5 Misconceptions about Identity Theft

From Linda Loraine

When it comes to protecting personally identifiable information(PII) and reducing risk of identity theft, the more accurate information you have, the better off you are. Here we share some common misunderstandings about identity theft and explain the reality of each:

Myth: Identity theft can be prevented completely.

Reality: There is no practice or product that can wholly prevent identity theft. There are several components of your personal identity which are collected and used for many reasons. They can’t be locked down in a way that allows only you to authorize their use. Certain tools and practices go a long way to reduce the risk of becoming a victim and to notify you of fraudulent activity early but you must understand that you cannot prevent every type of identity theft.

Myth: I use cash and don’t use credit so I won’t become a victim of identity theft.

Reality: There are two things to consider: First, just because you have not established a credit account, that doesn’t mean somebody else will not use your PII to obtain goods on credit. Second, identity theft affects far more than credit. Identity theft can involve criminal acts, medical care, banking, employment and more. It is important to monitor and protect your identifying information as much as possible regardless of your favorite payment method.

Myth: If I become a victim of identity theft, I will have to pay the debts created by the thief.

Reality: There are federal laws that protect victims of identity theft from being held financially responsible for debts created by an identity thief. See Statement of Rights for Identity Theft Victims. However, the victim must address the misuse of their PII in a timely and complete manner with the affected entities.

Myth: My credit report is monitored so I don’t have to worry about identity theft.

Reality: Credit report monitoring can help you discover potential credit-related identity theft early. While it may then provide an opportunity to take steps to prevent other cases of credit-related identity theft, you must approach credit report monitoring as a valuable tool of detection rather than prevention. As stated earlier, a thief can use your PII to accomplish much more than opening new credit accounts.

Linda Loraine - Ind Dist Legal Shield -  In the unfortunate event something does happen to your identity, you'll have professional help in getting your identity restored to what it was before the fraud occurred. Learn more at Legal Shield Plans