Mar

10

Identity Theft Facts to Know

Posted In: Personal Finance

-If an identity thief steals a credit or debit card the consumer may be liable for as little as $0-$50, depending on the particular situation. Some consumers consider this a negligible amount, and don’t see the big deal with identity theft. The true cost is in the time and effort required for the consumer to monitor his credit report, and to have any fraudulently opened accounts closed. A consumer can be denied new lines of credit, home loans, or even have existing interest rates raised due to the actions of an identity thief.

-Not using credit or debit cards online does not protect a consumer from identity theft. Many consumers think identity theft occurs primarily online. This is simply false. The likelihood of having credit card information stolen by a server at a restaurant is higher than the risk of the consumers card information being compromised online.

-Credit card information isn’t necessarily taken right before fraudulent charges appear. If a merchant keeps a consumers credit card information on file the theft can occur days, months, or even years after the initial purchase. This means fraudulent charges can be made even if the credit or debit card has not been used in months.

-Consumers in the US are entitled to a free credit report from all three major credit reporting agencies yearly. While this free yearly credit report does not entitle a consumer to their credit score, it does allow for all credit activity reported for that consumer. At the very minimum a consumer should thoroughly check their credit report for errors, false applications, or misreported credit applications yearly. Paying for credit report monitoring, or paying for more frequent credit report access for self monitoring is highly recommended.

-Identity theft insurance may or may not be a good idea. Many companies offer identity theft insurance for a monthly or yearly premium. Since in many cases a consumers financial responsibility due to identity theft can be negligible it is important to find out exactly what the insurance entails. If the company handles the reporting of false information, monitoring for fraudulent activity, or other services above and beyond insuring the consumer from financial damage the service may be worth the charge.

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Article Source: Identity Theft Facts to Know