Identity Theft Often Begins the Same Place Charity Does — at Home
Everyone also seems to be aware that electronic identity theft — through email, online banking or using credit cards online — costs consumers millions of dollars every year, and the numbers are escalating.
The consequences of becoming a victim of identity fraud include: having a scammer open up accounts in your name (and running up debts to those accounts), losing your job, being denied insurance, or even being arrested for crimes you didn’t commit.
However, what you may NOT be aware of is that fully 50% of reported identity fraud is perpetrated by relatives, friends and neighbors, or acquaintances of the victim.
That’s a truly amazing statistic. And whereas many people think that computer crimes account for most identity theft, computer crimes, in fact, only accounted for 11.6% of all identity theft where the cause was known in 2004.
According to a survey done by Javelin Strategy & Research, these ‘close encounters’ by friends and family are costing much more money — and time to resolve — than ‘stranger’ fraud would.
Here’s an example: the median loss from phishing scams is $2,320. But when the identity theft is a result of fraud by family and friends, the median loss is $15,607!
Prevention Tips
1. Don’t give ANYONE access to your PIN #s.
2. Don’t leave financial mail or statements lying around your house or your car — you’d be appalled at how much information can be gleaned from your checkbook, bank statements, credit card account statements and tax records.
3. When you are discarding things, shred any personal documents that may contain personal or financial information.
4. As much as possible, sign up for electronic banking and account monitoring, and then review your accounts regularly. Any fraud will be detected sooner — and more easily — than if you wait for monthly mail.
5. Review your credit report, bank accounts and credit card bills frequently. Self detection is the best way to find out about identity fraud early.
For more info on identity theft, visit www.scambusters.com