Identity theft - are you at risk?

Analaura Luna

October 5 - 11 2009 was National Identity Fraud Awareness Week. We find its a good week to take stock and check how we may be exposed in our daily lives. With 4.4 million Australians (26 per cent) now been affected by identity theft, up from 3.8 million (23 per cent) for the same period last year,Crime Stoppers is urging the public to be vigilant about destroying personal documents before throwing them in the bin. Here are a few handy tips to help you protect yourself against ID theft;

How Can Your Identity Be Stolen?

Bin raiding – Fraudsters pay people to go through the rubbish you throw out, looking for bank and credit card statements, pre-approved credit offers, and tax information.

Card skimming – This usually occurs when a shop assistant or waiter, for example, gets your information by 'skimming' or copying your credit card information when you make a purchase. They often then sell the information to professional criminal

Mail forwarding – By completing change-of-address forms to redirect your mail, fraudsters can receive a wealth of information about you delivered direct to their doorstep

Phishing – This term describes identity theft via email. Fraudsters will send an email claiming to be from a bank, credit card company or other organisation, with which you might have a relationship, asking for urgent information. Typically the email will ask you to click on a link to enter your account details on the company's website to protect against fraud or to avoid your account being deactivated. But if you click on the link in the email you will be taken to a website which looks genuine but has in fact been created by fraudsters to trick you into revealing your private information. The fraudsters then use the information provided to set about obtaining money from your accounts

Theft of wallet or purse – The average purse or wallet contains bank cards, credit cards and valuable identity documents including driving licenses and membership cards. Victims realise very quickly that their wallet has been stolen but often do not realise the value of the information contained within it until it is too late.

How to prevent ID fraud

Check your credit report at credit reference agencies: It is a good idea to check your credit report regularly with an accredited credit reference agency, such as Veda Advantage, to ensure no accounts or credit have been illegally set up in your name.
Shred all documents: Shredding documents is the best way to ensure that criminals cannot build up a profile based on the information you discard in your rubbish.
Protect your post: Deposit outgoing post in post office boxes or at your local post office rather than leaving it in office out trays or similar. If you plan to go away, contact Australia Post about how to prevent mail build-up. For incoming post, ensure you mailbox is secured with a lock, so that once mail is delivered it can only be accessed by you or other authorized persons.
Be vigilant: Beware of anybody who contacts you unexpectedly and asks for personal information or account details even if they claim to be from your bank, the police or another official organisation like your local council. Ask for their name and a contact number and then check with the organisation in question before calling back.
Pay attention to billing cycles: Contact creditors immediately if your bills arrive late. A missing bill could mean a fraudster has taken over your credit card account and changed your billing address.

Source: Extract from official campaign website www.stopidtheft.com.au

If you liked this article you might also be interested in these other articles about protecting your credit identity:

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Want more? Take a look at the rest of our money management advice articles.

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Tags: identity theft, money management advice, identity fraud

Author's Biography

Analaura Luna is an author, wealth adviser and founder of Your Family Your Money. Your Family Your Money’s goal is to simplify traditionally complex financial strategies, demystify financial jargon and debunk common financial myths, becoming every family’s first stop for financial advice, information and inspiration.

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