Friday, 14 July 2017

Hidden factors that you should be aware about Identity Theft

Identity theft is something that challenges modern banking on its face. While digitalization has added ease of business and money transactions, it has added risk of concealing your face every day. Have you ever realized that you carry a risk of virtual duping or this theft every day by using a plastic card in the restaurant, or making an online purchase? The rising number of Identity theft cases are not only alarming but it is also a cause of broken credit reports globally.
In both the cases, the consequences can leave you cash strapped and indebted for life for unknown draws. It is estimated that 1 in 5 persons are denied credit cards because of bad credit caused due to this. There could be varied levels of cyber crime involving your identity breach. Thus, you need to be aware of certain hidden factors about the identity thefts.
What does Identity theft mean?
Using the personal information of the other person such as name, Aadhar card number, driving license number, credit card number or other identifying information to take on the identity of the person in order to deceive someone or commit other crimes can be termed as Identity theft.
In today's world of hyper connectivity, a large portion of people give careful consideration to every element to protect their financial details as it is not easy to find a bad credit fix. 
These can undeniably affect your CIBIL score. It is important to keep yourself well versed about the effects on your CIBIL score due to identity theft.
Financial impact of identity theft

Problems related to credit cards:
In the case of identity theft, the pretender may spend on your credit card and you get a bill for those expenses. At times you are not even aware about if someone is utilizing your credit card till the time the bank calls you to make you aware of this. You are intimated that you owe them a weighty exceptional amount. The impostor may even contact other credit card issuing organizations, submit an application for credit card with your documents and make use of it without you being aware of the same.
If someone has a decent CIBIL score, it is not difficult for the scammer to get an instant approval for cards. It is only when you get to your CIBIL report; you would discover that someone is using a new card in your name. The horrifying thing is, that regardless of the fact that you may have given your best to build your CIBIL score for a decent number of years, it might plunge in a matter of days even though you are not at fault. The undue use of credit card by the pretender won't just increase your amount but it will also take up your credit utilization manifold, and thus letting go off your CIBIL score. Likewise each time the fraud makes a request for another credit card or a loan product; your CIBIL score will continue plunging down.

Problems related to bank account: Nowadays, lenders are reinforcing their security against cyber crime by putting in many layers of insurance for the comfort of their clients. But if your character has been compromised by a cyber-criminal, it is certainly feasible for him to hack your account electronically and re-direct the funds to some other account and this may bring bad conditions for you. In case the funds are utilized for some other criminal movement, it is conceivable that the account might be traced to you and you might be ensnared for a wrongdoing you have not perpetrated. Contingent on the earnestness of the wrongdoing you may even face capture. You may even get arrested which will depend upon the gravity of the crime.
Precautions one must take
Secure the online information- Nowadays, online shopping is a trend. Many people do shopping and banking on the internet and share their account numbers and passwords which can easily be used by some other person. To prevent this, one should clear logins and passwords. One should make payment with their credit card when they do shopping online. As credit card has better guarantees than online payment services or debit card under federal law.  The person should always verify before entering personal data that they are on a known website with security controls.
Keep a regular check on your bank account and credit card statements: It is important to verify bank and credit card statements at regular intervals to ensure peace of mind.
Verification of mailing address with the post office and financial institutions- This will help to prevent you from such theft.
Keep track of your credit report
Outdated bank statements, credit card applications, bills must shredded on a regular basis.
As you get to know about the identity theft, immediately file a police complaint. This has to be done at the local police station. You should provide them with all the relevant records. They may ask about the details like server logs, bank account details, access information (who all had access to your bank account details and to what extent). Finding the proof for this can help you improve CIBIL score.

Report this to the lender and the CIBIL
Despite the mental anxiety and emotional trauma that you are experiencing you should tell the concerned experts and do your best to find the criminal. To improve the current scenario of identity theft, action needs to be taken. Otherwise no one can fix this.

1 comment:

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