How to Prevent Identity Theft

Identity theft can ruin your life and can affect your credit. You should always be active in trying to prevent someone from stealing your identity. The following article will aid you in preventing identity theft and provide useful numbers and websites if you feel your identity has been stolen. The article will consist of three steps called PIP, which stands for Prevent, Identify, and Protect.

Instructions

Difficulty: Easy

1. Prevent: It is has been my experience that the harder it is to do something, the more likely one won’t do it. In order to prevent identity theft we need to make it hard for identity thieves to steal your information. First, always shred financial documents and any other documents with personal information. Shred all those credit card offers the mailman delivers everyday. If you are like me I am bombarded by credit card offers. You can choose to “opt-out” and not receive these offers any longer by calling 1-888-567-8688. Second, always protect you Social Security Number (SSN). Only give out your SSN when it is necessary and you know exactly who and why you are giving it out. Third, protect your self over the Internet. Don’t open emails from solicitors you don’t know or recognize. Your bank, credit card company, and mortgage company will never contact you via email and ask you for personal information (like SSN, password, etc). Never give out personal information over the phone. For example, if you get a phone call and it’s your bank and they say they need to you to verify some personal information, then you should politely hang-up and call the bank back at a number you know is correct and verify they called. Lastly, in your home you should keep your personal information (tax statements, credit card statements, etc..) locked in a safe.
2. Identify: You should always be active in making sure your personal information hasn’t been stolen. First, you should check your credit report at least once a year. I check it twice a year. Your credit report will show what accounts are open and which are in good standing and bad standing. The three major credit reporting companies (Equifax, Experian, and TransUnion) are required by law to give you a free copy every year. To get your free copy visit www.AnnualCreditReport.com. Lastly, review your credit card statements frequently and look for any purchases that were not made by you. I review all my credit card accounts online every other day.
3. Protect: If you find that you have been the victim of identity theft you should first call the police and file a report. A police report will aid you in providing proof to creditors. Second, call the three credit bureaus and tell them to place a “Fraud Alert.” A fraud alert will prevent anyone from opening any additional accounts without first verifying with you. Third, you should call the fraud departments of any accounts which were open fraudulently. Lastly, report the identity theft to the Federal Trade Commission by calling 1-877-ID-THEFT (438-4338).