Five Steps to Stop Identity Theft

Identity theft can potentially lead to financial devastation for its victims. Once an identity thief obtains your personal information, he can use it to open new lines of credit in your name, access your bank account, or secure goods and services at your expense. If you're concerned about the security of your personal information, taking five key steps can reduce your exposure.

Review Your Information

In some cases, it can take weeks or months for a victim of identity theft to discover that fraudulent activity has taken place. Regularly reviewing your financial information allows you to spot suspicious activity and stop it in its tracks. Check your bank and credit card statements each month for unusual transactions. Obtain copies of your credit report regularly to check for new accounts or excessive inquiries into your credit history.

Protect Your Identity Online

The widespread availability of information on the Internet makes anyone who regularly surfs the web a target for identity theft. One of the most common identity theft tactics is to send a "phishing" email to potential targets. These emails vary in content but their goal is ultimately to convince you to provide your personal information to the email's sender. Protect yourself online by avoiding suspicious emails, choosing intricate passwords for all of your online accounts and avoiding websites that do not use a secure connection.

Shred Your Documents

If you throw bank statements, credit card statements or other personal documents in the trash without shredding them, you're making it easier for an identity thief to grab your information. Invest in a crosscut shredder and shred your personal documents. Better yet, sign up for paperless statements. Doing so helps the environment and reduces your risk.

Freeze Your Credit

A credit freeze allows you to restrict access to the information contained in your credit report. Freezing your credit permits only select individuals to view your credit information, making it much more difficult for identity thieves to open new accounts in your name. The laws regarding credit freezes vary from state to state but generally, a credit freeze restricts your information to those creditors you already do business with, potential employers, landlords and insurance agents.

Protect Your Children

Children are an easy target for identity thieves because fraudulent activity is more likely to go unnoticed until the child reaches adult age and attempts to get credit in her own name. If your child is receiving mail in their name, specifically offers for credit, this is a red flag that their information has been stolen. Protect your child's Social Security number, obtain copies of their credit report regularly and monitor their online activity to reduce their risk.