How to Prevent Identity Theft

Identity Theft, as Federal Trade Commission describes it, is when someone uses your personal identification information, without your permission, to commit fraud or other crimes. As our technology becomes more sophisticated and the exchange of sensitive information becomes more widespread, identity theft grows in alarming numbers. Here are a few tips on how to prevent identity theft.

Difficulty: Moderately Easy

Instructions

1. Shred everything that contains identifying information. Remember that there are "dumpster divers" that go through trash from residences and businesses, eager to find information needed to steal identity.

2. Never provide sensitive personal information online or over the phone. Don't answer questions but instead, visit the company's website directly or call the organization's standard corporate number.

3. Be aware that there are many ways personal information can be inadvertently released. The information you provide applying for grocery membership cards, magazine subscriptions, car loans, or even when visiting medical offices, pass through many hands. Realize that you can also be an unwitting source of information leak. When you speak in a public place, be wary when you give out information such as date of birth, phone numbers and addresses, as others may overhear and misuse the information. As much as possible, drop your mails personally at the post office as a letter in the mailbox can raise a flag to unscrupulous neighbors and passers-by.

4. Obtain a credit monitoring service to catch someone at the application process before thousands of dollars in purchases had been rung up. Check your credit reports regularly. Shred any unsolicited "pre-approved" credit card offers in the mail. If an expected credit bill does not arrive, call the company immediately. Make sure to check your credit card statements as soon as they arrive and balance your checkbook every month.

5. Keep financial and personal information in a locked safe or a secure location at home. Do not carry your social security card in your purse or wallet.

6. Choose random numbers and letters when choosing a password. Do not use birth dates, maiden names or any information personally connected to you. The safest way to store computer passwords and PIN numbers is to memorize them.

Tips & Warnings

• Never use a check or debit card to buy online. A credit card is the safest way to purchase online.

Resources

• How To Shop Online with Confidence
• How to Change Social Security Number

[Cougar1002]

on 12/29/2008 Great tips--you can also contact the three major credit reporting agencies and get off of their pre-approved lists. That cuts down on a lot of junk mail, too. Linking this to one of my articles. 5 stars. :)

[ethoslogos]

on 12/27/2008 Great tips on how to preevent identity theft. Very well written, too. 5*