Taking Precautions to Avoid Fraud

Taking Precautions to Avoid Fraud

For those who are already having a difficult time with the economic state of the country it is easy to see how they might be panicked by the possibility of being the victim of fraud. Consumers are being especially careful of how hey handle their money. Taking measures to avoid fraud should be no less important. There are several ways to ensure that you are not taken advantage of and that your money is safe. Taking the extra steps before putting your finances at risk will certainly pay off.

One precaution that every person should take is understanding who you are giving your personal information to. Before you hand out any information concerning your social security number, your bank information or your credit make sure to ask questions of the person interested. The person or entity should be willing to give you all the information you are looking for ahead of time. Use this information to research the person or business with the local authorities. For businesses there are many bureaus responsible for maintaining complaints and other such information.

You should always be cautious about giving your personal information over the telephone. There is no reason for such information to pass back and forth without written applications that you can put your hands on. It is also vital that you are not giving your information out to someone seeking it from you. If you are the one approaching business opportunities you can expect that your information will be necessary, however do not give it to a person or entity that you have not thoroughly investigated. If there are complaints against a particular company you will be able to get this information from your secretary of state’s office.

When handing out personal and financial information like the numbers of your prepaid credit card you want to be sure to ask if they will be giving your information to any third party members or affiliates of their company. Often your information is given once and then passed around to other companies and entities.

Preventing Identity Theft

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Don’t let yourself become a victim of one of the fastest growing crimes today — identity theft. So how do you protect yourself? First, understand what it is, as well as understanding the type of information you need to protect.

It is acknowledged that some information will be public such as name, address and perhaps your phone number. However, other information such as your birthplace, mother’s maiden name, social security number, credit card number and so on, needs to be protected.

How does your identity get stolen? Here are few ways, along with tips to help prevent identity theft.

• Your identity can be stolen through the mail. Make sure you don’t leave your mail in an unsecured mailbox — especially for long periods of time. If you go out of town, have your mail put on a vacation hold at the post office. Purchase a locking mailbox. Deposit mail only in postal service collection boxes.

• Your laptop or computer is a prime location for having your identity stolen. Many of us do not realize how dangerous an unsecured computer is for our personal information. Make sure you install anti-virus and anti-spyware programs, as well as firewalls and security software. You don’t want people looking at your tax calculator and tax returns. Be cautious when shopping online. Shop on secure sites only. If you are using a wireless connection, make sure it is encrypted. If you decide to sell your computer, erase or better yet, replace the hard drive.

• Believe it or not, your trash can be used to steal your identity. Don’t discard any type of personal document that includes bank account information, social security numbers, credit card information and so on. Shred these documents before discarding them, and don’t go cheap on the shredder — get one that crosscuts.

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