When a consumer loses a credit card, identity theft is always a huge possibility. A stolen identity affects a finances and relations. If the identity is not taken back, the victim’s entire life could be destroyed. A consumer’s lost credit card could possibly lead to identity fraud that is why there are identity theft preventive measures that card holders ought to follow. These are effective ways to protect oneself from identity theft.

Losing a credit card is the first step towards identity fraud. Once your card ends up in the wrong hands, your financial credibility will suffer. It would be a prudent move for you to sign up for credit protection services. This way, you may be able to keep track of your credit even if the card is still lost.

How a Lost Card Contributes to Identity Theft

Nobody wants to lose a credit card. It’s an important financial tool, and if stolen, it holds valuable information that opens a lot of doors for the cardholder. When a consumer loses a credit card, identity thieves have a chance at committing identity fraud.

There are many ways by which a lost credit card could land in the hands of an identity thief. The card may be physically taken, skimmed, or copied. The basic information in the card may also be obtained from the owner through phishing or other online scams.

Once the information is obtained, the culprit will use that information by copying it onto another card. With this new card, the thief will be able to withdraw from the victim’s account or make purchases in the victim’s name. The thief could also use the credit information he has in applying for loans and opening new credit accounts.

If the erroneous changes in the account aren’t refuted, then the thief will be able to succeed in using the victim’s identity for a longer period of time.

Identity Theft Prevention Tips

Preventing identity fraud from ruining your life is something that you work on long-term. Vigilance is the key to making sure that your financial credibility and entire financial future won’t be ruined. The following are some tips that you could use in keeping identity fraud at bay:

1. Always keep your personal information secure
   You can do this by using strong passwords for your accounts and gadgets. The passwords should not be shared with anyone, even to closest relatives or friends. Familiar fraud happens easily among those who are very close to one another. You should make sure that you shred your documents immediately, and that you don’t mail your check payments for your bills. It’s also wise to use secure WiFi and Internet sites only in performing financial transactions.
   
   
2. When paying online, see if the site has security features
   You can spot trusted websites if the start of the website is “https”, if the site is in a bright or light green box, and if there is a padlock icon in the address bar. If you see these, then you can safely provide you information online.
   
   
3. Limit your sharing
   Be critical-minded when you are asked for sensitive information. Always ask why they would want your information. Be aware of phishing emails that pretend to be from reputable companies asking for your information. Immediately report such emails to your email administration.

Losing your credit card can be a draining experience when it leads to identity theft. However, you will never have to worry about financial and personal damages if you protect yourself from identity theft.

Amy is an active blogger who is fond of sharing interesting finance related articles to encourage people to manage and protect their finances. Follow her to know the importance of identity theft insurance and tips to deal with stolen identity.