Protect Yourself Against Identity Theft

Earlier this week I came across this article which reminded me of just how bad your life can get when you are the victim of identity theft.

Correcting your credit report, clearing your name, erasing the debt for financial decisions you never made--it is all overwhelming, time consuming and really, really hard. So instead of being loose about our personal information and having to correct the situation later, let's all try to work a little harder to prevent it from happening. If you have any tips that I forgot, be sure to add them below.

1. Don't share your SSN: Way back when I was a young whippersnapper, I worked in a credit card call center. Before I could talk to anyone about their accounts I had to verify the last four digits of their social security numbers. In order to protect the clients, all we could see on our screen were those last four digits--but that didn't matter because 90% of the people we asked to confirm their "last four" instead confirmed their "all nine." There is no need to give your entire SSN over the phone to a customer service representative anywhere, and you put yourself at risk by doing so.

2. Get a super-fine shredder. Believe it or not, people throw away old bank statements and credit card statements all the time. While these documents might not have every piece of information on them that would be necessary to steal your identity, they certainly have some. Make sure you shred them and then throw them out.

3. If your bank sends you an email and it reminds you that you need to log in to your account, don't click the link in the email. Scammers (or phishers) are constantly sending emails that look like they are from your bank (or Paypal)--but they aren't. And if you click the link in the email to log into your account, they will take the information you enter and use it to access your actual account. The first sign that this has happened is that the beginning of the web address you go to will begin with HTTP:// instead of HTTPS://. The S means it is a secured server. But hey, why take any chances? Just exit out of any emails from your bank and log in through your browser as you normally do--that way you never have to worry about the authenticity of that email.

4. Have a separate account for online purchases or use American Express/ Visa gift cards. Online purchases can be tricky. Many sites that look like they could be scamming sites are actually legitimate mom and pop online businesses--and many slick sites that you automatically trust can be used by scammers. So set aside a credit card with a really low balance and make that the only one you use for online purchases. Or, buy yourself an American Express or Visa gift card and use it for online purchases. Then, if your information is taken--it is only for that card and limits your risk substantially.