How to Prevent Identity Theft

The convenience of Internet banking is indisputable. Simply go online and a few clicks later your banking chores are completed and you can get on with your day. Unfortunately the same Internet that makes transferring your money from one place to another a simple procedure has spawned a dangerous predator–the online identity thief. For someone who is looking for a simpler way to make money than by working for it, the Internet presents the perfect opportunity to pilfer money anonymously and without too much effort. They do this by stealing your identity. After all, a computer doesn’t know who is poking the keys, only whether or not the right keys are being punched. Following are a few tips on how to prevent identity theft.

The Internet Isn’t the Only Threat to Your Security

Although hacking into a data base to steal your personal information happens on a daily basis somewhere in the world, the Internet isn’t the only threat to your financial security or your personal identification. In fact, it probably isn’t the major source of information for identity thieves. They have a number of various ways of gaining access to your personal information, which they can then use to remove money from your bank account or charge items to your credit cards. They can do this online or by going into stores and physically using the card. The second method is more dangerous for an identity thief, so they tend to stick to online purchase whenever possible because the anonymity of the Internet protects them–up to a point.

Protect Your Information

When you use your credit card at a store you must enter your PIN (Personal Identification Number) in order for the transaction to go through. Make every effort to ensure that no one can see you as you enter the number. Identity thieves make it a practice to unobtrusively look over your shoulder or otherwise observe you as you enter the number, and if you’re not careful they will see the numbers you punch and memorize them. You are especially vulnerable for this type of spying at an ATM, so you should take appropriate precautions.

Never Supply Personal Information Unnecessarily

If you receive an unsolicited telephone call asking for personal information you should hang up immediately. Never give an unknown caller, or anyone you don’t know very well, any personal information, especially your credit card number or social security number. With this information an identity thief would be able to apply for credit in your name. You could end up owing money for something you never bought, and it could ruin your credit rating.

Use a Shredder

Another form of identity theft protection is to destroy your credit card receipts and other personal information you no longer use, such as an old loan application or old bank statements. A shredder works well for this purpose, or you can simply tear the paper into miniscule bits, or burn them. Whatever method you choose to use, the destruction of your unused or outdated personal information will keep it out of the wrong hands and probably help you sleep better at night.

Look at Your Credit Report

You are entitled to get a free credit report at least once a year, and more in some states. It would be a good idea to take advantage of this so you can be sure no one has been using your name and personal information to try and borrow money. By regularly reviewing your credit report you will be able to ensure that all the entries are actually yours. If you see any discrepancies immediately report them to the credit reporting agency and the creditor that supplied the information to them.

Credit Card Theft

If your credit card is lost or stolen you would be well advised to report the loss immediately, and cancel service on the card. If it was stolen and you notice it quickly you may be able to stop the card from being used. You would also be wise to destroy any credit cards that have expired. Simply because you can’t use it anymore doesn’t mean it isn’t valuable to an identity thief. All the information someone would need to steal your identity is on that card.

Guest post from Bailey Harris. Bailey writes about identity theft protection for IdentityTheft.net.