What it is:
The most publicized form of identity crime, financial identity theft involves using another individual’s personal information to open new accounts, access existing accounts, obtain credit and make purchases.
How it works:
Financial identity theft occurs through many avenues. Some examples including phishing, mail theft, dumpster diving, vishing and others. Regardless of the means, the motive remains generally the same: to use your name, Social Security number, date of birth and other identifying information to open new accounts and obtain credit, cash, goods or services.
How to protect yourself:
To prevent financial identity theft, you must first avoid falling for common attempts through phishing, vishing and other crimes.
Sign up for online billing through your creditors and utility providers. This reduces the amount of paper mail you receive that can be a target for mail theft and dumpster diving. Purchase a small crosscut shredder, and make sure to shred every bill, credit offer, or other piece of mail that contains personal information.
Keep tabs on your credit reports. You are entitled to one free credit report per year from each of the three major reporting agencies—TransUnion, Experian and Equifax. It is a good idea to stagger these reports throughout the year (one in January, one in May and one in September). However, beware of credit monitoring services. These often charge high monthly fees and will attempt to lure you in through often deceptive advertising.
You can obtain your free credit reports from www.annualcreditreport.com.
