Fraud Author Tracy Coenen

As with any financial fraud, it is much easier and less expensive to prevent the crime than clean up afterward. Monitor your credit accounts regularly. Many credit card companies have online access, which makes it easier to keep a close eye on your account. Rather than the once-a-month statement, consumers can look for fraudulent charges daily or weekly.

Order a copy of your credit report. The Fair Credit Reporting Act requires each of the three credit reporting agencies to provide you with a free copy of your credit report, at your request, once every 12 months. Stagger your requests for these three reports so that you can monitor your credit throughout the year. Carefully examine the credit agency data, and report any errors or irregularities immediately.

Secure personal information in your home and office, especially if strangers have access to those areas. When discarding financial information such as store receipts, credit card offers, canceled checks, bank statements, and credit card statements, always use a shredder. Throwing these documents in a garbage can without properly destroying them is an identity theft waiting to happen.

Don’t give out personally identifying information on the phone, through the mail, or over the Internet unless you are sure that you know who you’re dealing with. It is amazing how many frauds occur because a thief initiates a phone call to an unsuspecting target. Never reveal your Social Security number, mother’s maiden name, or account numbers without verifying who needs it and why it is needed.

Companies are now offering insurance products that claim to give protection against the costs associated with resolving the theft of one’s identity. While this may offer some financial relief, it does not ease the time commitment required to resolve an identity theft.

The most important part of dealing with an identity theft is immediate action. Initiating fraud alerts and securing accounts can be some of the most important steps you will take. Doing so immediately will make it harder for an identity thief to profit from your misfortune.