Identity Theft and Fraud - Beware!

Fraud and identity theft are very real threats in today’s society. It’s important to have a good understanding of the methods used by fraudsters and to take preventive measures. If fraud isn’t covered by your home insurance policy, you can purchase an endorsement that will help you cover the costs of restoring your identity. Let’s look at the dangers and how to deal with them!

Fraud 

It’s an unfortunate threat that takes many forms, from text fraud to phone fraud. You need to be alert to the danger and discuss it with people close to you who may be vulnerable to be sure they are aware of the risks as well. Some criminals use the ploy of pretending to be representatives of a government office, asking you to pay a fine or a bill in a very short timeframe. Before you act, contact the government office in question; more often than not, they don’t call customers in connection with such matters. Calling to verify will probably confirm you’ve been a target of fraud and that you don’t owe any money.

 

What is identity theft?

Put simply, identity theft occurs when one person uses someone else’s personal information for criminal purposes, such as accessing their existing bank accounts, opening new accounts, making a loan or credit card application, making purchases, and so on. The information most sought after by fraud artists includes your first and last names, date of birth, address, social insurance and driver’s licence numbers, credit card data, bank account numbers, and usernames and passwords as well as PIN (personal identification numbers) codes.

 

Criminals use various methods to obtain this information. Some do it the old-fashioned way, by scouring garbage cans or raiding mailboxes. Others use modern online tactics such as hacking and phishing. Whatever method is used, victims can suffer a range of adverse consequences: fraudulent use of their identity, substantial financial losses and black marks on their credit record, not to mention the headache of having to restore their identity.

 

The ins and outs of identity theft

There are several clues that your personal information may have been stolen and used without your permission. For instance, you should be concerned if your passwords are no longer working, if you notice unusual purchases in your account statements, or if you stop receiving certain account statements by mail or email. Other warning signs include having a financing application turned down for no reason and receiving credit cards you never applied for.

 

Identity theft linked to online shopping is also becoming more common. To protect yourself, stick to websites with recognized up-to-date security certificates. When shopping online, provide only relevant and necessary information. Also make sure that your computer is protected and that you have a password that is difficult to guess. Fortunately, by taking some preventive measures, you can make life difficult for identity thieves!

 

A few tips to help you protect your personal information:

  • Careful regular monitoring of your bank accounts and credit cards will allow you to quickly spot any irregularities and limit the damage.
  • Take note of the billing cycles of your credit and debit cards, regularly verify your account statements and quickly advise your financial institution of any irregularities.
  • On social networks, never allow access to your personal information.
  • Be suspicious of any emails, calls or letters asking for personal information.
  • Be vigilant when connecting to an unsecured public Wi-Fi connection.
  • Use hard-to-guess passwords; avoid birth dates, telephone numbers, etc. Use special characters to make them more secure.
  • Keep only those credit cards and ID cards that you need on a day-to-day basis in your wallet.
  • Try to remember where you use your debit and credit cards. It could help you track down the source of a fraud.
  • Shred your financial documents before disposing of them.
  • Before filling out a form online, look for the padlock icon, which indicates the site is secure. It is located up top in the website address bar.
  • Be wary of the people around you when using an automated teller.

 

Most insurance firms offer an identity-theft endorsement that can be added to your home insurance policy. Now, in a time where working from home means we’re more likely to share confidential information on our networks, that option seems more important than ever. Fortunately, belairdirect’s S.O.S. Identity™ coverage allows you to reimburse expenses incurred as a result of identity theft for up to $25,000 per policy year. It also provides 24/7 assistance from expert advisors throughout the identity recovery process.*

 

That should help you sleep soundly!

 

*This summary of the coverage is for illustrative purposes only. It is not a comprehensive overview and should not in any way be construed as a complete description of the S.O.S. Identity™ endorsement. The related services are provided by a third party.