The U.S. Department of Justice defines identity theft this way:
"Identity theft is a crime. Identity theft and identity fraud are terms used to refer to all types of crime in which someone wrongfully obtains and uses another person’s personal data in some way that involves fraud or deception, typically for economic gain."
Tips to Prevent Identity Theft
Require photo ID verification. Rather than signing the back of any of your credit cards, you can write “See Photo ID” in the signature block. In many cases, store clerks don’t even look at the signature block on the credit card. A thief could easily use your credit card to make on-line or telephone purchases which do not require signature verification. For those cases where your signature is verified, you may get some added security by asking to match your picture on the photo ID.
Shred everything. “Dumpster-diving” or “trash picking,” is one way would-be identity thieves acquire information. By throwing out any document which contains any type of personal information, such as credit card statements, ATM receipts, medical statements or even junk-mail solicitations, you are inviting identity theft. Purchase a personal shredder and shred all papers with personal information prior to disposing in the trash.
Destroy digital data. When you sell, trade or otherwise dispose of a computer system, hard drive, recordable CDs, DVDs or backup discs, you need to take extra steps to ensure the data is completely and irrevocably destroyed. Simply deleting the data or reformatting the hard drive is not enough. Anyone with a little technical skill can recover data you attempted to destroy. Use software, which is manufactured to “wipe clean” your media. There are many brands of media cleaning software on the market. Make a selection based on your personal need and media type you wish to expunge. These products can be purchased at most retail outlets. To obliterate CD, DVD or floppy discs, you should physically destroy it by breaking or shattering before disposal. There are shredders designed to specifically shred CD/DVD media.
Be diligent about checking statements monthly. This has two benefits. First, it can alert you to a potential problem if your bank or credit statements do not arrive as scheduled. Second, you can ensure the charges; purchases or other entries on the statement are legitimate and match up with your records. A monthly review of your statements on all accounts will assist in identifying and addressing any suspicious activity.
Pay your bills at the post office. Do not leave your paid bills in your mailbox to be sent out. A thief who raids your mailbox would be able to acquire a slew of critical information in one envelope: name, address, credit account number, bank information (including the routing and account number from the bottom of the check), and a copy of your signature. Drop your bills at the post office or at least in an official U.S. Postal Service drop box.
Limit the information on your checks. It may be convenient to have your driver’s license or social security number imprinted on your personal checks, but if it falls into the wrong hands it can reveal to much information. It is recommended you use your first initial with your last name instead of your entire first name on your checks.
Analyze your credit report. This has always been good advice. It is now possible to get a free copy of your credit report from each of the major credit reporting agencies (Equifax, Experian and TransUnion) once a year. If you request a copy of your report from one agency per quarter you can review your credit history at least three times per year instead of once. You should review your credit report to ensure the information is accurate and contains accounts you are unaware of. Report any suspicious activity immediately to the credit agency that provided the report. The web site is, annualcreditreport.com.
Protect your Social Security number. It is suggested you do not carry your Social Security card in your wallet or with your driver’s license or other identification. If your wallet is lost or stolen, someone having your full name, address and social security number (or even the last four digits in many cases) can assume your identity. You should never use your Social Security number as part of any username or password, divulge it to telephone solicitors or in response to spam or phishing scam emails.
Online Purchases. It is recommended you not do business online with companies you are unfamiliar with. Conducting business with well-known, national or global merchants increases your level of online security but there is not guarantee. If you are buying something online you need to have some level of trust the company you are doing business with is legitimate. When you do make online purchases, read the company’s online privacy policy first to ensure you agree with it and you are comfortable with the security of your personal information.
Resources
Below are additional internet information and resources sites about identity theft:
