When someone uses your personal information – social security numbers, credit card information, emails, or tax IDs – without your permission to commit fraud or other crimes, you have been the victim of identity theft. Once thieves gain access to your personal data, they can purchase goods and services, open new lines of credit or even file a tax return under your name. The FTC estimates that around 9 million Americans have their identity stolen every year and that number is rising every year as technology advances. These tips will help you keep your personal information safe and secure from identity theft.

Keep Sensitive Personal and Financial Documents Secure

Most people store personal and financial information on their computers and in their home offices. Take a few simple steps to ensure identity thieves can’t access your important documents.

  • Keep your documents in a locked file drawer or secure area of your home
  • Never leave important documents in the car while doing daily activities
  • Shred any important documents, outdated tax forms, receipts, old credit cards or financial applications (junk mail) you don’t plan to keep.
  • If you don’t have a shredder, pour spoiled milk or kitty litter over documents in a bag before placing in the trash.
  • Protect your computer by installing a firewall, use anti-virus/anti-spyware software, and use ONLY secure wireless networks.
  • Create strong passwords and change them frequently. Avoid using common names and dates. Instead, use capital letters, number and symbols, for example: $tr3ngth.

Check Your Credit Report & Bank Accounts

Your are entitled to one free credit report each year from each of the major three credit bureaus: TransUnion, Equifax, and Experian. Take a moment to review your credit report or bank statements for any errors and immediately file a claim, alert your credit card companies and freeze any threatened accounts.

Protect Yourself Online

Protect your home AND mobile devices. Then take stock of what information you are sharing with other online. With the recent evolution in mobile phones, tablets, and social networks such as Facebook to Twitter, and Google+, more and more of your personal information, purchasing preferences, GPS locations, and status updates are being shared online. And it’s harder and harder to verify someone’s identity during online use.

  • NEVER post your personal information – including your address, phone numbers, SSN, birth date, or birth place.
  • Auto-lock your phone or mobile device
  • Customize your privacy and sharing preferences to prevent 3rd parties from gaining access through reputable social media sites or websites
  • Avoid Phishing Scams by deleting emails from non-reputable sources and never give your information to unsolicited emails from reputable sites – such as your bank, the IRS or doctor – asking you to enter your social security number, account numbers, etc. These companies will not ask for this information except through secured registration processes. Unsolicited personal information requests are phishing to steal from you.

Invest in Identity Theft Insurance

Individuals and business alike can benefit from some sort of identity theft insurance policy attached to their personal home or business insurance. Without protection, identity theft can cost you time and money to restore accounts, initiate legal investigations and recuperate financial losses. A customized identity theft policy is no longer a luxury but a necessary precaution to ease the blow the inevitable invasion of the modern hacker and thief.

If you believe your identity has been stolen, it is important to put a hold on bank and credit accounts, change commonly used passwords, and file a complaint with the Federal Trade Commission and credit bureaus. The FTC will safeguard you from further fraudulent activities and conduct an investigation, but they can’t protect you from liability for the past fraudulent charges. Take steps to reduce your risk of identity theft and insure against thousands of dollars in damages.