Can You Prevent Identity Theft?

Knowing how to protect yourself from identity theft should become standard procedure nowadays, especially for those who surf the Web. The Internet is fast becoming the number one way for thieves to steal your identity.

While there are no guarantees, here are some tips on how to protect yourself from identity theft.

The first may seem obvious - to do business with firms you know are reputable. But it's really not so easy in these days of phishing. It takes a little bit of research to find out if that Web site is the work of an identity thief or just less than cautious, less than savvy startup entrepreneur working out of her or his basement and not taking the security precautions you need to safeguard your identity.

Another step in knowing how to protect yourself from identity theft is to learn all you can, and put into use, the various password protection and other security features offered to you for your own computer and your own Web site. A password is only good if it can't be discovered, or at least not discovered easily. Just like the locks on your doors at home if someone really wants to get in he or she will, but the more difficult you make it for him or her to do so the more likely that thief is going to leave you and your information or home alone and wander down the street, or down the Internet to find another victim with less stringent security measures.

Before you do business with an online firm, as part of how to protect yourself from identity theft, check that site's privacy policies. Makes sure they do not give away, publish, or sell your private information. There are several steps you can take on an ongoing basis as protection against identity theft. 

Identity Theft Protection Tips 

• Carrying with you (in your wallet, etc.) only those credit and other identifying cards you will actually need. Never carry your social security card unless you are heading to a place where you will actually have to have it.
• Never putting your credit card number, social security number, or other personal and financial account information on any postcard or the outside of an envelope. 
• Protection against identity theft does not involve just your active credit cards, and because of this you should cut up any expired or otherwise inactive credit cards. Close all bank accounts you aren't using and close credit cards accounts you don't need or don't use regularly.  The reason this is important is that, unused or not, they appear on any report of your credit that is requested and could be used to obtain loans, credit or make purchases fraudulently.
• As with any computer password, your debit card or ATM card pin should be impossible for someone else to surmise. A pin that is your birth date, your child or spouse's birth date, the last four of your social security number or anything else someone could guess, is no protection against identity theft. In fact, using the last four of your social security number is giving away the most personally identifying portion of that social security number.  Do not record your PIN number anywhere. You must memorize it.
• Another form of protection against identity theft is to avoid giving out any personal information over the Web, on the phone or through the postal service, unless you are the one that initiated the contact and you know the firm that is requesting the information. 
• Finally, make sure you shred any sensitive information. I like to shred old credit cards and also old bills after I pay them.