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Identity theft is a huge problem. If it hasn’t happened to you personally, I bet you know at least one person who has been through this ordeal. Criminals can wreak total havoc on your life and finances just by getting their hands on your identification information, such as your:

• Name
• Address
• Bank account info
• Social security number
• Credit/debit card number

With this information, your bank accounts can be emptied, your credit cards maxed out, and there can be any number of new accounts opened in your name.

Here are some ways identity theft can occur and how you can protect yourself from this widespread problem.

Thieves can straight up steal your purse or wallet, rifle through your mailbox, or sift through your garbage. They can use technology (phishing emails, skimming devices, cell phones) to swipe your information. Always be skeptical and never provide any info to any company or person who initiates the transaction. If you receive an email, phone call or text you think is suspicious, let the real institution know. The company will definitely want to stop the activities and let other customers know to be on the lookout.

It’s important to keep an eye on your credit report to make sure there are no unauthorized accounts lurking. Check your financial accounts frequently. Often, people don’t realize they’ve been victimized until they’re denied credit for things like home loans or credit cards. You can even lose out on a job offer if your credit is in the dumps. Don’t let it happen to you.

There are several ways you can protect yourself from identity theft.

Let’s start at home. There are several documents most likely lying around your house that are tempting treats for identity thieves. Buy yourself a shredder and toss in the following:

• Expired credit/debit cards. Make sure the magnetic strip is completely severed.
• Credit card offers. Buh-bye. Most of us don’t need another credit card anyway. And, according to msn.com, a large number of identity thieves are victimizing people in their own homes! Your housemates (including family members!) know a lot of stuff about you and can probably fill out enough of that form to get a card approved.
• Paycheck stubs. These little critters have tons of personal information. See if your company offers an online version.
• Tax returns. If you’re reasonably sure you won’t be facing an IRS audit (gasp!), you can ditch them after three or four years. Until then, keep them safe in a locked, fireproof box – or even better – in a safe deposit box at your bank.
• Old ID cards. Again, these have oodles of information about you, so chop ‘em up!
• Bank statements. See if you can get them online, thieves love to swipe them from your mailbox.
• Checks. Your checks have your account and routing numbers right there on the bottom. Along with your name and address (right there on the top), any number of accounts can be set up to drain your savings.
• Convenience checks. Sometimes your credit card company will send you checks to pay off other balances and apply the amount to your card. Shred, shred, shred!

If you do become a victim of identity theft:

• Report it immediately.
• Place a fraud alert on your credit reports.
• File a police report (called an Identity Theft Report). It can help minimize damage and make cleaning up the mess a whole lot easier.

The effects of identity theft can be long lasting. Be proactive in protecting yourself and be vigilant in tracking your credit. Hopefully you’ll never have to experience this mess first-hand!

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