How to Prevent Identity Theft

Close up of a credit or debit card for security background

Identity theft can cost you thousands of dollars and take years to recover from. The steps you need to take to prevent identity theft are worth the effort in order to prevent criminals from running up a credit card bill on your name. It is not difficult to prevent identity theft, it just requires a persistent effort on your part.

Your credit report

The first step to protecting your identity is to keep a close eye on your credit reports. Federal law states that the three major credit reporting agencies (Experian, Equifax and Trans Union) must give each American consumer one free credit report every 12 months. That is a good place to start. Order your credit reports and look for any suspicious activity. It is a good idea to subscribe to the three major credit agencies and review your credit report at least once a month for accounts or activity that you do not recognize. If you see something suspicious, then contact the creditor to verify the account information.

Your credit card bills

Criminals looking to steal your identity will often start with small purchases on your credit card to see if you are paying attention. Sit down with each credit card bill every month and analyze every purchase made. If you see a purchase you did not make, then report it to the credit card company and ask that you be issued a new credit card with a new account number. You should also report the issue to the police so that you have an official police report to use if other incidents arise.

Look closely at your credit card bills as some criminals will start with purchases as small as $5.00 just to see if you are paying attention.

Your computer passwords and private information

Change all of your computer passwords at least once a month and keep them on a handwritten list in your home. Do not keep your passwords on a list in computer file because if your computer is compromised, the criminal will have access to your passwords. Write down important information such as your ATM access code and social security number on a piece of paper kept at your home as well. Never carry your social security card or ATM access code in your wallet or purse. Protect your social security number closely as that is what the criminal really needs to steal your identity.

Once you become a victim of identity theft, you will start to see all kinds of problems rolling in. Take the necessary preventive measures to make sure you do not become a victim of this growing crime.

Preventing identity theft is well worth the effort to prevent compromised information