Reducing the risk of identity theft

Keep your identity to yourself

The figures are shocking. According to several reliable sources, identity theft is costing the country almost £2 billion a year, with more than 100,000 people falling victim every year.

The most common cases are perpetrated by criminals who steal personally sensitive information – addresses, card numbers and bank details – so that they can impersonate their victims and commit crimes ranging from raising false bank loans to acquiring an illegal driver’s license.

Alarming though the figures are, there are several steps you can take to protect your own identity and thus protect your assets.

For example, you should never leave a credit or debit card where somebody else could see it and thus make a note of its details. If it’s not on your person, keep it in a secure place, if possible always in the same wallet or purse. Remember, in the age of the camera phone, even if somebody has your card for only a few seconds they can make a clear copy of your details.

Whenever you’re using your card to buy something in a store, keep an eye on the shop assistant and make sure they don’t take your card out of your sight. And, when you enter your pin, make sure nobody has a chance to see the details of your code.

The same advice applies when you’re withdrawing cash from an ATM. Shield your hand as you enter your code and make sure you know exactly how much is being debited before you commit to the transaction. Missing the extra zero on a misread amount could be a very costly mistake.

While passwords and pins can be difficult to remember, you should avoid writing them down. If you must, do make sure you always keep the written codes in a place that’s well away from your card or computer. It’s also a good idea to give all your password protected accounts different passwords. Having one password for all your accounts may make things easier for you, it also makes life easier for an identity thief.

It’s also wise to regularly check your bank and credit card statements for any unusual or erroneous figures. If you notice anything odd or out of the ordinary – payments to companies you don’t usually deal with, for example – report it to the company concerned and then to your bank or credit card company.

Finally, whenever you throw away bills, bank correspondence or anything else with an identifiable name and account number on it, make sure it is properly destroyed. Burn it, shred it or rip it up making sure it cannot be recovered and pieced together.

Taking these few sensible precautions will not only help protect your identity and your assets, it will also reduce the likelihood of having to make a claim on your high value insurance policy and thus protect your no claims benefits.