In Our Words / Article

Ten Ways to Help Prevent Identity Theft

By Justin Laby, Co-founder, Mouko, Inc.

Introduction

Identity theft, or more accurately identity fraud is a crime that impacts nearly ten million Americans each year [1]. This crime is a truly global problem; identity thieves have no bias for race, gender, or social class. The perpitrators might be on the other side of the globe, or they could be down the street. They could even be “friends,” family, or acquaintances; in fact, studies have shown that nearly 50% of identity thefts are performed by someone the victim knows. [2]

Victims of identity theft report feelings similar to those of violent crime: those of betrayal, violation, and guilt. Thus, the cost of identity theft is much more than simply money or time; it takes a tremendous emotional toll as well [1]. The measurable costs are certainly great, however, with the average fraudulent amount exceeding $6,000 per person in 2006, and resolution taking anywhere from days to weeks.

There is no guaranteed, fool-proof way to avoid identity theft, but there are many ways you can help decrease your risk. The following are just ten of the many ways to safeguard your identifying information.

#1 Guard Your Social Security Number

Your Social Security Number is the easiest way to find out information about you, or to apply for credit in your name. Do not carry your Social Security Card on your person unless you absolutely need it. It is better to memorize the number for the rare circumstance when it is actually required (e.g. for paying your taxes, filling out employment documentation, or applying for a passport).

If a third party asks for your Social Security Number, demand to know why it is needed, how it will be safeguarded, and inquire whether there is other identifying information you might use instead.

#2 Shred Your Junk Mail

Invest in a shredder or a burning barrel (if permitted in your area), and make sure all your junk mail (particularly pre-approved credit cards!) are completely destroyed. Never throw them in the garbage without destroying them first, because people can “dumpster dive,” or go through your trash, and take this personal information.

Make sure not to keep unneeded information in your purse or wallet, and keep your car clear of unnecessary identifying information. Always carry your mail into your house, and never leave it in your car where it is accessible to inquiring eyes or potential thieves.

#3 Be Skeptical of Corporate Email

When you receive unsolicited email from anyone claiming to be a corporation, whether eBay, PayPal, a bank, or anything else, presume that the sender is a thief until proven otherwise. Never click on links inside email messages. If a message requests that you go to a web site to change a password or revalidate your account, type the name of the web page manually in the address box of your web browser instead of clicking on it.

You may think the link you clicked on will take you to your bank, but quite possibly it will instead take you to a decoy site designed to steal your personal information. This scam is known commonly as phishing.

#4 Use Anti-virus and Anti-adware Software

It is vitally important to keep your antivirus and anti-adware software up to date. Programs such as AdAware, can help detect and remove other malicious programs (also known as malware) that may be gathering personal information as you type it.

#5 Read Reviews before Installing Software

If you are thinking about downloading and installing software from the Internet, make sure you have read a few reviews of it first, and make sure you are downloading software from a site you trust. This will help ensure that the software you are installing is legitimate and not malware.

#6 Get Your Three Free Credit Reports Each Year

By law, you are guaranteed three free credit reports per year: one from each of the three major credit companies (Equifax, Experian, and TransUnion). Scrutinize these reports and make sure everything is accurate and exactly as you expect it to be. Go to annualcreditreport.com (a site endorsed by the Federal Trade Commission) or call (877) 322-8228 to get the ball rolling.

#7 Be Aware of Your Surroundings

Another method commonly used by identity thieves is known as “shoulder surfing.” Simply put, this means looking over your shoulder to see what information you are typing or viewing. Whenever you are asked to type a password, PIN, or other identifying information, look around to make sure nobody is attempting to snoop. Try to avoid doing financial or business transactions in crowded, public places like cafés.

#8 Only Provide Sensitive Information via Secure Channels

If you are asked to provide a password, account number, or any other vital record via the web, make sure the lock icon in your web browser is closed (it's typically in the address bar of your web browser, or possibly in the bottom left or right corner). Never provide sensitive information if you cannot verify that your connection is securely encrypted.

#9 Carefully Examine Your Statements

Make sure to pay close attention to your bank and credit card statements for any anomaly. If you have even the slightest question as to what a charge might be, consult the issuing institution immediately and ask for clarification. Consider putting passwords on your credit card, bank, and utility accounts, if possible.

#10 Use Your Brain

The best tool you have to fight identity theft is inside your cranium!

Think like an identity thief (but don’t act like one, of course). Be conscious at all times of what information you might be giving away through your actions. Think about what you are leaving behind when you exit an area. Think about who, and how many, will have access to information you provide. Wonder and inquire about where and how your information is stored.

When it comes to your personal information, it pays to be paranoid.

Or, at least, it will save you a lot of grief.