Protect Your Credit Cards and Checks from Identity Theft

On a typical day you may write a check at the grocery store, apply for a new credit card, make a charge purchase at the mall and receive your bank statement in the mail. For each of these transactions, personal information is shared. These transaction include your bank or credit card account numbers, your income, your name, address and phone number and your social security number. This information can get into the wrong hands and can be used without your knowledge.

It can take up twelve months for you to realize you have been a victim of identity theft. It can cost hundreds of dollars and countless hours repairing the damage done to your credit record. You may even miss out on job opportunities or be denied loans because of the negative effects this had on your credit report.

Here are some of the most common ways thieves steal your identity:

Skimming - Credit/debit card numbers are stolen by using a special storage device when processing your card.
Phishing - Thieves pretend to be financial institutions or companies and send messages to victims to attempt to secure personal information. When this is done via the phone it is referred to as pretexting.
Dumpster Diving - Trash is searched. Looking for bills or other personal information.
Stealing - Stolen wallets and purses or mail which may include bank statements, new checks or tax information. Personnel records can be taken from an employer.

Once your personal information is obtained thieves open new credit accounts in your name or run up charges on your existing accounts. The billing address is changed so it will take you some time before you realize there is a problem. Thieves may also use your name to open a cell phone account or take out a bank loan. They can create counterfeit checks using your name and account number or open a new account and write bad checks. In extreme cases they can apply for a driverss license with your name and their picture.

Identity theft is a growing crime. Last year more than 9.9 million Americans were victims of identity theft and it cost them roughly 5 billion dollars. You need to know how to protect yourself. Some simple steps include:

Shred all your personal information before you throw it in the garbage- this should include charge receipts, credit card offers and bank statements.
Do not carry many credit cards with you. Also do not carry your checkbook, social security card, birth certificate or passport.
Be aware when using an ATM as to who is nearby. Do not throw your receipt in the trash nearby.
Never give out personal information like your credit card or bank account number over the phone or through the mail unless you initiated the contact or you are dealing with a legitimate business. Also secure such personal information in your home.
Review your credit reports at least once year.
Deposit all mail in U.S. Postal Service collection boxes. Do not leave mail in your mailbox overnight or over the weekend. If you will be away, request a vacation hold from the post office.
Monitor your bank and credit card statements monthly.
When ordering new checks, pick them up at your bank rather than having them mailed to you.
Update your computer's virus protection software regularly Do not open emails from strangers sent to you. Use a firewall and a strong password.

You should also be on the lookout for signs that identity theft may be taking place. These can include:

Receiving credit cards you did not apply for
Not receiving your bills or other mail
Receiving calls from debt collectors for merchandise or services you did not buy
Denial of credit for no reason

If you are a victim of identity theft, take these steps as soon as possible:

Place a fraud alert on your credit reports and review them.
Close all the accounts you know or think were tampered with by calling the security department of each company. Then follow up in writing via certified mail. Keep copies of your letters got your records.
File a police report and get a copy for your records.
File a complaint with the Federal Trade Commission.

If you use this knowledge to protect yourself you can make a thieves' job more difficult. You can also educate your family and friends. Awareness and managing your personal information carefully can minimize your risk.