Identity Theft Prevention Measures.

In addition to identity protection and credit monitoring services, there are Identity Protection steps that you can take as a simple, first barrier to identity theft. While the ID protection services will help prevent a thief from ruining your credit history and stealing your identity, the 6 Identity Theft Prevention measures can minimize the headache of someone attempting to use your information. When someone steals your social security number, or applies for credit with your information, the services will alert the financial institutions and stop them. But preventing them from trying in the first place is a sensible measure.

1. Shred documents. Use a cross cut shredder to ensure your documents can not be reconstituted by an ID thief. Shred anything with an account number (including utility bills) , offers of a loan, and pre-approved credit cards.

2. Change Passwords. This is, perhaps, one of the most overlooked, yet easer ways to protect your identity. Change passwords monthly. Do not use your street address, phone number or birthdays; these are too obvious.

3. Credit Freeze. You can request a credit freeze to be implemented. This prevents any new lines of credit from being opened in your name. The major credit and identity protection services have this as part of their Identity Protection and Credit Monitoring service. Be sure to request it.

4. Phishing. Never respond to an inquiry by providing any account or social security numbers. Either through email, phone, or mail, Identity Thieves will pretend to be a bank, credit card company or other financial institution and ask you to provide your account number, PIN, SSN or other information. Don't.

5. Computer Protection. Protect your computer with updated spyware and virus protection. There are several good packages from Norton Internet Sercurity and McAffee.

6. Limit your use of credit card accounts. The more accounts you have open, the more opportunities a thief has to commit fraud or steal your identity. Only have the credit card that you need, cut up the rest and do not accept new cards.

other Financial Services Information

What is the difference between identity theft and fraud?

In the most common form, fraud is when someone obtains and uses your credit card number to purchase items or services. Your liability for this kind of fraud is limited by the credit cards you hold and can usually be cleared up with a few phone calls and some paperwork.

Identity theft happens when someone uses your personal and financial information to claim to be you, set up financial accounts in your name and draw off your credit. Identity theft can go on for months before you are aware of it... alerted by a collector or debt notice.

What to look for in an Identity Protection Service.

1) Single point contact with credit bureaus. Request credit monitoring, alerts and freezes.

2) Enhanced monitoring. While monitoring credit applications and reports helps, damage can be minimized by using services that monitor and analyze data activity. When your SSN or account numbers are stolen, the thieves will frequently sell the information. By monitoring these sources of stolen information and keeping track of security breeches, good identity protection services can help catch a problem before it has a chance to cause real damage.

3) Recovery services. In the event that an Identity thief succeeds, you will want a service that has the human, technical and financial resources to clean up the problem. Typically, good services will offer financial protection through insurance policies, and easy access customer service and data clean up services.