Identity Theft Tips - 8 Ways To Protect Your ID

Identity theft is becoming a huge problem in this country with the Federal Trade Commission Commission (FTC) receiving more consumer complaints about this particular crime. As more of us use credit to run our lives and the increased sophistication of ID thieves finding ways to steal our personal information the risk of becoming a victim is increasing.

ID theft has the potential to damage your credit worth and it can also cost more money and time to clean up the mess afterwards. Although, the identify theft laws and law enforcement agencies are helping to minimize the risk and to protect you more, catching and convicting these ID thieves is still quite rare. For this reason, you need to take responsibility to minimize your risk if ID fraud.

The following identity theft tips will help you:

1.Social security numbers

Your 9 digit number is a prime target because it can link you to all your banking account details, medical and tax records. Avoid carring your social security card around with you in your wallet or purse. You should make the effort to memorize the number in your head. If you have to write  it down encrypt the number so that it is difficult to decipher.

  2. Check Your Credit File Regularly

Your credit file or credit report as it can also be referred to, is an essential document that you should learn and understand. Your credit report holds very important data about your credit and payment history as well as your debt levels and whether you have ever been bankrupt, defaulted on a loan or have any court judgments against your name. Banks and lenders use your credit file to help them decide if you are suitable for a line of credit.

The credit report will also list your credit score and your social security number.After applying for a line of credit request that the credit produced as a result of your credit application is either destroyed is sent back to you. You are entitled to a free annual report from each of the credit bureaus Experian, TransUnion and Equifax.

   3. Use A Shredding Machine

Although online identity theft is growing the vast majority of people become victims to this type of fraud by having their personal information stolen in the real world. A common way is for people to throw away their bank statements, credit card receipts and utility bills into the garbage. ID thieves are nor averse to target these opportunities especially if they know you are careless. For this reason, a good identity theft protection tip is to buy yourself a shredder. Make sure it is the cross cutter type, as shredders that cut paper into long strips are not as effective as thieves can easily tape the paper strips together.

   4. Credit Monitoring Services

You have to pay a monthly fee for these services but, they could be well worth it. Basically, these services monitor your accounts for any suspicious transactions 24 hours a day. They will send you fraud alerts via text or email. It is important to point out that these services will not prevent ID theft from happening however, it can reduce the damage by acting on it sooner.

   5. Reduce Your Paper Trail

A large percentage of people fall prey to ID frauds due to their mail being redirected or stolen. For this reason, it is safer to have your financial statements either send or even access them via your banks secure website server. In this way you reduce the risk of your statements being stolen.

   6. ATM Fraud

The ATM machine is another opportunity for thieves to steal your ID. They often put a magnetic scanning device over the card slot. When you slot in your card the device scans the data from the magnetic strip on the back of your credit card.  Therefore, be wary of how the ATM looks. If in doubt do not use it.

Hidden cameras on ATM's can also be used to record your PIN number when you type it in. Therefore, protect your identity by always using your other hand to conceal the PIN number your typing in. 

   7. Pay In Cash

Popular identity theft scams are credit card skimming. This can happen when you use your credit card to pay for a meal in a restaurant. Dubious staff have been known to carry around with them portable magnetic strip scanners. When you give a waiter a  credit or debit card to pay your bill they can skim your card when you are not looking. The data copied from your card can be used for fraudulent cards. When paying for bills in restaurants try paying in cash. If this is not practical make sure you are present when the waiter scans your card.

   8. The Credit Freeze

Credit freezes are an effective way to defend against identity theft because you remove the opportunity for criminals to open another credit account in your name. The freeze or lock on your credit file means that only you can give consent for a new account to be opened in your name. You can request a credit freeze from any of the leading credit reporting companies.

By following  the above identity theft prevention tips you will help reduce your risk of becoming a victim.