Personal Vigilance in the Fight Against Fraud

By limiting the amount of sensitive information available about you and keeping a watchful eye on your financial statements, you can reduce your chances of becoming a victim of fraud or identity theft.

By Brandon Bryn, NCPC Staff

From 2003 to 2005, the number of consumer complaints to the Federal Trade Commission (FTC) regarding fraud and identity theft seemed to be on a perpetual incline.  In 2005, NCPC launched a series of aggressive ad campaigns addressing the issue head-on and promoting prevention strategies, and in 2006, for many reasons, the trend finally broke and complaints to the FTC began subsiding.  However, the latest data still indicate that millions of Americans become victims of fraud and identity theft every year.

There are helpful services like LifeLock and a multitude of prevention tips available to consumers to help monitor their credit and minimize their risk of becoming victims.  But there is no surefire way to ensure that your name and credit are completely secure.  With the vast number of digital records and private information in Cyberspace, it has become impossible for the average American taxpayer to guarantee the safety of his or her identity.  But one thing that has become increasingly clear over time is that the best line of defense against scam artists and identity thieves is your own personal vigilance.  To avoid the headache and financial distress of dealing with these crimes, you should limit the amount of personal information that exists about you in the first place.  Then just keep a close eye on your bank accounts and credit line, watching out for suspicious activity.

Scam artists try to exploit our emotions. A successful scam artist obeys no code of ethics, and seems to ignore any sense of morality in order to deceive us into divulging private information.  Whenever it is possible to take advantage of a situation for financial gain, these criminals will lie, cheat, and steal.  For example, you might have noticed an increase in junk mail or more “phishing” emails in your inbox recently, as scam artists and data thieves attempt to take advantage of the stress involved with tax season.  The Internal Revenue Service (IRS) recently warned the public about the tremendous amount of phishing and telemarketing fraud being committed in their name. But even as tax season winds down scammers will continue to bombard us with hoaxes related to phony tax returns or “rebates” for months to come, hoping that we eventually slip up and reveal some personal information. 

The most important thing to do is remember that any reputable organization, agency, or company would never solicit personal information from you by email.  If you are uncertain about the source of an email or of a telemarketing call, simply delete the email or hang up the phone.  Use common sense when handling business online or on the telephone.  Keep in mind the old adage, that “if a deal seems too good to be true…” then it probably is.  You should also avoid giving out your Social Security number.  If you do, be sure that it is absolutely necessary and that you initiated the exchange of information.

By controlling your paper trail, you can decrease your chances of falling prey to data thieves.  When mailing private documents such as bills and taxes, it’s best to send them from an official Postal Service mailbox rather than a private maildrop. A lot of personal details can also literally be found in your trash, and thieves often sift through waste to scavenge bank account numbers, full names, addresses, and other bits of your “identity.”  If possible, it’s wise to invest in a paper shredder and destroy all of your sensitive documents after you are done with them. 

If you ever notice fraudulent activity on any of your bank statements or lines of credit, just don’t panic.  There are steps to follow that will help you file a complaint immediately and get your financial situation back in order as soon as possible. An extremely helpful website produced by the FTC, walks victims through the entire process in detail. Just remember to document all of your subsequent conversations and make copies of any relevant correspondence.  You will want to place a fraud alert on your credit reports and cancel any compromised bank accounts immediately.  Then, file a complaint with the FTC and a report with your local police department.

Relatively new crimes like online fraud and identity theft still pose complex problems for law enforcement and prosecutors. Unfortunately, it’s gotten to the point where anyone with a Social Security number is a potential victim.  But while there doesn’t seem to be a specific way to prevent these crimes completely, there are certainly ways to limit your chances of becoming a victim.  Basically, that means limiting the amount of personal information that is in circulation, shredding any sensitive documents you dispose of, and keeping a watchful eye on your financial statements for fraudulent activity.  If you can stay vigilant in all of those areas, maybe we can all put identity thieves out of business.