CreditShack.org

The Federal Trade Commission (FTC) received 161,819 identity theft reports in 2002. The FTC projects that identity theft will continue to grow at a rate of about 30% per year.

What is identity theft anyways? According to the FTC, “Identity theft occurs when someone uses your name, address, Social Security number (SSN), bank or credit card account number, or other identifying information without your knowledge to commit fraud or other crimes.”

You can reduce your chances of identity theft by taking steps to prevent your information from falling into the hands of thieves. You can limit the damage identity thieves can do by proactively monitoring your credit report.

Here are 5 concrete ways you can reduce your odds of identity theft and save yourself time & money:

1. Shred your documents. Thieves can steal your identity by rummaging through your trash (”dumpster diving”) and finding discarded documents bearing personal information.
2. Don’t give out personal information over the phone or online, unless you initiated the contact or you know individual or merchant is legitimate. Beware of “phishing” attempts, where identity thieves disguise themselves as legitimate businesses (usually banks, PayPal, or eBay) in order to collect information about you and steal your identity.
3. Guard your mail. Don’t place important documents in your mailbox to be mailed. Instead, mail them directly at a post office drop-off. Make sure you retrieve your mail from your mailbox promptly. Identity thieves sometime steal information directly from your mailbox.
4. Choose secure passwords. Many people who do their banking and other financial transactions online choose insecure passwords. If you choose an obvious password, it makes it easier for thieves to break in. The best passwords are changed often and contain a mixture of uppercase & lowercase letters, numbers, and special characters (e.g. a safe password is something like a%Zx21t7).
5. Check your credit report often. Identity thieves often use your information to open fradulent credit card accounts. Credit reports show By checking your credit report often, you will be alerted if thieves try to open accounts in your name.

Do not waste your money subscribing to the “credit protection” service that your credit card promotes. These services are often overpriced and of little use. Instead, consider subscribing to a third-party credit monitoring service. Although more expensive than pulling your credit report yourself, these services protect you from your own complacency.

If your identity is stolen, you should follow these steps outlined by the FTC.