What is identity fraud?

Identity fraud is when someone uses your personal information to make purchases, withdraw cash, set up accounts and services, and secure loans in your name without your approval.

It’s key that you learn how to protect yourself from scams coming your way.

HOW CAN YOU PREVENT IT?

• Shred everything with your name, address, credit card numbers and bank account on it before you throw it away. This includes credit card offers you get in the mail.

• Opt out of pre-approval offers.

• Sign up for paperless billing.Guard the big stuff. Leave your birth certificate, Social Security card and passport at home, unless you really need it. And limit who you share any of those numbers with. Avoid oversharing on social networks.

• Leave your full name, address and birth date out of your profiles.

• Ignore friend requests from people you don’t know. Be careful when shopping or banking online:

• Shop only on secured sites that start with https.

• Log out of any accounts before you shut down your computer (e.g., email, bank account, student account).

• Avoid shopping or banking on public school computers; and if you have to, never save your username or passwords.

• Password-protect your phone and apps.

• Download software updates regularly.

• Take advantage of security technology such as fingerprint logins. Monitor your statements.

• Check your statements every month to detect any charges that aren’t yours.

• Notice if your statements stop coming (someone might have switched the address).

• Look into any contracts or statements you receive in your name that you didn’t apply for.

IF YOU SUSPECT YOUR IDENTITY HAS BEEN COMPROMISED, ACT QUICKLY! MOST PEOPLE WHO STEAL CREDIT CARDS AND OTHER FINANCIAL DATA ACT WITHIN THE FIRST 48 HOURS

1) Act quickly!

Because, if the fraud happens and the bank is not at fault and it was committed by a third-party through an act of scamming, phishing etc, the RBI rules says that the customer is not required to pay if the breach has been reported within three days of the fraudulent transaction. Given below is the maximum liability set by RBI and the amount to be paid if you weren’t able to report it on time.

Scenario	Liability of Customers
Negligence or deficiency on the part of the bank	Zero
Third party breach and the customer notifies the bank within three working days	Zero
Third party breach and the customer notifies the bank within four to seven working days	Rs. 10,000 if credit limit <= Rs. 5,00,000 Rs. 25,000 if credit limit > Rs. 5,00,000
Third party breach and the customer notifies the bank after seven working days	As per bank’s policy
Due to negligence of customer	Customers will bear entire loss till they report unauthorized transaction to the bank Loss occurring after the reporting of the unauthorized transaction shall be borne by the bank

2. Alert the credit reporting agencies.

• Contact one of the credit reporting agencies—either CIBIL, Equifax, ICRA or RISIL and that agency must tell the other two.

• Ask them to place a fraud alert on your file, to make it harder for someone to open new accounts in your name. A basic alert last 90 days, but you can extend it to seven years.

3. Report the theft to the Federal Trade Commission.

• Complete its online complaint form, giving as many details as you can.

• Save and print off your FTC Identity Theft Affidavit.

4. Report the theft to the police. File a police report, so you have official record of the fraud. You’ll need this, along with the FTC Affidavit, to prove to businesses that identity theft occurred.

FINAL NOTE:

Once you’ve completed all the right reporting, it’s time to remedy some of the damage.

• Close any new accounts that have been opened in your name.

• Remove any unauthorized charges from your accounts.

• Correct any fraudulent entries on your credit report.

If you encounter people who aren’t being cooperative, inform them of your fraud victim rights

You can prevent identity fraud from happening to you by knowing what to look out for and being careful with your money and personal information.