How to prevent identity theft

Identity theft on the rise

Identity theft is a growing problem, not just in the US, but all over the world. Every week there seems to be a new story about some corporation losing a laptop containing important customer information, including social security numbers. If it happens to you, it’s a disaster that can take years to repair and cost thousands of dollars. This article is designed to save you from identity theft in the first place and then give you some quick tips on what to do if you are a victim. Here are my tips to help prevent such a catastrophe:

1. Know what’s in your wallet.

Do you really know all the cards in your wallet? Do you know the numbers to call to cancel these cards if you lose your wallet? The easiest way to remember all of this is to simply put all your cards in a photocopier at once and copy them. Then copy the back. Keep these two sheets of paper in a safe place, and if the worst happens and you lose your wallet and need to cancel your cards, the information is there.

2. Cancel inactive credit card accounts.

Don’t risk someone using your card on an account you never check.

3. Check your credit.

The law allows you to get one free credit report per year, but that’s not enough. It is best to hire a service that constantly monitors your credit and notifies you if someone requests a loan in your name, or if unusual spending patterns appear. Details about that service appear at the end of this article.

4. Protect your personal information.

If you’re comfortable with that, get electronic statements instead of paper statements that can be stolen from your physical mailbox. Keep your Social Security Card, banking information, credit card statements, etc., in a safe place, preferably one that can be locked.

5. Buy a decent shredder

Shred all documents that contain personal information. Buy one that can also shred credit cards, as these sometimes arrive in the mail unsolicited, just like “fake” cards that are an offer of credit. Shred them all with a quality cross cut shredder.

6. Beware of fake emails.

Never click on a link in an email that asks you to confirm personal information like your PIN number, your PayPal login, etc. These are fakes, and the criminals create a website that looks a lot like the genuine article, and as you submit your information, boom, they can log into your genuine account and make withdrawals or payments to themselves. Only access the website from your own browser’s bookmarks link or type the address yourself (not the email address). Never click a link in an email, but instead forward the email to spoof@[name of organization].com, for example: [email protected]

7. Mailbox security.

Get your mail out of your mailbox as quickly as possible. If you’re going on vacation, ask the post office to place a vacation mail hold, so it doesn’t pile up and overflow your box. Not only is it an invitation to steal your mail, but it also warns thieves that no one is home.

8. Use strong passwords

Avoid passwords that are easily guessed. Use a combination of letters and numbers and make it as random as possible. Never use your spouse’s name, pet, mother’s maiden name or anything like that, which a dedicated thief could probably figure out somehow. Memorize your passwords or save them in a password-protected (strong) file on your computer. Don’t write them down.

9. Computer

If you ever sell or donate your computer, make sure the hard drive is completely clean. Simply trashing your files doesn’t do it. The ideal is to reformat the hard drive.

10. Check all statements.

It’s a hassle, but check all bank and credit card statements to see if all purchases were authorized. Often all a website will ask for is your name, credit card number, expiration date, and sometimes the three-digit authorization code found on the back of the card. This is information that the waiter or waitress at the last restaurant you visited may have easily captured. Check and dispute any unknown charges immediately.

The best protection is a credit monitoring and identity theft service, like the one provided by Pre-Paid Legal and Kroll, New York Stock Exchange-listed companies with more than 30 years of experience in the field. For a low monthly fee of $12.95 (or $9.95 if combined with a prepaid legal plan) you can have 24-hour protection and alerts if something suspicious happens with your credit. The plans cover the whole family and monitor the use of your social security number, driver’s license, credit, medical records and IRS data. In the event that you do experience identity theft, they will spend whatever time is necessary to correct it. With the average identity theft case taking 600 hours and thousands of dollars to resolve, the $12.95 per month protection is a steal. [http://www.officialidguard.com/]