What can you buy for 40p? How about your credit-card details, name, address, and date of birth, all of which are being sold by fraudsters for “less than a can of cola”, warns security software firm Symantec. So should you rush out and buy expensive identity-theft insurance?
A recent spate of embarrassing losses of personal data by the government, combined with press articles on identity theft, has prompted many companies to try and cash in on everyone’s fear. For example, Royal Bank of Scotland charges £79.99 for up to £60,000 of insurance cover, plus free credit reports and alerts, and even a personal identity theft expert to work with you to “clear your name”. However, there are other, cheaper ways to protect yourself.
For starters, you don’t need to worry about financial losses resulting from someone stealing your personal details. According to the Banking Code you are not liable if either your bank card, or online banking service, is misused, “unless we [the banks] can show that you have acted fraudulently or without reasonable care”. The only exception is that you may have to pay up to £50 if someone uses your bank card before you notify it as being lost or stolen. So always keep the necessary emergency telephone numbers to hand. For a full copy of the Banking Code, either ask your bank or visit www.bba.org.uk.
As for protecting your personal details, apply common sense. Don’t, for example, write your pin code down, lend your card to other people, or disclose your account details. Also avoid being careless with old bank statements and receipts – invest in a cheap shredder, or just burn them.
Most identity theft takes place via the internet, where hackers can deploy viruses and have access to social networking sites. While you can easily buy anti-virus software, you can also get decent protection for free. Anti-Virus Guard, for example, “offers good all-round free anti-virus software”, says Ali Hussain in The Times. Microsoft also provides a firewall to Windows users, so just check your settings to make sure it’s up and running. For extra piece of mind, Hussain recommends Zone Alarm, which offers a basic firewall for free.
Next, make sure you aren’t giving away information via networking sites, such as Facebook. Limit the information you list and never give your address or date of birth.
Lastly, watch out for irregularities on bank statements or credit-card bills. And check your credit report occasionally for rogue loan or credit-card applications in your name. www.annualcreditreport.co.uk provides one free credit report a year, or Experian will produce one for £2.
In short, when it comes to your identity, a bit of care buys a lot of peace of mind.