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Identity theft is a definite threat to us all, effecting hundreds of people everyday across the globe. There are insurance policies that can be taken out in order to cover yourself against ID theft, but this may not be necessary, as there are a number of measures you can take to help you to avoid becoming a victim, most of which rely on simple common sense.

ID theft is a technique used by criminals allowing them to benefit financially through claiming they are you, for example taking out loans, applying for credit cards etc. all in your name.

One of the problems when attempting to tackle this type of fraud is that the are limited by resources, particularly when these criminals are working outside of the UK.

Doing all you can to avoid becoming a victim of ID theft is easier than you may think and being aware of the following points could save you a lot of grief.

1. Be sure to keep all important documents and financial related documents such as passports and bank statements in a safe place out of sight. These include official documents such as passports and driving licence documents, as well as financial documents such as bank and credit card statements, bank account details, insurance documents etc.
2. Frequently monitor your bank accounts and credit card statements to ensure there are no suspicious transactions. If you have access to the internet, set up online banking wherever possible, as this allows you to keep a close eye on up-to-date statements without having to wait for your monthly paper version. Online banking is also very secure, with many banks now providing customers with card readers which generate pass codes that must be used when logging in to your account, or making a payment. If you do notice anything that looks suspicious, contact your bank or credit card provider immediately.
3. Purchase a paper shredder. You can pick one up from £5 to £30 and you can use it to shred any official documents that you don’t need to keep. This includes bank statements, loan or credit card application forms and even junk mail containing any of your details i.e. name, address, telephone number etc. Simply throwing these documents away could result in them falling into the wrong hands.
4. Make sure you are aware of when your regular financial documents arrive, ensuring you are aware of anything out of the ordinary, for example you haven't received your credit card bill for 7 weeks.
5. Each year, get a copy of your credit file to make sure no unauthorized finance arrangements have been set up without your knowledge in your name.
6. You should never give out sensitive information over the phone unless you made the call or you are 100% sure the call is legitimate. For example, you receive a phone call from somebody claiming to be your credit card provider and they request personal information such as your full name, DOB and Mother's maiden name. These are types of information that fraudsters will want to get hold of, so be vigilant.
7. Never trust emails claiming to be your bank or Credit Card company. Some of these emails can look extremely convincing and the irony is that many of them claim to require your details to help tackle fraud. You can usually spot these emails as the URL that you are required to click may appear to be the official site, but on closer inspection you will see it is in fact close, by hovering your cursor over this link. You will then be re-directed to a spoof page that looks genuine but is actually used to steal your login details
8. When moving house, subscribe The Royal Mail’s redirection service. This will ensure that any mail intended for you is delivered to your new address.
9. Always check your bills as soon as they arrive in the post. If you find anything that looks suspicious, always contact your service provider immediately.

There are a few main techniques employed by criminals to carry out ID theft. These include:

Bin Diving

Going through your bins searching for bills or other documents containing your personal information.

Skimming

Used to steal credit/debit card numbers using a special storage device. The riak can be reduced by keeping your card on your person or in view when using it to make payments.

Phishing

Claiming to be a legitimate financial institution to gain your trust then push you to reveal your personal information.

Changing Your Address

Diverting your bills, statements and other sensitive documents to another address by filling out a change of address form.

Old-Fashioned Stealing

Stealing wallets; mail etc. to get enough information about you.

Pretexting

Used to obtain personal information from a number of sources such as financial institutions, telephone companies, and other sources by impersonating you

When these types of criminals get their hands on your personal information, they can use them for a number of different things.

Credit card fraud:

• A new credit card can be applied for in your name. The card can then be used to get credit and all unpaid bills will appear on your credit report, damaging your credit history.
• After changing your address, they could charge purchases to your account, leaving you unaware as the bills are no longer being delivered. It could be some time before you notice anything unusual.

Phone or utilities fraud:

• A new phone or wireless account could be opened in your name, or even utility services like electricity, water, or satellite television.

Bank fraud:

• Counterfeit checks made with your details.
• Bank accounts opened in your name.
• Credit or debit card cloned giving them access to your accounts.
• A loan taken out in your name.

Government documents fraud:

• Used to get official ID cards such as a driving licence under your name but with their picture.
• Use of your details to get government benefits.
• Fraudulent tax return made using your information.

Other fraud:

• Qualify for a job using your personal information
• Rent a property in your name.

These days, most banks have intelligent anti-fraud systems that recognise any unusual activity on your card, for example you withdraw money from a cash point in the UK and later that day money is withdrawn from an ATM  in Canada. 

When taking out a credit card, you will probably find that you are offered some kind of anti-theft insurance to protect you against fraud. But the fact is that ID theft is heavily promoted and sometimes over exaggerated to help sell the product.

A spokesman from the UK's fraud Prevention Service - the CIFAS, has ID theft is still a relatively rare crime, but it is on the increase.

So as long as you’re cautious with who you give your personal information to, keeping it in a safe place, shred all unwanted documents containing your information, you should remain safe from fraud.

Here are a few pointers on researching worthwhile offshore banking:

- You can find internet sites offering to help you get a private overseas account, but choose carefully; some have established ‘real-world’ businesses behind them, and some are no more than a few web pages and a couple of guys in a back room. There is no need to utilise the many middleman sites you’ll find via a search engine. Most of these are *bogus*, even the slick-looking ones. More and more banks are offering offshore bank-accounts direct. Just get a list of banks in the country you’re interested in, and go to their websites.

- Possible paperwork: In addition to the Application Forms: For each signatory (Corporate or Personal A/c): Notarized copy of ID (Passport or Driver’s Licence); Original reference letter from a current banker, solicitor or chartered accountant; Original utility bill or similar showing the current address of the signatory.

- Those who engage in online or international business and who generate a large tax exposure can legally ease their burden through an offshore Swiss account. Bear in mind that the Swiss government charges a 35% withholding tax on interest earned by accounts held by foreign residents. Also, cheques are not used any more in Switzerland. This is a nuisance if you’re used to dealing in them.

- You can pay revenues from your foreign company into your foreign bank account, transfer funds to other a/cs, such as a local bank-account used to pay daily expenses and bills, or cover any expenses that you may still have in your home country.

- Another advantage of using an offshore bank is the protection of one’s assets and the administration of your estate. Many countries legal systems allow your assets to be litigated away and their governments are keen on fleecing people post-mortem.

- Tax havens offer tax benefits to non-residents, or foreign residents, who use their facilities. They’ve set themselves up to provide services to those who want to protect their assets. It’s the basis of their economies.

- Take advantage of the fewer reporting requirements. Some jurisdictions require your foreign bank a/c information to be reported much less than others. There are also places where your company data reporting will be required only under extreme circumstances.

- Once the foreign bank-account is established, the client is issued a bank card, then after that he can utilise the card to withdraw cash and to pay for everyday expenses.There are free accounts offered as part of overseas commerce packages. Non-resident a/c opening procedures only go through once the foreign service has established an IBC or a foreign trust for a client.

I hope these few simple ideas will be of some use to you in researching legitimate offshore banking.

About the author: Nicky Svengali is an author for offshore banking and credit card consolidation internet sites in London, UK.