Understanding Types of Financial Identity Theft

Millions of unsuspecting consumers fall victim to identity theft each year, but you don’t have to be one of them. Financial identity theft is among the most common types of identity theft, and is becoming more prevalent with the increase of mobile banking, Internet use and digital transactions. Protecting your financial identity isn’t always easy, but there are several things you can do to reduce your risk of having sensitive information snatched up by thieves. One of the most important things you can do is to understand the different types of financial identity theft.

Here’s a close look at the different types of financial identity theft:

Credit Card Theft

Whether someone steals your actual credit card or gets hold of your credit card number, it can be difficult to stop a thief in their tracks. Credit card theft can occur any time you initiate a transaction using your credit cards, and you do increase your risk of financial identity theft when you use your credit card to make online purchases over an unsecure Internet connection. Monitor your credit card statements regularly so that you can catch any suspicious activity as soon as it happens.

Banking Identity Theft

Bank-related financial identity theft occurs when someone captures your information when you are using an ATM machine, or when someone gets hold of your personal bank statements and has your account numbers and other sensitive information. It’s always a good idea to check your bank statements regularly, even if you haven’t made any withdrawals or deposits recently. Check with your bank about their security practices and policies, and determine what type of security measures they have in place to prevent this type of financial identity theft from occurring.

Financial Identity Theft through the Mail

If a thief intercepts the mail, they may have enough information about you to pull your credit report and capture even more details about your identity. Make sure that you are the only person who has access to your mail, and that your mailbox isn’t easy to tamper with or break into by others. If you are anticipating important information in the mail, make sure the sender sends it via certified mail and requires a signature upon delivery.

Internet Interception

Cyber crime can be especially troubling and difficult to detect, because so many people now rely on mobile banking services and make online purchases on a regular basis. If you are managing your banking activities or making purchases over an unsecured Internet connection, it’s very easy for cyber thieves to intercept the transaction and capture all of your personal information. This can include account numbers, login or usernames, and passwords. Be very careful about your Internet connection when coordinating banking and shopping activities, and make sure you are always logging into a https:// website.

Protecting your financial identity isn’t always easy, but there are several things you can do to make sure you are not going to be the next victim of identity theft. Educate yourself about the different types of identity theft so that you don’t give away sensitive information to thieves.