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Present day Americans are being victimized by attacks on their financial and personal privacy at a rate higher than has ever been seen.

Keeping your personal financial information under indefinite lock and key may be impossible in this day in age, but it is paramount that one understands how their privacy can be compromised and what the consequences may be in the event of such an awful breach.

What Is Identity Theft?

Identity theft is a rather broad term that can be used for a number of crimes ranging from the theft of a social security number, to theft of a credit or debit card, all the way down to pinching calling cards.

The number of crimes has escalated quickly.

• There were 10 million victims of identity theft in 2008 in the United States (Javelin Strategy and Research, 2009).
• 1 in every 10 American consumers has already been a victim of identity theft (Javelin Strategy and Research, 2009).

Regardless of the new technology that makes virtual identity theft possible, most cases of identity theft come from low tech means. Dumpster diving, where a thief sorts through one’s trash in search of valuable personal information, “Shoulder surfing,” where thieves try to spot PIN numbers and credit card numbers, or even calling card numbers, and most commonly, mail theft are the traditional means of identity theft.

Which techniques the professional thieves prefer remains a mystery, as most victims of identity theft have no idea how it actually happened.

How Does It Happen?

Scams are a dime a dozen. One of the more popular scams is a fake mortgage offer of very low rates to those that apply promptly with their personal information. People want the low rates and feel the pressure of a ticking clock and give away their information without even thinking.

Another popular method used by criminals is spamming e-mails that link to websites with official looking forms asking the recipient to confirm their account information. As I recall, there was an e-mail going around about a year ago with a realistic looking site that looked like it was from CitiCards but was actually a scam.

9 Ways To Protect Yourself

1. Destroy private records and statements.
   Tear up or shred any credit card statements, credit card offers, or any other documents with your personal information on them when you are done looking over them. Remove these items from your mail immediately and store in a safe place until you review them, but remember that the quicker you review them, the quicker you can shred them.
2. Be careful with your Social. Never ever bring your social security card with you unless it is absolutely necessary. Never carry it, or any card with your social security number on it, such as a health insurance card, in your wallet. This is the main target for thieves because it gives them access to all of your financial information like bank accounts and credit reports. (For more on what thieves can do with your social security number see “What Can An  ID Thief Do With My SSN?“)
3. Never let your credit card out of sight. If you’re afraid of credit card skimming, you should never let your card out of sight. If you can’t keep your card within your sight, pay with cash. It’s as simple as that.
4. Keep your mail safe. Check your mail as soon as possible; for instance, when you get home from work. If you can’t do that, or don’t like the window between delivery and when you’re available, then put a lock on your mailbox or get a P.O. box.
5. Take your name off marketing lists. Put yourself in the Do-Not-Call Registry by calling (1-888-382-1222) or visiting the website address www.donotcall.gov. Check your privacy settings in your e-mail account and make your settings stricter about who can e-mail you. Be sure to scroll to the bottom of your junk-emails to look for an unsubscribe link.
6. Keep your paper trail to yourself. Make sure you keep all of your ATM receipts, credit card receipts, and gas purchase receipts safe and never leave them behind.
7. Find out who you’re talking to. Often times identity thieves do work on the phone lines asking people for their personal information. Say nothing but ask them their name, what company they represent, and the reason for their call. If they sound legitimate, contact the company and verify the reason for the call before giving out any personal information.
8. Check your credit report. Obtain your credit report and thoroughly review it at least once a year. You can get your report for free at Annualcreditreport.com. You may first want to look into identity theft protection services like LifeLock that will notify you whenever a change takes place with your credit reports. Here is a great LifeLock review.
9. Review your statements more carefully.Be sure that when you look over your statements that you recognize the locations, merchants, and purchases listed before you pay the bill.

What should you do if something goes wrong?

There’s no way to completely assure that you will not be a victim of identity theft, but there is plenty that you can do about it if you are.  It will, however, require some work on your part unless you have an identity theft protection program to do it for you.

First, you will need to contact all three major credit bureaus and let them know that your identity has been stolen. Ask them to put a “fraud alert” on your file and follow up with a victim’s statement. Include within your statement that you would like to be contacted before any new accounts are opened and if there are any changes to existing accounts.

Equifax
To report fraud: 1-800-525-6285
and write: P.O. Box 740241, Atlanta, GA 30374-0241

Experian
To report fraud: 1-888-EXPERIAN (397-3742)
and write: P.O. Box 9532, Allen, TX 75013

TransUnion
To report fraud: 1-800-680-7289
and write: Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92634

After you’ve done that:

• Contact the creditors of any accounts that have been compromised or fraudulently opened. Talk to somebody in the security or fraud department and notify them of the identity theft and follow up with a letter.
• File a report with your local police department in the city that the theft occurred in case the credit-card company, bank, or whoever else needs proof of the crime.
• Make sure that all of your efforts to get the theft cleared up are documented. Copy any written or typed correspondence and keep records of any telephone calls.

The best way to prevent your identity from being stolen, by far, is getting an identity theft protection service. Read customer reviews and articles on what each service has and what each service doesn’t, and also make sure you’re not paying too much. LifeLock is my personal favorite. This LifeLock review offers a promotional code so that the sign-up and cost is cheaper.

Tags: identity theft, identity theft protection, LifeLock review