Identity theft occurs to an estimated nine million Americans each year, according to the Federal Trade Commission. Out of those nine million, almost half of them are students.
To prevent becoming the next victim of identity theft, there are necessary precautions every individual should take.
A report by the U.S. Department of Education stated that half of all college students receive credit card applications on a weekly or daily basis and throw them out without shredding them first. One third of students don't check their credit report and 50 percent of students have their grades posted by social security numbers.
These factors along with many others put college students at higher risk for identity theft. According to the U.S. Department of Education, students should start learning how to protect themselves now in order to avoid serious financial problems later.
"I don't think I'm at risk for identity theft because I'm pretty careful about where I give out my social security number," said Chelsea Harmon, a sophomore media study major. "I take basic precautions to protect myself."
However, what most students don't know is that every day activities like discarding credit card offers, performing online banking transactions on a personal computer or even something simple like using a cell phone, can put students at risk for identity theft, stated the U.S. Department of Education.
Students are more at risk for suffering from severe consequences from identity theft, according to the FTC, because they do not habitually check their federal credit report and score. Thousands of dollars in debt could happen in a student's name and they wouldn't even know about it until months later, when the amount of debt incurred is already too high and has damaged their credit score permanently.
Step One: Shred. The best steps that students can take in order to protect themselves from identity theft are to shred unwanted credit card applications and other papers that may have identifying information on them.
Since many applications come pre-approved, anyone could sign up for a credit card and then rack up thousands in debt under that name.
"I'm not worried about identity theft too much," said Mike Phillips, a freshman fine arts major. "I hardly ever use a credit or debit card to pay for anything, normally I just use cash."
Step Two: Memorize. Students should memorize their social security number or any passwords they have to avoid writing them down. Never set passwords to yours or a family member's birth date. Finally, order a credit report from all the major credit agencies and review them thoroughly in order to avoid incurring false debt in their name.
Step Three: Credibility. According to the U.S. Department of Education, students can also be at risk for identity theft by applying for student loans.
When applying, never apply for loan through a free financial aid service that doesn't require a user name and password. Creditable financial aid services are free and password protected.
The US Department of Education also advises that students never reveal their pin to anyone. If they are applying for financial aid through another agency other than FAFSA, they should use the Looking for Student Aid Site to make sure that the agency they're using is creditable.
Step Four: Ask questions. Students should be especially careful to whom they give their social security number out to. It is reasonable to expect one's employer, school or bank to require a social security number for loans or credit background checks, advises the US Department of Education. Think twice before giving a social security number to anyone else.
If any establishment asks for a social security number for general book keeping, the US Department of Education reports that students should ask the person four questions first:
Why do you need my SSN?
How will my SSN be used?
What law requires me to give you my SSN?
What will happen if I don't give you my SSN?
Knowing the answers to these four questions can help save students from thousands of dollars worth of debt and a ruined credit report that could haunt them for years to come. A bad credit score, reports the FTC, can hurt student's chances of getting a car loan, buying a home or even getting approved for a mortgage.
"As students we have to use our student and social security numbers on almost every form we fill out," said Jamie Bertosino, a freshman legal studies major. "It would be easy for anybody who has access to these forms to just take my social security number and steal my identity."
Photo: Courtesy of Laron Fomby
