How Can You Protect Yourself From Identity Theft?

Introduction

Identity theft occurs anytime someone else uses your information, without your permission, to commit any type of crime. The most common forms of identity theft involve using social security numbers and personal information to open up credit accounts in your name. Identity theft can have a real impact on your financial life, leaving a ruined credit report and loads of debt that you never accrued. However, taking a few simple steps can help you to protect yourself from identity theft.

Safeguard

The first way to protect yourself from identity theft is to safeguard your personal information. A thief can use everything from your address to your social security number and credit card numbers to steal your identity. Keep this information safe by never throwing away any document that includes personal information without shredding it first. Identity thieves often find their targets by dumpster diving for personal information. You should also safeguard any online information you have. Make sure that you have both spyware protection and virus protection on your computer. Turn on your automatic updates so that you have current protection against any new viruses or spyware that can steal your personal information. Other simple safeguarding tips include: not carrying your social security card with you in your wallet or purse, not giving out your personal information online to untrusted sources, not clicking on links on websites and emails that you do not know, and refraining from using common passwords such as "1234" or your birth date.

Monitor

For a monthly charge you can sign up to have the credit reporting agencies contact you any time there is a new change in your credit report. This will alert you immediately to any new accounts that have been opened without your approval. If you cannot afford a monthly monitoring service, order a copy of your credit report at least once every 6 months. By law you are allowed one credit report annually for free. For links to credit monitoring services, and how to get your free annual credit report, visit the additional resources section of this article.

Defend

The last way to protect yourself from identity theft is to not allow yourself to become a victim. At the first sign of identity theft you should contact your credit report immediately to get the ball rolling and catch the thief. This will both protect your credit score, as well as catch the criminal before they can do too much damage. The following signs may alert you that you may be the victim of identity theft: your billing statement does not arrive as expected; there are unexpected statements from credit card companies; there are calls about purchases you never made; you see suspicious activity on your credit report; or you are denied a new credit line without prior issues with credit. If you experience any one of these signs, you should contact your credit reporting agency immediately.