Preventative Measures Banks Take to Reduce Your Risk of Identity Theft
Identity Theft Can Be Harder for Criminals to Commit Thanks to Increased Security Measures
Identity theft is a growing threat but luckily banks and other businesses are doing something to reduce consumers’ risk of identity theft. You might have already experienced some of the new ways that companies are trying to reduce the risk of identity theft for their customers.
Identity Confirmation
One way companies have been trying to reduce identity theft is to ask consumers many identifying questions to confirm that the customer is who they say they are. It used to be that social security number was the biggest identifier for confirming who a person was. Now companies are asking obscure questions such as “What was the name of your first dog?” or “What is your grandmother’s maiden name?” These questions might seem like a nuisance, but they do help to eliminate the risk of identity theft. The questions banks and credit card companies ask are usually questions that identity theft criminals would not have easy access to.
Banks also ask specific questions before speaking to customers nowadays in order to reduce the possibility of identity theft. When I call my bank, one question that I’ve been asked is to confirm the exact amount and date of my last deposit or withdrawal.
The Extra Effort is Worth It
Some consumers get annoyed with the extra time and effort required to answer these questions, but overall it is extremely helpful for reducing their risk of identity theft. Many consumers are actually glad that banks and other companies now have these extra precautions in place. If you accidentally leave your debit card behind, it will be that much harder for an individual to call up your bank and pretend to be you to get information about your account.
Because banks and credit card companies are taking extra precautions, identity theft criminals are limited in the amount of damage they can do if they do get a hold of your bank account or credit card number.