How To Prevent Identity Theft

Identity theft is usually discovered when it’s too late and victims may need years to deal with its negative impacts. Therefore, prevention is probably the best way to fight it. Here are some tips on how to do this.

Most importantly, you need to protect your personal information and documents, including credit cards, driver’s license, any documents containing your social security number, birth certificates, etc. These documents should be carried in a wallet or purse only when needed and otherwise stored in a locked safe inaccessible to people who aren’t specifically authorized. If any of these documents are lost or stolen, the issuer should be contacted immediately, any cards should be deactivated as soon as possible, and other documents should be canceled, so that they can’t be used by the person who stole them.

Any documents containing personal information, like transaction records, insurance forms, checks, financial statements, even pre-approved credit card applications, need to be shredded or otherwise destroyed before they’re thrown away, because they may be retrieved from the garbage by criminals. Don’t leave documents containing your personal information lying around at your workplace or rooms where visitors enter – they may be stolen or copied without your permission. Whenever you provide personal information, make sure it is not disclosed to third parties, find out how exactly it is going to be used and what measures will be taken to protect it. If you don’t think you can trust the company, try to find another one to work with. If you need to renew a document or a certificate, return or destroy the old one. Use gel pens when signing checks, because they are harder to wash out, should someone try to. You may also consider automatic deductions from your accounts instead of paying bills, in order to avoid bills containing valuable information being sent to your mailbox.

Mail, phone or Internet promotions that ask for personal information may also be looking to steal your identity and use it for malicious purposes. You should know that there is no federal law prohibiting anyone from asking this information from you, but there’s also no law that obliges you to disclose your Social Security Number or any other kind of personal information on the telephone. You can ask the company to find some other way to identify you or look for another business partner. Provide personal information on the phone only if you initiated the contact yourself and if you know for certain who you’re talking to. When you use ABMs or point-of-sale terminals, make sure no one can see the PIN you enter and never give the PIN to anyone: even the police or employees at the financial institution that issued your card will never ask for it. The PIN should not be easily guessed, so avoid using consecutive numbers, your telephone number, date of birth or the last 4 digits of your Social Security Number. Try to memorize your PINs and passwords instead of writing them down.

Providing information through the Internet requires additional precautions. Files containing important information may be accessed through the Internet, so it is wise to use a personal firewall to prevent unauthorized use of your data. Anti-virus programs are important, too, because some viruses may tell your computer to send information to third parties without you knowing. File-sharing software may also make your system more vulnerable, so use it carefully and only when needed. If you co-use your computer with someone else, ask them to take the same precautions as you do and explain why. Password-protect any files containing important information. Use passwords that are hard to crack on your e-mails and even at system start up, because this may prevent others from accessing it. If you provide personal information on-line, delete all cookies and cache files that may still contain it. Avoid sending personal information in e-mails and on-line application forms, because they may not always be secure enough. When you sell your computer, permanently delete any files that contain important information about you. A hard drive “wipe” utility makes sure no one can recover data you deleted.

Keep an eye on your personal finance. Order your free credit reports regularly and scan them for suspicious activity, like accounts you haven’t opened, inquiries from companies and institutions you haven’t had contact with or excessive withdrawals from your accounts that you didn’t make. Review your bank and credit card statements for errors and unexpected changes.

There are also some signs to look for which may indicate that identity theft has occurred. For example, new credit cards, bills or credit card statements may not arrive when they’re supposed to. They may be stolen or someone might have diverted them to another address by asking the company to change the mailing address. In this case, it is best to contact the financial institution in question and tell them about the problem. Another sign of identity theft can be calls from collectors and creditors regarding delinquent accounts you did not open or receiving statements for accounts you haven’t established. If you’re denied credit for no apparent reason or for a reason that does not match your understanding of your financial position, this may mean that someone else has damaged your credit so badly that you’re not allowed to borrow more. You need to get your credit report and look for unauthorized activity on your accounts.