Follow Us: Google+
 
Bankrate.com

smart spending

Consumer complaint No. 1: Identity theft

5 of the most common consumer gripes
Identity theft

Identity theft topped the list of consumer complaints for the 12th year in a row in 2011, according to the Federal Trade Commission. About 15 percent of the complaints were about identity theft. Of those, almost a quarter were related to tax- or wage-related fraud.

"It's a quite frightening type of identity theft," says David Torok, director of the division of planning and information at the FTC.

To carry out tax- or wage-related fraud, a thief uses a victim's personal information and Social Security number to get a job. Any tax obligations from the thief's employment are attributed to the victim. Or a fraudster files a tax return in the victim's name and steals the victim's tax refund, Torok says.

"People discover it as they file their taxes," Torok says. "There's a real spike this time of year."

The first step to protecting against identity theft is safeguarding your Social Security number, says Steven Toporoff, an attorney in the division of privacy and identity protection at the FTC.

"You shouldn't carry it around with you. Be cautious anytime you use it," he says.

Toporoff also recommends checking credit reports regularly, monitoring bank and financial statements for accuracy, using strong passwords to access financial accounts, changing passwords regularly, and shredding financial documents before throwing them out.


 

advertisement

Show Bankrate's community sharing policy
            Connect with us
Compare Rates
advertisement
Most Read
  1. 8 eerie ghost towns
  2. Headlight requirements by state
  3. Nick Nolte's house for sale
  4. 6 tips for successful yard sale
  5. Social Security traps to avoid
  6. 7 sedans for the young at heart
  7. 10 cars for a midlife crisis
  8. Ali Landry's house for sale
  9. 7 Social Security benefits
  10. 5 car models that lose value
advertisement
Partner Center
advertisement

Advertising Disclosure: Bankrate.com is an independent, advertising-supported comparison service. Bankrate may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website.