Credit Cards And Identity Theft

Identity theft is the fastest growing crime in America growing at a staggering 50% every year! According to the Privacy Rights Clearinghouse there are over 400,000 thefts of identity each year with annual losses of more than $ 2 Billion.

Identity Theft is when someone steals your personal information and uses it to commit fraud without your knowledge. Your name, date of birth, address, credit card, Social Insurance Number and other personal identification numbers can be used to open credit card and bank accounts, redirect mail, establish cellular phone service, rent vehicles, equipment, or accommodation, and even secure employment. Even though federal laws limit your financial liability to $ 50, your losses will include time and effort to remedy the effects of the theft. You may need to provide extensive documentation to clear up bad credit reports.

There is no foolproof way to prevent identity theft. Fraudsters keep on coming with new genuine ways to steal your personal identity but it would help keeping the following precautions in mind.

• Burn or shred personal financial information such as statements, credit card offers, receipts, insurance forms, etc. Insist that businesses you deal with do the same.
  
  
• Don't give your credit card number on the telephone, by electronic mail, or to a voice mailbox, unless you know the person with whom you're communicating.
  
  
• Notify creditors immediately if your identification or credit cards are lost or stolen.
  
  
• When you are asked to provide personal information, ask how it will be used, why it is needed, who will be sharing it and how it will be safeguarded.
  
  
• Pay attention to your billing cycle. If credit card or utility bills fail to arrive, contact the companies to ensure that they have not been illicitly redirected.
  
  
• Always use a secured browser when doing money transactions over the internet. Make sure it conforms to the encryption standards such as SSL. Deal with only trusted sites.
  
  

One of the best ways to catch identity theft is to regularly check your credit report. Order your credit report from each of the three major credit bureaus at least once each year and verify that all the information is correct.

Equifax http://www.equifax.com 1-800-685-1111
Experian http://www.experian.com 1-888-397-3742
Trans Union http://www.transunion.com 1-800-916-8800

Visit Total Credit Reports for more information about credit reports and identity theft.

also visit the FTC's ID Theft Center