Identity Theft Protection

Should a thief open new accounts using your identity and then fail to pay off the debts, your credit will be ruined, and unfortunately the mechanism for repairing the damage is spotty.

Practical Measures to Prevent Identity Theft

The FTC numbers and the reports of stolen information are staggering, and most people now know of someone who’s been a victim of identity theft. Take it seriously. Although nobody is fully immune to it, a little vigilance can greatly reduce your chances of becoming a victim. Following are some proactive measures you can take:

• Never leave the carbon copies of your credit card transactions lying around, and don’t throw them in the trash. Shred them and anything else with personal or account information on it (e.g., utility bills and any other bills or documents with personal data on them). A good shredder costs about $125 (I once bought one for $35, and it didn’t last very long).
• Don’t leave your automobile registration in your glove compartment. Place it in the trunk or carry it in your purse or wallet.
• If unauthorized charges appear on your billing statement(s), contact the creditor immediately.
• If billing statements stop reaching you, contact the creditor.
• Keep personal numbers (e.g., SSN) off your checks.
• If you have a local mailbox, place a lock on it. (Better yet, get a PO Box and file a change of address with the Post Office directing all mail to the PO Box.)
• Get an unlisted phone number.
• Credit card companies will often solicit you for pre-approved credit cards. If you can’t put a lock on your mailbox, you should opt out of these offers. You can do so by calling 888-567-8688. If you decide not to opt out and you do not respond to these offers, be sure to shred the applications.
• Check your credit reports at least every six months.
• If you use a computer, use a software firewall to provide some measure of intrusion protection. Both Windows XP and Vista have been shown to be vulnerable. Vista’s built-in Windows Defender was supposed to plug a lot of holes, yet tests have shown that it doesn’t provide very good security at all. The one I recommend right now is Comodo Firewall (XP only), available free for home users at www.comodo.com. For Vista users, I recommend BitDefender Internet Security 2008, found at www.bitdefender.com. This program is very fast at scanning, and has not been a problem free for me, unlike Norton, ZoneAlarm, and others. Both of these programs provide intrusion detection, and will also catch programs on your computer trying to call out! Hardware firewalls, basically just routers (some wireless) with firewalls built in, are also available and offer more reliable protection than software firewalls from inbound hackers. The good ones are made by D-Link (www.dlink.com), Linksys (www.linksys.com), and Netgear (www.netgear.com). They run about $50–$150, depending on features. If you run a wireless router, be sure to turn on encryption.
• Run spyware detection software on your computer at least once a week. Spyware programs are nefarious software programs installed without your knowledge. They can perform tasks on your computer without your consent. This may include feeding you advertising or collecting personal information about you. The free spyware detection programs I recommend are Spybot and Ad-Aware, available at www.safer-networking.de and www.lavasoft.de respectively. The only problem with using these programs is that they don’t prevent the installation of spyware; they can only detect (and delete) it when the programs are run. For those wishing to prevent the installation of spyware, a good free one is Spyware Blaster, available from Javacool Software (www.javacoolsoftware.com). Spyware Blaster doesn’t actually run in the background of Windows, since it stores information about nefarious sites and must be updated regularly. The free version doesn’t update automatically, but the paid version does and costs $9.95 as of this writing. Another good one is PestPatrol, found at www.pestpatrol.com. It runs in the background (protects continuously), costs $29.95, and is very powerful. Be advised that BitDefender Internet Security 2008 also runs in the background, and in addition to a firewall, it roots out spyware and viruses!
• The abbreviation “https” should always precede any Web site address where you enter personal information. The “s” signifies that the transmission is encrypted for security. If you don’t see “https,” you’re not in a secure Web session.
• Password-protect or encrypt when using wireless routers to prevent those nearby from tapping into your network.
• Instead of using the Internet Explorer (IE) Web browser, consider using Mozilla Firefox (www.mozilla.org). Firefox is considered more secure than IE primarily because it doesn’t run ActiveX components or VB script. It’s a far better browser in my opinion, not just for security reasons but because of its speed and stability. It’s becoming very popular, to the point that Microsoft has reconstituted its IE development team to counter the commercial threat posed by Firefox.
• When you have utilities installed, use an alias first name (middle name works as a substitute) and password protect the accounts. If you can get away with it, refuse to divulge your SSN. Sometimes companies won’t insist.
• When using a laptop in public places, use a privacy filter from 3M (www.3m.com), so that people next to you cannot see your computer screen.
• Create a startup password for your computer so that when it boots up you are prompted for it. This works well for nosy baby-sitters, maids, or anyone who may just happen to break into your home while you’re on vacation.
• Password-protect all your accounts. This means your credit card, bank, gas, electric, landline phone, cell phone, Internet service, cable, and satellite TV accounts, and any others you can think of. Make it clear to these companies that when anyone calls about your account, they are to ask for the password first thing. If they don’t prompt you for it every time you call, then make it clear that you want to be prompted.
• Never carry your Social Security card—or anything else with your number it on it. Many states will even give you a driver’s license without your SSN if you request it.
• Never give out your SSN to anyone unless absolutely necessary. Even rental car agencies request it, but I’ll often ramble off a fake one, since it’s none of their business. If a company such as a fitness club requires something for identity, then it often will accept a driver’s license number.
• Don’t give your SSN over the Internet for any reason, unless you’re on a bank site.
• If you use public computers (such as in libraries or internet cafes), assume they're not secure for typing in passwords for anything other than web-based e-mail.
• If you travel, be sure and take your receipts with you and/or destroy them. Don't leave them in your hotel room or in rental cars.