Smart Ways About Protecting Yourself from Identity Theft

Don’t Be Next

Most of us know or have a feeling about which parts of our community to stay away from due to their actual or perceived crime rates. Our knowledge about those areas and our instincts lead us to naturally avoid the “bad areas.” However, when it comes to avoiding crimes involving theft of our identities, we are usually clueless. Sometimes, we even make it easy for the identity thieves to turn us into victims. So how does one avoid being targeted by the “bad guys?”

Start with building a “moat” and “fort” around your computer set up:

Start with building a “moat” and “fort” around your computer set up:
1. Around your personal computer:
  1. Install basic protections against outside attack:
    1. a “firewall”
    2. Virus detection and elimination software
    3. File encryption for sensitive or personal data
    4. a “pop up” blocker
  2. Adopt best practices when communicating electronically:
    1. Only provide personal data on websites with “https” addresses
    2. Use strong passwords and protect them from off line theft or discovery
    3. Change your passwords periodically or whenever you think you might have been compromised
    4. Back up your files at least weekly and store the back up in a secure physical location or in an established and verified “cloud” site
    5. Only provide your social security number on sites that you know need that information for legitimate purposes, e.g., www.ssa.gov.
    6. Be extremely skeptical when receiving unsolicited e mails from unlikely sources that request personal information. This is known as “phishing.” This can also occur when receiving texts or phone calls. This especially so when someone identifies themselves as being with some government agency, e.g., IRS or FTB or from your alleged bank or investment advisor.
    7. Use a qualified IT consultant with the requisite knowledge and experience. Check their references ahead of time.
2. Around yourself and family:
  1. Use a home shredder rather than merely placing items in an outgoing trash basket to prevent “dumpster divers” from getting your personal data
  2. Consider purchasing an identity theft protection software that monitors changes in your credit activity, applications, new accounts, etc. and reports those changes to you for a monthly fee
  3. If you do not engage one of the identity theft software providers then you should regularly check your credit report for accurate reporting of your accounts and balances
  4. Consistently use only one or two credit cards where you can check activity on daily or weekly basis for suspicious activity.
  5. Review your monthly bank or brokerage statements
  6. Learn how to reconcile your accounts and do so monthly as your statements arise.
  7. Check your account at Social Security at least once per year to confirm earnings credits and benefits, ensure no one has accessed your accounts.
  8. Protect paper copies of statements and tax returns in a locked file at your home or office. Hide the key after telling your spouse where it is hidden.
    1. Discard/ shred out of date or obsolete paper files
  9. Immediately change accounts or credit cards if you believe that you have been compromised and inform credit reporting authorities by filing a fraud alert

Even after implementing all these steps we can still be vulnerable to a determined thief. Remember, their job is to rob you and they have unlimited time and talent to find a way around your defenses. That’s why it is most important that you establish regular inspection and monitoring procedures.