How to Protect Yourself From Identity Theft

By Tom Houston

Did you know that identity theft is the fastest growing criminal activity of the 20th Century? Why? Because it's one of the "safest." It's been estimated that fewer than 1-in-700-identity crimes result in a conviction. So for the criminal, identity theft offers the highest reward with the lowest risk!

Identity theft has reached $53 billion dollars a year in the United States. Only about $5 billion of that is bourn by the consumers, the rest by businesses. But although business suffers the greater losses, those losses are passed on to the consumer in the form of higher prices for goods and services.

So just how big is the problem?

There has been a rash of reports about big thefts in recent months. Criminals are using online hacking methods such as Trojan viruses to "break in" to the records of credit card companies, banks, and other businesses that store passwords or other sensitive, private information. In addition to millions of pieces of information being stolen, there are numerous instances of information being "lost," cases of employees selling information, and of other lax security measures that result in thieves having access to other's identity.

Types of information being stolen include name, birth date, home address and phone number, credit reports, ATM cards, telephone calling cards, and mortgage information, as well as the numbers on social security cards, driver's licenses credit cards, and CV2 security codes.

Where Are They Getting All Your Information?

- Banks
- Credit-Reference Agencies
- Retailers
- Credit Card Networks
- Data-Brokerage Companies
- Payment Processing Companies
- Phone Companies
- Schools
- Your Employer
- Doctors, Clinics and Health Departments
- Government Agencies
- Dumpster Diving
- Mail Theft
- Retail Theft
- "Phishing"/pretexting/pretending
- Purse/Wallet Theft

What are Thieves Using Your Information For?

- Making charges to your existing credit cards
- Opening new credit cards in your name
- Having phone or utilities turned on
- Withdrawing money from your existing bank accounts
- Employment purposes
- Driver’s Licenses
- Tax Fraud
- Social Service benefits
- Student loans
- Business or Personal loans
- Health care
- Mortgage loans/leases
- Auto loans
- Using your ID when caught committing a crime


How will you know if your identity has been stolen? Watch out for the following:

- Even though you have good credit, you're refused credit requests or denied a loan
- You are suddenly contacted by a debt-collection agency concerning a debt you know nothing about!
- Your purse or wallet has been stolen, or your house broken into
- You examine your credit report and find items you know nothing about


It's important to take measures to protect yourself. Make sure you do the following:

- Keep a photocopy of all your credit cards, bank account numbers and investment account numbers in a safe
place
- Don't throw your credit card receipts -- keep them in a safe place
- Put a "fraud alert" on all your credit reports
- If you apply for credit and the card doesn't arrive on time, call the card issuer immediately
- When choosing PIN numbers or passwords, make them difficult to guess -- don't use birth dates or names. A random combination of letters and numbers is best
- Never give personal information to anyone who sends you an email, a letter or calls you asking for it
- Shred any personal information like bills, credit card statements, old credit cards, bank statements, and pre-approved credit applications before you throw them away
- Never use the ATM machine if someone is in a position to watch what you're doing
- Pay attention to what’s going on around you -- cell phones often have cameras in them. If someone is standing close by you with a cell phone while you're entering a PIN number at the ATM or in line at the grocery store, block their view
- Review your bills each month for unusual or suspicious charges. Call the creditor right away if there’s something on your bill that you don't remember.
- Check your credit report at least once a year (you can get a free report at http://www.annualcreditreport.com)
- Store your canceled checks safely, or better yet, have the bank do it. If you need a copy, ask the bank for one.
- When driving, don't leave your purse where it can be seen
- Keep your valuables locked in the trunk or glove box of your car, even while you're driving
- Make sure to password protect all personal information on your computer or laptop
- It's best not to carry information about your PIN numbers, passwords and account numbers in your purse or wallet, but if you have to, make sure they're not identifiable as to which account they belong to


What to do if it Happens to You:

- If your purse or wallet is stolen, call the police immediately, and file a report. Make sure that you're given a report number
- Contact your bank, credit card and other credit extending companies and report the theft
- Close the accounts
- Contact the credit-reporting companies in your area, and report the theft.
- Review your credit report every 90 days for the next year for suspicious activity
- If there is fraudulent activity, have it removed immediately and monitor your credit report every 90 days for the next year
- Put everything in writing, and follow up with your credit card companies, banks, and credit reporting agencies. Keep copies of all supporting documents
- File a report with the Federal Trade Commission
- Change the passwords on your existing accounts and create new ones for new accounts

Don't think it can't happen to you! Identity theft is real, and it’s a growing problem. Paying attention to the risks and taking proactive steps to protect yourself won't guarantees your information is safe, but it will minimize your risk of identity theft. Good luck!

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About the Author
Tom Houston is a writer on matters pertaining to credit and personal finance.

This article may be freely reprinted provided it is kept intact “as is” including this notice and the resource box. It may not be modified in any way.