Protect Yourself Against Identity Theft
This web site is dedicated to helping you save money in your daily life, so why are we writing an article on identity theft? The reason is that identity theft is the fastest growing crime in America, and it can take victims of it months or years, and potentially thousands of dollars to recover their financial lives. Identity theft happens when someone steals your personal information (name, address, social security #, etc...) and uses that info to impersonate you online or in real life. The most common things thieves do is open up credit cards in your name or gain access to your bank account and clear it out. The Federal Trade Commission's website is a great resource for identity theft protection. You can check it out here. Here at BCBR, we've found that there are a few really simple things to greatly reduce having your identity stolen.
Buy a shredder
One of the simplest steps you can take is to get a basic document shredder for your home. A lot of identity theft comes from thieves simply going through your garbage and finding sensitive documents. You can easily prevent this by getting in the habit of shredding any sensitive documents or mail you don't need. Personally, I go a little crazy here and shred almost all my mail that has my name and address on it. Yeah, I burn through a shredder every year or so, but these days shredders are very cheap with basic models starting at $20. A great place to comparison shop, and where I bought mine, is TigerDirect.
Guard Your Social Security Number
Your social security #, more than any other piece of personal data, is the main thing that thieves are looking for. It's the key to opening up credit cards, taking out loans, and opening up nearly every other personal account. Don't give it out lightly, and when you do release it make sure you know exactly what it's going to be used for. Also, DO NOT carry your social security card in your wallet or purse.
Don't sign your credit cards
Instead, in the signature field, write "Please ask for ID". This means that the cashier should ask to see your driver's license before approving the transaction. I know, most of the times they never ask and this won't help, but it's a simple thing to do and gives you one extra chance at stopping an identity thief.
Monitor your credit report
You should check your credit report throughout the year to make sure thieves haven't opened up any new accounts under your name. You can get a free copy of your credit report once a year at annualcreditreport.com . However I'd suggest you track your report on a monthly basis. It will only take a couple of minutes a month, and it can save you a ton of headaches in the long run. The best way to do this is to sign up for a monthly service that will track your credit automatically and alert you of any strange transactions. It costs a few dollars per month, but compared to the costs of trying to clear your name if your identity is stolen, it's well worth it. One that I like is called TruCredit, offered by TransUnion. You can find more details here.
Consider Identity Theft Insurance
This is one of the newest kinds of insurance, and can be a life-saver if your ID is ever stolen. Check with your current car or home insurance provider--most have id insurance programs and can go over the details with you. Plus, they'll usually give you a discount if you're already a customer. Also, while not actually insurance, another great program is Identity Theft Shield offered by PrePaid Legal Services.
Identity theft is something that can happen to anyone. No matter how careful you are thieves will always try to be one step ahead, which is why its so important for you to take these basic steps, and to take a few minutes a month to monitor you credit. If you do, you're going to avoid most of the mistakes people make with their personal data, and that will save you a lot of money over time.