Are you doing enough to protect yourself from becoming a victim of identity theft?  Understand the threat and learn what you can do to prevent identity theft.

The Problem:  By now, we’ve all become aware that identity theft is a crime that can victimize any one, any where, at any time.  Extensive media coverage, staggering statistics, and horrific stories detailing the impact of the crime have shown that the threat is real and taught us to protect ourselves before we become the latest victim of identity thieves.

But, are you doing enough?  Banks, financial institutions, and credit card issuers are doing their part to prevent identity theft by offering protection plans designed to detect and eliminate the financially damaging aspects of identity theft.  Such plans include coverage for most out-of-pocket expenses as well as help through the process of undoing any damage that occurred.  However, early detection is not the only form of protection.  The truth is, when it comes to preventing identity theft, you are the first – and best – line of defense.

The Solution:  Understand how identity thieves will target you and take the necessary steps to protect yourself.

Action Step I:  Recognize the threat:  While the number of people affected by identity theft each year is a subject of debate, researchers do agree that identity theft is the fastest growing crime in the country.  The goal of the identity thief is to steal the information unique to you – such as your Social Security Number, bank account and credit card numbers, and driver’s license – and use it for a variety of malicious purposes.  Identity thieves steal bank account and credit card numbers to make fraudulent purchases, hack into computer databases to lift personal information, or even assume another’s identity and commit crimes in their name. 

Action Step II:  Protect yourself:  Because many identity thieves are interested in assuming your identity to commit further crimes, one of the most important identity theft prevention methods is to protect your Social Security Number.  Don’t carry your Social Security Card in your wallet or purse.  If you’re filling out a form that requires your Social Security Number, ask if including it is absolutely necessary.  If your health insurance card uses it as an identification number, request an alternative.  The company should be able to provide you with one.

Your credit card number is an appealing target for identity thieves who would use it make fraudulent purchases while you foot the bill.  Open your bills and check for suspicious or unauthorized charges right away.  Don’t simply throw away old bills and statements – shred them instead.  If you find suspicious charges, call one of the three national credit reporting agencies (Equifax, Experian, or TransUnion) to perform a credit check, and if necessary, enter a fraud alert. 

Protecting your electronic identity is another critical step to preventing the crime.  When online, only do business with reputable companies whose legitimacy you can confirm.  Be sure that any page that asks you to enter personal information has “https” in the address bar (the “s” means secure) and a padlock icon at the bottom of the screen.  Use passwords that are easy to remember, but hard for others to guess, and include a mix of letters, numbers, and special characters.  Avoid passwords that reference your name, last name, birth date, or other personal information.

Avoid “phishing” scams, which generally come in the form of fraudulent e-mails pretending to be from banks, retailers, or government agencies. Don’t respond with any personal information unless you made the contact first. Keep your computer free of viruses, worms, and spyware, which are often designed to corrupt files and lift information.  Sweep often and keep your anti-virus software up-to-date – new viruses are developed everyday, and being prepared for the next threat is often the best defense.

Tags: Identity Theft //