How to Prevent Identity Theft
Five Ways to Protect Against Credit Card Fraud and Identity Thieves
Jul 2, 2008
For years, businesses from medical offices to video stores have collected social security numbers and other personal information on customers and employees, sometimes with no purpose other than because that’s the way they’ve always done it. At the same time, criminals have discovered that identity theft not only pays, it’s relatively low risk and most crimes go unpunished.
In 2005, the Federal Government enacted the Identity Theft Protection Act of 2005, which places specific restrictions on the commercial use, maintenance and destruction of social security numbers and other personal information. Among other things, businesses must notify customers if they are at risk due to a security breach and are responsible for the proper disposal of personal information by shredding or destroying documents. Violations of the Act can mean fines of up to $500 per incident.
According to Caroline Farmer, deputy director, North Carolina State Attorney General’s Office, one in three people is a victim of identity theft and both consumers and businesses must be diligent in protecting personal information.
She cites five ways that individuals can watch over their personal information:
- Check credit reports often to make sure they are correct
- Do not print social security numbers, driver’s license numbers or military numbers on checks
- Shred all documents when disposing of personal information
- Protect mail by taking all outgoing mail to the post office and securing incoming and with a locked mailbox
- Protect social security numbers; do not carry the card in a wallet and do not say the number out loud in a public place
Farmer says that the second most common identity theft scam after credit card theft is utility theft. All the perpetrator needs is an address and the last four digits of the social security number. She says many places collect social security numbers even though they don’t need them.
“There is no law that says anyone has to give a doctor’s office their social security number,” Farmer said. “They have the patient's medical insurance information and that’s all they need.”
According to Farmer, all businesses are in constant risk of security breaches, whether by theft or human error. The Identity Theft Act requires businesses as well as state and local government to protect personal identifying information. All it takes is some thought and diligence, because a breach can be as simple as having a computer screen visible or leaving employment applications on a desk.
For more information about identity theft and fraud, personal protection and business liability, contact:
North Carolina Department of Justice
(877) 566-7226
