The continued digital progression has made people’s lives easier, but we cannot neglect its negative consequences. A hacker accessing your personal information without your permission is not uncommon. With increasing smartphone usage, identity theft cases have been on the rise too! The identity thieves use your financial information to make purchases or open fake credit accounts, pretending to be you!
Here, we list some of the best ways to prevent identity theft.
What is Credit Identity Theft?
Credit identity theft is when there is a violation of your personal information. The hacker can use your personal details like birthdate, PAN number, Aadhar number, etc. to apply for a new credit line. As a result, you might see an unexpected change in your credit report. You may see a new account in your credit report, which you have not opened. Upon non-payment of the credit, the creditor might send you notices for debt payment. In extreme cases, you may be stuck in a legal battle. Once you know about fraud, you can quickly take action and freeze your credit.
Protecting Your Credit from Identity Theft: The Best Ways
Here is how to protect your credit from identity theft.
1. Do not Use Public Wi-Fi.
One of the most common causes of identity theft is using public wi-fi. The hackers quickly spot what you are doing on the public wi-fi. You should avoid using public wi-fi for net banking, making purchases, processing any utility payment, and more sensitive transactions. Using a private network service is better to keep your personal and account information secure when in the public domain.
Also, be cautious when you are working on your laptop in public. The public around might be keeping an eye on the information displayed on the screen. Choosing a secured wi-fi network will protect you against malware and data loss.
2. Phishing or Spoofing
Another common way to extort money through credit identity fraud is spoofing. The fraudsters call you and tempt you to disclose personal data, credit card numbers, PAN/Aadhar card numbers, OTP, banking information, etc. They might sound authentic to you as they often send a real-looking link or mail. Even the number looks like it belongs to a trusted company.
Knowing that you should not give your personal and sensitive data by phone or text messages is important. If you receive any such call, you should contact your bank and verify whether the call was genuine.
3. Regular Credit Monitoring
It is important to be watchful of your financial and credit statements. Reviewing your credit report is important to ensure that every transaction is legitimate. You can get a free credit report from Due Factory and ensure the information mentioned is accurate. Regular credit monitoring also allows you to detect suspicious activity leading to identity theft. If you find any error in the information or a newly opened account in your name that you don’t recognize, quickly raise the same. Freeze your account and write to the credit bureau.
4. Avoid Posting Personal Details Online
Have you uploaded a personal document on social media? If yes, then you should start avoiding from now! Your details like PAN, Aadhaar card, passport number, account number, etc., can be misused and used by scammers. They can open a loan or credit account in your name. You will not even know about it until you check your credit report or start getting calls from collection agents.
5. Use Encryption and Mobile Wallet
Keep your details hidden through encryption. RBI is now asking the card network companies like Visa, MasterCard, etc., to provide tokenization services to the clients. This is to prevent identity theft. Tokenization can encrypt your card number and keep it hidden from the merchants. Only you and your card issuer will know about the same. You can also consider using a mobile wallet to prevent identity theft when making online payments. It will help store the card and tokenize the transactions.
Wrapping Up
Identity thieves constantly innovate new strategies to obtain your personal and financial details. They might steal your wallet or attempt online phishing attacks. It is essential to stay vigilant. Be mindful of the above-suggested measures to safeguard your financial details. Protecting credit information will prevent identity theft, ensure better credit health and score, and allow you faster access to credit.
Do not let a compromised credit profile hamper your credit access! Contact Due Factory today and have a sorted financial life!
Disclaimer: This article provides a general guide to the subject matter. You should seek specialist advice about your specific circumstances.
FAQs
1. How can I protect my credit identity?
Ans: Following measures like not using public wi-fi, not sharing personal information with strangers, avoiding phishing attacks, reviewing credit reports often, etc., can protect yourself against identity theft.
2. How to secure my personal or financial information?
Ans: Limiting the documents and cards uploading online, not discussing sensitive information amongst strangers, and not providing your card number over the call or text message can help protect personal information.
3. Why should I review credit reports regularly?
Ans: Check your credit report to ensure that all the information mentioned is accurate and error-free. It can help you detect suspicious activity and chances of identity theft.
4. How to download a credit report?
Ans: Due Factory can provide you with a credit report for free. Using the same, you can detect identity theft.
5. Can I lock credit to prevent identity theft?
Ans: You can freeze your credit and restrict access to your credit details. if your personal information is stolen, a credit freeze can protect your account from fraud.