Over half a million people are victims of this crime every year, and many of them must spend considerable time hassling with credit agencies, financial institutions, and police departments in an effort to repair the damage to their names. Others seek legal help, usually at great expense.
Protect Your Mail
If your mailbox is unlocked, your mail could easily be pilfered, providing the thief with your bank account numbers and balances, credit card information, new checks—and more. Think about all the personal information included in insurance policies and bills of all kinds, including physicians' statements! Credit card offers in your name also pose a significant risk, should someone get a hold of them.
A post office box, a mail slot, or a locking mailbox are three possible ways to protect your mail. You should also make a point of always using a post office collection box for your outgoing mail—if it's personal, don't leave it in an outgoing mail bin at work.
If you don't receive an expected bill in a timely manner, contact the company. For greater security, consider receiving and paying bills online, which has the added benefit of minimizing the amount of paper mail coming and going. However, there are certain things to keep in mind when sharing your information online as well—read on to keep yourself covered.
Protect Your Personal Paperwork
A file cabinet that locks and a good shredder are indispensable items in every household these days. A desk drawer or an unlocked file cabinet leaves private information readily accessible to any ill-intentioned people who enter your home (cleaners, repair people, delivery people, and the like), as well as anyone who breaks into your home.
Keep all important information—bank statements and other financial information, blank checks, charge card receipts, insurance policies, physicians' statements, charge cards you're not using, passport, Social Security card, birth certificate, and the like—in a locked file cabinet.
Don't throw away any outdated statements, expired charge cards, or other important information without shredding them first. That trash bag sitting on the curb is an open invitation to identity theft.
Protect Your Credit
If you carry your wallet in your purse, you are inviting theft whenever you put your purse down and get distracted in stores, restaurants, or at work. Many of us have more credit cards than we need and carry all of our cards around with us daily. It's smart to limit the number of credit cards in your name, and to carry only the credit and debit cards that you actually need when you go out.
Some hotels are reporting that thieves who get into a room often steal only one card from a wallet or purse, leaving the rest of the contents intact. That means it may take the victim longer to realize the theft—giving the thief more time to make charges to the card.
When you fill out credit card applications, be consistent about how you write your name and address—they should be exactly the same for each line of credit.
If you are moving to a new address, contact all of your creditors in advance of moving day, so that none of your statements gets delivered to your old address. Close out unused credit cards—shredding them is not enough. If one of your cards expires and you haven't received a new one, contact the card company immediately.
To minimize damage if a card is stolen, write down the account number and company contact information for each card, and keep the information in a secure place at home. If a credit card is lost or stolen, you can access all the numbers you need to report it to the company.
Don't wait even one hour to report a missing card; if you report the loss before any charges are made, you will not have to pay the $50 liability fee for charges made unlawfully.
Even if an actual card hasn't been stolen, your credit card numbers can be fraudulently used, so it's wise to read through every credit card statement and report any charges you do not recognize.
You are entitled by law to three free credit reports every year—start taking advantage of this service at AnnualCreditReport.com, and keep an eye on your credit. You can stagger these three reports throughout the year in order to get one free credit report every four months.
Protect Your Social Security Number
Your Social Security card and number are the ultimate prize for the identity thief, so guard them closely. Never have your SSN printed on your personal checks, and never use even a portion of the number in any password. Don't give out the number without question, and don't let it be used to identify you unless absolutely necessary.
Your Social Security card should be locked up at home, and the number should not appear on your driver's license. If it does, you can contact the Department of Motor Vehicles in your state and request a different number.
If an organization customarily uses SSNs as ID or policy numbers, ask whether another number can be substituted. If they insist on using your SSN, ask what safeguards are in place to protect it.
Remember: a stolen Social Security card or number could mean months of aggravation, compromised credit, and mounting lawyer's fees.
Protect Yourself Online
Virus protection software is an absolute necessity on any computer (even on Macs), and you should schedule regular, automatic virus scans. Avoid file-sharing programs, since viruses can be embedded in downloaded material.
But these days, virus protection is not enough to safeguard the information stored on your computer. You should also have up-to-date anti-spyware and a firewall—make sure this software is set up to notify you of needed patches. Likewise, your browser should be kept current. Many people delay updating their browser because they fear the way it looks or operates will change, but it's critical to have up-to-date encryption capabilities.
A spam blocker set to high will keep your mailbox free of most annoying junk mail, as well as potentially dangerous attachments. You should never open an attachment you aren't expecting—even from a friend—without checking with the sender, since some viruses can invade your address book and proliferate by using stolen addresses.
Your passwords should comprise a mixture of numbers, symbols, and upper and lowercase letters. You may think that your mother's maiden name will make your password hard to crack, but that information—and lots of other "personal" information—can be obtained through government records. It's up to you to create unique passwords and commit them to memory. Don't write them down unless you lock the information away.
When you shop online, look for the Trust-e symbol or the Better Business Bureau online seal, which indicate that the seller has been independently audited and found trustworthy. Avoid shopping on any Web site that doesn't offer a privacy policy—you need to know how your personal information will be handled.
Finally, don't make online credit card charges unless they are handled through a secure site or in an encrypted mode. You'll know it's secure if the page you are on has a URL beginning with https instead of http.
Stay Alert for the Signs of Identity Theft
Any of the following situations should raise your suspicions and move you to take action:
Failing to receive a regular bill or account statement.
Receiving a credit card you didn't apply for, or a bill for an account you didn't open.
Finding charges you don't recognize on your accounts, or getting calls or letters from debt collection agencies.
Being denied credit, for no apparent reason.
Discovering false or inaccurate information on your credit reports.
Take Action Immediately
As soon as you are aware that someone has stolen your credit cards, driver's license, Social Security number, or any other type of identifying information, follow these steps:
Cancel your credit cards, ATM cards, and debit cards, and close your bank accounts. If checks were stolen, notify your bank and the following agencies: Equifax (800-437-5120), Telecheck (800-710-9898), and International Check Service (800-631-9656).
File a police report and keep a copy.
Call the credit bureaus, which can issue a fraud alert for you: Equifax (800-525-6285), Experian (888-397-3742), and Trans Union (800-680-7289).
Alert the post office if you think a change of address may have been filed in your name.
Contact your state's Department of Motor Vehicles if your driver's license has been stolen.
Contact utility and phone companies to alert them of suspicious activity or cell phone theft, and close accounts if necessary.
Go to the Federal Trade Commission's Web site for more information.