This is the first of 3 posts I created to help prevent identity theft and identity fraud. It’s an important subject that can impact your ability to access credit and can be a real headache to sort out.
It’s also something I want to help people prevent as much as possible.
I’m going to cover preventing identity theft in this post. I’ll then move on to what to do if you think you’re a victim of identity theft and then cover the 5 steps to take if you’re a victim of identity fraud.
By the end, I hope you’ll have all the information you need to prevent identity theft happening and handle it should it happen.
Preventing identity theft
Prevention is always better than cure. While it’s impossible to insulate yourself completely from crime, you can do a lot to lower the chances of it happening to you.
In the case of online fraud, there are a few simple tricks you can use to prevent identity theft as much as possible.
That’s what we’re discussing here.
It’s impossible to prevent all crime from happening. But we can make it as difficult as possible for a fraudster to get anything useful to use against you.
Shred or burn paperwork
While more and more letters are being sent via email, some are still sent by post. Anything that has your name and address on it could be used as ID to get a credit or store card.
Rather than just throwing it in the bin, shred or burn it instead.
That’s especially true for bank statements, credit card statements, any government or tax paperwork or any official notification that could identify you as an individual.
Use strong passwords and a password manager
Online fraud is rampant, but using a password manager can save you from most of it.
People tend to use the same password in multiple places online. As soon as a fraudster gets hold of one password, they will generally gain access to multiple accounts.
Use strong, non-dictionary passwords, passphrases made up of several words or a password manager to help generate truly random ones.
Don’t respond to junk mail or messages
Get into the habit of just deleting spam or junk email without looking at it. Do the same for junk mail that arrives in the post.
Email is still used frequently to test whether an email address is alive and real and to phish, spearfish and scam you into giving away your money.
Some emails are very clever so don’t think you’ll always spot them because you won’t. If you’re unsure, delete. If the email is real, the sender will usually send again.
Be careful where you shop online to prevent identity theft
The internet means you’re no longer limited to your closest High Street but you still need to be choosy about where you shop.
Stick to well-established stores or brands you know. Read reviews of new stores and check Trustpilot and other third-party sites to see what they say.
You have some protections when using credit cards online but you still need to be careful.
Be mindful of social media
Social media can be a power for good but the majority of it really isn’t.
Be mindful of who you’re talking to, be careful about giving out too much personal information and take a second whenever you’re asked for any identifying information.
People are not always who they say they are online and it can often be more serious than just saying they are 10 years younger than they are!
Monitor bank statements
Keep an eye on bank and credit card statements for anything you don’t recognise. If you see something suspicious, check it out.
It could be something you just forgot about. I do that all the time. But it could also be someone using your card, having cloned your card or a payment for a card or credit you didn’t sign up for.
If you see something out of the ordinary, talk to your bank right away.
Monitor your credit report to help prevent identity theft
Your credit report is a record of how you handle credit and will document every card, loan, mortgage or other credit product you have, apply for or pay off.
You’re entitled to one free credit report per year, per credit bureau (Experian, Equifax and TransUnion). Other financial products also offer free access to credit reports too.
Check your credit report once every couple of months and monitor for credit applications you don’t recognise. Contact the lender in question if you see something amiss.
There are many things you can do to minimise the chances of being a victim of identity theft but you cannot have 100% protection.
However, follow these tips and you can lower your chances of being a victim by a significant margin. That’s about all any of us can do.
Do you have any tips for avoiding being a victim of identity theft? Tell us about them below if you do!
