Credit card companies are taking new measures to minimize the complexity of identity theft claims and to quickly respond to them, such as providing some consumers with a free risk assessment to help them determine whether or not they are at risk.
What is Identity Theft?
Identity theft has been equated with choosing to go under the credit card debt meter by choosing to slip further into debt. While this is not always the case, it is an increasingly common occurrence that can leave the victim feeling vulnerable and helpless. It can take several months to years to recoup the loss suffered from them. Being the victim of identity theft can be financially devastating, and if it is difficult for the consumer to retrieve from their nightmare, he or she may not be able to recover even after filing a claim. In addition to consumers, businesses may also become the victims of identity theft. Commercial entities may steal the personal information of cardholders, which allows a thief to use the company's card to make purchases in their name.
Who is Doing the Fraud?
People committing identity theft to get access to consumer and financial information are not always criminals. It isn't always connected with certain socioeconomic conditions or the people needing debt relief help. Nevertheless, there are some risky behaviors people engage in, and could provide easier access to their personal information. Hackers may do their searching for their personal information over the internet or through mirror sites. They may also hack into systems to steal passwords and other information. They may also hack into systems and steal files. Regardless of whom they target, you are always one step ahead than they would be. That takes the form of protecting your information, including the electronic forms of it.
A free background report can often serve as a vital tip in stopping identity theft. However, there are some states which prevent creditors from calling you about accounts that are not open and some which will give you access to your credit score. The FTC recommends getting a free background check once every 12 months whenever possible. This information cannot contain any of the information about a criminal's history that would be found on a background check, and will not let you see if there have ever been any investigations into your credit.
Thieves do not tend to care so much about the details of your background. It is much more costly and difficult to track them down than to go after them for purchases on your cards. However, even the tiniest leak in your personal information can be enough to turn a good thing into a bad and cause you a lot of monetary damage.
Credit scores should be able to tell you if there have been any fraudulent charges. The sooner you call the credit card company to cancel and report the loss, the better because you have a limited time to do so. If your card is stolen or cut up and you call, you will only be liable for $50 of the charges (or $50 of any fraudulent charges made on the card). If you wait longer than 60 days, you could be liable for any charges that you made after 59 days. As you can see from this example, you should always make it a priority to protect your personal information and limit the time you spend on your cards.
