Financial Identity Theft & Your Financial Security
As Conrad Walters writes in the Sydney Morning Herald blog, the backlash against the invasion of consumer privacy has started to heat up. So what risks are posed for your identity and your financial security?
Is Nothing Private?
We’re so used to invasive questions, we hardly blink anymore when we get asked for our postcode or home address when purchasing any old item. Our driver’s licenses get scanned at clubs, and copied when we start a new phone plan. Everywhere, aspects of our identity are left, like a trail. And with cyberspace, as is oft repeated, the whole situation only gets trickier.
Breadcrumbs of your consumer patterns and identity are strewn across the Internet, and the legal protection of that information is just not keeping up.
Is It Necessary?
They might not seem like a big deal at the time, but identity theft and fraud are increasingly becoming concerning crimes. You only need have your credit card stolen and someone go one a bender with it to understand the important of protecting your privacy. According to the nation’s privacy principles, personal details need only be collected when it’s crucial for the company to conduct business. While that’s a bit hazy, it certainly does not apply to a lot of settings where we give up details about ourselves. And often it’s for no purpose other than to improve the effectiveness of their marketing according to your consumer patterns.
Challenge and Sight
As mentioned by Walters, an important step is to challenge companies as to why they need the information. Who will they be sharing it with? How do they protect? And what, exactly, are they planning to do with it. If you feel comfortable with their answers, then fine, but unless it’s a legal requirement, then you should feel no compunction to part with personal information.
On top of the endless questions, some companies copy personal documents, like identification, leaving you exposed to greater risk. I never even think about it, I must hand over my driver’s license a couple of times a year to have it photocopied by people who can have no real reason for needing it. And if the document is just kept in any old draw, there’s a lot of attendant risk that comes with that.
Warranty
According to the experts in Walters’ article, the claim that the information companies ask for as necessary for warranty is balderdash. If they’re selling the item, it should be able to fulfill its job.
If it doesn’t, you’ll bring it back with a receipt. State that calmly, explain your reasons (or don’t, it’s none of their business anyway) and politely refuse.
The Risks
Handing out information has two risks- one, that you have no idea where the information is going. Two, the more it is out there, the greater the risk of it being abused. Think about your license, and the quantity of personal information that it contains. Someone getting hold of that could know an awful lot about you. Being serious about identity theft and fraud will become increasingly important as the battles rage on about privacy legislation and consumer protection, as well as the Internet making identity fraud easier than ever. Protect yourself now by being wary and understanding that, as a consumer, you have a right to question and say no.
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