How to Protect Yourself From Identity Theft?

Identity theft is on the rise, and thieves are always on the lookout for new and less obvious ways to steal your identity for fraudulent purposes. It usually starts with the illegal appropriation of your personal information, such as your name, Social Security number, driver’s license number, credit card numbers, and account numbers from your financial statements. The best advice on how to protect yourself from identity theft is to systematically review your monthly statements and request a free credit report at least once a year from each of the three major credit bureaus. This should include statements for your savings accounts, checking accounts, cell phone, credit cards, cable television, internet provider, brokerage accounts, and any loans or mortgages. If the delivery of any of your statements is interrupted or stops for any reason, this is a sign that someone may be tampering with your accounts.

Tips to prevent identity theft

Many prevention techniques are common sense, but form a key part of how to protect yourself from identity theft. Always sign the back of your credit cards and keep them in a safe place when not in use. If a sales clerk checks for identification against a stolen or lost card, the thief is probably out of luck. If you use a wallet or purse, don’t let either out of your sight. Check all receipts to see if the entire card number appears, as many now show only the last few digits. Ask for any copies that show the entire number and tear them up. Never lend a credit or debit card to anyone, regardless of how reliable you think they are. Always cut up old and expired cards into small pieces before putting them in the trash.

You can also help to avoid identity theft by protecting your Social Security number. With the exception of banks, employers, lenders, and other financial institutions that require your number for tax purposes, you should challenge anyone else that requests it. Make sure they have a “permissible purpose” as defined in the Fair Credit Reporting Act (FCRA) of 1970. If they don’t, they can’t get your information without your advance permission. If you have an employee identification number at work, do not provide that to anyone since it can be tracked back to your personnel records. If you have an employee badge, always remove it when you leave your place of employment each day.

Another important aspect of how to protect yourself from identity theft is to guard your PIN numbers whenever you use them in public. Cover the keypad and make sure there is no one lurking over your shoulder. Store the numbers in your head, not on a piece of paper that could easily be misplaced or stolen. Many people now carry personal data on their cell phones, which in many cases could almost substitute for mini-computers. It’s easy to put the phone down in a restaurant or store and forget to pick it up when you leave, so be careful and cautious at all times.

Securing documents and computers to prevent identity theft

Keep your personal documents, financial statements, and credit card receipts that display the number locked up at all times. While a fireproof safe is ideal, even a locked cabinet or drawer is better than leaving them in the open. This should include all documents that contain personal information or account numbers such as wills, trusts, Social Security documents, bank statements, and brokerage statements. If you can’t remember your PIN numbers, keep any records of them safely locked up. If you need to dispose of sensitive documents, use a paper shredder or tear them up into small pieces. It’s also advisable to split the pieces into separate garbage bags to discourage dumpster divers from piecing them together.

Knowing how to protect yourself from identity theft includes securing your computer from both cyber attacks and burglars. Make sure you have reliable antivirus software that is up to date with the latest definitions. This should be supplemented with a good firewall to keep potential hackers at bay. Set up regular scans to detect viruses and other spyware that may be compromising your stored information. If you are connected to a wireless network, make sure that the network is secured with the latest encryption technology. You should use a login password for your personal computer. If it is ever stolen, it makes it a lot harder for the average thief to get to your digital files.

Don’t open emails from senders you don’t recognize and don’t download enclosures attached to them. Most email clients include spam filters, and you should use them. Never respond to an email asking you to verify your login information or account numbers. Reputable companies will never ask you to send that information to them over the internet. If you decide to donate an old computer to charity, make sure the hard drive is completely erased using professional software. If you don’t have the ability or means to accomplish this, take out the drive and destroy it before giving the computer to anyone.

Routinely change your passwords and PIN numbers, and don’t use the same numbers for all of your devices. That defeats the purpose of having a password, and makes identity theft very simple if the thief only has to crack one password to gain complete access. Don’t use number combinations like your birth date or street address that a thief might be able to decipher.

For victims of identity theft

If you suspect that you are a victim, file a police report as soon as possible. You should place fraud alerts and a freeze on your credit file. Once that is done, credit bureaus cannot release your report without your advance authorization in writing. Only those entities holding your current accounts will have access to your information. Review your credit report in detail and challenge anything that looks suspicious by contacting the credit bureaus directly. They all have procedures in place to assist you with getting their records corrected, and information on how to protect yourself from identity theft. If you need assistance with this process, contact an attorney or finance professional that has experience in this field.