How to Prevent Identity Theft
Part four of a four part series discussing identity theft
by Jean Dunaway, President
Identity theft is becoming one of society's most feared crimes, yet everyday consumers do several little things that put them in danger of becoming the next victim. Falling prey to this crime can be expensive, sometimes costing a financial institution hundreds, even thousands of dollars and the individual several months and a sizable amount of their own money to completely clear their name and credit report. The best way to prevent identity theft on your end is to be as protective of a customer's personal information as possible.
It is hard to fathom that some of the most common daily occurrences could cause this much trouble. A financial institution may receive a phone call from someone who sounds legitimate and answer questions regarding a customer's personal information. They may not warn customers of the possibility that someone may gain access to their accounts through illegal measures and how to protect themselves. In some cases, they may even discard an individual's personal information in an unsafe manner where others can view it. Criminals can get all of the information they need to impersonate an individual without even breaking a sweat.
The concern over identity theft is growing so large that Traveler's Insurance recently became the first agency to offer an insurance plan covering identity theft. The policy will cover the expenses a consumer may face while trying to clear their name and their record. Some of the expenses that are covered under this plan are legal expenses, loan-reapplication fees, long-distance charges, and even lost wages for the time spent cleaning up the credit mess. In the short amount of time since Traveler's Insurance entered into the identity theft protection market, three other insurance companies have followed suit.
Financial institutions that collect and use an individual's personal information are looking into ways to prevent identity theft on their end in order to keep financial losses down and customer information safe. Fighting high-tech thieves with technology, biometrics uses an individual's unique identifying feature such as their retina or fingerprint to ensure that an individual is indeed who they claim to be. At the current time however, this device will only work for in-person transactions, leaving online transactions still vulnerable to fraud. The high cost of implementation is another major reason this idea hasn't quickly spread . Digital Signatures and Smart Cards are other ways in which financial institutions are trying to keep customer information and assets secure.
Identity theft can cause business, financial, and personal problems and takes months and sometimes years to clear up completely. Financial institutions can take a more proactive role by educating customers in what they can do to prevent this crime. Some tips to customers can include:
Never place any personal information on checks
Always review checking, savings, and credit statements for unauthorized transactions
Ask how any personal information you divulge will be used and who has access to it
Never carry your Social Security Card, birth certificate, or credit report with you
Keep track of billing and statement cycles and make sure you receive them on time
Check your credit report at least once a year and get them from different providers
Carry only as many credit cards or checks on your person as needed
Never reveal any personal information over the phone, online, through the mail, or in person unless you know and have reason to trust the other party
Considering the immense amount of information available on the Internet, it is impossible to completely safeguard your customers. However, with a little care and common sense, we can all help to discourage identity theft from occurring in our society.
To learn about courses offered by Bankers Training & Consulting Company pertaining to Privacy and Identity Theft, access our website at www.btcc.com or call us at (800) 264-7600.
Jean Dunaway, Bankers Training and Consulting Company (BTCC) President, has an extensive history in the financial services industry, serving over 20 years in various positions including vice president, regional sales manager and director of training. Currently, Dunaway oversees the day-to-day operations and visionary direction of BTCC. Joining BTCC in 1989, Dunaway's leadership has catapulted BTCC to the forefront of the financial services training industry.
About Primedia Workplace Learning
Primedia Workplace Learning, a PRIMEDIA company, is the leading provider of Integrated Learning Solutions for more than 8 million professionals in the industrial, healthcare, banking, automotive, fire & emergency, government, and law & security markets. Primedia Workplace Learning's unique offerings include the world's largest satellite-delivered distance learning services; CD-ROM, Web-based and video training programs; and an Internet-enabled learning management system, which better enables corporations and government agencies to manage, track and measure their in-house training efforts. This unparalleled combination of content, custom solutions, technology and "any time/anywhere" delivery represents the state of the art in the fast-growing business-to-business training market. For more details on Primedia Workplace Learning, visit www.pwpl.com.
About Primedia Workplace Learning's BTCC
Primedia Workplace Learning's Bankers Training and Consulting Company-BTCC-is the leading provider of training programs for financial institutions. BTCC offers the Must Have Training library in video, computer-based, network, Intranet and Internet formats. The Must Have Training library covers key training requirements including compliance, security and fraud, customer contact and more. Additional information on BTCC can be found at www.btcc.com
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