Question of the week

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This week's question:

I was told by my friend to avoid online banking and purchases because of identity theft. Is he right?

Answer:

Many people believe that identity theft commonly occurs on the internet. Although identity theft and account information may be stolen from internet transactions, this is far from the most common way that your identity could be stolen.

What is identity theft?

Identity theft happens when a person uses your personal information to take out loans, steal money, or get other benefits without your knowledge. This can happen when someone steals your debit card or creates fake checks. You also could have someone take your personal information and buy a car in your name.

How do I protect myself?

You can protect yourself from identity theft by following some guidelines. That being said, some say that it is not a matter of if your identity will be stolen, but when. All you can do is take the proper precautions to limit your risk. Some precautions include:

• Use a close-fitting pouch or hidden wallet, instead of a purse. At least, carry less in your purse or wallet, so that you would know your exposure (and be able to cancel all cards immediately) should it be stolen.
• Don’t carry your social security card or the number on any of your IDs. Consider carrying a copy of a Medicare card with all but the last 4 digits blacked out.
• Deposit all outgoing mail at the post office. A lot of identity theft happens through the mail.
• Use a cross-cut shredder on all financial mail and documents.
• Get a free copy of your credit report from each bureau once a year (www.annualcreditreport.com).
• Don’t do internet buying at a coffee house or similar unprotected internet location.
• “Opt out” of credit reporting agencies’ credit card solicitation marketing lists: 1-888-567-8688 or www.optoutprescreen.com.
• Call your credit cards’ customer service to “opt out” of marketing programs, including convenience checks.
• Never give anyone personal information over the phone or internet unless you initiated the conversation using contact information you found independently.
• Monitor your account statements to look for unauthorized transactions. Report them as soon as possible to preserve your rights.
• Ask that new checks be mailed to your credit union or bank and pick them up in person, if you do not have a secure mail slot at home.
• Do not respond to emails stating that you’ve won the lottery in a foreign country, and remember – if it is too good to be true, it probably is.

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