As fresh graduates descend
from the ivory tower (bearing their unstained diplomas), many will eventually
encounter “real world” interactions for the very first time, and they run the
risk of being eaten alive out there. Identity-connected scams,
dark schemes and credit status traps litter the way to financial success. And
for many of those new graduates who confidently say, “It will never to me,” get
ready for you bubble to burst.
Information
violations and the identity-theft crimes that arise from them have become
realities in life, next only to death and taxes. But there are a few things you
can undertake to improve your protection
against them, identify the problems and reduce the effects in case the
inevitable happens. However, if you believe a compromise to your identity or
credit will never cause you to incur a good amount of money, you will be
surprised to realize the emotional turmoil and endless moments of annoyance
spent regretting things which are non-refundable.
New grads must bear this in
mind: Your personal identity and credit are significantly precious assets. And
whereas it might be quite early in the game to seriously consider your
investment portfolio, you now have a built-in two investment-grade portfolios
that you ought to manage well: your identity portfolio and your credit
portfolio.
Take a look at a few general
rules in the game that will aid you to protect your identity that, if you
observe them, could make it easier for you to succeed.
1. Credit Cards
If you are newbie to the world
of credit cards, you tend to make some beginner’s errors that may lead to
identity risk.
First, be wary as to where you
divulge your credit card data. Consider yourself as your worst enemy when it
concerns credit card scams if you fail to observe proper security steps when
sharing your credit card information over the websites, to companies and even
to friends. And while scammers have a way of stealing your account numbers,
taking extra care if you live with roommates will protect you in a big way.
Make sure to check your
account statements as often as you can, even daily, for unauthorized
withdrawals or purchases. If anyone steals your debit or credit card number and
goes out to spend like a king, and you fail to discover it early enough to
prevent more damage, you could find yourself back to zero.
Keep track of your credit
report and note how your credit standing moves. This will allow you ascertain
that all the accounts listed there belong to you. Usually, the first sign that
says you have fallen victim to a new account fraud arises from these reports.
Being aware lets you face and deal with the issue way before a collection firm
asks for money you did not spent. Check your credit reports without being
charged yearly from all three credit reporting agencies through this site:
AnnualCreditReport.com. Likewise, you can check two of your credit scores for
free with a Credit.com account – in case you observe an unexpected reduction
in your credit scores, check your reports for any issues, including fraudulent
accounts.
2. Utilities
What about utilities? You
phone a customer service agent who gets your name, address and phone number,
and when your bill comes on the last day of the month, you pay accordingly.
Sounds so simple, even a child could do it — which is exactly the problem.
Identity thieves are so good at stealing electricity in your name, and since it
is that easy for anyone to set up an account using your name, you may not be
aware of it until you receive a notice from a collection agency for unpaid
utilities bills and your credit status falls.
Here is what you need to do:
Take extra time assessing your bills and immediately check on any doubtful
items, pay your bills on time always, (think of enrolling in a direct debit
plan), safeguard your personally identifiable data (which means protecting your
Social Security number from everyone except the select few who have to know
it), and keep in mind that monitoring your scores and your reports often can
warn you of any issue soon enough. One could never be too paranoid when it
comes to monitoring nowadays.
3. Applying for Jobs
Many fresh graduates are not
aware that a significant number of firms and institutions will check credit
reports (not credit scores) prior to offering anyone a job. They are required
to obtain a permission from you (often in writing) before looking at your
reports and most of them will ask for your Social Security number, a primary
asset in your identity portfolio, for them to do so.
Obviously, you have to be sure
the employer is authorized, and if you feel uneasy about divulging your Social
Security number to a potential employer, conduct a little research before you
give it. Many job scammers will take your SSN upfront, before they even
interview you.
4. Filing Your Taxes
For a few new graduates, taxes
have never entered their vocabulary or their limited world. It may be that
their parents filed taxes for them, or they have never worked at a job to make
it necessary.
If you are new at dealing with
taxes, be aware of this: Not every person who offers to assist you will be
trustworthy. Thieves abound everywhere, so take a careful look before getting
an accountant or a tax-preparation service provider. Tax-connection
identitytheft is one more reason why you must check who has access to your
personally identifiable data. If a scammer files a tax return in your name
before you do, you will spend six months or more waiting for the IRS to rectify
the error and give you a refund.
Last Word on Identity
Protection
In the realm of personal
finance, many kinds of fraudulent people will try to take advantage of you,
snatch your personally identifiable data and possibly decimate your credit.
They revel in feasting over fresh-graduate meat. Not surprising as most new
graduates still have a clean credit record and may not know the possible harm
that identity thieves waiting at a dark corner can do. But if you carefully
manage and attentively check your identity portfolio, it will be a real asset and
not a liability.
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