Identity theft is one of the fastest growing crimes in America.   According to the FTC ten million Americans have their identity stolen or misused every year, creating a loss of $5 billion to consumers and $48 billion to businesses.  What can you do to avoid becoming another victim of identity theft?  There are many steps that you can take to prevent it from happening to you, but just like with any other crime, the prevention steps do not guarantee that it will not happen to you.  It simply reduces the chances of it happening.

Here are some simple steps that you can take to help you reduce the chances of becoming an identity theft victim:

• Pick up your mail every day and as close to the time they are delivered as possible.  This will reduce the chances of identity thieves stealing your mail looking for personal information.
• If you go out of town, place a hold on your mail with the Post Office or ask a neighbor to pick up the mail for you.
• Take all credit card receipts and shred them before throwing them in the garbage.
• Do not take with you important documents, such as passport, social security card and extra credit cards unless it is absolutely necessary.
• Never leave your purse or wallet unattended.
• Limit the number of credit cards you have and cancel inactive accounts.
• Do not give out your social security number to anyone, unless it is someone you trust and it is absolutely necessary.
• Do not throw pre-approved credit card offers in the trash without tearing them into small pieces first.  Better yet, you may request that consumer credit reporting companies exclude your name from lists for pre-approved, unsolicited credit and insurance offers through OptOutPrescreen.com.
• Shred any documents that contain personal information such as phone bills and any financial or credit card statements.
• Be careful with credit repair scams.
• Protect your computer and online accounts with strong passwords.  Use a minimum of 10 characters, mixing numbers and letters, and do not use words found in the dictionary.
• Do not write down your passwords.  Use a password vault application that uses encryption, such as eWallet, to store your passwords.
• Never give your pin numbers or passwords to anyone.
• Protect your computer with a firewall, anti-virus and anti-spyware software.
• Do not enter personal information or credit card numbers in web sites that are not well known.
• Do not respond to emails that contain links asking for any type of personal information.
• Keep a copy of your credit cards in a safe.  If you card gets stolen call customer service immediately to alert them of the problem.
• Reconcile your bank and credit card statements on a regular basis and report any suspicious charges immediately.  If you are comfortable with personal finance software, this process can be automated and managed effectively with minimum effort. Refer to the article Using Personal Finance Software for Your Success.
• Request a copy of your credit report from all three reporting agencies Equifax, TransUnion and Experian at a minimum on an annual basis.  You can obtain these reports for free once a year through Annual Credit Report.com.

If you suspect that you have been a victim of identity theft contact one of the reporting agencies immediately and file a fraud alert.  This can be done free of charge and is effective for 90 days.  A fraud alert will require anyone trying to obtain credit in your name to take additional steps to prove the legitimacy of their identity.

  

For more information on identity theft please visit the Federal Trade Commission Identity Theft Center.