10 Ways To Avoid Identity Theft

Identity theft is an epidemic in the U.S. We’re not trying to scare you senseless, but it’s important to take all precautions to avoid becoming a statistic. While certain laws exist to protect victims of identity theft, the effects can still be nightmarish and difficult to erase. But we don’t want you desperately stuffing your money under a mattress just yet. Take our advice and follow these more practical safeguards to prevent your identity from being stolen.

1. Put Your Important Numbers Somewhere Safe. Create a complete record of your account numbers, their expiration dates, and the phone number and address of each company, and keep it somewhere safe along with unused checks and your Social Security card. No, a “secure place” does not mean under your mattress, behind the toilet, or somewhere so clever that you forget where it is. You might consider buying a small safe or a locked filing cabinet.

2. Don’t Space Out At The Cash Register. During any credit card transaction keep your eye on the card at all times, and get it back as soon as possible. We don’t want you looking at every waiter and retail employee as a potential thief, but “skimming” scams (inside jobs where an employee steals your credit card number—often using a tiny device—and uses it to make unauthorized purchases) of legitimate charges or even stealing credit card numbers can happen.

3. Verify Your Credit Card Statements. Save your receipts (put ‘em in that lockbox!) and compare them every month to the charges on your credit card statement. If there are any charges that you don’t remember making at all, call your card company right away to get more information.

4. Watch Your Mail. If you’re moving, be sure to notify card companies and the post office about your change of address, and if you’re going out of town, make sure to request a mail hold. (You can do this online at USPS.com. You don’t want your bank statements or bills getting lost in the mail. Identity thieves love to troll garbage cans, overflowing mailboxes, and recycling bins for just this kind of stuff. Think of your mail like luggage at the airport, and never leave it unattended. You can reduce the amount of junk mail offers you receive in the mail by signing up at www.OptOutPrescreen.com.

5. Review Your Credit Report. Get a copy of your report from the credit bureaus—Equifax, Experian, or TransUnion every year, and scour it closely. If you see any accounts that you don’t remember opening, call right away to investigate.

6. Shred It.  Make sure to safely dispose of unopened credit card offers, old bank statements, tax paperwork, etc. Shredders don’t cost that much—under $100 for a basic shredder designed for home use.  You don’t need the giant industrial version! And it’s one of the best investments you can make for financial peace of mind.

7. Protect Yourself Online. So-called “phishing” scams are getting more common and more sophisticated everyday. Despite what you might think, “phishing” has nothing to do with growing dreadlocks or following your favorite jam band around the country—it’s even worse.  It’s a common scam where the bad guys pose as a bank or another seemingly legitimate source and trick you into sharing sensitive personal information. So always be wary of giving out any personal information like your complete social security number, mother’s maiden name, or credit card number, no matter who’s asking for it.  . Scammers are pretty shameless about adding corporate graphics and convincing email addresses to their messages. If you’re not sure about the source, call your bank or credit card company using the phone number on your statement. Also be sure to update your anti-virus software, which can help foil hackers.

8. Active Duty Alert. If you’re a member of the military and are on active duty, notify all three credit bureaus. Sadly, members of the military are a popular target for identity thieves, who are clearly not a patriotic bunch.

9. Temporary Fraud Alert. If you suspect your identity has been stolen or your personal information has been compromised, call one of the three major reporting bureaus—Equifax, Experian, or TransUnion—and request a temporary freeze on your credit report. Whichever bureau you call will alert the other two. A temporary credit freeze means you will not be able to open up new lines of credit for 90 days. This is a hassle, but like most things with credit cards, short-term inconvenience will pay off later. In the meantime you can also sign up for a monthly Triple Alert report, which will notify you of any significant changes to your credit record.

10. Stay out of Debt. Identity thieves aren’t just unpatriotic; they’re also pretty ruthless. They often target people who are already underwater financially, and therefore more susceptible to a quick fix.