A big concern today is identity theft or "ID theft", which occurs when an individual learns someone's Social Security number (SSN), bank account information or other details that can be used to go on a buying or borrowing binge. While law enforcement agencies, financial industry regulators, financial institutions and other organizations are working together to prevent ID theft and other financial crimes, consumers need to take precautions.
Protect your Social
Security number, bank
account and credit card
numbers, PINs (personal
identification numbers),
passwords and other
personal information.
Never provide this
information in response to
a phone call, a fax, a letter
or an e-mail you've
received - no matter how
friendly or official the
circumstances may appear.
Be especially careful with
your SSN. Don't provide it
to any business unless
you're convinced it's
necessary and the
information will be
protected.
Also be aware that friends,
family members,
roommates and workers
who come into homes
make up a large percentage
of identity thieves. They
often are in the best
position to find and use
confidential information.
Guard your mail, which
may include a credit card
or bank statement, an
envelope containing a
check, documents showing
confidential information,
or other items that a thief
can steal from a mailbox.
Try to use a locked
mailbox or other secure
location for your incoming
mail. Pick up your mail as
soon as possible. And for
outgoing mail containing a
check or personal
information, put it in a
blue Postal Service
mailbox, hand it to a mail
carrier or take it to the
post office instead of
leaving it in your doorway
or home mailbox.
Keep your financial trash "clean".
Don't throw away
old ATM or credit card
receipts, bank statements,
tax returns or other
documents containing
personal information
without shredding them
first. ID thieves pick
through trash bins looking
for trash they can turn into
cash.
Use extra care with personal information on a computer or over the Internet.
Never provide
bank, credit card or other
sensitive information when
visiting a Web site that
doesn't explain how your
personal information
would be protected,
including its use of
"encryption" to safely
transmit and store data.
Be on guard against
incoming e-mails
claiming to be from a
trusted source - perhaps a
bank, another company
you know or even a
government agency -
asking you to "update" or
"confirm" personal
information. "Reputable
organizations won't
contact you to verify
account information online
because they already have
it", said Sandra
Thompson, a Deputy
Director of the FDIC's
Division of Supervision
and Consumer Protection.
If you get one of those
fraudulent e-mails (they're
called "phishing" scams),
don't click on any links or
attachments because doing
so could activate some
types of spyware or viruses.
Take other precautions
with your personal
computer. Examples:
Install a free or low cost
"firewall" to stop intruders
from gaining remote access
to your PC. Download and
frequently update security
"patches" offered by your
operating system and
software vendors to correct
weaknesses that a hacker
might exploit. Use
software that detects and
blocks "spyware", which
can record your keystrokes
to obtain your credit card
number and other personal
information.
Before selling, donating or
disposing of an old
personal computer, use
special software to
completely erase files that
contain financial records,
tax returns and other
personal information.
"If you use someone else's
computer, such as a
computer provided by
your school, do not put
your Social Security
number or other personal
information onto the
computer", added
Thompson. "Even if you
go back and delete what
you typed in, your
personal information will
remain on the computer's
hard-drive and may be
retrieved by an identity
thief".
Beware of offers that seem too good to be true.
Con artists often
pose as charities or
business people offering
jobs, rewards or other
"opportunities." They
hope that trusting souls
will send cash or checks,
provide SSNs or credit
card numbers, or wire
money from a bank
account.
Be extremely suspicious of
any offer that involves
"easy money" or "quick
fixes". Be careful if you're
being pressured to make a
quick decision and you're
asked to send money or
provide bank account
information before you
receive anything in return.
Also beware of any
transaction for which you
receive a cashier's check
made out for more money
than the amount due to
you with a request to wire
back the difference - you
could lose a lot of money if
the check is fraudulent.
To learn more about
Internet security, go
www·fdic·gov/news/news/
press/2004/pr9304a·pdf.
To protect against an array
of scams, go to the Federal
Trade Commission's
consumer information
Web site at www·ftc·gov/
ftc/consumer·htm.