Chances are you or someone you know have experienced some form of identity theft. The Federal Trade Commission estimates that as many as 9 million Americans have their identities stolen each year. The crime takes many forms. Identity thieves may rent an apartment, obtain a credit card, or establish a telephone account in your name. You may not find out about the theft until you review your credit report or a credit card statement and notice charges you didn't make-or worse yet, until you're contacted by a debt collector. This article will give you some easy steps you can take right now to help prevent your financial identity from being stolen.



Step #1: Carefully review all your monthly bills. The thief might start small, charging a low value item to your credit card just to see if it will get through. If you identify the invalid charge immediately, and notify your financial institution, further illegal charges will be blocked. But give the thief a month or two, and the charges may run into the thousands, and will be much more difficult to get erased.

Step #2: Shred your personal identifying information. Every time the mail arrives, it probably brings some bill or offer of credit that contains personal information about you. Many people simply toss it in the trash or the recycle box. Some ID theft criminals have made a lucrative career out of "dumpster diving." They rummage through the trash or recycle containers and pull out the mail with your personal identifying information. Then they piece together enough data to hijack your identity. Be sure to keep an eye out for printed "checks" that seem to arrive with every credit card bill. They deserve a good "shredding;" not only do ID thieves love to get their hands on them, but the high interest rate the credit card companies charge when you use the checks is bad news.

Step #3: Request your credit report. You are entitled to a free copy of your credit report once a year. Take advantage of this opportunity. Not only might you spot a fraudulent account set up in your name by an ID thief, but there may be other inaccurate information in your credit report that you should get deleted. Go to annualcreditreport.com to request a copy of your report from each of the three major credit bureaus. If you space out your requests every few months, you can cover the entire year at no charge.

Step #4: Secure your personal identifying information. This step is so simple, it's surprising that some people still don't take it. Do not carry items like your social security card in your wallet. Imagine how happy a thief would be to find not only your credit cards, drivers license, and ATM card in your wallet, but also a list of your PIN numbers and your social security number. Hello, Honolulu! This thief is going on vacation!

Identity theft is serious. While some identity theft victims can resolve their problems quickly, others spend hundreds of dollars and many weeks repairing damage to their good name and credit record. Follow the easy steps listed in this article now, and reduce the chances that you will join the thousands of victims of ID theft.