Final answer:
It is False that destroying credit card applications is the best way to prevent identity theft. A comprehensive approach including monitoring credit history, using strong passwords, protecting personal information, and being vigilant about sharing information, especially during activities like job-hunting, is required to safeguard against such fraud.
Step-by-step explanation:
The statement that the best way to prevent a fraudster from establishing a preapproved credit card in your name is to destroy all credit card applications as soon as you receive them is False. Simply destroying credit card applications does not guarantee protection against identity theft, particularly "True-name Fraud". Identity theft involves a fraudster wrongfully acquiring a consumer's personal identification, credit, or account information, like a social security number or passwords, without permission to steal a person's identity. This could lead to thieves draining savings accounts and incurring large debts in the victim's name.
To protect against identity theft, individuals should:
- Provide only the minimum information necessary to sources and inquire why it's collected and who accesses it.
- Monitor credit history regularly for any signs of unauthorized activities.
- Protect personal financial instruments such as credit and debit cards.
- Secure mailboxes to prevent theft of information.
- Use strong, non-obvious passwords and PINs.
- Install anti-virus software on computers for additional security against digital threats.
- Notify banks immediately when there is a change in address or phone.
- Be cautious when job-hunting, as this is a time when individuals are more susceptible to scams and identity theft.
Furthermore, one's credit score can be improved by consistently paying bills on time and not overusing the available credit line.