Ways to Avoid Identity Theft

You can pay dearly for carelessness regarding sharing of personal information in this age of e-commerce and automated banking. Every month, millions of dollars are lost by individuals and banks due to identity theft crimes. In this age of cyber crimes, you have to be very careful in sharing your personal information with anybody. Though identity theft punishments are very strict, it doesn't stop people from stealing personal information. It isn't a matter that should be taken lightly by anyone.

Although I have known a lot of people, who have been victims of identity theft, I myself have been fortunate enough to not being counted among them. That may be, partly, due to plain old good luck and partly due to my habit of being extremely paranoid about securing my personal information. In the following lines, I shall discuss a strategy to prevent identity theft effectively. Like me, you don't need to be paranoid, but I am sure you will agree that being careful in this case, certainly has its advantages.

What is Identity Theft?

Before we go ahead and take a look at ways to prevent it, let me describe what exactly is identity theft. This crime manifests itself in many ways. Identity theft is basically using somebody's personal information to gain access to his or her resources or use it for nefarious purposes. The types of personal data which get stolen include social security numbers, credit card/debit card numbers and PINs, passport information, financial history and other such information.

Impersonation is a better word than identity theft to describe this crime. The biggest crime problem is credit card fraud, which is enabled by identity theft through hacking of computers.

The rise of e-commerce and online banking has created the greater evil of stealing login names and passwords, through phishing websites and email scams. Every time you expose your personal information in a public place and every time you share digital or documented personal data of any kind, you are vulnerable to being a victim of identity theft. Let us see ways in which you can create a foolproof system of protecting your personal data in the next section.

Best Ways to Avoid Identity Theft

The best way of avoiding identity theft is to plug all possible ways in which you could leak personal information into public domain. Here are some simple tips on how to go about it.

Safeguard Personal Documentation
First and foremost, make sure that your personal documentation, which includes your passport, your social security card and other personal documentation is safely locked up in your house or any other secure place. If you need to carry your debit card or credit card with you, make sure that you keep your wallet or purse safe, when traveling in public places.

Avoid carrying any of your personal documentation or credit cards with you, unless you really need to. In the event that any of your personal documents get stolen, make sure that you report it immediately to police authorities and block the stolen debit or credit card. Get the best identity theft protection, you can.

Shred Documents With Sensitive Personal Data
Don't throw away credit card bills and other documentation which has sensitive personal information, without shredding them. Buy a shredder if you regularly generate a lot of personal documentation and make sure that all disposable documents are shredded and disposed off securely. Make sure that no personal documents are left in the trash as they can be scavenged for information.

Be Smart When Choosing Email Passwords & ATM PINs
When setting passwords and login names for your email account or setting your debit card PIN, don't make it your birth date or something that can be easily guessed from your personal information. Go for random alphanumeric passwords for email accounts and use random number combinations for PINs. Beware of shoulder surfing, whereby bystanders can peep in when you type your PIN and use it later, by stealing your debit card.

Secure Data Stored on Your Computer
Make sure that the computer terminal which you use for online banking and e-shopping has been secured. Install the best antivirus software that you can get hold of, on your computer with Internet security and anti-phishing filters. Implement an identity theft prevention program, which can eliminate your anxiety about this matter, forever.

Avoid Sharing Information With Strangers Over Phone & Mail
For preventing identity theft, don't talk about your personal financial details on the phone with anybody or on the Internet. Do not divulge your credit card number, social security number or other information with anyone on the phone or through email. Don't fall for email scams demanding your bank account details.

Lock Your Mailbox & Secure Your Home
Protect your mail from getting stolen. It is a good idea to lock your mail box and provide a secure address for mail communication, if your residential area is not secure. Get a good alarm system in place and the latest secure locking system for your home. This may sound paranoid, but if you implement it, you can certainly sleep with peace of mind.

Some of the above suggestions will go a long way in saving you from being robbed by individuals who haven't yet learned to earn money from a single day of honest labor. Of course, eternal vigilance is the best safeguard you can have.