Prevent Identity Theft- Follow the Tips by Experts

Identity Theft is one of the by-product of technological evolution. World was more secure when there was no internet, photocopier or scanner. Identity Theft can be disastrous for any individual. Recently one lady's Home Loan was rejected because of low CIBIL Score. She was advised to pull out CIBIL Report. When  checked, her CIBIL Report, found that Rs 200000 outstanding was written off against her credit card. She never applied for this credit card. The credit card was issued at her old Delhi address before she shifted to Mumbai. It was a clear case of Identity Theft. 
Worst part is that complete onus is on an individual to prove that he is victim of Identity Theft. 

Normally on internet, the discussion on Identity Theft revolve around Online Identity Theft i.e. through internet. Offline Identity Theft is more dangerous and easy to execute. Secondly, there is more organized mafia whose job is find potential victims for Identity Theft. Mostly observed that online Identity Theft is because of mistake from user end which could have been easily avoided but scope of offline Identity Theft is vast. In this post we will discuss tips and tricks to prevent offline identity theft.

1. Photocopy of Documents: It was quite interesting episode, of one of TV serial, lady A gave her documents for photocopy and told shopkeeper that she will collect in 2 hours. Somehow fraudster steal the copy of documents. Documents were misused by fraudster to get job in Lady A’s  name. Fraudster committed fraud in her company and poor Lady A was caught based on documents. Though police finally caught the real culprit but imagine the trauma undergone because of Identity Theft.

Photocopy shops are soft and easy target for identity theft. With advancement of technology, photocopy machine can retain scanned copy of documents. It is advisable to take photocopy at home through printer only. If it is absolutely necessary to photocopy from outside because of volume then you should get it done only from known shopkeeper. You can also keep extra copies at your home for emergency.

2. Handover Documents only to Bank Executive and Take Acknowledgement: During our day to day financial transactions, we have to handover some imp documents to bank like PAN, Address proof etc. A businessman handed over his originals to employee and send him to bank for any such work. Yes, it is not feasible for businessman to do everything on his own. At the same time it is suicidal to handover either original or photocopy to 3rd party. It is advisable to handover documents only to authorized bank executive and insist on acknowledgement. In relevant document, also mention the details of documents submitted by you with the bank.

3. Watermark: One of the critical step to safeguard your identity is to watermark all the scanned documents and then take photocopy. Only use watermark copy for any future use. Watermarked copies are very difficult to temper with. Watermarking can be done using software like pdf writer or image editor. Though its a tiring job but you have to do only once in a lifetime.

4. PAN: Obtaining a PAN is one of the simplest govt process in my opinion. Last year CBDT madeverification of originals mandatory for PAN to reduce PAN based frauds. Analysts termed it as “Step Back”, “Return of License Raj”, “Bottle Neck” or “Retro Grade” step. Being an election year and under pressure from govt, CBDT withdrew the circular. PAN is lifeline for doing any financial transaction and process is so lax that anyone can manipulate.

PAN is one of the most misused document for financial frauds and is heart & soul of identity theft. PAN should not be issued / re-issued without verification of originals even if it cause inconvenience to general public. People don’t realize that its for their benefit only.

5. Inquiry in CIBIL Report

PULL out your CIBIL report atleast once in 6 months or preferable once every quarter. One of the important section to look out is “Inquiry Information”. Please check any suspicious entry in the report e.g. if bank A has posted entry related to Enquiry for issuance of Credit Card with credit limit 1 lakh. In case,  you have not applied for any such credit card then immediately you should bring it to the notice of the bank. Prevention is always better than cure and checking “Inquiry Information” in CIBIL Report is one such prevention.

6. Social Media: . An open invitation to Identity Theft, social media is one of the most dangerous place if not handled responsibly and with caution. Even Afghanistan, Iraq and Somalia will rank after Social Media. Social Media is emerging as a new crime hub both for financial and non-financial crimes.

“Too Little on Social Media can be Too Much”. It is advisable to draw a thick line between privacy and social interaction before you post anything through social media channels. Privacy should not be compromised at all and at any cost. Remember for a small mistake you have to pay heavy price.

7. Letter Box: In the age of internet and email, people don’t check their letter box for months. It is quite visible from overflowing letter boxes next to mine in my apartment complex. Its again an open invitation for Identity Theft. We receive bills and statements through snail mail and anyone can easily steal your identity using these document. It is advisable to check your letter box regularly to prevent identity theft.

8. Change of Mobile or SIM: Now a days most of the people change their mobile every 6 months. Also many of us have habit of storing important information on mobile like bank account no, PAN, Passwords, PIN etc. As mobile is personalized device therefore danger of Identity Theft through mobile is manifold. It is advisable that all the data from mobile should be deleted when you are changing it. Mobile should be restored to factory settings. Remove micro SD card and also remove all installed applications. Log out from all accounts sync with the device and most importantly remove SIM card (if you are opting for Nano SIM in new device).

9. Purpose of document: Whenever you are handing over photocopy of your documents, don’t forget to mention the purpose for which the documents is being handed over. For example, if you are submitting document for Ration Card then don’t forget to mention on Watermarked document “Purpose: Application for Ration Card” in either Red or Blue Pen. It will help to prevent identity theft. Secondly, if fraudsters realize that particular person has taken necessary steps to prevent identity theft then they don’t mess around. Only people caught unaware become victims of identity theft.

10. Date of Birth: Besides PAN, DOB is important piece of information for Identity Theft.  Birth Certificate was not mandatory earlier but now it is also one of the important document.

11. Beware of Freebies: Last but not the least and most crucial. Don’t share your DOB, mobile no, name etc through feedback forms in Restaurants or to participate in some lucky draw. You can politely say NO. There are no free lunches in this world but others should not have free lunch at your cost.

Learn more about identity theft at www.cibilconsultants.com
Source-secondary

Rewrite Your Credit History For Financial Freedom

In India, most working people start thinking about their retirement after they are well into their 30s or 40s. However, to have a financially strong retired life, ideally one needs to think and also plan) about retirement soon after taking up the first job. That way, time would be on his/her side to build a substantial retirement corpus over the long term through a disciplined investment approach. In other words, time and the power of compounding would give one financial freedom during his/her sunset years. 

So what is financial freedom? "The word freedom evokes a sense of hope, inspiration, choice and joy all at the same time, and could mean very different things to different people ," says Vishal Dhawan, founder, Plan Ahead Wealth Advisors. 

"Financial freedom is something which can give us the same sense of emotions of liberation for the money side of our life," he adds. However, according to Dhawan, you need to remember that financial freedom is not a gift, but an achievement. "We have to put in active efforts to achieve this phase of financial freedom in our lives," he says. 

To achieve this goal, Dhawan suggests a few easy-to-achieve steps. These are knowing your exact financial position, crystallizing your goals, building a road map to reach those goals, followed by concrete action according to the road map, then sticking to the plan and, lastly, reviewing the plan periodically but not too frequently .

"These steps may not give you financial freedom tomorrow but remember that, just like a journey of a thousand miles begins with a single step, your journey towards financial freedom begins when you firm up your mind about achieving the same," he says. 

A related article by Vikrant Gugnani details the steps you need to take to have a financially independent life over the long run. 

Leaving positive footprints 

Here, we give you some idea about another aspect related to your financial dealings that can have substantial bearing on your financial freedom: Your credit history (called credit footprint) and why increasingly it is becoming important in every individual's life. As the term suggests , the credit history of an individual is that person's track record of dealings with various institutions like banks, home loan and other financial services firms and also other companies where an individual may have left some monetary dues — like telecom service providers, etc — knowingly or unknowingly . Put simply, if your credit history is good, you are always in a sweet spot to easily avail of loans from a lender or get a credit card from a card-issuing institution . On the other hand, if your credit history is bad, you may have a tough time getting a loan or a credit card. According to Mohan Jayaraman, MD, Experian Credit Information Company of India, individuals need to be very careful about their credit histories. However, the reality is that not many people are careful about the same and, over the long run, this may affect the financial life of an individual. 

Taking care of your history 

According to Jayaraman, the first step is to take out a consumer report from any of the four registered credit bureaus after presenting appropriate know your client (KYC) documents like a PAN card, driving licence , Aadhaar card, or some other government-approved proof for an individual and his/her address. There are four sections in this report. The first is the demographic report in which there will be the name, age, address, etc. You should check if these things are correct, or get it corrected in case of any wrong entry. The next section is the credit summary which gives details about loans, credit cards, etc, that you have taken. 

The third section is called the credit tradeline where the status of the loans, credit cards, etc, is given. The report will also give you data about how many credit cards you hold and the status of each. It could be that you may have used a credit card many years ago but have not cancelled it, although you think it was cancelled. 

As a result, some huge dues may have piled up in that credit card account . In such a situation, you need to correct the tradeline data. 

The fourth section is about the number of enquiries the credit bureaus got about your application for loans, credit cards, etc. In other words, it gives the whole summary of the number of times you have gone to banks and other lenders for loans, credit cards, etc. 

For a smooth financial life, although the first priority is to have a disciplined and well thought-out long-term investment plan, having a good credit score, which comes from a solid credit history, is also essential, according to financial advisers. 

Source-secondary

How to fix errors in your Cibil credit report?

Your Cibil credit report is an important document that comes to your aid for everything from availing of a loan to a credit card application and will sometimes even be referred to by a prospective employer. A discrepancy in your Cibil report thus will not only cause your loan application to be rejected, but may also cost you the possibilities of getting a better job. However, if you find that there are errors in your Cibil report, the good news is that you can go about with dispute resolution to get an error free report.

The nature of errors can be something mundane as mistakes in the spelling your name, age, address or PAN card. These errors may not necessarily ruin your Cibil score, but need to be corrected nevertheless. The really damaging errors in your report may arise from a mistaken identity when you find there are someone else's loan details in your report or an overdue amount that is on a loan you have not taken! Such an error can bring down your Cibil score drastically for no fault of yours. If you find such an error exists in your Cibil report, here's what you need to do to rectify it.

The first step

The first step is obviously obtaining a copy of your credit report. More often than, not such errors happen because people undermine the importance of obtaining their credit reports till they hit a roadblock in their loan application process. If you find that there is an error in your report you will need to "initiate" a dispute by submitting a dispute resolution form.Once Cibil receives this form, it takes approximately 30 days to resolve a dispute. This is however subject to the time taken by the credit institution (bank or NBFC or card issuer) to send the required information to Cibil.

For lender related disputes

If you find that the lender has supplied incorrect data to Cibil with regards to your loan details (eg: an overdue amount that you may have cleared is still showing on your report, or a loan is being shown as active even after its closure) you can contact your bank and report this discrepancy. Your bank will then contact Cibil and give the correct information regarding your loan account, after which the information will be updated on your Cibilreport.  Once you get a confirmation from your bank about the rectification of this information in their records, it takes 45 days for this rectified information to show up on your Cibil report.

In case of a mistaken identity

If you find that your report is showing the details of a loan or a credit card that you have not availed of, you will have to raise a dispute regarding the same using the online dispute redressal mechanism of Cibil. Once Cibil receives your application, it will take up the issue with the concerned lender and if it reverts saying that your complaint is a valid one, it will make the necessary changes and submit the rectified information to Cibil. On the basis of this new information that it receives, Cibil will rectify your credit report within 30 working days.

Problems that can arise

If the errors in your report are regarding your own loan or credit card account, the redressal mechanism is easy, but in case of mistaken identities where the bank may have submitted the information of someone else's loan account under your name, the difficulties are much more. The bank in such cases will need to get in touch with the person with whom your identity has been confused and follow up with him. However, since banks mostly outsource their collection process to third parties, there may be some lack in documents or adequate proof. In such cases, the dispute resolution mechanism can go up to more than 60 days.

If the redressal is not satisfactory

If you are not satisfied with the dispute resolution process of the credit bureau, you may approach the bureau directly again, this time making a specific request about what you want. More often than not Cibil will have resolved your dispute in the first shot, even if it does take a little longer if the process in a complicated one.

Your Cibil report  is your passport for a smooth loan application process and is increasingly assuming importance in other spheres of life as well. The prudent thing to do therefore is not to wait till you apply for a loan to take a look at your credit information. Obtain your Cibil report at least once a year to ensure that it is free of errors, or in case there are discrepancies, there is enough time to correct them.

To avoid the complicated prodecure of dispute resolution just book an appointment at www.cibilconsultants.com and get end to end solution for rectification of errors.

IT department look into Credit history and loan repayment pattern of taxpayers

Prioritize cases for recovery of past dues based on a defaulter’s ability to pay.

To recover maximum tax arrears with the optimum use of manpower, the income-tax department has decided to look into the credit history and loan repayment pattern of taxpayers and prioritize cases for recovery of past dues based on a defaulter’s ability to pay.

For this, the department would consult the Credit Information Bureau of India (CIBIL) that assigns credit scores and maintains details of loans taken by individuals, partnerships and corporations, along with their PAN.

Sources said tax officials would be able to get an idea of the assets and the financial health of an assesses against which a tax arrears recovery demand has to be pursued vigorously.

The IT department which claims a massive Rs 6.74 lakh crore in arrears to be recovered is able to pursue cases accounting for only a small part of it every year due to appeals pending in various courts, inadequate assets to recover from defaulters and due to non-traceability of assesses. For FY15, it has set a target of recovering about Rs 42,000 crore of arrears, about 6% of the R7.4 lakh crore the government wants to collect this year by way of corporation tax, personal income tax and wealth tax, 15% more than what it raised last fiscal.

However, IT will vigorously pursue recovery of arrears from defaulting partnerships and large corporations even via attaching the assets of partners and directors. In the case of individual taxpayers who have expired, it intends to reach out to their legal heirs, said a field officer, who asked not to be named.

The tax authority wants to cut down the quantum of arrears to be recovered and would consider writing off smaller demands.

Source: Secondary

Misuse of Loan Documents affect your Credit Rating

We keep submitting our KYC documents such as Identity and Address proof (PAN Card, Aadhar Card, Passport, etc) for various purposes.

We apply for various loans for example housing loans, auto loans, consumer loans, etc. Even for buying a new sim card we need to provide our KYC documents. Not only documents, they accept those documents that are self attested i.e. signature on those documents.

With documents submitted for different reasons, there can be incidents where your documents could be misused. It can be used to apply for a credit card, home loan, auto loan, and for various financial purposes in your name. This can have a severe consequence on the credit profile as it can be termed as an inquiry in your credit report and greater the number of inquiries in your credit report.

 Misusing of documents can also result into identity theft. Identity theft is when someone uses your identity to apply for credit or loans. This will benefit the person who has applied for credit and can turn into a nightmare for the person whose name is being used.

 So here are some steps that should be taken care off:

• Keep your documents in a safe place, preferably in a cabinet or a lockable drawer.

• If your documents are lost or are misplaced, you should immediately file a police complaint. Also you should approach the concerned authority with a copy of police complaint filed by you.

• While submitting documents, you should write the purpose for which the documents have been submitted on that document.

• Digitizing documents is one of the best solutions to protect the risk of losing your documents.

• Checking your credit report timely will help you to identify the inquiries that an individual has not made and can take appropriate steps to rectify the same.

Don't let anybody harm your credit rating by using your loan documents secretly.
Check your credit report at www.cibilconsultants.com

Source: Secondary

Facts of Identity Theft !

Identity theft protection comes in many different forms. The first step in protecting yourself is to understand a few basic facts about identity theft.

Identity theft protection services can help you monitor your account. It can remove your name from the marketing mailing lists and you shall be alerted for this. Its valuable and a time saver for many to pay a credit health company to keep track of customer’s financial health (accounts), credit reports and their personal information. Others opt out to do this in their own time.

Facts of Identity Theft:

a) Protecting your personal Information

b) Having paper shredder can help safeguard your identity (personal information) and pre-approved credit offers in wrong hands.

According to reports, Identity theft is one of the fastest growing crimes across India. Assuming your entire identity is the not the only way identity theft might occur. Someone using your PAN information or address or in cases a credit card or doing transactions on your behalf without your permission is Identity theft.

The Credit monitoring program will give you a credit score which is very useful. CIBIL report is most preferred across India by banks and customers

Identity theft protection shall give you a cover wherein you can secure your line of credit for any loss occurred due to misuse of your identity against your permission.

Avail your cibil report and improve your credit score at www.cibilconsultants.com

Source: Secondary

Information your Cibil report contains !

In India, very few people know about CIBIL. CIBIL maintains all the data regarding any credit taken by any individual in his entire life cycle. It provides a report known as credit report which contains all the detail regarding all the accounts taken by the individual. This report is very important because it shows our past, future and present of credit history.

All banks refer to credit score of every loan applicant as part of due diligence process. It is an important step in loan due diligence process as it gives a fair idea of the credit-worthiness of every individual. In very simple terms - CIBIL Score determines the probability of a default of a customer. A high CIBIL credit score demonstrates financial discipline and a lower likelihood of default.

Credit Information Report (CIR) contains the basic information about your credit history and any other financial related information that is available from CIBIL.

Personal information: Your name and details of ID proofs are shown here. Your PAN, Passport, Drivers License, Voter ID etc. appear in this section.

Contact information: Your recent address, phone number and email address given by you to the banks and lenders will be shown here. The address category tells whether it is permanent or temporary and official or residential.

Employment information: This section shows your occupation and income. The most recent information as provided by the lender for a particular credit account will be shown here.

Account information: This is the most important section of the report, which shows the details of your existing loans and other credit facilities. Along with this, the details such as name of the lender, types of credit facility, account number, account type and type of the ownership will be given here.

Get your credit report easily by visiting www.cibilconsultants.com

Source: Secondary

Know the difference between CIBIL credit score and report

This question triggered a thought in me as to a possibility of confusion among borrowers regarding the difference between CIBIL score and CIBIL report. For me, as systems develop and borrowing capacity of people enhance, it is very important that this difference is understood.

Credit score is a number arrived at by using information in your credit records submitted by all your lenders to the credit bureau. Credit score is a numerical value at a given moment of time that helps the lenders to assess the credit risk associated with lending money to you.

Higher the number means lower the risk of default for the lender. In India, a number more than 750 out of 900 is treated to be a good score by lenders when they look at CIBIL credit score.

The credit bureau may use multiple factors such as credit lines offered to you, the repayment history, credit utilisation information, and details of loans secured or unsecured loans to arrive at Cibil score.

 The score changes over a period of time and improves if you keep a tab on the extent of credit you avail of and service your loans on time. If you borrow beyond your repaying capacity and fail to repay in time, this score falls, thereby spoiling your credit profile.

However, the numerical value does not offer any other information pertaining to the borrower to the lender. That is where Cibil report comes into the picture.

Your Cibil report is a holistic document, which also includes your Cibil score. A credit report offers wide range of information, besides this. A credit report offers information pertaining to name, gender, age, address, and PAN card number that helps in identifying an individual.

Credit bureaus also have information about the types of loans you have home loan, personal loans, credit cards and the outstanding on each of these. Cibil report provides all loans' details along with age of each loan and your repayment history too. If you have defaulted on any loan or settled a loan in the past, Cibil report reveals it to the lenders.

Cibil reports also enlist number of inquiries. This is the number of times lenders have accessed your Cibil report while assessing your loan application.

By now, you must have understood that Cibil report is far more informative in comparison with Cibil score. While credit score simply gives one numerical value, credit report offers many more qualitative and quantitative inputs to the lenders along with the identification details.

 It helps lenders to take an informed decision while lending money. As a borrower you should keep a track of your credit profile. Hence, it is of paramount importance that one keeps track of one's investments and liabilities. One of the simplest ways to keep your credit profile is to leverage oneself well within our repaying capacity.

The very decision to stretch oneself at a time when saving money is a daunting task, it is crucial that you leverage less and save more. Lastly, do ask for your Cibil report at least once in a year.

A look at the Cibil score mentioned in Cibil report gives you a fair idea of where do you stand in the eyes of lenders and running through Cibil report helps you identify if there are any lapses at the credit bureau's end.

Get your score and credit report at www.cibilconsultants.com