There are many crimes that target people and their finances, but one of the most insidious, and one of the most dangerous, is that of identity theft.
Identity theft has become a growing problem, and as criminals get more and more sophisticated at stealing personal information the damage it does is likely to grow.
It is important for every consumer to realize that they are at risk, and it is important for every consumer to learn all he or she can about the problem, and how to protect their valuable personal information.
What is identity theft?
Identity theft involves a person, or an organized criminal group, using another person's personal information without their permission.
This personal information can be used to open up credit card accounts, bank accounts, take out loans, start up utility service, rent an apartment, or for virtually any other financial purpose.
These criminals may even use the personal information they gather to create a fake driver's license, fraudulent Social Security card, fake passport, or another fraudulent personal document.
The prevalence of identity theft means that every consumer needs to be especially vigilant about protecting their personal information. Personal information such as Social Security numbers, bank account numbers, credit card numbers and passwords should never be divulged unless you initiated the contact, and/or you are certain of the identity of the other party.
In addition, such information should never been sent via email, as email is not a secure communication medium. Always be wary of suspicious requests received via email.
How to steer clear of identity theft
It is vital to keep any information craved by would-be identity thieves far from their prying eyes through a combination of personal and computer security. Taking small steps to protect your identity can end up saving you time and money, and, more importantly, giving you peace of mind.
Shred personal documents
Personal information can be protected by shredding any materials that contain Social Security numbers, credit card numbers, bank account numbers or other sensitive information.
Investing a couple of dollars in a personal shredder could end up saving you hundreds of dollars, and many hours of hassle, by keeping you safe from identity theft.
Watch for suspicious emails
While on the Internet, it is important to always be on the lookout for suspicious emails. Many identity thieves have taken to sending out unsolicited emails which appear to come from a legitimate source such as a bank. These fraudulent emails are then used to steal personal information, log keystrokes, capture passwords and other nefarious reasons.
It is important to be suspicious of such emails, even if they appear to be legitimate. If you are at all unsure of the source of the email, be sure to verify its authenticity with the purported sender before taking any action.
Scrutinize your online profiles
With the popularity of social networking sites these days, it is likely that at least a portion of your personal information is accessible online. Your email address, physical address, employment information, phone number and date of birth are just a few of the pieces of information that may be visible on your profile(s).
Set limits. Only provide the information that you must and find your comfort level for providing additional details above and beyond the required information.
Protect your Social Security number
This sounds like a pretty basic recommendation, and it is. Don't give out this number unless it is absolutely necessary. Oftentimes - especially when on a phone call regarding a personal finance matter - you may be able to provide information other than your Social Security number to verify your identity.
When filling out forms online, only provide this number when absolutely necessary on a trusted site. When in doubt, leave it blank. Give out your Social Security number sparingly - ask about other options.
Remove sensitive documents from your wallet (or purse)
Only carry items with you that are absolutely necessary on a daily basis. Social Security cards, usernames and/or passwords to financial accounts, and other private information should be left behind in a more secure place.
For more tips on protecting your identity and preventing ID theft, see Identity theft protection 101
Take protecting your identity seriously
This combination of online and offline precautions can go a long way toward keeping yourself and your vital personal information safe and sound.
Keeping personal information safe is everyone's responsibility, and it will take a concerted effort on the part of financial institutions, government agencies and consumers themselves to decrease the number of these types of crimes.
