Many statistics have been provided to approximate the number of Americans affected by identity theft and misuse. Near 7% of adults are a victim of identity theft, making it a very real threat. A large portion of those affected are subjected to credit card fraud in which strangers rack up bills on their credit cards.
With the ever increasing amount of transactions taking place online and otherwise electronically it is important now more than ever to protect yourself from potential theft of your identity. Your identity may be misused to spend your money, approve loans in your name, or interact with private companies. Recovering from identity theft is a long and cumbersome process without help from a credit professional. Without proper information it’s possible you will not be able to recover a portion of your losses.
You can report fraud to the government and cancel transactions which are fraudulent however you cannot be sure exactly how much damage has been done, and whether you will be able to fully recover your identity. Without monitoring your credit you may not even be aware that you are a victim. Fraudulent vendors will often spend your money on very small unnoticeable transactions which rack up to amounts in the thousands.
Taking simple safety precautions can help to lower the risk of revealing personal details to the wrong people.
Unfortunately these tips can only minimize the chances of becoming a victim of fraud. To protect yourself further you may want identity insurance. Companies providing this insurance will provide recovery funds to reimburse those affected by identity related fraud. These companies also provide the resources to help those insured with contacting creditors and locking down accounts to prevent further misuse of the identity in question.