Even though many companies and retailers have taken precautions to keep individuals' personal information private, the abundance of ways in which someone's personal data can be retrieved has made identity theft a major issue in the U.S. today.
According to numbers cited by the Insurance Information Institute, there was a 13 percent increase in identity fraud in 2011 compared to the previous year, based on statistics gathered by Javelin Strategy and Research.
Fortunately, many people have accounted for this and are taking the appropriate steps to protect their identities. Still, according to Gail Cunningham, vice president of media relations for the National Foundation for Credit Counseling, some aren't as vigilant as they need to be.
"People often become complacent, particularly with their mobile devices," said Cunningham. "When people see their wallet, credit cards or checkbook, they think of money. However, they don’t connect the dots that critical financial information may be stored on their smart phone, thus putting them at significant risk if it is lost or stolen."
A prime place in which a person's identity can be stolen is through their employee benefit information, as these documents often contain Social Security details, financial data and other particulars that are meant to be kept private.
How to guard against identity theft
In the course of employee benefit consulting, it may be wise to recommend employees adopt some of the strategies that the III offers.
For example, while employee benefit particulars should be kept in a safe, undisclosed location, people have to have some type of ID on them. But the III says what is kept on one's person should be the bare minimum, such as a driver's license and one credit card. Multiple credit cards or a Social Security card should be left at home.
It's also wise to be circumspect when entering personal information in a public setting. The III advises covering one's hand when using an ATM machine so others can't determine what their code is.
Something else to be mindful of are receipts. Unneeded receipts are often thrown away cavalierly. This is a bad idea, though, as they can be pilfered out of a trash can by a potential identity thief. Know where these receipts are at all times or shred them if they're not necessary, the III advises.
