Sometimes the best measures to prevent identity theft fail; in such cases, the next best thing is early, or rather, the earliest identity theft detection. How do you do that? How would you know when your identity has been stolen and misused? Fortunately, there are ways to do this:
- Set up fraud alerts with the three major credit bureaus. This means that credit providers would be extra careful when opening a new line of credit in your name. Often, this is simply phone verification with the applicant before the credit is approved. However, if the thieves have enough of your information- this action may fail. Though not foolproof, it is often enough to dissuade the thief.
- Credit caps – This is an excellent way to insure that you will never have to worry about paying for genuine or fraudulent purchases above a pre-determined amount. This action causes the credit company to freeze or suspend any further purchases once that amount has been reached.
- Alerts for each credit and/or payment made through credit/ debit cards – Alerts are an excellent way to tell you in real time what is happening to your financial life. This is one of the easiest and most popular ways of identity theft detection. It helps you quickly identify activity which you did not initiate and allows you to take proactive measures immediately.
