If your credit card is stolen it remains usable until you notify the bank. This means a thief could purchase thousands of dollars worth of goods and services before you realise the credit card is missing.

It could be as simple as handing your credit card over to a shop assistant or entering the details online, stolen credit card details can have the same effect as a stolen credit card.

Sometimes all it takes for someone to start stealing your identity is to get personal details from your bank statements in the rubbish bin. Once they’ve got your information thieves can open bank accounts or apply for credit cards in your name.

Once thieves have your personal information they can attempt to take over your account by pretending to be you and asking for your bank to redirect your mail. The thief can then claim their credit card was stolen and ask for a replacement card to be sent.

If your identity is stolen this can result in being declined for credit, having deceived creditors banging on the door. It can also be very expensive, time consuming and emotionally draining to reclaim your identity.CIGNA New Zealand’s identity theft protection insurance can not only help reduce the chances of identity theft, it provides insurance to cover any financial losses you experience as a result.

If you lose any of your cards, notify your bank immediately. If you lose your passport or driver licence, contact the relevant authority. Remember, the sooner you report it, the more you can minimise the risk.

Be cautious about any information you give over the phone or internet. Only give out your personal details if you have initiated the contact and trust the other party.

If you are giving information online, you should check the privacy policy and make sure the web page is secure by looking for a ‘lock’ icon in the status bar.

Make sure that the passwords you use for everyday things are different from those you use for your banking. Avoid using passwords that might be easy to guess.

Once you’ve finished with your statements, take a moment to shred or burn them, rather than putting them straight into the rubbish.

If you’re moving, use a mail redirection service and tell your bank and all other organisations you deal with, as soon as possible. You should also consider putting a lock on your letter box.