PF2 - Identity Theft Lesson
Identity Theft
Common Types of Identity Theft
In 2015, 13.1 million Americans were the victims of identity theft. As a result, identity thieves were able to steal almost $15 billion that year. With those numbers on the rise, it is important to understand the types of ID theft to watch out for and how the theft typically occurs, so that you can be vigilant. Some common ways identity theft happens include dumpster diving, skimming, phishing, stealing, and data breaches. Dumpster diving works just like it sounds; someone goes through your trash to find documents with important information like a Social Security number. Skimming uses a device to collect credit card data without you knowing it; skimming is popular at gas station pumps and ATMs. Phishing occurs when you are tricked into revealing personal information by a fake email or website. Both stealing and data breaches involve obtaining personal information illegally. Someone could simply steal your driver’s license or credit card. A data breach involves stealing massive amounts of private data from a corporation.
There are many proactive steps you can take to minimize the risk of your personal information being stolen. You can shred important documents, not open attachments to unknown emails, not reveal personal information over the phone or email, use secure networks, regularly monitor your credit report, change passwords on accounts, and carefully manage social media.
If your identity is stolen, you need to take action immediately. Notify creditors, banks, the FTC (Federal Trade Commission), the police, as well as your telephone and utility companies. Put a fraud alert on your credit report and freeze your credit. Check your credit reports and remove any fraudulent information. Change all passwords on any accounts affected by the identify theft. Replace your stolen identification like your Social Security card or driver’s license.
Investment Scams
Investment scams take advantage of the desire to get rick quick. Ponzi schemes, pump and dumps, and “advance fee” scams are all different versions of investment scams. A Ponzi scheme pays profits to earlier investors with funds from more recent investors. Pump and dump schemes use false and misleading information to create a buying frenzy that “pumps” the price of a stock so the fraudster can “dump” it at inflated prices. Advance fee scams occur when someone asks for money up front to perform a service and never completes the work. When confronted with a deal that is “too good to be true,” do not say “yes” today. Do not give someone cash; checks are better. Do some research; ask the Better Business Bureau or your state attorney general’s office for consumer complaints about the individual or company. Take a few days to compare prices. Do not allow someone to talk you into something you do not want. Finally, when in doubt, DON’T.
Identify the Scam Practice
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