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Identity theft Happens Predominantly Offline
prostoalex writes "Worried about identity theft online? Relax, say the Feds. You're much more likely to have your identity stolen offline (72% of the cases). In half of all the cases, it's the friendly relatives, neighbors and friends who steal the identity of the victim. Moreover, those watching their financial accounts online lose approximately $551 per incident. The average rockets to $4543 for those relying on paper statements from their banks and credit card companies."
The two times I've had my credit card number stolen it was traced to a clerk or cashier at a location I had used my card. When it comes down to it, your information is only as secure as the people you give it to, and in most cases, it's the person standing behind the counter that you hand your card to that becomes the liability.
Which is why I now always pay at the pump, and try to avoid any situation where my card will be in the hands of someone else. Most places where you swipe the card yourself, the cashier does not have access to that information. Although, I used to work a grocery store, and while the receipt didn't contain the full credit card number, the roll that kept the transaction log at the register did, and it would have been very easy for myself or any other employee to simply take the roll when we were heading to count our cash drawer and pick a few names and numbers to use.
I imagine that most cases of "identity theft" are simply credit card fraud, and usually is not the result of someone dumpster diving for information.
What?
A card that says "Ask for ID" is treated as an unsigned card. A merchant should make you sign the card before accepting it. Otherwise they're not eligible for "Card Present" protection.
Lets count the times that an identity theft occurred NOT by your close ones (relatives, neighbors, friends).
28% is on-line
39% is off-line by strangers (78%/2)
equals
67% by strangers.
So, 1/3 of the ID theft is by someone you know. 2/3 is strangers.
Tips to safeguard yourselves:
1. Look in your wallet/purse and remove SSN# from all ID cards
a) Medical card
b) Dental card
c) Old-man fraternity lodge
d) Military ID
e) and yes, your state drivers license (in dumb states only)
You can verbally give your SSN# to the cop/doctor/guard if and when you get challenged. And no, you won't be fined for tampering with the license. Three Federal Statues will protect you on this formerly malicious act (IANAL, but I did it).
2. Use shredders on the following containing account numbers, ID# or SSN#
a) bank statements
b) loan offers
c) utility bills
d) FAXes
e) virtually anything with your SSN# (and account #)
3. Perform lockout of your credit history. It is free to do. $10 to unlock it (how often do you apply for credits?)
4. Religiously apply for opt-out with insurance and financial institutions for your rights on Privacy Act. This hopefully eliminates sharing of your information.
Above steps goes a LONG WAY to drastically minimizing your vulnerability level and will go to bolstering your legal case against the identity theives, if and when, they get caught.
Carpa Diem!