Guard Yourself from Identity Theft

November 21, 2010, By Steve Thompson 0 comments

I don't know about you, but I've heard so much about identity theft that it almost seems like an abstract concept. Identity theft: bad. Protecting your identity: good. Everything else becomes white noise because there are so many identity theft protection tips floating around that you don't know how to distinguish the helpful from the unforgivably paranoid.

The truth is that personal identity theft protection is deceptively simple. It's impossible to guard against every potential theft, so it comes down to developing sound habits that minimize the chances of becoming a target.

Keep track of your credit report. I know, it's like a broken record. And you've been so busy listening to people tell you to get copies of your credit history that you've forgotten to actually order it, right? Get on that. Because the easiest way to detect identity theft early is to see it in black and white is as soon as possible after it occurs.

Watch your banking statements. This is another simple identity theft protection tip that often goes overlooked. Your bank statements arrive in the mail each month (or are downloaded to your computer), but do you actually read them line by line? Probably not. If you don't, you might miss an unauthorized charge that could lead to further abuse of your identity and credit.

Shred your mail. If your mailbox is anything like mine, you receive no fewer than two credit card solicitations per week, among dozens of other advertisements, bills, and other types of mail. Rather than pitching the ads in the trash, run them through a shredder first. You don't want your name, address, phone number, and other personally identifiable information floating around for anyone to find. You can also opt out of these offers by visiting OptOutPreScreen.com.

Pay with cash. I hate handing over debit and credit cards to pay for things because this opens the door for skimming, which is where identity thieves retrieve card information for later use. That nice guy who takes your debit card at the McDonald's drive-thru window? He could be jotting down those numbers while you clean out your drink cup holders. If you do pay with cards, watch the cashier until he or she hands it back.

Don't talk about it. This rule works for more than just Fight Club. If someone calls you on the phone and wants to "verify" any of your personal information, ask them to send you something in the mail. Don't give out your social security number, banking information or anything else that could lead to identity theft. If you believe the person on the other end of the line is legit, call the number you have for the banking institution back to verify.

Note missing mail. One of the most important personal identity theft tips is to note any changes in routine. If you stop receiving bills in the mail, for example, this could indicate that someone has changed your address on file for the purpose of stealing your identity. Irregularities in the mail are a huge red flag.

Don't dismiss collection calls. The name Steve Thompson isn't exactly unique, which means I often receive collection calls intended for other Steve Thompsons. But I never dismiss these calls as mere mistakes; I always follow up because this could be a sign of identity theft. Learn the details of the collection to ensure it's a case of mistaken—rather than stolen—identity.

Develop financial security. Identity theft can wreak havoc in your life regardless of your financial situation, but it's far less devastating if you don't depend on credit to pay your bills. Develop a savings plan and start socking away money at every opportunity. That way, if someone steals your identity, you won't find yourself without any reserves.

Identity theft protection is an issue all men should take seriously. If you are worried about the potential of becoming a victim, the FTC recommends implementing fraud alerts and credit freezes and cautions against paying "identity theft protection services" to perform this service because you can do it for free.