Becoming the victim of identity theft can have many repercussions, and the recipients of this type of crime have to put up with stress, frustration, and even financial losses. However, there are some steps that consumers can take to reduce the risk of becoming a victim of identity theft, and providing consumers are more vigilant and careful when it comes to their personal information it is possible to prevent this type of crime.

One of the things that can help you to better monitor your finances and check on whether you may be a victim or attempted or successful identity fraud is checking your credit file on a regular basis. By doing this you will be able to see whether there is anything untoward, and you can quickly identify and address an suspicious activity which could help to reduce the risk of you becoming a victim of this sort of crime.

You can order your credit report with ease online these days, so checking your financial information will prove to be no hassle and could really help to save you from the hassle and stress of becoming a victim of identity fraud.

Another thing to remember is that identity thieves do not always use the most sophisticated methods, and in fact they are able to get hold of the information that they need by something as simple s going through your rubbish bag. This is why it is so important not to just throw away paperwork that contains financial and personal details in the waste paper basket, and this includes bills, bank and credit card statements, and any other documentation that may contain sensitive information that can be used by ID thieves to commit their crime.

You also need to be very careful about where and when you dish out personal information that could lead to ID theft. For example, if you have a computer that is shared with other people you should never save password and account details, as these could easily be hacked. Similarly you should ensure that you never link to a website from an email, as this is a scam that is known as phishing, and these emails – although they may claim to be from your bank or another trusted source – link you to a fake website, and once you enter your details they are freely available for the fraudsters to access and use.

Even giving out personal and financial details on the phone can prove dodgy, unless you are the one that has made the phone call. If you receive a call from someone that claims to be from your bank or credit card firm, and asks you to confirm your account details, always exercise caution, as this is not some thing that banks do. If in doubt take the name of the caller and ring the company back to make sure that it is your bank or credit card provider, as otherwise you could end up giving your card and personal details to a complete stranger.

Tips on avoiding identity theft is a post from: Credit Cards Web

Fortunately, there are ways in which you can avoid becoming a victim of identity theft.

If you change your address, make sure you advise all the companies you deal with of this change. Many people do not do this and when fraudsters intercept mail arriving at a different address, they can steal your identity.

When you move bills and offers for loans can pile up at your old address giving people an opportunity to take out a loan, receive a gas or telephone connection or rent a flat in your name.

Tell your neighbours if you plan to be away from home on holiday for a period of time. They can make sure that your mail is fully pushed through the slot in the door or can collect it for you from your mailbox until you return.

Shred all paperwork associated with any of your accounts before you put it in the trash. Fraudsters do go through the trash and bills that are not torn or shredded is a prime opportunity for identity theft. This applies to old receipts, bill statements and bank statements. Cut up your old credit cards before you dispose of them.

Watch for people standing close to you when you use your credit card or debit card. Many fraudsters have machines they can insert into automated tellers and card-reading devices in which they capture your card number. A small camera will give them the details of your PIN. Keep a watch for such devices and make sure you protect the PIN number that you enter.

Never give out your PIN to anyone, even a family member. You should also memorize this number as well as your password, and not have it written on paper in your purse or wallet. If your purse is stolen, for example, thieves have your cards and from the papers they can find out what you passwords and PIN numbers are.

Check your credit record on a regular basis. It is important for you to know what this file says about you. Check to make sure your address is correct and that all the accounts listed on the record are correct.

Choose a PIN that would be very difficult for fraudsters to guess. After several attempts to access your account using a different number, the bank will automatically place a hold on the account and contact you. Experts advise that you should never choose birth dates as a PIN because fraudsters who gain access to your personal information will try this number first.

Be careful when conducting any online transactions via wireless Internet. Through sophisticate spyware, fraudsters can gain access to the personal information you have stored on your computer. Having a firewall installed blocks such spyware from infecting your computer and your files.

Disregard phishing emails. These are messages you receive from sites that look almost identical to banks and lending institutions. Once you enter your personal information, fraudsters could wipe out your account.

By taking heed to this advice and tips to avoid ID theft and monitoring your credit accounts and statements, you can keep your identity safe from fraudsters.

More tips on decreasing the chance of identity theft and also for US residents AIPS.org has more tips on identity theft prevention.

Beating Identity Theft Fraudsters is a post from: Credit Cards Web

Of course, it is not only consumers that have to be careful. In some cases businesses, such as banks and government agencies, have been guilty of putting consumers at risk of becoming victims of identity theft and fraud due to carelessness with confidential details.

It is important for all consumers in the current climate to be more careful with their details in order to avoid being victims of this crime. The Internet has made it easier for fraudsters to carry out crime such as this, and most will seize any opportunity to try and get the details that they need from unsuspecting online consumers. For example, phishing is one way in which fraudsters are often able to get a person’s details, and this is where they send an email linking to a fake website to consumers, who are then asked to enter certain personal and account details, which the fraudster can then access. This is why you should never enter any personal and account details into a website that you have linked to via an email, as no matter how authentic it looks it could be a fake website that has been set up to obtain details such as these.

People that make purchases using their credit card online are also at risk of becoming victims of fraud and identity theft, as hackers can obtain details in some cases and can then use them to conduct CNP or Card Not Present fraud, where transactions can be made without the card actually having to be shown, such as with telephone and online transactions.

When you use your credit card to make purchases online make sure that you are using a secure website that uses encryption software to protect your details from hackers. Also, avoid saving card and account information on the computer, as this could make it easier for fraudster to get their hands on the information that they need.

Whilst many fraudsters do use more sophisticated methods to get the information that they need, some are happy to rely on the age old and simple methods such as rummaging through bins and bags outside to try and find details. Sadly, many people still think nothing of throwing their banks and card statements as well as other sensitive paperwork into the trash rather than shredding it. This is all the fraudster needs to commit identity theft and fraud, so you must ensure that you are careful to shred and carefully dispose of paperwork that has sensitive information on.

A regular check of your credit report will enable you to pick up on any suspicious activity in relation to your finances, so it is a good idea to check this on a regular basis. If you see any transactions or attempted transactions that you do not recognise get them looked into right away, as not only could you have been a victim or actual or attempted identity fraud, but your credit rating may also be suffering as a result of this.

Avoid becoming a victim of identity theft is a post from: Credit Cards Web

It was found that HMRC had lost the details of 25 million customers, which included sensitive banking information putting them at increased risk of fraud and identity theft. The government has been discussing the chances of free credit checks with two of the nation’s largest credit reference agencies, Call Credit and Experian. However, it is not yet clear whether those affected will have access to ongoing reports for the coming weeks or just to a one off report. Funding still has to be sorted out, and one official from Call Credit stated: ‘No agency, including ourselves, is going to do this out of the goodness of their heart. Whether the Government will cover the costs or not at this stage is unclear, but there is a reason why agencies are stepping forward like this.’

Another credit reference agency, Equifax, has offered discounts of 60% on credit reports to aid the situation. Consumers can get a copy of their credit report for £2 or can benefit from ongoing access for a subscription fee of £6.99 per month. Government officials have urged those affected by the data loss to be extra vigilant with regards to their accounts, and one of the ways in which affected consumers can keep an eye on their accounts is through monitoring their credit reports to look out for any suspicious transactions.

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Victims of lost data could get free credit checks is a post from: Credit Cards Web

From the information in the report it is indicated that if you are a young, male professional living in the London area then you are at most risk of becoming a victim of identity fraud. Males in the younger age group are more likely to become victims of this sort of crime, and London is the highest risk area when it comes to identity fraud, which means that a young male in London is at increased risk.

The report also showed that around half of consumers in the UK do not trust high street banks with their personal data. In other reports data has shown that around 70% of us feel as though we have no control over the safety of our personal data when in the hands of banks and government agencies, and this comes after massive data loss blunders caused widespread concern last year over the safety of sensitive and personal data for millions of people.

One industry official said: ‘The majority of adults in the UK have a bank or building society account, yet just half actually trust those organisations with their personal information. Well over 45m people in the UK have a mobile phone, but less than one in 10 of those polled trust their mobile company with their   personal details.’

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Report issued on identity theft statistics is a post from: Credit Cards Web

However, whilst many of us are all too aware that fraudsters can use this personal information in all sorts of ingenious ways in order to make money, leaving the victim to bear the consequences, many Brits are still failing to take precautions, leading many to believe that many Brits may have a false sense of security. However, the concerns over the safety of personal data has been clearly seen from the panic that has followed massive data loss blunders over recent months, such as the loss of 25 million bank account details by HM Revenue and Customs last year.

The identity theft firm CPP has recently carried out research that showed that whilst 75% of us are well aware that fraudsters are stealing personal documents and using them to make money and commit criminal offences, only one third of Brits take precautions by keeping these sorts of documents safely under lock and key. The other two thirds, who seem to have a far more lax attitude towards the whole issue, could far more easily find themselves becoming the victims of fraud and identity theft.

The research went on to show that only 25% of Brits would immediately notice if their passport went missing, and only 20% of us would know straight away if our birth certificate had disappeared. Whilst the document that would be most missed would be a driving licence, it was noted that only one third of Brits would immediately notice if their driving licence went missing.

The research suggested that many Brits were under a false sense of security, and a massive 92% of Brits thought their homes were secure against burglary. However, with 15% having already been burgled in the past, many may falsely believe that they are far more secure than they actually are. Officials state that it is now more important than ever for consumers to ensure the safety of their personal documentation, as the average cost per identity has soared to £8000, with fraudsters engaging in such activities as taking out multiple lines of credit using the false identity.

One official from CPP stated: “Don’t leave personal information lying around the house. We have had cases of ID theft where friends, neighbours and even family have stolen personal documents and taken out big loans, mail order and credit cards.”

He also stated that the number of identity theft incidents were on the rise, and this meant that there was an increase risk of consumers becoming victims of this crime if they do not take necessary precautions to protect their personal documentation.

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To try and counter this huge loss, credit card companies have been coming up with ever more innovative and technologically sophisticated cards. Notwithstanding this action on the part of the credit card providers, we will still have a huge level of credit card fraud simply because we are careless when it comes to protecting our identity.

The following are the top 10 ways UK households become the victims of identity theft:

1. you put mail in the bin (without shredding it) that contains your name and address details;
2. you give details of your bank account, credit card, address and your name to cold-callers on the telephone;
3. you allow the person behind you at an ATM to see you enter your PIN;
4. you put your bank statements in the bin (un-shredded);
5. you answer emails asking for your name, credit card number and bank account details;
6. you do not telephone your bank or credit card provider if your statement is late;
7. you keep your PIN details in the wallet that has your credit card;
8. you don’t check your credit card or bank statement to see if any strange transactions have been processed;
9. you let the cashier at a retail outlet, shop or restaurant take your credit card away from you and out of view;
10. if you are using a carbon-copy transaction machine, you don’t take the carbon copy with you.

None of the above are particular ingenious – they are all opportunist identity thefts. So, if you want to help reduce identity theft and credit card fraud, try and take better care of your identity in the future!

If you are unsure of how you should proceed in the future to protect your identity and not become the victim of a fraudster, the Association for Payment Clearing Services (APACS), the Finance & Leasing Association and the UK’s fraud prevention service, the CIFAS, have published the Identity Fraud – UK Manual.

In the unfortunate event that you are the victim of identity theft, don’t forget to report this to the police, your bank, and all of your credit card companies as soon as you become aware of it so that you can minimise both your and their losses. In this regard, it is good practice to ensure you have a photocopy of your credit cards so that you can provide the details without having to look at your latest credit card statement.

Identity Theft – Some Precautions is a post from: Credit Cards Web

Unfortunately most consumers make it all too easy for these criminals to get their hands on the information that they need to conduct fraud and theft right from under their very noses, and often the victim does not even realise that he or she has become the victim of crime until it is far, far too late. By this point the damage has been done, and all that the victim can do is chalk it down to experience – but in some cases some people do not even do this, going on to make the same mistake again without thinking twice.

There are a number of ways in which people tend to increase the chances of becoming the victims of identity theft and fraud. One of the most common mistakes made these days is to leave sensitive data in rubbish bags outside the house. Many people think nothing of throwing bank account information, statements, personal letters and data, and more into the waste without even taking the time to tear it up, and nothing gives these thieves more pleasure than to discover a trash bag full of treasure like this.

Another common mistake is being careless with your account details, either in relation to your bank account or in relation to your credit or debit cards. Some people make the mistake of giving their account details to someone on the phone who claims to be from a company, or in some cases claims to be from the bank. You should never do this – the only time you should give your account details over the phone is if you have made the call yourself and you know the company that you are on to.

Many people commonly give their details in response to emails, often linking to fake websites via the email and then entering their account numbers, which are then seized by fraudsters. Never link to a site, including your bank, from an email and then enter account details, as this puts you at increased risk of becoming the victim of fraud.

A lot of people use their computers to make purchases and check bank statements these days, and this is fine as long as you are careful. For example, make sure you always make purchases through secure, encrypted websites. Also, never save account and password details on a computer that is shared with others.

How people increase the risk of becoming victims of identity theft and fraud is a post from: Credit Cards Web

That said, it is possible these days to disguise the real rate of interest that you pay on you credit card. The reason why this is the case is because although UK credit card providers are required, by law, to display the APR they charge on their cards, they do not need to include a variety of additional fees and costs in the calculation of APR.

Consequently, it is possible to display a lower APR than other credit card providers’ do, but to include joining fees and annual membership fees, which other credit card provider do not do. This way, your headline interest rate looks lower, but your cumulative fees and interest are actually higher.

Fixed rate vs. Variable rate interest

Although most credit card providers in the UK are required to display their APR, in most cases APR is a variable rate, thus subject to change at any time – provided appropriate notice of such is given. As a result, if you are prudent and knowledgeable about such things, and believe interest rates may vary over the period of your credit card debt, you may try to fix your credit card interest period for a fixed term.

Keep in mind, however, that fixed interest rates can run counter-productive if variable interest rates fall below that of your fixed interest rate. As such, if you find a UK credit card provider willing to offer you a fixed rate of interest, at the back of you mind you should be asking yourself why this is the case.

That said, an exception to the fixed rate vs. variable rate debate can occur if you already have a credit card and are looking to transfer you balance to a new credit card provider. In such a case, it is possible to fix your credit card interest, usually for an initial period of 6 months, at extremely low and attractive interest rates – as part of an introductory offer. If this happens to be the case, you still need to check and make sure that:

* you do not lose the introductory offer if you default on any monthly repayment during the period of the introductory offer, thus making the interest rate revert to the normal rate, which may be higher than you were previously paying;
* the promotional low rate of interest applies to the whole of your outstanding balance, and not only to ‘new’ items you charge to your credit card after you have transferred the balance, with the transferred balance accruing interest at the normal APR
* you will not be charged a penalty payment if you decide to transfer your balance to another credit card provider either during the promotional period, or shortly thereafter.

If any of the above does not hold true, you may find that it works out cheaper to remain with the credit card provider you currently have.

Penalty Payments

Penalty payments are a major pain with having a credit card. Normally you would think that there is little or no chance you will be charged a penalty payment for using your credit card. However, unless you read your credit card terms and conditions carefully, you may find you end up having to pay any one or more of the following penalty fees:

* late payment fees: levied against you for failing to pay your monthly minimum repayment on time
* ATM fees: levied against you if you make a cash withdrawal using your credit card – especially so if you use your credit card overseas!
* ‘out of area’ fees: rare, but sometime levied against you if you use your credit card overseas
* You also need to know that all of these penalty fees do not include any penalty interest you may be asked to pay for having incurred the penalty event.

As a result of the above, carefully reviewing your credit card statement each month to see both what has been charged to your account and what fees and interest has been charged is of paramount importance. Don’t just briefly skim the statement and hope all is okay, because if you do not object to any entry within the allotted time for doing this, this means you agree to the charge that has been made!

Credit Card Fraud & Security

Credit card fraud now costs UK credit card provider millions of pounds each year. The problem is huge and growing. As such, credit card companies are now taking steps to combat the level of fraud that is taking place.

The following is a look at some of the primary ways in which the fraud is being committed and also a look at how the credit card providers are fighting back against credit card fraud.

Personal Identity Theft

Last year alone fraud cost the UK credit card business over £1billion – and it is estimated that identity theft accounted for approximately 10% of that sum! While you may well not be held responsible by your credit card provider for fraudulent transactions made on your card, if the credit card provider is of the opinion that you contributed in any way to the theft of your personal information.

As such, to ensure that you are not held accountable for any theft of your personal information, you should ensure that:

* when you use your credit card you never let the card out of your sight
* if the outlet where you use your card uses the old carbon-copy paper system, take the carbon-copy with you and destroy it at a later date in a safe place
* never use your credit card on an unsecured website
* never use your credit card to withdraw money at an ATM that you have not previously used
* never throw your rubbish out if you have not shredded all of the information so that it cannot be read in any useful way
* treat all mail as confidential – and if you do not receive mail you are expecting, such as a credit card statement, inform your credit card company immediately that you think something may be amiss.

Fraud Prevention Tactics

In addition, fighting back against credit card fraud, UK credit card providers have started to incorporate some (if not all) of the following credit card fraud preventive measures:

* identification photos on your credit cards;
* fingerprints on your credit cards
* chip and Pin systems whereby the card has an encrypted chip containing details about the card and a PIN that ensures the card is being used by the genuine user
* Insurance

A great number of UK credit card providers now offer their cardholders the chance to insure themselves against any potential fraudulent use free of charge, or at a percentage of the then outstanding balance.

Given the level of credit card fraud currently taking place in the UK, it is highly recommended that you consider taking your credit card provider up on this offer if you think there is even a remote chance you may be faced with a bill for any fraudulent transaction made on your credit card. To determine the chances of this happening, you need to review the terms and conditions of the issue of your UK credit card carefully.

Credit Cards & Bad Debt

UK households are currently indebted to UK credit cards to the tune of £200 billion. It is, therefore, a very sad fact that large numbers of people in the UK get into debt as a result of having being issued a credit card. In some cases it could be argued that the credit card companies are at fault for making credit cards available to people who obviously cannot afford them.

Notwithstanding this, in the event that you leave a credit card debt unchecked, you will be held personally liable for this and it could well affect your life for years to come. As such, if at any time you feel that the level of your credit card debt is becoming overbearing, you need to take immediate steeps to counter this.

In order to overcome your credit card debt problems you can:

* enter into agreement with your credit card company to repay an amount affordable to you, which may be less than the minimum monthly repayment;
* enter into an agreement with your credit card company that they do not charge you excessive interest and default interest while you arrange to repay the outstanding debt, on the understanding that you will repay the then outstanding principal debt;
* discuss your circumstance with a debt counsellor, who can act on your behalf talking with your credit card provider to come to some arrangement for you to repay your credit card debt. You then need to make sure you make the payments as agreed to your debt counsellor, who will then arrange for these payments to be made to your credit card provider.

Keep in mind that credit card debt counts as being one of the major reasons people cite for stress and is often seen as being a contributing factor in a number of suicides each year. Do not let your credit card debt become all consuming by remembering to use your credit card sensibly.

Improving Your Bad Credit Rating

If you find yourself in the position where you have a bad credit rating as a result of your misuse of your credit card, do not think of it as the end of the world – it is possible to improve your credit rating.

You can start to do this by using prepaid credit cards and by making sure you repay all of your outstanding debt on time according to the agreement you have with your creditor. Keep in mind that the maximum period you are likely to have a bad credit rating for in the UK, even in a worse case scenario, is 7 years.

Credit Card Charges, Interest, Fraud and Bad Credit is a post from: Credit Cards Web