In a trade-based economy, theft is physically limited to what can be carried away from the rightful owner. But the invention of currency and the relatively recent introduction of credit and debit cards and the Internet have changed the face of theft. Now, a Social Security number, a name and a little ingenuity are all it takes to steal someone's funds and identity.
A common sentiment regarding identity theft is, "It can't happen to me." Nevertheless, it pays to be careful with personal information such as bank account numbers, credit card numbers and Social Security numbers. Given these crucial nuggets of information, a thief can fill in the rest.
It goes without saying that Social Security cards should be kept in a safe place and not in a wallet. This is the hardest thing for an identity thief to steal - don't make it easy for them.
The Internet is another world completely. Don't respond to e-mails requesting personal information - they're often fraudulent. For example, the online auction Web site, eBay, warns against responding to e-mails asking for sensitive information that appear to be from eBay but are, in fact, not genuine.
This form of fraud is known as "phishing." A common example is an e-mail request for a bank account number. Credible businesses will generally not ask for information through e-mail.
On the same token, avoid giving sensitive information over the phone unless it will be kept private.
For the most part, the onus is on consumers to make themselves aware of these dangers. It's a good idea to obtain a personal credit report once in a while to make sure no fraudulent activity has occurred.
Credit card companies are to blame for fraud as well. The vast number of pre-approved applications they send out every week to consumers make it easier to fraudulently obtain a credit card. If a thief can obtain a person's Social Security number, he or she simply has to steal one of these applications from that person's mailbox.
Needless to say, these envelopes should be shredded before being disposed of, but it would be better if they didn't exist in the first place. They exist because of the huge market for personal information, which is valuable not only to companies trying to solicit consumers for their time and money, but also to identity thieves.
If you don't need to give out your information, then don't. Credit card companies often pay local businesses to solicit information from students in return for free pizza, shirts or other trinkets. Don't be fooled - this will result in the mailing of many pre-approved applications, which increases the risk of someone stealing your identity.
The more sensible you are, the better off you'll be.
