Steps for Preventing Identity Theft

According to the research firm Javelin Strategies, more than 11 million Americans were victims of identity theft in 2008 and 2009, and the number continues to increase. Every time you fill out a form at the doctor, your credit card, insurance and social security information are available to anyone in the office who opens your file. Credit card companies and online merchants make money by passing your information along to third parties. Identity thieves use your information to finance large items and never pay for them, ruining your credit for years to come. It is possible to prevent identity theft.

Instructions

1

Protect online accounts--bank, credit card, bills--with strong passwords. Avoid using your name, birthday or pet's name and use something completely random as a password, utilizing symbols (if you can), numbers and letters.

2

Check statements frequently, daily if possible. Keeping tabs on every debit and credit transaction, along with outstanding checks and mysterious charges, will help you catch an identity thief faster and minimize damage to your credit.

3

Ask for your free annual credit report, which, according to federal law, is available to every citizen from each of the three primary credit bureaus--Equifax, Experian and TransUnion. If you've had your identity stolen in the past two years, consider having your credit monitored by one of the bureaus; however, the free annual report should be enough for the average person.

4

Ask creditors, employers and government agencies who ask you for sensitive information why they want it and who needs it. Leave it blank if you don't understand why certain information is being requested of you.

5

Shred personal and financial documents, whether bills, statements or old credit cards. Destroying unneeded but sensitive documents will reduce the chance of identity theft.

6

Protect your Social Security number. Decline the option to have it on your driver's license, don't keep your Social Security card in your car and be careful where you write it and who you give it to.