Identity Theft: The Simple Stuff
The latest buzz word everywhere seems to be Identity Theft. Sure, it's a problem, and it's something you should worry about, but you're not as helpless as the headlines seem to imply. There are good, common sense things you can do to make yourself safer, and less likely to be a victim.
The easiest one seems to be one of the hardest. If it sounds to good to be true, it is. If you get email from someone you don't know, and it promises money, delete it. If there's an unsubscribe link at the bottom, don't click it. The best that will happen is that spammers now understand your address is live; the worst is that spyware might be downloaded onto your computer from that innocent lookiing link. If it looks like it's from your bank, credit card company, ebay, amazon, aunt martha, uncle joe, and it instructs you to answer with personal information, don't.
Your bank will never ask for such data via email. Aunt Marth can wait until you see her face to face. If the URL in the email looks good, it's just the latest trick in the book. You know the link to your online banking. You don't need to click on a link in an email. Bring up a fresh browser, and use the link that you normally do. If you are very suspicious, call the bank (or credit card, or Uncle Joe). Don't give up pin numbers, passwords, or personal information. Ever.
Do you know the person you just gave that check to? Unfortunately, the world is a less pleasant place that it used to be. The information along the bottom of your check can be printed on bank stock, on someone else's computer, and your account can be drained before you know it. In the old days, when checks were verified by human beings, this particular scam would not have worked. Now, with verification done mechanically, the routing and account information across the bottom of the check is enough. Only when you start bouncing checks, and the bank notifies you, will you realize the money's gone.
How does this work? It's not you, after all. Ah, yes, but the thief doesn't need to be you. The routing and account information are correct, but they'll print the check up with a name and address that they can provide identification for (sure, it's not legitimate, but it matches, and when the merchant uses his Chexsystems to verify, you have money in the bank, so the check goes through.
How do you prevent this? Don't give checks to strangers. Either use a credit card (remember, credit cards are indemnified for any amount greater than $50), cash, or some sort of money order or other paper, such as traveler's checks.
Be careful where you use your debit card. If at all possible, insist that the bank issue you an ATM card that cannot be used as a credit card. Know that even though it is illegal to do so, many places where you use your debit card store the pin that you enter. Yes, they do. In this debt-heavy society, I hate to keep recommending the use of credit cards, but people have become careful in their use. Some of the very best of places have had difficulties with debit cards. Personally, I use it to withdraw cash, from my bank's atm, and I always check to make sure that the ATM has not been tampered with. I use it at the grocery store. That's about it. Until the companies that manage the software that seems not to be doing the right thing clean up their act, I'd recommend being very careful using it anywhere.
I also have a six-digit pin. I will not bank with an institution that cannot accomodate this. It provides safeguards that I value, and I recommend it. I also check my bank balance daily, and never from a public location (such as the wireless hot spot in the local coffee shop). Oh, you say, it's encrypted. I'm safe. No, you're not. You may discover that your account name and password have been discovered by the patron sitting two tables away, silently filming you while appearing to ignore everything you do. Do not be confused by the illusion of safety. A public place is still public. You wouldn't share your account number with a stranger on the street. Don't share it over coffee.
Don't download software from places you don't know. This seems obvious, but it must not be. Kazaa is a fine example of someone you don't know. No, you do not. Many places that seem innocuous will actually alter various things on your computer, infecting you with spyware, keyloggers, and worse thigs. Consider running two spyware detectors. Always keep your virus definitions up to date. Use a personal firewall, like Zone Alarm or Black Ice.