In recent years identity theft has become a huge problem around the world and is in fact the fastest growing financial crime. Identity theft comes in several forms.

Someone using your credit card number to make fraudulent purchases is one of the most common types of identity theft. Criminals obtain these credit card numbers either by stealing your actual card from you or by stealing the numbers only.  Some elaborate schemes even gather credit card information when criminals illegally attach electronic devices to ATM card slots and they get your numbers when you swipe your card there. They can then make phoney cards with your number and use them to charge thousands of dollars against your account.

Another type of identity theft is when someone acquires your social security number or your driver’s license and uses them to obtain credit they intend to use without paying the bills. Credit that is fraudulently obtained in your name can ruin your credit score for years to come.

Estimates are that over one thousand people in the USA have their identities stolen every day. This means that every single person is a potential victim of identity theft.

Credit Card Companies and Identity Theft

Many criminals simply use your information to apply for online instant approval from credit card companies and it can be impossible to determine a fraudulent application from the real thing. Many times the biggest loser in identity theft is the credit card company itself. Especially if you become aware of charges made in your name early on and report it, your liability is minimal. While insurance does protect the credit card companies to some degree they do lose a huge amount of money each year to credit card fraud perpetrated by identity thieves.

Most credit card companies have some great tracking software in use that helps them identify unusual use of your credit cards in order to catch identity theft early. When they identify these circumstances they can contact you to verify actual use of your cards. You cannot however, completely rely on these measures to protect you and your identity. You must take this matter very seriously and take steps on your own to lessen the risk of identity theft.

Precautionary Steps To Protect Your Identity

The first thing you should keep in mind is that you simply cannot be too careful in the matter of protecting your identity and therefore your credit score. Some very important things you can do include:

• Be extremely cautious about who you give any personal information to
• Never put your social security number on a document unless it is required by law
• Request a credit report on yourself at least once a year and verify that everything on it is correct
• Shred financial information and documents when you finish with them
• Report any activity on your bank account or credit cards that is not yours immediately

Credit Information Security Online

While some people still believe that shopping online is the biggest risk you can take as far as your private credit card information, this is just not the case. There are some risks online with hackers and spyware software but these are not the largest problem.

To protect yourself online you should make sure that you keep your virus programs updated and that you are using a spyware detection program as well. When shopping online be sure that any page where you enter your credit card number and other secure information has the secure site icon at the bottom. This is the little picture of a closed padlock.

Rebuilding after Identity Theft

If you have been the victim of identity theft or fraudulent use of your credit in any way, you will need to take charge of your financial circumstances in a way you have never done before.

The Federal Trade Commission states that you should take three specific steps after you have experienced this kind of intrusive crime.

• Have all three credit reporting agencies (Equifax, TransUnion and Experian) place a fraud alert notice on your account. Also ask them to put a note on your file that any requests to open new credit in your name requires your personal permission.
• File a police report as soon as possible. Make sure that you keep a copy of this report in case you need to refer to it as you work your way through the mess created with your credit.
• Personally contact the security departments of any of the credit card companies or other accounts that were fraudulently opened in your name. Let them know exactly what happened and follow up your verbal communication with a written confirmation as well.

Unfortunately taking these recommended steps is not the end of your problems. You must be very vigilant in monitoring your credit after it has been compromised by identify theft. Any new instances should be reported immediately over the phone and followed up with written confirmation.

It is also a good idea to contact the Privacy Rights Clearinghouse. This agency works together with other agencies including the U.S. Secret Service and large networks of fraud can be identified from the patterns of identity theft. Your case may very well provide information that helps these agencies tie other instances together in a way that can help combat identity theft in years to come.

Junk Mail and Identity Theft

The more your name is out in the marketplace the more at risk you can be.

• Unsubscribe from any junk emails you do not wish to receive in order to stop your name being passed on to even more junk email offers
• Remove your name from junk mail and telemarketing lists by contacting the Direct Marketing Association
• Put your name on the list of suppressed names for pre-approved credit card offers by calling 1-888-567-8688