8 Tips for Identity Theft Protection
Learn how to avoid identity theft at home, online, and on Facebook with these 8 tips.
Laura Adams, MBA
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8 Tips for Identity Theft Protection
Identity theft is a growing crime that affects one in twenty Americans, so in this article I’ll give you 8 tips for preventing it.
And at the end of the article I’ll link to my interview with John Sileo, an identity theft expert and author. You won’t want to miss my conversation with him about how identity theft cost him over $300,000, destroyed his business, and almost landed him in jail. Even though identity monitoring services can’t eliminate fraud, John recommends a service that you’ve probably never heard of. His experience is a good reminder that almost half of the worst identity crimes are committed by people the victim knows.
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8 Tips for Identity Theft Protection
To make sure you don’t become a victim of identity theft, here are eight important tips to follow:
Identity Theft Protection Tip #1: Carry Less Data
If you don’t carry sensitive information in your wallet or purse, it can’t be taken from you. So pare down what you carry to the bare essentials and do it right now. You should never carry your Social Security card because you don’t need it on an everyday basis.
Eliminate paper checks from your wallet and use a debit or credit card to pay for things instead. Debit cards aren’t as safe as credit cards, but they’re much safer than paper checks. That’s because checks reveal your bank account and routing number and it just takes one stolen check for a thief to make an endless number of copies. If you must carry checks, don’t keep a high balance in your checking account—transfer excess money into a savings account—so you limit your risk. Additionally, never have personal information such as your Social Security number, driver’s license number, address, or telephone number, printed on a check.
Identity Theft Protection Tip #2: Review Your Free Credit Reports
There are three credit agencies that maintain your credit files: Equifax, Experian, and TransUnion. The official Web site to get your free report from each of them once a year is annualcreditreport.com. Space out your requests so you get a different report every four months. None of the reports show your credit score (because you have to pay for those), but they will show you if an identity thief has gone on a spending spree using credit opened in your name!
Identity Theft Protection Tip #3: Freeze Your Credit
A credit freeze is an agreement that you make with the credit agencies that prevents anyone from opening a new account in your name. A credit freeze doesn’t protect you against fraudulent use of an existing account—like a credit card you already have—but it’s a proactive measure that gives you control over who can access your credit file. Depending on where you live there may be a small fee to place a credit freeze or to have it lifted. Take a look at the credit freeze rules for your state at financialprivacynow.com.
Identity Theft Protection Tip #4 Shred Confidential Documents
You’ve probably heard that you should shred every piece of paper that contains personal information before throwing it away, especially pre-approved credit card offers. But what you may not know is that even a tiny receipt that shows the last four digits of your credit card number can be used against you. A cross-cut shredder that makes confetti out of your documents is the best kind to use.
Identity Theft Protection Tip #5: Stop Giving Your Identity Away
Whenever an individual or a company asks you to share private information, ask yourself and them why they need it. Don’t give up your data without a darn good reason. When I got a flu shot last month, I was given some paperwork to fill out. In a rush, I mindlessly wrote down my information, got my shot, and left. As soon as I got home I wondered why they needed my Social Security number, but by that time it was too late. I can only hope that my paperwork doesn’t fall into the wrong hands. I should have politely challenged the nurse about why her company would need my Social Security number. It’s likely that the information wasn’t absolutely necessary and I could have kept that information confidential.
Identity Theft Protection Tip #6: Protect Your Computer and Mobile Devices
More and more of our confidential information is kept on computers and mobile devices, like cell phones and iPads. Just like with your wallet, eliminate every bit of private data from your hardware that you don’t absolutely need. Password-protect your devices so a thief can’t easily get your information if your computer or device is lost or stolen. Always use strong passwords that have more than eight characters and use a combination of numbers, letters, and symbols.
Download security software for your computer from companies like AVG, Symantec (Norton), and McAfee that include firewall, antivirus, and antispyware programs. Set the software up to update automatically and run a full system scan at least once a week.
Identity Theft Protection Tip #7: Minimize Social Sharing
Social networking sites like Facebook and LinkedIn are great for connecting with people, but make sure you don’t share information that could be used against you. Even selecting the tightest privacy controls doesn’t guarantee that your data won’t be exposed. Never include the following information in your social profiles or status updates:
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The year you were born
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The city where you were born
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Your home address
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The names of your children
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The days you’ll be away on vacation
Even small pieces of information, like the date and place of your birth can be used to predict your Social Security number or to gain access to your bank accounts.
Identity Theft Protection Tip #8: Move Your Finances Online
You may think that my recommendation to do more online, especially your finances, may seem counterintuitive when it comes to preventing identity theft. After all, isn’t that where many criminals are lurking? The quick and dirty truth is that one of the best ways to stay safe is to stop receiving and sending documents through the mail that contain personal information.
Even if you have a mailbox that locks, an identity thief can forward your mail to their address without you knowing it. Receiving financial documents and paying bills online is much safer, but you should only log into your financial accounts from a secure Internet connection. Never pull up anything personal on a public computer or from open WiFi connection.
Financial documents that you receive in a digital format are always in your control. You can save them to your computer, an external hard drive, a remote storage service, or print them out, if necessary. Online banking also allows you to see your transactions as often as you like and to set up account alerts, so if someone tries to steal from you you’ll know about it right away.
It’s impossible to completely prevent identity theft; however, when you catch it in its earliest stages you can stop it more quickly and with less potential hassle and expense. Remember that staying safe isn’t a set-it-and-forget-it process—you have to stay vigilant and build layers of protection over time.
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Laura’s Interview with John Sileo
6 Simple Tools to Protect Your Privacy
Identity Theft Information from the Department of Justice
John Sileo, Identity Theft Expert and Speaker
thinklikeaspy.com
Identity Thief image courtesy of Shutterstock
About the Author
Laura Adams received an MBA from the University of Florida. She’s an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers is her newest title. Laura’s previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.