This site is about money. You like money, so I wouldn't be surprised if you like this site.

Your Digital Wallet: Cell Phones and Identity Theft

Posted on March 31st, 2010 by Alicia Diefenbach |

A couple of months ago I attended an event where government representatives spoke on a variety of fraud concerns. I was listening to the identity theft prevention presentation, when the presenter said something that really caught my ear:

“This is your digital wallet, and in the near future it will be your wallet.”

Your Cell Phone is a Gateway to Your Identity and Accounts

While not entirely surprising, it gave me pause. Sure, I do some online banking through my phone. Yes, I can also check my retirement portfolio through a handy little app on that iPhone and do some banking with my phone. But my digital wallet? Would I be swiping my phone at the grocery store to bring the Oscar Meyer home?

At some point in the near future, that’s pretty likely. But what caught my attention is what’s on my phone right now. If my phone isn’t protected I’m potentially at risk. If my phone is lost or stolen, the information currently on my mobile device is enough to give any identity thief plenty to utilize for his or her evildoings.

Between apps that allow access to our email, our finances, our social networks, and any other number of personal details, a criminal could go on a spending spree compliments of easily accessed information stored on our cell phones.

How to Protect Your Phone

These specific steps will make your phone less useful to an identity thief should it be lost or stolen.

Enable Phone Password Protection

Enable password protection that requires input to use the phone. Ideally your phone should lock after a brief period of inactivity and will require entry of this password. Sure, it can take you an extra five seconds to make your call, but that takes less time than fixing your credit report. If this isn’t a feature you have, consider treating yourself to an upgrade.

Choose Different Passwords for Your Apps

You apps are loaded with valuable personal information. When it’s an option, password protect all apps installed on your phone with a password that’s different from the password required to use the phone. If a thief manages to crack your phone’s password, they’ll run into some trouble when trying to get into personal business via your apps.

Ask Your Cell Provider About Tracking Features

Ask your cell phone service provider about available tracking features. Admittedly, some work better than others. While mobile device tracking can help pinpoint a stolen phone, they do raise questions about privacy. Before installing tracking features on your phone, research their effectiveness, your privacy concerns, and any potential risk with your service provider. Research your options and check out reviews of any tracking device you consider.

Alicia Diefenbach is a former financial crime-fighter for the Washington State Department of Financial Institutions. After spending nearly a decade helping fraud victims seek restitution and educating consumers about various aspects of personal financial management, she went into business for herself.

Alicia now designs fun, non-commercial presentations and materials that help people make financial decisions that lead to success. She is a published consumer writer and speaks on topics that educate women, teens, adults, and seniors on various aspects of fraud awareness, and successful personal financial management.

Leave a comment

Comments

said on March 31st, 2010 07:00 AM

Keith Gormezano (Dr. QuickBooks and Quicken - I make house calls) says:

It isn't just the applications that we have to worry about but the information that some people store on their phones. I recently bought two used but still recent "smart" phones at a well known thrift store so I could keep track of my appointments for my QuickBooks and Quicken set up, review, and training business by integrating the phone with my Outlook calendar. When I got home, I discovered that the previous owners had neglected to erase all 788 contacts including home address, phone, and e-mail addresses, some of which belonged to some prominent people in our community. It is a good thing I wasn't a spammer. Ho-we! But what floored me was that the previous owner had all their dates of birthand social security numbers for members of their family as well as the user names and passwords for their online accounts. So if you donate your cell phone to a charity, don't forget to erase all the data. Most phones have a settings feature that allows you to do that. I don't know if you can retrieve any of that information. And yes, all that data got erased.

Sorry, comments are closed for this article.