Paul Dreher Director of Personal Insurance View Bio

Thank you to our friends at International Risk Management Institute, Inc. who originally published this tip in the IRMI personal lines pilot. View IRMI’s website here: www.irmi.com

The unauthorized access of credit card data is becoming more common. Hackers continue to illegally access credit card information, and the problem seems to be getting worse. So what are some techniques you can take to reduce the chances that you will become a victim of identity theft, particularly when it comes to the wrongful access of your credit card information? Here are some tips to consider.

  • Periodically check your credit card statement online to verify that the charges are correct. If you believe a hacker has gained unauthorized access to your credit card, or if you are unsure about a charge, contact your credit card company immediately.
  • Federal law stipulates that a consumer can order a free copy of his or her credit report every 12 months from each of the three nationwide credit-reporting agencies (Equifax, Experian, and TransUnion). If you discover information on your credit report arising from a fraudulent transaction, you should request that the credit reporting agency immediately delete that information from your credit report file.
  • You can add a fraud alert to your credit report from any of the three credit reporting agencies to help protect your credit information. A fraud alert can make it more difficult for a criminal to get credit in your name since it instructs creditors to follow certain protocols to protect you. Note that you need to contact only one of the three agencies. As soon as that agency processes your fraud alert, it will notify the other two agencies, which will then place the same alert into your file.
  • To take it a step further, you can also contact one of the credit reporting agencies about placing a security freeze on your credit report to prevent a credit-reporting agency from releasing credit information without your explicit authorization.
  • Creditors should be contacted if various bills do not arrive in time. A missing credit card bill could mean an identity thief has taken over the credit card account and changed the billing address to cover his or her tracks.
  • All old financial documents, including bank statements and credit card bills, should be shredded to reduce the exposure to what is called “dumpster diving.”
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