Identity theft - more than a TV show
The current ABC drama series "Identity" is highlighting the sometimes extreme consequences of having your identity stolen.
For any of us, though, having our identity stolen can be stressful and expensive.
Identity theft is the theft and use of personal identifying information of an actual person, either living or dead. Criminals normally do this in undertake to undertake identity fraud, which is defined as gaining a benefit by deception (usually financial).
Identity theft happens in several ways. It can range from somebody using your credit card details illegally to make purchases over the internet or telephone, through to having your entire identity assumed by another person to open bank accounts, take out loans, make tax returns and conduct other business illegally in your name.
Simple Precautions
By introducing some practical precautions into everyday life, you can take an active role in reducing the risk of identity theft and fraud.
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Only carry with you those credit cards you intend to use, and leave the rest locked up.
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Never let your credit card out of your sight. It only takes a second to ‘skim’ your credit card and so steal all of the details held in the magnetic strip.
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Don’t leave your personal documents lying around. Keep such documents in a locked safe or filing cabinet.
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Ensure your home letterbox is locked and secure, this will prevent the stealing of personal information from your mail.
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Remove registration papers, driving licences, bills etc from the glove box of your car.
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Tear up, burn or shred any unwanted documents containing personal information before putting them in the bin.
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Before giving your credit card details over the ‘phone, make sure these details are being used for a legitimate purpose, and check your credit card statement to make sure you have not been made a victim of identity theft.
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If you buy goods or services on the internet, check the site you are accessing is a secure site. If you are a regular purchaser online, use a third party payment provider such as Paypal.
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Check your credit report regularly to make sure nobody has been misusing your personal information for criminal purposes.
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Change your ISP and computer passwords regularly.
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Don’t keep personal information on your computer hard disk. Instead, save it to a CD or floppy disk. Also don’t use automatic log-in features that save your password.
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Keep your virus protection software up-to-date. Also, never open e-mails or attachments that you are not expecting without running your virus protection.
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Be wary about using public access computers (e.g. at internet cafes) for personal transactions as they are notoriously insecure.
- Install a firewall protection program onto your computer to help to stop unauthorised access.
If You Are A Victim
If you do become a victim of identity theft, there are a number of steps you can take to recover your good name and limit the damage done:
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Report identity theft to the police. Identity theft is like any other theft - it must be reported to the police. Provide all documentation necessary to assist the police in investigating the crime.
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Contact the Credit Reporting Agency. Report that you are a victim of identity theft. Ask that an alert be placed on your file, and ask that you be contacted by phone if credit providers want to open accounts for you.
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Check your credit file carefully for unauthorised entries. Look for accounts that have been opened in your name, or unauthorised changes to your existing accounts.
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Close all accounts. Contact all the businesses with whom unauthorised accounts have been opened in your name and ask them to close all fraudulent accounts. Also close all legitimate accounts and open new accounts with new PINs and passwords.
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Keep all documentary evidence of fraud. Take notes, keep copies, keep police reports, get confirmation of conversations and actions in writing. Never send originals away in the mail - if documents are required by someone else, send photocopies.
- Take action to clear criminal records. This will require the help of the police. You may have to undergo police routines of photographing and fingerprinting to establish that you are not the same person as the person who stole your identity and used it fraudulently.
Don't make these mistakes
Everybody makes mistakes, even property investors. And they can be expensive.
Here we explore the five biggest mistakes property investors make – and more importantly, how to avoid them.
Here is a list of five common mistakes that property investors can make - that can easily be avoided.
1. Not being objective
If you inspect a property and care what the curtains look like, whether the kitchen has stainless steel appliances and what the colour scheme is, you’re probably making this mistake.
Many investors forget that purchasing an investment property is for someone else to live in – a tenant. They review the property with their own expectations in mind.
Investors would be better advised to speak to property managers about what features are desirable for tenants in a given area, rather than thinking about what’s desirable for them. For example, in a family-oriented area then a well-fenced backyard would be important.
2. Not seeking expert advice
Investors who sign on the dotted line without consulting their accountants, solicitors or finance brokers are risking the success of their investment.
Many people don’t use these experts so as to avoid the cost. But there is a much greater cost to not using them. How many of us can be experts in tax, financial planning, or give ourselves some objective advice?
It is worth checking whether the experts invest in property themselves, to ensure that their advice is backed up by hard, practical experience.
3. Not having a “risk mitigation” strategy
Many investors fail to ask themselves some basic questions that would help them to reduce their risks.
For example what happens if:
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The property can’t be tenanted for a period of time
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The property burns down or is damaged by flood or storm
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Interest rates go up by another one per cent or more
- Circumstances change, for example they lose their job.
Investors need to have a back-up plan for when things go wrong. For example they should consider:
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insurance not only for building and contents, but also landlord insurance to protect against rental loss or damage. Further, perhaps income protection insurance would provide added peace of mind in case of job-loss.
- the type of home loan that they use to purchase the property. Would a fixed rate be better, or perhaps a flexible line of credit.
having access to extra funds, either their own savings or an easily accessed loan.
4. Not doing the research
Doing enough research prior to making the purchase will help the investor work out whether the property is a good buy or not.
The selling agent, whilst useful, should not be the only source of information. After all, they are working for the seller.
Nothing beats doing your own research:
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How far away are facilities such as schools, shops, transport and medical facilities?
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What is the history of capital growth in the area?
- What is the demand for rental properties like? Are there many vacant properties for lease – why?
5. Not crunching the numbers
Most investors rely on rough estimates rather than sitting down and doing the hard numbers related to their purchases. Particularly when looking at negatively gearing a property, investors need to know how much they will need to spend each month and work out whether thay can afford it.
For those investors who can’t do the calculations on paper, investors should consider the purchase of inexpensive property analysis software that helps do the sums.