Prevent Identity Theft

You'll find some good information, but click on a couple of the links and you'll see its the same old recycled and cliche information being stolen from one webmaster to the next.

As a result I tried to give you some new and different information that's not only useful, but practical...starting with my first tip.

The most common way to prevent identity theft is to get a paper shredder. Preferrably, a cross-cut paper shredder. They will effectively destroy your important documents that a criminal could discover while dumpster diving. They cost anywhere from $20-$80 and it could be the most important purchase you ever make. A shredder could save you thousands of dollars.

I dont know about you, but I get a TON of mail each day. Having a shredder is great and I use them, but after several uses, the motor will die. Now, keep in mind, I get a ton of mail and use my shredder probably more than I should. In three years, I have gone through three shredders!

So, definitely get a shredder! But, if you get a lot of mail and want a more practical answer for your document destruction, try this...

...I take all my personal mail and garbage, place it in a plastic bag and take it to work once a week. At my job, and probably yours too, we have an outside business come in once every two weeks who destroys all confidential paperwork. We place our paperwork in bins, the document destruction company comes in, and dumps the paperwork into an incinerator. Now, we all know I should not be using my workplace to take care of my document destruction, but a shredder just cant handle all the paperwork and garbage I have in my mailbox. This makes my life a little easier than stuffing documents in the shredder one by one.

2. Mail

Another simple tip to prevent identity theft is to place all outgoing mail in a mailbox or the postoffice. Criminals will look for your mail in your mailbox. They will steal outgoing mail, they will steal incoming mail. If you are able to eliminate one of those possibilities, you have just reduced your chance of ID theft. If you have a mailbox without a lock, you can always consider getting a P.O. Box.

3. Personal Cards

Contrary to what you might think, never carry your social security card, nor your birth certificate with you.

Always sign credit cards immediately when you receive them. I was once told to write "ask for signature" on the signature line. This requires the clerk to check another form of ID for your signature and doesnt place your signature in the hands of a criminal if you lose your card.

5. Check your statements

To prevent identity theft check your bank and credit card statements monthly. Look for transactions that should be there, and transactions that shouldn't be on your statement.

6. Don't use common passwords

Do not use your mother's maiden name on passwords. This is too common, and smart criminals will already know or they will find your mother's maiden name.

7. Be careful where your mail is delivered

Get all checks delivered to your bank, not your home.

8. Time your statements

Monitor WHEN you get statements. If you do not receive them, contact your banks or credit institutions to ensure they sent it and someone else didnt steal them from your mail.

9. Applying for new credit

To prevent identity theft, when you apply for credit cards, make sure you monitor how long it takes to get the new card. If you don't get the card within a few weeks, call the credit card company to ensure they mailed it and someone did not steal it.

10. Be careful what you say

Never give out any personal information over the phone to someone you dont know.

11. Use common sense online

Thieves have devised clever emails that look very similar to a bank or credit card email. Never open these! I dont care if they really ARE from a real bank. The risk is too great when you open them, thieves may place spyware virus' within the email and can then track your online behavior.

12. Only use secure webpages when ordering online

Do not order anything online unless it is a secure, encrypted website. There are two ways to check if a website is secure. An icon of a lock will appear at the bottom of the webpage. And the URL of the webpage will change from "http" to "https" at the page where you enter your personal information.

13. Check your credit

Check your credit report at least twice a year. Look for anything that should and should not be on your report. I use a service from www.truecredit.com that gives me access to my report at ANY time of the day or year. It costs $15 a month and isnt completly necessary, but another good resource to prevent identity theft. Realistically checking your report twice a year is more than enough.

Using these tips combined with common sense is the first step to prevent identity theft. There are many resources such as identity theft protection plans and identity theft insurance that, combined with your new knowledge will keep your identity and finances away from criminals.

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