Preventing Identity Theft - 10 FREE Things You Can Do

In today's virtually cashless world you may be more at risk than you
have ever been before. But protecting yourself may be easier than you
think. Below you will find ten free (or almost free) ways you can
protect your family, your identity and your wallet so that you aren’t a
victim of the common crime of identity theft.

1. Shred all important financial documents.

Today's thieves may be technological masterminds when it comes to
manipulating your information for their gain, but that doesn't mean
they are beyond dumpster diving. What you view as trash, they may view
as a goldmine. So make sure you cross-shred all documents that may have
any of your personal information on them. Primarily you want to make
sure you destroy anything with credit card or bank account numbers, and
you certainly want to make sure thieves find no trace of your social
security number in your trashcan. Shredding receipts for credit or ATM
card transactions is also a good precaution to take. But, you can also
go a step further and shred all mail that has your name and address on
it so it makes it far more difficult for identity thieves to find out
anything about you. If possible, put your trash out on the morning it
is scheduled to be picked up instead of the night before as it makes it
more difficult for thieves to get into your trash in the first place.

2. Request your free credit reports each year.

Since identity thieves specialize in stealing your personal
information and opening new credit accounts in your name instead of
simply making fraudulent charges to your existing accounts, it is
extremely important that you monitor your credit report. Far too often
people assume they don't need any kind of identity protection and they don't
realize their credit has been compromised until they go to apply for an
auto loan or to refinance their homes. Then they have to deal with the
two-fold problem of repairing their destroyed credit and forgoing a
loan they should have qualified for but didn't. Obtaining your free
credit report is easier than you may think. Simply visit
www.annualcreditreport.com to receive your free reports (you can
receive one a year from each of the major credit agencies: Equifax,
Experian and TransUnion). Even if you don't obtain all three reports at
once, make sure you review your report from each agency at least once a
year as some credit accounts won't appear on reports from all three
agencies.      

3. Use strong passwords and pin numbers on all financial accounts and change them often.

Today's hackers don't usually work alone, so an identity thief (or
someone who can unknowingly feed them information) might be closer to
you than you think. In order to protect yourself, make sure that your
passwords and pin codes for all financial institutions aren't obvious
to someone who may know you. Birthdays, anniversaries and nicknames,
although easy to remember, aren't very strong. If you must write your
passwords and pin codes down don’t leave them in your desk at work. If
possible, try not to use the same passwords and pin codes for all
accounts and change them every three months for an extra measure of
security.  

4. Mail all bills from the post office and not your own mailbox.

Although it may be convenient to simply walk to the curb, put your
outgoing mail in your mailbox and raise the red flag for the postman,
you may be unintentionally alerting thieves to easy access to your bank
or credit account numbers. Instead of letting your precious financial
information sit unprotected, mail it at the post office where it will
be safely locked inside a mailbox while it waits to be picked up. You
may also want to consider getting a lock for your mailbox so you can
protect all incoming bills from identity thieves. If getting a lock for
your mailbox isn't an option, it may be worth incurring the small fee
associated with obtaining a P.O. Box to insure that all of your
financial information is safe from the clutches of lurking thieves.

5. Reduce your junk mail and unsolicited credit card offers.

Since identity thieves seek to create new credit accounts in your
name, getting their hands on a credit card offer in your name could
potentially seem like winning the lottery for them. Stopping (or
significantly reducing) the amount of junk mail-namely credit card
offers-you receive could wind up saving you from major heartache and
frustration. Simply visit the national credit bureau’s opt out website
at: www.optoutprescreen.com or call them at 1-888-5-678-688. While you
are at it, it would probably be a good idea to register with the Do Not
Call Registry too (www.donotcall.gov or 1-888-382-1222).

6. Always know where your credit card is—even in restaurants and retail stores.

Although not having to carry cash is convenient, especially when you
are out to dinner at a nice restaurant, using a credit card in venues
where you cannot always see the person running your card might be
putting you at risk. Many waiters use skimming to process your payment,
and identity thieves sometimes sit in parking lots trying to access
financial information from restaurants and stores that may use wireless
systems. If keeping your card within your line of sight isn’t always
possible, pay with cash instead.

7. See if your credit card company offers any free safety features for online shopping.

Although many online retail outlets promise "secure" shopping on
their sites, you can never be too safe. Some financial institutions
offer built in features to protect you-and your money-from becoming
vulnerable. For instance, Bank of America offers the free "Shop Safe"
feature which allows credit account holders to log on and receive a
temporary account number (good for one online transaction) every time
they shop. That way, if an account number is ever stolen from the
vendor it's a dead number and the actual bank account won't be
charged.      

8. Don't carry your social security number with you, and don’t use it as a user ID or password. 

Since your social security number is the key that could single
handedly unlock numerous doors for identity thieves, you want to
protect this number more than you want to protect anything else. So,
memorize it and then lock your original card away in a safe place.
Don’t make copies of it, and don't give the number out unless it is
absolutely necessary. Before giving it out, make sure you ask the
institution you are giving it to (mortgage lender, healthcare provider,
etc…) what their privacy policy is and how your information will be
protected.  

9. Monitor credit card bills and bank statements carefully each month.

Although identity thieves specialize in lifting your information and
creating new accounts with it, there are some novice thieves who simply
steal your information and make charges to your existing accounts.
Smart thieves won't make huge purchases, and they won't make multiple
purchases on one account at one time. Instead, they will monitor your
spending habits and will try to make purchases that will mimic yours in
hopes that you wont' notice that they are using your account. So, once
a month schedule a time to sit down and study your credit card bills
and bank statements so you can ensure that you are only paying for
purchases that you authorized or made. Make sure to pay special
attention to bills and statements that come just after a vacation, as
account information is more easily stolen when people travel.

10.  Beware of online "friends" who may really be identity thieves in disguise.

Internet chat rooms, online dating sites and teen friendly sites
like Facebook or MySpace might be making you and your family more
vulnerable to identity theft than you think. Educate your children
about identity theft so they don’t unintentionally pass along personal
information to someone who may be posing as a friend. And regularly
check your children's profile pages to make sure addresses and phone
numbers aren’t being released to the public. In a world where things
aren't always what they seem, you can never be too careful.

If Identity Theft Happens to You

Despite your best efforts to protect yourself, you still might
find yourself as a victim of identity theft. If you do, make sure you
contact your local police, all of your financial institutions and all
three credit agencies (Equifax: www.equifax.com TransUnion: www.tuc.com
and Experian: www.experian.com) right away. You may also want to
consider putting a security freeze on your credit report. It will
prevent anyone from running your credit without you being notified
first. Remember, it's your identity so it's your job to protect it.