Identity Theft-Problem And Methods Of Protection.

Three men were indicted Monday for stealing 130 million credit/debit card details.The ease with which these people could do it is quite disturbing.This is the latest episode in a long list of such incidents.What is even more unfortunate is that most of these cyber crimes are being committed by foreigners living in countries with weak laws or weak enforcement against such crimes.Their law enforcement agencies also tend to ignore such incidents as the victims are foreigners.

Whatever the reason behind such incidents,there is now a real risk that all of us may have our identities stolen at least once in our lifetime.Although the financial loss suffered as aresult of such theft may not always be large,as banks and credit card companies usually pay up in cases of fraud,the impact may still be very painful.It often involves years of paperwork and legal wrangling before you are freed of any financial liability in the event of misuse of your credit card number.What is worse that your credit rating may be damaged making it much more difficult to get fresh loans in future and raising your interest charges a well.

The reason why such frauds happen are many.The most important reason perhaps is that credit card payment processing companies have promoted convenience and speed of payment at the expense of security.Encryption of stored credit card data is a simple way by which stealing and misuse of such data can be made more difficult.Although one can't help handing over his card to a shop assistant while making a payment,the chances of a card number being remembered and misused are slim.However what one should avoid under any circumstances is divulging personal information over the computer or telephone in what are known as 'phishing'or'vishing' scams.Other more dangerous attacks occur when unauthorized programs or 'malware' gets installed onto your computer and steals your information.Then there are 'pharming' attacks wherein fraudsters direct you to phony look-alike websites where you do not hesitate to reveal your personal details.

There are time tested methods to help you avoid becoming the victim of identity theft.When you come across an online bargain which is too good to be true just walk away.Don't open e-mail attachments unless you know the sender and only have financial transactions on secure sites.It is also a good idea to ask your credit card company to put an alert on your card so that your permission is required over telephone if someone tries to secure a fresh line of credit.Rather than use unsolicited cards which you receive in the mail it is also better to use those which you have applied for.Finally it is high time that a proper system of insurance against credit card misuse is put in place with the credit card companies being asked to contribute a part of their profits towards the premium.