Shredding Paperwork
One of the most common methods of gather personal information is to sift through information discarded by the owner. Ask yourself, how many times have you received a pre-approved credit card application form, for you to simply throw it into the bin. Or how often do you throw away your credit card or bank statements.
For someone to commit the fraud they will look through your waste bins or sieve through your discarded rubbish at the local depot. More and more people also recycle their paper and cardboard through various kerbside recycling schemes and as such many people place their financial paperwork in these bins. This gives the thief an ideal opportunity with minimal effort to obtain your details.
So they have your details, what can they do with them? For the thief, this is where the fun starts, items can be ordered over the internet and the delivery address can be confirmed as a different address, this could go on for weeks before you even notice the theft is happening. Also with bank statements and utility bills, this is enough to open additional bank account, apply for credit cards, catalogues, store cards and loans. Thieves will also look for National Insurance numbers, driver's license numbers, birth certificates and passports.
Identity theft through credit and debit cards occurs when a criminal uses information they have illegally obtained to open new accounts or access accounts in someone else's name. There are two main types of fraud that are committed, these are:
Application fraud
Application fraud involves criminals using stolen or false documents to open an account in someone else's name. Criminals steal documents such as utility bills and bank statements to build up usable information. Alternatively, they may use counterfeit documents for identification purposes.
Account take-over
Criminals take over another persons account by gathering personal information about the intended victim. The criminal then contacts the card issuer, posing as the genuine cardholder, to ask that mail be redirected to a new address. The criminal then reports the card lost and asks for a replacement to be sent.
How can I reduce my chances of being a victim of identity fraud? It is impossible to make sure you will never be a victim of identity theft, however there are measures you can take to make it difficult to become a victim and to deter the thief. One of the most basic lifestyle changes you can make is to be aware and Shred, Shred, Shred. By shredding your unwanted personal information, including all of your utility bills, bank statements, credit card offers, receipts and card statements. This will mean that the thief will not be able to easily obtain the key information which they require to begin the process of committing the fraud.
What's more, shredding these items will only take a few minutes every week, not everyone has a shredder, however they can be purchased from as little as £9.99 from a range of high street shops, this could be the best £10 you ever spend. Last year over 1 million personnel shredders were sold to private individuals who are becoming more vigilant and taking a cautious and sensible step in the way they dispose of personal information.