Protecting yourself from fraud

Identity theft and other forms of preventable fraud are nothing to sneeze at. However, as attention grabbing as the word, “fraud” might be, the operative word in that sentence is, “preventable.” Much of the fraud that affects the public today can be prevented relatively easily through simple changes in the way we think about our personal information, and how we handle it. I think you will agree that preventing a crime from happening is far better than being forced to jump through the hoops that are required to repair the damage done, after the fact.

Whether you are young and just starting out in life, or well into your golden years, we all have to consider the reality of fraud, and the profound damage it can do to us if left unchecked. So consider these simple changes to your way of thinking that just might help you prevent identity theft, and fraud, from being a part of your personal life story.

1. Don't give out personal information over the phone. This is especially true if you are asked for information by someone who called you. We always have to be careful when sharing personal information, but when you're on the receiving end of the call, you are assuming that the person on the other end really is who they say they are. Sadly, that is not always the case. If someone calls and identifies themselves as a bank employee who is checking your account security, do not give them your bank account number, PIN, or password. Ask for their name and branch location, then either call them back using the phone number printed in the phone book for that branch, or go visit in person. More often than not, you will find that the person who represented themselves as a bank employee on the phone, is not an actual employee of the bank.

2. Review and reconcile your bank statements regularly. Many of us can find and correct small mistakes quickly and easily, before they become bigger, more debilitating financial problems, if we simply check our statements on a regular basis.

3. Store personal information securely, even if it is in your home. Leaving personal information like account numbers, social security numbers, and similarly sensitive information out in the open can lead to accidental disclosure. Unless you are willing to share your personal records with your plumber, furnace repair person, pizza delivery man, or the neighbor who comes over to chat now and then – put your papers securely in a desk drawer, filing cabinet, or safe. Roving eyes cannot see what is not visible, and it is easier to prevent the opportunity for temptation than it is to prevent temptation itself.

4. Check your credit reports annually, or more frequently if possible. The process is simple, but the rewards can be profound. A single erroneously opened credit account in your name has the potential to cripple you financially. So check those reports as often as you can. If you find an account that is listed as yours, but shouldn't be – you have the opportunity to correct that error before it does damage to you.

5. Do not respond to e-mail requests for bank account numbers, passwords, or other personal information. Most of us do not have secure e-mail accounts that use encryption. The result is that any personal information you send via e-mail can be easily read by people other than those you intended it for. A secondary, but no less important concern, is the fact that some unscrupulous individuals fish for personal information by sending e-mails that appear to be legitimate requests for personal information, but are in fact an attempt to defraud anyone who replies to the e-mail request. A good policy is to never share personal information through e-mail.