Credit cards and identity theft

Identity theft first came to attention in the 1990s and it has now become the fastest growing global crime. Basically, ID thieves steal a person’s name or personal details illegally and use them for their own gain. This could be using a stolen credit card to open more accounts with no intention of paying the money back, or by creating a fake copy of the card and using that. Alternatively, ID theft also comprises taking personal and medical details and using them fraudulently.

There are several ways to steal credit cards. Without you being aware your information can be scanned and passed on very quickly to create a duplicate card. The actual physical theft of a card is also common practice. Thieves can use your details to obtain a card illegally without paying the bill at the end. Thieves get hold of personal information by skimming cards, stealing mail or accessing hospital or other records. To ensure the best personal protection, always shred everything. Remove yourself from mailing lists that offer credit. Never leave your card unattended in public places, like stores or restaurants. If you’re not sure about a particular outlet, it’s best to pay with cash.

There are many ways to steal information and clone cards. You have to be vigilant and aware that this is a rising problem and only by knowing how the crime works can you protect yourself against it.   

You probably get several offers for credit cards through the post every month. One every two weeks, maybe? Multiply that number up by the houses in your street, the apartments in your town and that’s a lot of people’s personal information floating about. This is all of possible use to an identity thief.

In these modern days of technology, PCs and the Internet, most people believe that identity theft is conducted along electronic wires, but research has demonstrated that in fact that is the safest place for your personal information. Think of that junk mail again – containing so much personal information. That is the risky area.

There is a straightforward and effective way to start protecting yourself. You can return first class credit mail, and stop getting sent those offers. You need to cross out the bar code and address, draw a circle round the first class postage, write on the envelope “refused; return to sender” and mail it back to the sender. Simple.

But what if you really do want a credit card? The best thing to do is to go to a website giving credit card comparisons and sign up for it in a protected Internet environment. This also saves time and wasted paper, so with the reduced risk of identity theft it’s a three-time winner.

If everybody were to follow these simple steps, identity theft would be reduced at a stroke, and it would help credit card companies understand what a waste of money and resources such junk mail advertising really is. Sending out our personal details in such vast quantities every day puts so much material in the path of identity thieves.

We should all stop using the post for credit card applications and begin to make applications online. That would reduce identity theft and make a positive contribution towards the environment at the same time.

The only 100% fool-proof way to protect your identity is to only use your credit card with people you know and trust.  Sadly, of course, that is not a realistic solution.  Some of the following safety precautions, however, should be adopted.

When you use you credit card in a shop or restuarant, never let the card go out of your sight; for example, if the attendant or waiter tells you they have to make a phone call out of sight, tell then you will go with them.

If the shop where you use your card uses an old carbon-copy paper system, never allow the shop to retain the carbon-copy; take it with you and destroy it at a later date.

Never use your credit card on an unsecured website. At best the website should have an encrypted safety system. If it doesn’t you should seriously consider using the services of another site.

Never use your credit card to withdraw money in an ATM you have not used previously. If you really need to withdraw money on your credit card, do so at the counter inside the bank and don’t use the ATM.

If you adopt these minimal safety precautions you are doing a lot to protecting your identity – and be less liable for any identity theft.

One final consideration. If you had the choice between the Internet and shop, where would you think most identity theft occurs? If you choose the Internet you could be (currently) wrong – so be careful when using your credit card in shops you don’t know!