Identity theft is REAL....

Another thing we learned about this past week in Finance is the use of credit cards and how we can guard against identity theft. Many times, we can become victims of identity theft through our own carelessness. One thing that was mentioned was the carrying around of one's social security card in a wallet or purse; in the event that such is lost or stolen and your Social Security number is in your purse, a thief could use that number to gain access to valuable information, including financial records, statements, and the like. Once such information is obtained, fraudulent bank and/or credit card accounts can be used in your name. One can even become a victim of medical identity theft, where a thief may glean information and obtain medical services in another person's name through fraudulent means. Meanwhile, the victim is left holding the bag--literally and figuratively, having to spend thousands upon thousands of dollars to clear his or her good name and restore his or her credit standing (which can never be fully repaired once it is breached).

Some of the things suggested in the chapter included: shredding all financial statements, shredding pre-approved credit applications as opposed to just tossing them into the garbage, shredding receipts with the credit card numbers on them, not carrying around one's social security card unless he or she needs it for a specific purpose that day, using only secure websites when making purchases online with a credit card, and not including your social security number on check stubs on workplace IDs. These are just some of the things that can be done on our part to help avoid identity theft.