Five Ways to Lower Your Risk of Identity Theft

There are all types of identity thieves of all aptitudes and skills -- amateurs, sophisticated pros, and groups of professional criminals -- and all types of ways to steal your identity. But simple modifications in your behavior can lower your risk of being targeted by these criminals. By understanding the most common places thieves go to get your personal information, you can make it more difficult for them to wreak havoc with your finances and credit.

Receipts

One way identity thieves get your personal information is to steal receipts from your transactions. Most restaurants and businesses today deal with this problem by encoding account numbers and offering digital signature services. However, some shops aren't up to date on the latest security technology and, therefore, provide an excellent opportunity for a thief to gather whatever data they want. Never leave a receipt sitting on a table at a restaurant or on a counter at a retail store. Always store receipts securely, and thoroughly shred them before putting them in the trash.

Mail

Every year, most adults receive hundreds of pieces of mail from credit card companies, insurance agents, bankers, doctors, lawyers, and retail businesses. Monthly statements often include full name, account numbers or Social Security numbers, as well as phone numbers and addresses. Tax and financial statements show assets and net worth. Credit card offers provide easy access to lines of credit. Car companies might state the kind of car you own and how old it is.

Any of this information is like gold to an identity thief, and getting it is often as easy as opening your mailbox before you get home from work. Take these precautions:

• Make sure your mailbox requires a key to open. If you don't have this option, consider renting one from a local post office or reputable mail business.
• Never leave mail in the mailbox for long. If you're going away for a few days, ask your post office to save it for you.
• Keep a list of statements and bills you should receive on a regular basis and make sure you get them all, so you know quickly if any of your mail is being diverted to another address without your knowledge.
• Contact Opt-Out at 888-5OPTOUT (567-8688) to lower the number of credit card offers you get in the mail.
• Contact the DMA's (Direct Marketing Association's) Mail Preference Service to stop receiving direct marketing mail (junk mail) from national companies for five years. Register online at www.dmaconsumers.org/cgi/offmailinglist or send a letter to: Direct Marketing Association, Mail Preference Service, PO Box 643, Carmel, NY 10512

Practicing all of these tips regularly should greatly reduce your chances of becoming an identity theft victim via the mail.

Shoulder Surfing

It used to be that criminals had to break into your home or office to get information about you. Now that your personal financial transactions are often conducted in public, thieves only have to pay attention to get the information they need.

One common method for stealing your information is by "shoulder surfing." Shoulder surfing occurs when a thief watches you from a nearby location as you enter a credit card number, PIN, or telephone calling card number. The thief simply records what you've entered while you're not watching. Cover the keypad with your free hand so no one can see what you're entering. If your hands are full, use your body as a shield between the keypad and prying eyes.

Another shoulder surfing method is to stand nearby while you're giving your Social Security number or credit card number over the phone or at a hotel or car rental agency. Airports, train stations, or ferry terminals are the most common places for this type of shoulder surfing. Write out information rather than tell the clerk. If you complete transactions on public telephones, be sure to have enough privacy so your information isn't overheard or recorded.

Vehicles

Thieves look in cars for old mail, discarded files, or other types of personal information. Make sure your car is always locked, your windows are closed, and your personal property is out of sight of passersby. Sometimes, seeing a file box full of personal information or a backpack with mail visible in the pocket is enough to entice a thief to break in.

Thieves look for purses and wallets in empty boats and other recreational vehicles. When you go on vacation, take only absolutely necessary cards and documents. Keep a record of what you've brought with you at all times so you can call those companies and have the accounts closed immediately in case of a theft or loss. And, when you go for a hike or stop to use the facilities, always take your purse or wallet with you or hide it well out of sight and reach for a casual passerby.

Get in the habit of looking at the last check you wrote and memorizing the number before you leave your home or office each day. If you ever need to report a lost or stolen checkbook, you'll be very glad to know which checks should clear and where to begin stopping payment.

The Other Side of the Counter

Many types of businesses -- dentists, doctors, lawyers, banks, insurance, and property managers, for example -- store your personal information in their files. However, unless the business owner takes measures to maintain the security of your data, your information might be accessible to unscrupulous people within that organization. It might also be open to hackers or dumpster divers, if the files aren't stored or disposed of safely. Do business with companies having adequate security measures in place and who check out well with the Better Business Bureau.

Thieves are savvy and unscrupulous, and there's no guarantee that you'll never be a victim of identity theft. But if you follow these few precautions, you can significantly lower your risk.