Preventing Identity Theft

As we think about preventing identity theft and attempt to preserve our privacy and prevent identity fraud from happening, we must utilize strategies which are different from fraud detection or fraud resolution. This website focuses a lot on identity theft prevention and less about detection and other identity theft related issues. There are very good reasons why I’d like to talk mostly about identity theft prevention but I do so because not only my professional background in security, audit and risk management has made me think this way, but also I believe it’s the most cost effective and efficient strategy for managing risks in any areas of concern.

As you may already know, I firmly believe that most of us are identity obese and continue to accumulate and share more personal information than ever before, placing ourselves and our family at greater risks of identity theft. For example, a few days ago as I visited a doctor for the first time, the patient application was 8 pages long asking personal questions about myself and my family including medical history. I’m sure some of you have seen these patient applications; by the time you’re done with answering all the questions, you can actually publish it as your own life memoire. As we visit more doctors and share our personal information many times over, we have to also wonder how the doctor keeps up with protecting our personal information imprinted on an 8 page paper book. I personally doubt that all doctors are security savvy and fully understand or even care about the risks of identity theft to their patients. Therefore, the combination of careless sharing of personal information by consumers (although sometimes we are forced to unnecessarily share information) as well as the insufficient security practice on the part of businesses to protect our identity leads to higher risks of identity theft.

Now back to why preventing identity theft is more important and critical. Identity fraud costs companies billions of US dollars and thousands of dollars to consumers per incident. If that’s not enough, how about the fact that many consumers must take many hours of time off work to resolve their identity theft issues with the financial institutions and credit bureaus to repair their credit ratings and claim their innocence to get their money back. It’s a lot easier to prevent identity theft than to detect and resolve identity theft. Although, I’m not suggesting that detecting identity theft is not important or that you can fully prevent identity theft, I believe that an aware mind and simple daily steps can reduce the risks of identity theft.

As we conclude and understand why preventing identity theft is critical, we must alter our daily habits and educate ourselves about the risks of identity theft for maximum identity protection. And as we understand the risks, we can then take the steps to reduce the risks. Such small daily steps might include fewer credit cards, fewer trips to the ATMs, fewer online accounts, less refinancing, less frequent and unnecessary doctor changes, thinner wallets, and cash purchases among other things.

Read the e-book on additional tips for preventing identity theft.