How to Avoid Becoming An Identity Theft Victim

When it comes to identity theft, you can't entirely control whether you will become a victim. But there are certain steps you can take to minimize recurrences.

The first and possibly most important thing consumers can do to protect their identity is to monitor their credit reports. A recent amendment to the federal Fair Credit Reporting Act requires each of the major nationwide consumer reporting companies to provide you with a free copy of your credit reports, at your request, once every 12 months.

To request a copy of your free credit report, visit www.annualcreditreport.com or call toll-free 1-877-322-8228. Do not contact the credit reporting companies directly. They only provide free reports through the above web address and phone number.

If you notice anything wrong on your report, refer to the section on correcting your credit report to take the appropriate steps to have the information removed or amended. You will also want to investigate thoroughly your other financial accounts to be sure the problems don’t extend to other areas.

As we said earlier, be aware when billing statements don’t arrive when they should, if you receive credit cards you didn’t ask for, and if you’ve been denied credit for no apparent reason. These are all signs of identity theft.

Place passwords on your credit card, bank, and phone accounts. Avoid using easily available information like your mother's maiden name, your birth date, the last four digits of your SSN or your phone number, or a series of consecutive numbers. When opening new accounts, you may find that many businesses still have a line on their applications for your mother's maiden name. Ask if you can use a password instead.

Secure personal information in your home, especially if you have roommates, employ outside help, or are having work done in your home. Consider using a post office box instead of home mail delivery to minimize the chances of mail theft.

Ask about information security procedures in your workplace or at businesses, doctor's offices or other institutions that collect your personally identifying information. Find out who has access to your personal information and verify that it is handled securely. Ask about the disposal procedures for those records as well. Find out if your information will be shared with anyone else. If so, ask how your information can be kept confidential.

If you are a member of the military and away from your usual duty station, you may place an active duty alert on your credit reports to help minimize the risk of identity theft while you are deployed. Active duty alerts are in effect on your report for one year. If your deployment lasts longer, you can place another alert on your credit report.

When you place an active duty alert, you'll be removed from the credit reporting companies' marketing list for pre-screened credit card offers for two years unless you ask to go back on the list before then. You can have an authorized agent do this for you, but make sure they have the proper authorization documentation to do so.

Don't give out personal information on the phone, through the mail, or on the Internet unless you've initiated the contact or are sure you know who you're dealing with. Identity thieves are clever, and have posed as representatives of banks, Internet service providers (ISPs), and even government agencies to get people to reveal their SSN, mother's maiden name, account numbers, and other identifying information.

Before you share any personal information, confirm that you are dealing with a legitimate organization. Check an organization's website by typing its URL in the address line, rather than cutting and pasting it. Many companies post scam alerts when their name is used improperly. Or call customer service using the number listed on your account statement or in the telephone book.

Treat your mail and trash carefully. Deposit your outgoing mail in post office collection boxes or at your local post office, rather than in an unsecured mailbox. Promptly remove mail from your mailbox. If you're planning to be away from home and can't pick up your mail, contact your local Post Office to request a vacation hold. They will hold your mail there until you can pick it up or are home to receive it.

To thwart an identity thief who may pick through your trash or recycling bins to capture your personal information, tear or shred your charge receipts, copies of credit applications, insurance forms, physician statements, checks and bank statements, expired charge cards that you're discarding, and credit offers you get in the mail.

To opt out of receiving offers of credit in the mail, call: 1-888-5-OPTOUT (1-888-567-8688). You will be asked to provide your SSN which the consumer reporting companies need to match you with your file.

Don't carry your Social Security card with you; leave it in a secure place. Give your SSN only when absolutely necessary, and ask to use other types of identifiers. If your state uses your SSN as your driver's license number, ask to substitute another number. Do the same if your health insurance company uses your SSN as your policy number.

Carry only the identification information and the credit and debit cards that you'll actually need when you go out. Keep your purse or wallet in a safe place at work; do the same with copies of administrative forms that have your sensitive personal information.

Be cautious when responding to promotions. Identity thieves may create phony promotional offers to get you to give them your personal information.

I once had a co-worker who made copies of everything in his wallet once a month and kept them in a secure place inside his home. This is a great idea to easily help you keep track of credit cards (copy the front and back), checking account numbers, and health insurance information (again front and back copies).

When you use the ATM, be mindful of anyone around you. Cover the keypad when entering in your PIN to defeat prying eyes or miniature cameras. Do not allow yourself to be distracted when using the ATM. That is prime time for criminals to strike.

You can physically protect yourself and your documents, but there are other ways for thieves to secure your personal operation – through your personal computer.

Next article: How to Stay Safe Online from Identity Theft

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