Financial Risk | Practical Money Skills

Financial Risk

Have you ever been a victim of identity theft? If so, you’re not alone — criminals stealing your personal information so they can use your identity is an increasingly unfortunate and prevalent reality. In 2019, 14.4 million consumers worldwide became victims of identity theft. The consequences can be long-lasting and have serious repercussions. While many victims are able to deal with it quickly, some may spend a month or more resolving the issues caused by identity theft. Even if the problems are resolved, the financial loss can be severe. Many victims lose money as a direct consequence of identity theft, and a small percentage of them can lose hundreds or even thousands of dollars. 

Identity theft can take many forms. With financial identity theft, it’s often a case of bank accounts or credit cards being accessed and used illegally. For example, the thief may withdraw cash or max out a credit card. This can have a serious impact on your credit score. Another form of identity theft is when criminals gain access to your personal information and use it illegally — to take out loans or open credit card accounts in your name, for example. 

Fortunately, there are steps you can take to avoid it. Learn what the signs of identity theft look like, how to best protect yourself from fraud and what to do if you become a victim.

Source: Identity Force

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Quick Quiz

To lower your chances of becoming a victim of identity theft, it’s important to understand how to best protect your finances and personal information. Take this quiz to learn how you can better secure your personal finances.

1
Security breaches are easier to address with which payment form?
A
Cash
B
Check
C
Credit card
D
Debit card
Correct!

With a credit card, consumers have plenty of time to notice unauthorized charges, notify their issuer and have them removed.

Not quite.

Security breaches are easier to address with a credit card. Consumers have plenty of time to notice unauthorized charges, notify their issuer and have them removed.

2
Which of the following is NOT an example of safe Internet use?
A
Delete spam emails that ask for personal information
B
Keep your antivirus and anti-spyware software up to date
C
Shop online only with secure web pages
D
Archive credit card information in your email
Correct!

Sending or saving credit card numbers, government ID numbers and other personal information via email puts your personal information at risk of theft.

Not quite.

Never send or save credit card numbers, government ID numbers or other personal information via email.

3
What is a potential warning sign that your identity may have been stolen?
A
You receive goods at your home that you haven’t ordered
B
You see unauthorized purchases on your credit card statement
C
You receive debt collection calls for services you didn’t use
D
All of the above
Correct!

If you receive goods that you haven’t ordered, see unauthorized purchases on statements, or receive debt collection calls for debts that are not yours, these are all signs that your identity may have been stolen.

Not quite.

Yes, but you missed a couple more warning signs. If you receive goods that you haven’t ordered, see unauthorized purchases on statements, or receive debt collection calls for debts that are not yours, these are all signs that your identity may have been stolen.

4
Which of the following is an appropriate organization to contact in the case of identity theft?
A
Your bank
B
Law enforcement
C
Credit bureaus
D
All of the above
Correct!

Your bank, law enforcement and credit bureaus are all appropriate entities to contact in the case of identity theft.

Not quite.

Your bank, law enforcement and credit bureaus are all appropriate entities to contact in the case of identity theft.

5
If you’ve been a victim of identity theft, it’s a good idea to contact credit bureaus, if available, because they can help you:
A
Dispute fraudulent information with lenders
B
Advise on additional security options
C
Check for future fraudulent applications in your name
D
All of the above
Correct!

Credit bureaus may be able to help you dispute fraudulent information with lenders, advise on additional security options and check for future fraudulent applications in your name.

Not quite.

Yes, but you missed a couple. Credit bureaus may be able to help you dispute fraudulent information with lenders, advise on additional security options and check for future fraudulent applications in your name.

Your Score

Nice job!

You’re your own identity theft security guard — check out these tips to stay successful.

Nice job!

You’re on the path to becoming your first line of defense against identity theft — check out these resources to become even better at protecting your personal information.

Too Bad!

You’re new to personal finance with lots of identity theft protection potential — check out these resources to learn how to be as safe from identity theft as possible.

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How Much Do You Know About Identity Theft?

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