How to avoid theft of identity

First, they go through your garbage and retrieve old bank statements. Then they call you, posing as an official from your bank, and ferret out your personal details. Before you know it, your identity has been poached.

Welcome to the world of identity theft.A recent study pointed out that one of the many things Malaysians feared the most was identity theft. The study in June by technology services and solutions company, Unisys, sampled a group of 890 people aged 18 to 64 in Peninsular Malaysia. Called the Unisys Security Index, it focused on four areas of concern — national security, financial security, Internet security and personal security.

While overall security worries among Malaysians stood at a moderate index of 174 out of a possible 300, certain specific areas were more troubling.Sixty-three per cent claimed to be extremely concerned about Malaysia’s national security in relation to war or terrorism, while 56 per cent said they were very worried about their personal safety.Just over half the people quizzed said they were afraid about their ability to meet essential financial obligations.However, the top two worries among the respondents were identity theft and credit card fraud. Seventy-five per cent polled claimed it to be their primary concern.

However, despite being worried about identity theft and credit card fraud, only 41 per cent of people actually exercise the most basic discipline of destroying their bank statements, bills and other items containing personal information before throwing them into the garbage. This is in contrast to the findings which show that most people are concerned about unauthorised access or misuse of their personal information and 34 per cent of people never read the privacy policies of banks, companies or government departments they had dealings with.Almost one-third of Malaysians used "easy to remember" numbers, like their birthdays, as PIN codes.

Malaysian identity theft victims spend an average of RM808 and 175 hours working to repair the damage to their credit profile.They also faced a range of credit-related problems when trying to cash cheques, obtain loans or even rent a house.Destroy sensitive documents before throwing them away and try to opt for electronic statements instead of hard-copy statements. Keeping personal mailbox locked is the first line of defence against financial fraud and identity theft. Have a personal mail held at the post office if you are going on holiday. Consumers should keep track of the date on which their mail arrived so that they would be aware if it was stolen. They should also check their account balances regularly, choose PIN numbers which cannot be easily guessed, keep updated credit reports on their personal history and always insist on identity verification from people seeking personal information

Common mistakes buyers make

Often the biggest investment for most people, house buying is also an area when they have little knowledge in undertaking. If there was a school that taught the right movers to make…

From the school of hard-knocks, here are some “dont’s dos” as offered by a United States based realtor Lending Tree LLC:

1. Don’t go it alone Buying a home is a complex process, requiring knowledge about everything from real estate values to legal matters and insurance. You will need advice you can trust, so set a team to assist you – one that includes professionals such as lawyers, estate agents and friends in the know.

2. Don’t buy a first sight While love at first sigh may be fine in romance, it is so when putting hard earned money into a house. Make a list of your needs and wants, and compare it with how well the house meets them. Checkout the neighbourhood at different times of the day to learn about noise an traffic patterns; whether there are schools nearby (even if you don’t have children, schools nevertheless add value to a locality) and other facilities and amenities you require.

3. Don’t think you own the bank have a clear idea of how much you can spend before you go looking. This will save you the hassle of failing in love with a house that’s out of your price range. Checkout your credit rating with your bank and get the officer to work out how much of a loan you can obtain.

4. Don’t overbuy You may able to borrow more, but can you afford to? Analyse your monthly expenses. As a general rule, your total monthly debts, including your mortgage, should not exceed 50 per cent of your gross household income.

5. Don’t misplace your trust Never get carried away or become emotional about a transaction. Event if the estate agent or the seller is a great friend, or a charming personality, never forget that for them, this is serious business. Be an active, informed participant in the deal by doing your own research from various sources. Find out how you support team can assist.

6. Don’t accept oral agreements Never depend on what is agreed orally! Get it write and get it in writing, from the beginning. Buying a house is a legal transaction, and written contract apply, not verbal agreements.

7. Don’t overlook the fine print You need to understand what you’re signing. Furthermore, although time is of essence when it comes to making an offer or buying a house, never be rushed into it. Get all documents, read and fully understand them and raise questions to clarify doubts before signing on the dotted line.

8. Don’t make an unconditional offer Never be tempted to throw caution to the wind once you’ve found a great house, no matter how excited you are about it. Remember that even if the bank says you’re qualified for a certain amount of loan, it is still left to the bank whether it will accept the house as collateral. Is the unit worth the amount of loan to be released? What does the valuation report say? In the case of completed property, it is advisable to have it inspected by a home inspector before you commit.

9. Don’t have house buyer’s remorse No place is perfect, so don’t miss out on a great house in the market in your search for the perfect one!