Continual escalations of fraudulent activities and identity theft have led Americans to look for ways to prevent identity fraud. Many methods are available, whether you are looking for protection on a personal or business level. You can use immediate strategies or technological solutions to help in the prevention of identity fraud.
How to Prevent Identity Fraud
Financial institutions are required by law to actively prevent identity fraud from occurring in the financial system. Identity fraud can be prevented by thoroughly screening new customers prior to opening any accounts. Financial institutions can look for red flags with background checks, by comparing names to government watch lists, and by looking at previous financial activities and patterns in records. Software programs are available to help financial institutions to complete this process quickly and efficiently.
Individuals can prevent identity fraud by being protective regarding their personal information. They should be careful and hesitant to give out information such as social security numbers and credit card numbers. Well-known and respected companies should be used for all purchases to prevent fraud from occurring. Unfortunately, identity fraud can occur in a number of situations that are seemingly safe for consumers.
If identity fraud occurs, you should contact authorities immediately to report the incident. Authorities will need to take a statement from you and will need to see copies of any evidentiary materials. If credit card identity fraud occurs, you will need to contact credit services and cancel your credit cards to prevent further illegal spending. You may also want to contact the Federal Trade Commission and file reports with the Trans Union, Equifax, and Experian reporting companies.