When someone else uses your name, social security number, or other personal information to commit fraud, it is called identity theft. Rebuilding good credit in the aftermath of identity theft can take months or even years. You can reduce your chances of identity theft by taking a few simple steps.
1
Stop the Flow of Information
Resist the urge to apply for instant store credit cards where you are giving out your personal information to a store clerk. Decline to give your telephone number when asked for it by a sales associate at the cash register. Don't give out any personal information over the telephone. In 80% of the instances where information is requested, all of the information asked for is not needed.
2
Monitor All Account Statements
Open account statements as soon as they arrive. This includes credit card statements, bank account statements and line of credits. Review the statements for any irregularities, unknown charges, or other issues. Make sure you recognize every transaction on your statements.
3
Go Paperless
Stop having your statements sent to you through the mail where they can be intercepted by an identity thief. Review your accounts and statements online. Use your bank's online bill pay service to pay your bills. A person who monitors their account online only loses $500 on average to identity theft. A person who monitors paper statements loses $4,500 on average to identity theft.
4
Buy a Safe
Lock up important documents in your house in a safe. Wills, deeds, titles to homes and cars, life insurance policies and any other important documents should behind a lock so that visitors to your home don't have access to the information. Physical paper is 92% of the problem when it comes to identity theft. Also, many victims of identity theft actually know the identity thief.
5
Shred, Shred, Shred
Shred all documents before throwing them out in the trash. Identity thieves like to go through trash for documents and paper with personal information on it. You should shred old paper statements, ATM receipts, credit card receipts and any other documents that have personal information. Make sure to use a cross cut shredder so that the thief can't put the document back together.
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