Stories of stolen identity and credit card information are frequently in the news. We have all heard a lot about what identity theft is and what it can do to people. However, considering the fact that it continues to victimize a lot of people every day, consumers' awareness of what it really is and how they can protect themselves remain inadequate. Identity theft has victimized millions of people in America alone. Its effects can also be very severe, running up years' worth of serious financial and legal troubles. Hence, it becomes crucial that people know how to protect themselves. But before everything else, what is identity theft?

Identity Theft and Its Effects

Identity theft is a crime where culprits steal your personal information - say, your credit card information for example - for fraudulent purposes. This is made possible by the unrestricted access allowed through the Internet today. Despite having several information security programs available, protection against online identity theft remains flawed. Moreover, the Internet allows a high level of anonymity, which makes it very difficult at times to chase after frauds. These factors make it easy for culprits to retrieve our personal information either through specialized devices or through deceptive communication. It is also important to know that these scammers can get resourceful in planning out their tactics. Nowadays, identity thieves can devise machines that scan credit information instantly and make duplicate copies. They can also create computer viruses that sneak into your hard drive, and extract all the important inform they want from you. You may also get victimized through phishing strategies and misleading advertisements.

It is generally difficult to detect identity theft early. However, there are proven red-flag signs that you can watch out for. These signs include not receiving your credit card bills, calls from collection agents regarding credit card transactions you never authorized or accounts you never opened. These are some of the signs that will tell you that you need to check on your accounts. However in some cases, it can already be too late.

How to Protect Yourself from Financial Identity Theft

Considering all the effects financial identity theft can cause, it is difficult to just dismiss this threat. Being cautious about your online practices will provide you a first line or defense against identity theft. But aside from this, here are 5 things you can do to prevent financial id theft:

1. Get a back-up hard drive for your files - It is not safe to store all your files in one location only. Once a virus attacks your system, everything in your main storage will get infected.
   
   
2. Always back-up your file no matter where you keep them - Even if you think your email storage is safer, it is always better to keep a back-up somewhere else. Electronic copies are not indestructible. They could get damaged too, or worse, hacked.
   
   
3. Be wary and careful in emailing - Malwares are often sent as email attachments. Always be skeptical about weird and questionable attachments. You will also want to be inquisitive of strangers who email you. You would not want to simply give them your social security number just because they tell you that you won something, which requires identity verification.
   
   
4. User error can also be detrimental - Always be attentive of what you send and upload online. Click with caution, as there can be no such thing as an accidentally sent social security number to a stranger who is obviously pretending as an IRS employee.
   
   
5. Sometimes, it still pays to keep hard copies - When it comes to official documents, it helps to have a printed back-up, which should be stored in a secured place.

There are a lot of information security programs and applications around, but although these things help protect you; you won't be totally protected if you will continue to be incautious about your online practices. Being cautious and vigilant about your use of technology will provide you with a better defense. As responsible consumers, we cannot just rely on technology without being mindful of our actions. Know the risks and know how to protect yourself from financial id theft.