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Don't be a victim of identity theft

• Tags:
• Identity

Deb Shinder

Published: 12 May 2006 12:10 BST

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#6: Learn to recognize phishing scams

Phishing emails are a particularly insidious form of spam. It's annoying enough to have your mailbox fill up with junk mail from legitimate companies, but phishers aren't really selling anything; they're just "phishing" for your credit or debit card number, bank details or other personal information.

A good example is the ever-popular "You qualify for low rates on home refinancing." The scam site isn't a mortgage company, but its Web site is set up to make you think it is. When you fill out the detailed loan application, you give the phisher a wealth of information that includes your national insurance number, banking information, income, employers, present and former addresses, relatives and friends' names and addresses, and much more that can be used to impersonate you.

Other examples of phishing messages include those purporting to be from your bank or credit card company, or a legitimate site with which you do business, such as eBay, notifying you that you must click a link to update your account information. Many even claim they're asking you to do this to prevent your account from being closed or used fraudulently.

Phishing messages can often be detected by the fact that links go to a different URL from the one that appears in the message. For example, if you hover over "www.ebay.com" in the message, you might see that the hyperlink actually takes you to www.scammersite.com/ebay. A good rule of thumb: Never respond to any email message asking you to return personal information. Instead, call or write directly to the company that the message purports to be from.

#7: Use cash or credit

There are lots of ways to pay for your purchases these days, but some are safer than others. When it comes to protecting your identity, good old-fashioned cash is still king. Unfortunately there's no way yet to make a purchase by inserting a £20 into a slot in your computer.

Often you have the option to pay for online purchases by credit card, debit card or direct debit from your bank account. All of these require you to submit precious information that an ID thief would love to get hold of.

None of these types of information is more or less likely to be stolen, but there are a couple of advantages to paying by credit card. First, many sites require that when you pay by credit card, you enter the security code (the three-digit number on the back of your card). This adds a layer of protection, since a fraudster who obtained your credit card number from a receipt or other source would not know this number.

More important, if you do become a victim of credit card fraud, your liability is limited by the card provider. You may not get the same protection with debit cards.

Cheques also provide an opportunity for fraud, as they contain a wealth of financial details. A clever scammer could use a cheque to get access to your money.

#8: Get off the lists

Keeping "preapproved" credit offers out of the hands of identity thieves by using safe mail management practices is good; stopping them from being sent to you altogether is even better. After all, even if you use a PO box or locked mailbox, it's possible for a dishonest postal employee to intercept them.

You can register with the mailing preference service (020 7766 4410), telephone preference service (0845 070 0707) and fax preference service (0845 070 0702). It is mandatory for companies to comply and after registering you should not receive any direct marketing unless you have asked for it, or are a customer of the organisation that sends it. If this doesn't work, make a complaint in writing through the Information Commissioner.

When completing a product warranty or other form, such as a competition entry or subscription, tick the opt-out box so your details are not stored or sold to others for junk mail.

It's also possible to have your name kept off public copies of the electoral roll, and you can ask the Royal Mail not to deliver unaddressed mail.

#9: Check your credit report

Identity theft can go undetected for a long time. Someone's out there, using your name and social security number to open credit accounts or apply for loans, but because he or she is diverting correspondence to a different address you may not know until the collection agencies start hunting you down. By that time, thousands of dollars of debt may have accumulated. One way to keep an eye on what's going on with your account is to check your credit report regularly.

Find a service that will provide a copy of your current Experian credit report. Often this is available as a free trial.

#10: Report identity theft attempts

If you're a victim of identity theft, report it to your local police. You may need a copy of the police report to submit to creditors as proof. Contact the fraud departments of credit bureaus and your financial institutions to put a fraud alert on your account. If necessary, close the accounts that have been compromised.

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