Credit identity theft is a growing problem in Australia and around the world. It occurs when someone obtains your personal information, such as your name, date of birth, and address, and uses it to open new credit accounts or make fraudulent purchases in your name. This can have a significant impact on your credit score and financial well-being. In this blog article, we will explore ways to protect yourself from credit identity theft and the impact it could have on your credit score.
What is credit identity theft?
Credit identity theft is a type of identity theft that involves the theft of your personal information for the purpose of obtaining credit in your name. This can happen when someone obtains your personal information through various means, such as stealing your mail, hacking into your online accounts, or stealing your wallet or purse.
Once the thief has your personal information, they can use it to open new credit accounts or make fraudulent purchases in your name. This can result in bills for products or services you never ordered, damage to your credit score, and even legal issues if the fraud goes undetected for too long.
How can you protect yourself from credit identity theft?
There are several steps you can take to protect yourself from credit identity theft. Here are some of the most important ones:
- ● Check your credit report regularly: You should check your credit report at least once a year to make sure that all the information is accurate and up-to-date. You can obtain a free copy of your credit report from one of the three major credit reporting agencies in Australia: Equifax, Experian, and Illion. If you notice any suspicious activity on your credit report, such as accounts you didn’t open or purchases you didn’t make, contact the credit reporting agency immediately.
- ● Secure your personal information: You should keep your personal information secure at all times. This means not sharing your personal information online or over the phone, shredding sensitive documents before throwing them away, and using strong passwords for your online accounts.
- ● Be careful with your mail: You should be careful with your mail and make sure that you receive all your bills and other important documents. If you don’t receive a bill that you were expecting, contact the company that sent it to you to make sure that it wasn’t stolen.
- ● Be cautious when using public Wi-Fi: Public Wi-Fi networks can be easy targets for hackers who are looking to steal personal information. Avoid using public Wi-Fi to access your financial accounts or other sensitive information.
- ●Be cautious of unsolicited emails and phone calls: Be wary of unsolicited emails or phone calls asking for your personal information. If you’re unsure whether an email or phone call is legitimate, contact the company directly to verify its authenticity.
What is the impact of credit identity theft on your credit score?
Credit identity theft can have a significant impact on your credit score. If someone opens new credit accounts in your name and then fails to make payments on them, your credit score will be negatively affected. Even if you’re not responsible for the fraudulent accounts, they will still show up on your credit report and lower your credit score.
If you discover that you’re the victim of credit identity theft, it’s important to take action immediately. Contact the credit reporting agency and any companies where fraudulent accounts were opened. You should also file a report with the Australian Cyber Security Centre (ACSC) and the Australian Federal Police (AFP).
In conclusion, credit identity theft is a serious problem that can have a significant impact on your credit score and financial well-being. By taking steps to protect yourself from identity theft, such as checking your credit report regularly, securing your personal information, and being cautious with unsolicited emails and phone calls, you can reduce your risk of becoming a victim. If you do become a victim of credit identity theft, take immediate action.
