Some Ways to Help Avoid Identity Theft and Fraud

I’m certain you’ve heard this at least a few dozen times: “college should be the best years of your life.” It is a time to explore new ideas, learn new things, and it should ultimately act as a gateway into adulthood. However, without sounding too much like an advertisement, college students need to be more aware of the world around them than their parents did. In addition to the many common situations to avoid, there is unfortunately one more thing students need to be wary of: identity theft and fraud.

It may be somewhat frightening to think about, but identity theft and fraud are very, very real things that do not just pertain to post-graduate adults.

Here are some generalized facts about college students:

1. For many college students, this may be the first time they have entered into the workforce.
2. College students use the internet for far more things than previous generations, including reading the news, looking up information, socializing with other people, looking for employment, and purchasing items through online retailers.
3. Many college students have a brief or non-existent credit history.
4. For many students, their college years are their first foray into a financial world they are not accustomed to, where they are expected to use credit cards, make online purchases, and utilize online banking.

Believe it or not, many of these factors make a college student even more susceptible than adults to identity theft and fraud. I’ve put together a list of some simple tips to help avoid becoming a victim of these crimes.

Be aware

I cannot stress enough that college students need to be aware of the world outside of their classrooms. In the past few years there have been several very large data breaches caused by cyber-attacks on major store outlets like Target and Walmart. Our reliance on credit and debit purchasing has skyrocketed and, for the most part, people generally feel a modicum of safety with this convenient practice.

It is important to be aware of a site’s privacy policy when making a credit or debit transaction, as well as when using newly designed app-purchasing methods from your smartphone. You are doing more than simply buying something, you are transmitting sensitive personal and financial information that other people may have access to.

Newer and better hacking programs are constantly being created to intercept or extract this sensitive information in massive amounts, and it oftentimes goes undetected for an extended period of time. Though many large outlets have their own brands of security, the only real protection we have comes from special divisions of the FBI and other federal agencies to safeguard against cyber-attacks, since many of these large-scale attacks originate from overseas.

However, don’t freak out. There is a means by which you can help protect yourself. Meticulously check your bank statements and be aware of any unusual purchases, particularly from online sources, since the identity of the perpetrator can often be masked. Banking institutions have security systems of their own in place, but it is still important to be diligent with your own finances because no system is foolproof.

You Are a Prime Target

In the past, there was little attention paid to younger adults when it came to identity fraud, but recently this has changed. Younger adults, even grade school children, are prime candidates for identity theft because they either have a limited credit history or no credit history at all, which gives identity thieves a relatively blank slate to work with.

There are ways you can protect yourself from these things. Avoid phone solicitations offering credit card enrolments. If you have never tried to open your own credit account but are receiving large amounts of credit card promotions in the mail, this may be an indication someone is trying to open a credit account in your name.

Remember, some of your information is regularly and legally shared, or even bought and sold by companies that collect data like addresses and phone numbers. Normally, this only produces junk mail or unwanted phone solicitation. But, just in case, regulate how you share personal information, and with whom you share it.

What is 60-103 Information?

This is a code many students and adults are unaware of, but 60-103 information is a person’s most sensitive information used for the purposes of taxation. This type of information may include your social security number, bank account numbers, and-most recently- political party affiliations or groups you have donated money to.

Very few people or institutions outside of yourself and the IRS are authorized to have access to this information. Recently, there have been several scams where perpetrators have preyed upon people’s general fear of the IRS, and pretend to be IRS employees contacting you by phone. It is important to be aware that the IRS almost never contacts a person by phone or by email. They do so generally through the postal service. A good rule of thumb is to never give out this type of information to anyone claiming to be an IRS employee by phone or by email.

Keep Eyes-On

In some places where you purchase items or services you are required to hand someone your credit or debit card for them to swipe. This is okay, as long as you try your best to keep an eye on the person you are handing your credit or debit card to.

The reason being is that there are actually devices sold relatively cheaply online that are capable of “cloning” a credit or debit card. Frighteningly, a person can simply swipe your credit or debit card through this device, and a “cloned” card with a magnetic strip can be reproduced containing the necessary banking information to make a purchase.

Although these “cloned” versions will not look like your card, they can often be used in places that have self-checkout services, such as supermarkets, where no one is physically watching the card a person is using to make a purchase. Most banking institutions have systems in place to recognize when one of these “cloned” cards are used, but it may take at least one or two purchases before their security measures catch up with the perpetrator, cancel the card, and notify the rightful cardholder.

Once again, be aware of any unusual purchases in your bank statements, and notify your bank right away if you see something suspicious. They can normally tell you when and where the purchase was made, and will generally refund the money used.

“Do Not Trust, but Verify”

This actually a quote used by Ronald Reagan when speaking about the former Soviet Union, but we can just as easily use it to help avoid fraud and identity theft. The best defense against these types of perpetrators is intelligence. Keep an accurate account of when, where, and with whom you use your credit card, debit card, and personal information.

Do not make online purchases or accept offers that seem questionable. Avoid online jobs that offer to pay you by check in advance, before any work or service is performed. I’ve actually run across this scam personally when I was offered payment for tutoring services I had not performed yet, before even meeting the prospective student.

When I requested identification of the person they simply told me to trust them, and then they sent me something that looked similar to a check. When I tried to verify the address the check originated from, it turned out to be from an abandoned barn somewhere in Midwestern Texas. I immediately reported it to my local precinct and was made aware that if I had attempted to cash the check, not only would I not receive any money, but my bank account number would have been transferred to where the check originated from.

I’m not suggesting that you to hide in your dorm room, turn out the lights, and draw the shades, but I am warning you. Identity thieves and scam artists prey upon those who walk around as though they are in a dark room. Just be forthright and intelligent about your money and your credit; you’ve worked hard for it. Identity theft and fraud are serious crimes, and if successfully perpetrated against you, can take quite a bit of time to clear up. Your brain is always your best weapon and a thief’s worst enemy.