How to Avoid Financial Identity Fraud

By ADRIAN LOWCOCK 23/11/2007

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1. If you notice an unauthorised transaction from your account, contact your bank. If you discover an account has been opened in your name with a bank or other company that you have not had any dealings with, contact them and inform the police.



2. Watch for small transactions – fraudsters often take out a small amount of money to see if you notice and your account is live and then take out a larger amount if you don’t react.



3. Many people now use the internet to check more than just their current account – pensions, mortgages, ISAs and savings can now all be accessed online with many providers.  Change your passwords asap – and make sure they are a mix of numbers and letters – not obvious things like your middle name, your pet’s name or your mother’s maiden name.



4. Don’t throw sensitive financial information in the rubbish – pension statements, bank statements etc are a goldmine for criminals.  Invest in a shredder and make sure you shred any financial information before disposing of it. Destroying evidence should also extend to direct mailings or any documentation that contains your name and address. Electric shredders can be purchased for as little as £15 and can help take some of the hassle out of destroying documents.



5. Lock away all important documents and financial records. The most valuable paperwork, such as title deeds and share certificates should either be kept in a safe or at your bank or solicitor's offices.



6. If you receive an e-mail purporting to be from your bank or credit card provider which asks you to update your details, it is likely to be a "phishing" scam. Your bank will never ask for your log in and password by e-mail - if in doubt, call the bank.



7. Cold calling to gain access to bank account details is another tactic employed by identity fraudsters. But a genuine bank would never call you and ask for your pin number or password. If in doubt, it’s probably wise to ring the bank back on a number you would ordinarily use.



8. Never write down your pin numbers and never to disclose them to anyone.



9. Check your bank statements as soon as they arrive. If you think you may have been a victim of identity fraud, check your credit file to see if someone has used your identity to access credit. You can obtain a copy of your personal credit file for £2 from one of the three credit reference agencies - Equifax, Experian and Callcredit.



10. With regards to the two computer discs containing Child Benefit data which were recently lost by HMRC, you can bring a claim for compensation against the Revenue but only if your personal data has been put at risk and you have suffered damage and distress.

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Source: Financial Express