Whether or not you have been a victim of identity theft, the individual costs for resolution once you are victimized can be personally damaging. You may be denied future credit opportunities, may be named in criminal activities, or be subject to tax audits (see “Signs of Identity Theft” to know how your information can be used in fraudulent activities). In addition, the Better Business Bureau (BBB) notes the average cost to resolve an instance of identity theft is over $6000 and 40 hours. Very few envision spending a work week and an average monthly salary to dispute purchases, loans, or crimes they did not commit themselves, but it is possible once your identity has been compromised.

But there are a number of preventative measures you can take to protect your information. If you are already an identity theft victim and you have resolved most credit, financial, or personal fraud, these steps can help prevent future threats to your identity. If you have not experienced identity theft, you can ensure that it won't happen.

Paper-based Prevention:

• Monitor your credit report regularly: You are entitled to a free credit report from each of the three CRAs annually. Visit www.annualcreditreport.com to obtain free copies. The Federal Trade Commission (FTC) notes that other websites may advertise free credit reports, but will require payments for other credit-related services

• Secure your personal information: This includes in your home or place of work, or where you may give your personal information (e.g.: doctor's offices, financial institutions). If you have control over information at home or work, keep it locked away from view; in places where you information is collected, ensure that they are maintaining utmost confidentiality.

• Shredding your mail and paper items: Before disposing financial statements, credit card offers, or other documents that contain personal information in the trash, use a shredder to ensure that it cannot be recovered through dumpster diving.

• Carry minimal information on you at any time: Consider carrying only one credit card and debit card with you and a single identification card. Do not carry your social security card, and only take a check book when it is needed.

• Use caution when responding to credit, financial or other promotions and requests sent to you by mail: Even if the documents appear to be generated from a financial institution or agency you work with, they could be fraudulent. Consider calling the institution that they appear to come from to ensure it is a legitimate offer.

Please see “Phone and Computer Identity Theft Prevention” for securing personal information during phone calls, as stored in your computer and in web-based transactions.

References

www.btplc.com - Security Report: Online Identity Theft February 2006

Federal Trade Commission: Facts for Consumers: Taking Charge: Fighting Back Against Identity Theft

Privacy Rights Clearinghouse. How Many Identity Theft Victims are There? What is the Impact on Victims?