Identity Theft and Your Credit Card

Identity theft is one of the fastest growing crimes in the US and around the world. With increasingly advanced technology and numerous criminal web forums identity theft is becoming easier and easier for anyone who wants to 'give it a go.' There were an estimated 10 million people victimized by identity theft last year alone - with an estimated 1 in 4 families being in some way affected by identity theft. This is a terrifying prospect for many, but don't burn all your bills and cards just yet! There are many easy steps that can be taken that will dramatically reduce the chances of your identity being stolen and used against you (or even just on a shopping spree).

The number one cause of identity theft is almost certainly the carelessness of the user. It is remarkable how many people, even after hearing reports of identity theft, will leave information lying around for anyone to find. Granted, credit cards are fairly secure; yes, it's unlikely anyone will be rooting through your trash at midnight tonight; and it's certainly not enormously likely that someone will scam you and copy your card in front of you (it happens). However, these things do happen, and it makes sense to try and protect yourself against them.

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A few days ago I heard a story of a person who had her purse stolen. The thief took her mobile phone and used it to text her husband saying he needed the pin for the card. He obviously then went and withdrew thousands of dollars. This is a horror story yes, but it is remarkable how many cases of stolen details there are every year - and how often these identity thefts result in massive, irreparable financial loss. Almost as scary in the modern world is the danger of a severely damaged credit record - which can potentially take 5-10 years to fix completely.

There are a number of steps that can be taken, however. The main rule in the world of identity theft is caution - take care of your information!

Possibly the most important thing you can do is encrypt and destroy. This sounds dramatic but in actual fact it is a very simple principle. Basically, NEVER throw out any information without utterly destroying it. Shredders cost very little from an office supply store and they are invaluable. My suggestion is that you get one that allows the shredding of old credit cards also. It is remarkable how much damage can be done with even a canceled credit card when the number is used online.

In light of this, the second most important rule is never give out your credit card number unless you are REALLY sure that you can trust the person you are giving it to. Never let a merchant use an old carbon copy machine - not ever - it is simply not worth it. Modern point of sale (POS) machines are very secure and you are extremely protected when you use one. Nonetheless, if you are uncertain about the authenticity of an establishment opt to pay in cash not with your card. Cash cannot be traced back to you (unless the feds are after you and are quite on top of things) but credit cards are they keys to your identity for any determined identity thief.

Never give your card details out online unless you are sure the page is secured. Look at the address of the site (the bit in the address bar that looks like https://www.ecreditcardyellowpages.com) - it absolutely MUST have a https - if the s is not present, do not proceed.

Furthermore, when working online, NEVER respond to any emails from any company (including your bank) that request any details such as address, card, or bank ac. no. No authentic organization will ever request such details by email - it is simply insecure and quite frankly it should be illegal.

Try to avoid using your bank account online; you are much more protected when using your credit card - take a look at our article on the online credit card. If a company wants your bank details try to get around this by using a service such as PayPal or by using a credit card.

If you use any accounting programs on your computer be sure you encrypt your files. Windows XP and Vista gives you the ability to encrypt any file and most accounting programs do this also. If you are particularly worried then download an additional security program to help.

Furthermore, be sure to get a virus and Trojan remover as well as a good firewall. There are some very good free programs out there and they are simply essential in the modern world. Speaking as a person with a lot of programming experience I can say this - if you do not have these programs installed I could write a program within an hour that could search your whole hard drive and send me any 16 digit number therein. For those of you who are unclear, credit card numbers are 16 digits long.

So in summary, identity theft is a real danger, particularly in the modern United States. However, with a little care and foresight you can make yourself a very difficult target. Why would an identity thief target you when there are thousands of other people out there who are not as smart?

Be careful and be prepared and always monitor your accounts - it's just smart.