If you're like most Americans, you'll try to pack a day's worth of errands into a single lunch hour or during the rush-hour commute to and from work. While on cell phones, many can be overheard speaking to their banks or other lending institutions. And, without trying very hard, you can frequently hear these callers reciting their account numbers, dates-of-birth, mothers' maiden names, billing addresses, and other sensitive information.
Such scenes are being played out countless times a day in a variety of contexts. But for some, that seemingly innocuous phone call and the reckless volunteering of information can serve as the catalyst for financial ruin.
According to the U.S. Department of Justice (DOJ), identity theft has now surpassed drug trafficking as the number one crime in America. A Federal Trade Commission survey reveals that more than 10 million people are victimized each year. That means, every minute about 19 people are impacted. Worse yet, criminals are circumventing new security protocols faster than legitimate businesses and financial institutions can handle.
The thievery manifests itself in a variety of forms, from fraudulent credit applications to unauthorized withdrawals from bank accounts. The only common denominator seems to be that victims are often oblivious to what is happening until the crime has generated significant and often irreparable damage.
While there is no sure-fire way to defend against this harm, there are a number of basic steps which can greatly reduce your chances of being victimized. The DOJ, for example, recommends remembering and following the acronym: "SCAM."
'S' stands for stingy. People are far too trusting of others and often unwittingly volunteer sensitive personal information. You must be cognizant that predators exist and be reluctant to share sensitive personal information with others unless you are absolutely certain of the inquirer's legitimacy.
'C' stands for check. You should check your financial information regularly, with an eye towards both what should, and should not, be there.
'A' stands for asking for a copy of your credit report. You should periodically request a copy of your credit report. This an easy way to keep tabs on your existing accounts and ensure that someone has not ran amok with your identity.
And finally, 'M' stands for maintenance. You should exercise caution when it comes to safekeeping paper copies of bank, credit card, and other statements. This includes properly disposing of financial records and even undesired credit-card solicitations. When discarding anything that contains your personal information on it, anticipate how that data could be used against you were it to fall into the "wrong hands." Since any information garnered may be used as a gateway to assuming your identity, consider destroying all unwanted documents by way of a shredder or other comparable device.
Ultimately, the key to mitigating the risk of being victimized is to remain vigilant. Passivity is a recipe for disaster. Don't be afraid to question a phone solicitor and, when in doubt, refuse to volunteer information. Identity thieves prey on the docile and uninformed.
As they say, the best defense, is usually a strong offense. So, the next time you're waiting for that "Soy Milk Vente Double Mocha Frappuccino," think twice before making that call --or, at least, could you please do so quietly?
For the DOJ's fact sheets on identity theft and fraud, please use this link: Identity Theft