Identity theft is a complicated problem, but the earlier it is detected, the less likely it is that it will cause too much financial damage. Here are some tips you can follow to help you detect fraud.

Avoid Fake Emails and Websites

Banks and other financial institutions will sometimes send out emails informing consumers of new offers and services. Although this is a common way for banks to reach their target market, not all emails are what they claim to be. It's important for consumers to know whether or not these emails were truly sent out by their bank because many dishonest individuals send out fake emails, posing as representatives from your financial institution, to trick you into giving them your information. Be very wary of emails asking for your financial information, credit card details, and username or password. Legitimate emails from your bank will not ask for anything related to your personal and financial identity.

As well as watching out for emails asking for your information, be careful when it comes to emails with links to supposedly familiar websites (such as your bank's website). Never click on the links, especially if the email was sent by an anonymous sender or you found the email in your spam folder. There's a chance that the link will redirect you to a site that appears to be similar to the original but is actually a fake website that saves any information you type into it and passes it on to people who would misuse your identity. Instead of clicking on the link, take the extra step and type out your bank's address into the URL bar to make sure that you're going to the right place.

Check for Unusual Activities in Your Accounts

Whenever you receive your monthly billing statements, the first thing you have to do is to check your transactions to make sure they are all yours. Check for anything unusual€"like a purchase made out of the country even though you haven't left the US€"that can be a sign of identity fraud. Transactions such as these can mean that someone else is using your credit card information.

You can also detect fraud even earlier if you register your account online. If your account is registered to your bank's website, you can check the transactions whenever you have an Internet connection and more easily spot any delinquent charges. If you see anything that looks suspicious, immediately report it to your financial institution and set up a fraud alert with one of the main consumer reporting companies (Equifax, Experian, or TransUnion), a representative of which will then spread the word to the other two companies. It's important to notify your financial institution as soon as possible because this helps limit your liability when it comes to fraud-related losses. Credit cards in particular have a zero fraud liability if you report the problem right away.

Be Wary of Changes of Address

Identity thieves tend to change your billing address as soon as they have taken control of any of your accounts because doing this will prevent you from seeing delinquent charges on your monthly statements. If you don't notice the fraudulent transactions, then thieves can rack up charges on your accounts until they max out your credit limit. As such, it's important to know the exact day that your monthly statement arrives so that if it does not arrive on time, you can report it to your financial institution immediately.

Make Use of Credit Monitoring

How does credit monitoring help you detect fraud? When you sign up for a credit monitoring service, your credit files will be monitored regularly. If any changes occur€"for example, newly opened accounts, updates to your credit card balances, changes in mailing address, and so on€"you will receive an alert. Therefore, if an identity thief is using your financial information or personal identification for fraudulent purposes, you will know about it without having to constantly keep an eye on your credit. If your mailing address is changed fraudulently, for example, you can take remedial action right away by reporting it to the credit reporting companies and placing a fraud alert on your credit files in order to help ward off subsequent threats.