Identity Theft and the Credit Crunch

Fri, Oct 03, 2008 at 7:00:00 am PDT

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By Sarah Smith

It’s no secret that the United States is in a real credit mess these days. With credit harder to come by, it’s only fitting that people who can no longer get credit will try and steal it from those who can. It’s also possible that those who desperately need credit—and actually have taken all of the right steps to ensure that it is still available to them—might be denied due to fraudulent information on their credit reports.

Now, more than ever, it’s absolutely vital that you take every precaution available to ensure that your identity is not compromised. If lending standards tighten up (and stay that way) you don’t want to find yourself cashless and creditless because of someone else’s negligence and irresponsibility.

You cannot trust other people to be responsible. You cannot trust them to do the right thing. And I’m not just talking about faceless cyber thieves or those who dig through other people’s trash looking for gold. I’m talking about the woman who works two cubicles away from you that is three months behind on her mortgage and is now willing to steal your credit card number if she gets the chance. I’m talking about the store that you always shop in that is too irresponsible to make sure they have an encrypted server before swiping your credit card. I’m talking about the data entry clerk at your doctor’s office who is broke as a joke and is in the market for a new social security number.

Seriously, don’t trust anyone. Be on the lookout for people who might be trying to steal your identity. Empty your wallet and carry fewer credit cards. Change your online passwords, and maybe even open a new email account that no one knows about for login purposes. Check your credit report. And take advantage of the $1 deal on ID Secure.

History shows that the United States economy will eventually weather this storm. But it might get worse before it gets better. Make sure you don’t let it get beyond worse by putting yourself in a position to have your identity stolen. You can’t control the stock market, the Senate or the House of Representatives. But you can control how your information is handled. Make sure you handle it wisely, and that you have precautionary measures in place in case someone else mishandles it along the way.