only 12% of identity fraud cases last year occurred because the victim was online, whereas 63% happened as the victim used more traditional, offline channels. The most commonly implicated offline channels include stolen wallets and paper bank statements and bills stolen from the victim’s mailbox. Victims also suffered fewer consequences from incidents of online identity fraud. On average, victims of online identity theft suffered $550 in losses per incident, whereas those who had their information leaked on paper suffered an average of $4,543 in losses, and discovered the fraud more slowly.
Protecting Yourself From Off- and Online Identity Theft
Because offline sources are most commonly implicated in identity fraud, experts recommend cancelling all paper bills and bank statements, and monitoring the activity of financial affairs entirely online. Frequently checking statements using online banking that is updated in real-time will help catch any account discrepancies sooner. If you must receive a paper credit card or bank account statement, experts suggest requesting it as infrequently as possible, and shredding the documents before discarding them. Having a high speed broadband Internet connection to shop online and check bank statements will help, rather than hinder, your attempts to protect yourself and your family from identity theft.