Avoid Identity Theft & Credit Fraud

Here's some ways to protect yourself and reduce your risk...

Lax industry practices and careless handling of data by creditors, banks and other financial institutions make it easy for crooks to access your personal information. Even the most financially responsible individuals can become the victims of identity theft or credit card fraud. Although it can't be completely avoided, the risk can be reduced by taking some simple precautions. Here's how you can protect your personal information and avoid identity theft / fraud:

Tips to Reduce Your Risk

The easiest way to reduce your risk is to check your credit report > regularly. At a minimum you should check it once per year.
Experts advise using a gel pen for writing checks since the ink contains tiny particles of color that are trapped within the paper, making check washing nearly impossible.
Carry only the minimum number of credit cards that you require.
Use online banking access to check your account activity.
Never let your card out of your site. Observe the actual swiping of your card. Dishonest employees have been known to swipe the card onto a handheld device and later use the numbers to shop.
If you're going out of town for extended periods of time, have the post office stop delivery and hold your mail or have it picked up.
Don't ever give your personal information over the phone unless you initiated the call. If someone calls who says they are calling from your bank or credit company, ask for a call back number and verify it by looking at your monthly statement or the back of your card.
Shield your hand when using a bank ATM machine or making long distance phone calls with your phone card.
Never give out your account number, social security number or other personal information over the phone, by mail, or on the Internet unless you have a trusted business relationship with the company and you have initiated the call or transaction.
Change your passwords and PIN numbers regularly.
Memorize all your passwords. Don't write them on anything in your wallet.
Choosing a password is as important as protecting it. Never use the last four digits of your social security number, your mother's maiden name, your birthday, pet's name, consecutive numbers or anything else that could easily be discovered or guessed by thieves. Use a combination of letters and numbers. A great idea to come up with an uncrackable password is to use a familiar song or nursery rhyme. Use the first letters in each word to create the password. For instance, “Mary had a little lamb” would be MHALL, or better yet MHA2L!. The longer the string, the better.

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At work, store your wallet or purse in a safe place preferably in a locked drawer or closet.
Take all credit card receipts with you. Never leave them in the bag or toss them in a public trash container. Be sure to shred all receipts and bank/credit statements.
Shred all financial statements, phone bills, pre-approved credit card offers and other sensitive and personal mail before throwing them in the trash.
Never put the complete account number on the "memo" line of your check when you make a payment - only use the last four numbers.
Know when you're supposed to receive your monthly statement in the mail. If it doesn't arrive, make sure you call the creditor immediately.
Mail all payments and sensitive mail directly into a postal drop box. Never leave your outgoing mail at your mailbox for the mailman to pick up at a later time.

Protect Your Social Security Number

The prime target of identity thieves is your social security number. Eliminate access to your number by only using it when absolutely necessary, i.e.: tax returns, employment records, mortgages. Here are some additional tips to help you protect your SSN:

If you are asked for your social security number by a merchant or business, offer an alternate option such as a drivers license number.
There is absolutely no reason to provide your social security number on a job application. You can provide it when you are hired.
Never print your social security number (or your driver's license number) on a check.
Do not speak your social security number aloud or allow others to repeat it back to you.
If at all possible, do not carry anything that displays your number. If your medical insurance card includes your number, carry it only when you require it.

* Find more information on Social Security Numbers & Identity Theft.

Safeguard Your Internet Use

Use a firewall on your computer to prevent your personal identifying and financial data from being hacked from your hard drive, especially important if you connect by DSL line or cable modem.
Install and maintain an updated virus protection program to prevent a worm or virus from causing your computer to send out files or other stored information.
Make sure you use password-protection on any folders that include sensitive personal data. In addition, encrypt sensitive files.
Shop online only at businesses that provide transaction security protection, and that have strong privacy and security policies.
Never respond to an e-mail request for personal information. Legitimate financial and Internet companies never e-mail their customers with requests for your PIN, password, SSN, birthday or other personal information. These are attempts by thieves to obtain what they need to do their dirty work and steal your identity.
Before disposing of your computer, remove data by using a strong “wipe” utility program. Do not rely on the “delete” function to remove files containing sensitive information.
File sharing programs expose you to hackers. Use strong virus and firewall protections, if you must download from an unknown source.

Credit Monitoring Services

Although you can view your credit reports on your own by obtaining them throughout the year, it may be worth the annual fee of $50 - $120 to let a credit monitoring service do the job for you. Several companies, including the three major credit bureaus, offer services that will notify you when there is any activity on your credit report, thus alerting you to possible fraud. If you decide to subscribe to a monitoring service, be sure to choose a service that checks all three credit reports regularly.

* See Credit Reports or Credit Monitoring for related products and services! *