Common Ways Fraud and Identity Theft Happen

According to the Federal Trade Commission (FTC), skilled identity thieves use a variety of methods to steal your personal information, including:

• Dumpster diving. They rummage through your trash looking for bills or other paper with your personal information on them.
• Skimming. They steal credit/debit card numbers by using a special storage device when processing your card.
• Phishing. They pretend to be financial institutions or companies and send spam or pop-up messages to get you to reveal your personal information.
• Changing your address. They divert your billing statements to another location by completing a “change of address” form.
• “Old-fashioned” stealing. They steal wallets and purses; mail, including bank and credit card statements; pre-approved credit offers; and new checks or tax information. They steal personnel records from their employers or bribe employees who have access.

Protecting yourself

Don’t let financial fraud or identity theft happen to you! There are steps you can take to avoid being the victim of fraud and identity theft. Take precautions now, so you can defend yourself later.

Organize your financial affairs

Maintaining organized files can make it easier to spot inconsistencies and red flags that could signal financial abuse.

• Update and organize all of your financial documentation. This includes your will, financial powers of attorney, real estate deeds, insurance policies, pension and trust documents, birth and marriage certificates, and Social Security paperwork.
• Make a list of financial contacts. Bankers, insurance agents, attorneys, accountants, stockbrokers, and other professionals should be included. Share your list with your financial advisor and with family members you trust.
• Protect your information. Put yourself in another person’s shoes. Where would they find your credit card or Social Security number? Protect your personal information by shredding documents before you throw them out, giving your Social Security number only when you must, and by using strong passwords.