Before I go further… Do NOT panic!
Identity theft is indeed scary, because it seems so easily done. This is NOT cause to panic! Just be cautious and use some common sense when it comes to your personal information.
This does not mean that you should completely avoid ever giving out your name or that you can never write another check or pay by credit card again. DO NOT begin burning all your trash (especially if you live in the city, as cities seem to frown on such things).
You can actually: introduce yourself to people, eat out at restaurants, buy goods, and use the internet. This may sound silly, but I know of people who are so totally paranoid when it comes to ID Theft that they’ve thrown common sense out the window.
What you should do: be cautious, be prudent, and use common sense.
Follow these tips to help protect yourself from Identity Theft:
Between UsI’ve had callers who have posed as my bank’s representative and asked for my social security number and bank account. My bank would already have that information. I asked the person for their name, the number where I could contact them, and then immediately called my bank (using the real phone number) and reported the instance to them.
Personal Information:
Know how your personal information is going to be used, before you give it out.
On the internet, view a site’s “privacy policy” before sharing your information. You can view the policy of this site here.
Never give out your personal information by phone, over the internet, or by mail, unless YOU initiated the contact.
If you are requested to use your social security number as identification, ask if there is an alternative. Your social security number should only be given out when absolutely necessary.
Credit Cards, Banks, and Other Billing Statements:
Between UsIt really annoys me that the credit card companies send checks/cheques with their billing statements. I know they want me to use them, so they can make money, but it puts us all at risk, if those are stolen.
Always, always, always review your billing and banking statements and dispute any charges that do not belong to you. I am shocked by the amount of people who do not look at their credit card statements and phone bills to verify that the charges are accurate. Don’t be those guys! It only takes a few minutes.
Don’t allow your bank to print your social security numbers on your checks…cheques, if you’re in Canada, as I recently found out :D
When you order new checks/cheques, ask the bank to hold them for you and pick them up yourself, rather than having them mailed to you.
If your bank or credit card issuers send you courtesy checks that you do not use, DESTROY THEM or keep them someplace that you know is safe.
If you have credit card accounts that you do not use, consider closing them. The fewer the cards you have, the lesser the risk.
When shopping, take your receipts with you. Don’t throw them away in a public place. At least, not without tearing them into small pieces!
Make a list of all your banking and credit card accounts, including the account numbers, their expiration dates, and their customer service phone numbers. If these items are stolen, you’ll be able to quickly call and inform them.
Passwords:
Password-protect your accounts. Use SMART passwords, not your mother’s maiden name or your birth date or any other personal information. Smart passwords usually contain a combination of letters and numbers. They are difficult for others to guess, yet easy for you to remember. Do not write them down! And never, NEVER, give out your password.
Between UsSeveral years ago, my wallet was stolen out of my car (I wasn’t following my own tips!). Within one hour, I had informed all of my credit card companies and my bank of the theft. My bank was able to put a stop (for FREE) on the exact series of check numbers that had been stolen, so I wasn’t even forced to change my bank account. In all cases, the credit card issuers and the banks were extremely helpful and knowledgeable concerning stolen cards/checks. Which tells me that they handle this all too often.
Personal Possessions:
KNOW what you have in your wallet or purse. Don’t carry so many credit cards that you forget what you’re carrying. And DON’T carry your social security card. Keep it in a safe place at home.
Don’t leave your wallet or purse unattended! Even if you are at work or at church or in a restaurant, it’s just not safe! And never leave them in open view in your car, even if the doors are locked.
Before you throw documents away:
Be mindful of what you are discarding. Pay stubs, bank statements, receipts, old billing statements, old copies of your credit report (!), pre-approved credit card offers…all of these are potential sources of information for ID thieves. Shred these types of items before putting them in the trash.
Mail:
Pick up your mail on a timely basis. Don’t let it sit in the mailbox where it can be stolen. Also, if you’re going to be out of town for an extended period, call the Post Office and ask them to hold your mail for you.
Credit Reports:
Check your credit report at least once a year. You are now entitled to one free annual credit report in the US. Make use of it. Make sure that the information in your report is accurate and does not contain fraudulent activity. See Step One: Obtaining Your Credit Report.
If you are going on active duty, you can ask for an “Active Duty Alert” to be placed on your credit reports. The alert remains on your file for 12 months and will keep you off the pre-screened credit offers for 2 years. You only need to call one Credit Reporting Agency, as they are required to share the information with the other agencies.
You can also choose to limit the sharing of your information by companies by “opting-out”. There are several ways to do this:
Step One: Obtaining Your Credit Report:
In the US, the Credit Reporting Agencies may also sell your name to marketing firms. To “opt out” of the selling of your information for marketing purposes, you may: (1) go to www.optoutprescreen.com, (2) call 888.5OPTOUT (888.567.8688) , or (3) use the Letter to Opt Out of Personal Information Release provided in the Sample Letter Index.
You may also want to contact the Direct Marketing Association to remove your name from their mailing and telephone listings obtained from other sources. See their site for more details.
For Canadians, the only information that I’ve been able to find on “opting out” is to contact the Canadian Marketing Association. See their site for more details. Also, you may want to check the Office of the Privacy Commissioner of Canada site. If you are aware of other options available, please let me know!
Avoid Scams.
One prevalent scam is the “Credit Repair Clinic”. This hits close to home. (I’m not a scam, really!!) These clinics will guarantee to remove negative information from your credit reports and charge you hundreds, sometimes thousands, of dollars. In many cases, once you have paid them, they simply disappear with your money. OR, you are paying someone to do what you could have done yourself…for FREE.
Read more on Credit Repair Clinics from the FTC.
Sadly, there are a large number of scams out there. For more information on scams, please read the section “Hoaxes, Scams, Etc.
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