Identity theft - Helpful tips to avoid trouble

As computers and electronic business practices become more and more ubiquitous, the probability that a criminal will acquire your financial information to use it for fraudulent activity becomes greater. It is very likely that a stranger who gets his or her hands on your financial information could amass debts of $50,000 or more without you even knowing about it. The practice of credit theft is an escalating one. Should you find you have been victimized by credit theft, it could take months or years to straighten out. You may find yourself unable to land a job, all because someone impersonated you and spent a bunch of money. In the meantime, your credit score could be hurt, and you could be without a way to buy a house or a car or truck.

What can you do to avoid becoming a victim of theft of identity? Below are a couple of quick keys that may help:

• Take a look at your credit report several times a year. Look over your credit report carefully to see if there is any activity there that you may not have known about - a new bank card or home equity loan or line of credit or auto loan or any one of many financial transactions that a stranger may have conducted while posing as you. You can receive a copy of your credit report for no charge at annualcreditreport.com. If your credit report contains unusual or criminal entries, call the police and the credit bureau immediately. You can receive one credit report for no charge per year from each of the credit bureaus, which will help you to check your report every four months, if you wish.

• If someone asks you for your Social Security number, ask if providing it is absolutely important. Many businesses will ask for a Social Security number as a matter of procedure, but will not ever use it for anything.
• You will seldom need your Social Security card as most Americans never show the card to anyone in their lives. Keep your Social Security card in a secure place and keep it there. Don't carry your Social Security card with you; if you lose it, the number on it could be a gold mine to an identity thief.
• Do not give out personal financial documentation over the Internet unless you initiated the transaction. Asking for personal or financial information by e-mail is a popular scheme, known as phishing, that is calculated specifically to make off with your personal information. It's OK to provide your credit card number to an online store if you have decided to buy something. DO NOT provide financial information to any individual that sends you e-mail asking for it.
• Watch out for your mail, including outgoing letters. People often steal mail out of mailboxes to acquire personal information.
• Destroy, by shredding, any monetary documents that you don't need. Destroy any of those convenience checks that your bank card company mails you each month and any charge card applications you may receive in the mail. "If you do not use it, shred it" is a sound philosophy.

It benefits you to be suspicious. A little alertness can go a long way towards avoiding financial crimes, and it's a lot less trouble than digging your way out of the problems you will encounter should a criminal steal your financial information.