How to Protect Yourself Against Identity Theft

Identity theft is a growing problem these days, as resourceful criminals continue to devise new ways to steal the details that define you. If you are concerned about falling victim to this painful crime, you must take a few basic steps to protect yourself against some of the more common scams. Sometimes, common sense and caution are your best hedges in this battle.

Instructions

Difficulty: Moderate

Things You’ll Need:

• Shredder
• Mailbox with lock

Avoid the Scams

1. Avoid giving out your financial or personal information to any institution that contacts you by email. This common practice, called "phishing," typically links users to a dummy site that looks like a familiar bank or loan portal. If you believe you have been contacted properly, type in the URL of the place yourself and see if the message is legitimate.
2. Avoid giving out your financial or personal information to anyone who contacts you by phone. This is a similar scam, often run by people who are adept at earning your trust. Even if the person on the other end offers some basic information about you that is correct, hang up and phone the institution yourself to verify the legitimacy of the call.
3. Act with suspicion any time the details of your financial activities come up in conversation. There is practically no limit to the number of creative ways criminals will try to separate you from such information.

Protect Your Information

4. Shred all your financial documents and anything with personal information on it immediately after use to protect yourself against identity theft. "Dumpster diving" remains one of the most popular ways for identity thieves to ply their craft.
5. Secure your mailbox with a lock, and protect the mail when you are out of town by having a neighbor or the post office hold it. Do not leave mail in the receptacle either, since thieves often target those addresses to steal your correspondence.
6. Ask loan officers, insurance carriers and other institutions whether you can opt out of giving your Social Security number to verify your identity. Follow up by securing a copy of their privacy policies and demanding your information not be sold to third parties.
7. Pay with cash whenever possible. Small devices called skimmers are sometimes employed by waiters and cashiers to copy your credit card--protect yourself by using bills instead.
8. Check your credit report at least once a year to ensure there are no fraudulent accounts open in your name. You can order a credit report whenever you want from the three major reporting companies: TransUnion, Equifax and Experian (see Resources below). You are entitled to one free credit report per year, which can be obtained from Annual Credit Report (see Resources below).

Tips & Warnings

• Speak with family members and friends about this issue to protect everyone you know. Identity theft has a way of metastasizing, particularly if you have entrusted another victim with your information.
• Avoid the urge to go on the offensive against the perpetrators of a crime such as this. Many people are understandably appalled at such abuse and want to take direct action, but engaging criminals on any level will almost certainly land you in deeper trouble.