Protection and detection two keys to preventing identity theft
Protection and detection two keys to preventing identity theft
If you watch the news, sometimes it can seem as though everyone is out to get our personal financial information, and it’s true that with so much personal information being logged in databanks, exchanged online and sent through the mail, it’s almost impossible to be 100 per cent secure.
In this context, preventing identity theft becomes a two-step proposition. Not only must you take steps to guard your personal financial information, but you also have to put detection systems in place to let you know when you’ve been compromised.
Guarding your information
Beware of inquiring phone calls or emails
There is a very good way to know whether to be wary of someone asking for your personal financial information: they ask for it. Generally, only a few select situations require you to provide your financial information, and you should never respond to emails or phone calls asking for such information unprompted. Even if someone calls claiming to be from your financial institution or lender, find out the official number and call back to make sure that they are who they say they are. Another good way to make sure of their identity is to ask them to confirm details of your account that only your financial institution would know.
Guard your social insurance number (SIN)
As the key that unlocks our identity, our SIN is perhaps our most sensitive piece of personal information. Despite this, we are constantly asked to submit our SIN for everything from club memberships to rental agreements, and in many of these cases there is absolutely no reason for us to do so. As a general rule, always ask why someone needs your SIN before providing it, and never give your SIN to any organization that you aren’t 100 per cent certain of. Here’s a list to help you determine who has a legitimate case—and who doesn’t.
In case of theft, it’s also good practice to avoid carrying your SIN card on your person. Best to leave it at home or locked in a safety deposit box.
Shred your documents
A great deal of information is contained in our cards and documents, and simply throwing them away intact is a gift to those seeking to commit fraud. Expired credit cards, bank cards, passports, visas and identification cards should all be shredded, as well as any documents containing your account numbers, passwords, PINs, signature, SIN or date of birth. It’s also good practice to shred all application forms, especially credit card applications, as they can easily be filled out by someone claiming to be you.
Protect yourself online
With phishing scams, keyloggers, malware and all the rest, online identity theft is becoming ever more sophisticated and pervasive. That’s why the vital first step in keeping yourself secure online should be to load your computer with reputable anti-virus, anti-spyware and firewall software. To keep pace with the fraudsters out there, install updates as soon as possible and be sure that the software you’re using is the most up-do-date available.
It’s not enough, however, just to install protective software. Equally important is taking precautions and using a little common sense as you navigate the web.
One of the most basic precautions to take is to beware of unknown links and “dangerous” downloads such as shared video and music files. In either case, you could be downloading a virus. A good tip is to hover over links without clicking them to check for suspicious-looking URLs or URLs that don’t match what you expect.
Phishing scams—scams in which fraudsters pose as a trustworthy person or organization to get you to enter your personal information—are also all-too-common, and can sometimes be tricky to identify. To be safe, never respond to any email requesting sensitive information, no matter how trustworthy it might look. The don’t-click-any-links rule applies here as well. You should also never enter any personal financial information into a pop-up window, as they are especially vulnerable.
Putting detections in place
When all your best preventative efforts fail, that’s when speedy detection becomes key. The sooner you find out that you’ve been compromised, the sooner you and your financial institution can take the necessary next steps to avoid theft of your money or full-blown identity theft.
Key detection strategies
One key detection strategy is to diligently monitor your transactions. This means regularly reviewing your online statements and checking your credit report with Equifax Canada or TransUnion Canada annually. When reviewing your statements, it’s also good to be in the habit of checking that any preauthorized payments are being withdrawn correctly.
Another important detection strategy is to monitor your mail. Fraudsters will often steal bank or credit card statements, debit cards, credit cards, or cheques right out of your mail box, and if you aren’t paying attention, you might not even know that they’re gone. Try to keep track of your statements and other financial documents so you can notify your financial institution if they fail to arrive. Even better, get electronic statements instead of paper ones.
Sign up for online banking alerts
Perhaps one of the best tools for detecting a breach in your online security is the online banking alert. Many financial institutions now allow you to set up these alerts, which send you an email or text to let you know if your account has been accessed or changed. Whether your account is locked due to numerous denied login attempts, a new payee has been added, or any other change occurs that could signal a compromised account, you’ll receive a message notifying you of the problem. It’s a great, automatic way to stay on top of your financial security with a minimum of effort.