Taking Control of Your Finances: Protect Your Identity

Standing in line at the store, box of size 5 baby diapers in hand, you reach into your purse and begin to grasp through the abyss.  The longer you cannot feel the familiar smoothness of leather, the deeper and more cluttered that bag feels.  Your hand flails wildly through old receipts, crumpled tissues and...was that a half eaten granola bar?!  A moment of panic seizes your gut as you begin to realize that YOUR WALLET IS MISSING! 

While this is the more obvious identity theft scenario, often times the crime is much more subtle and you won’t even realize that your financial life has been compromised until it’s too late.  So, what can we do to protect our identities and, besides panicking, what is the best way to handle identity theft? 

Your first move should be prevention.  While thieves are becoming more savvy and cunning, there are some simple steps that you can take to make yourself less vulnerable to victimization.

1. Never carry your social security number in the same place as your driver's license.  Leave your social security card at home, filed away in a safe place.  There are very few times when you will need your social security card as identification and you will often know this requirement in advance.  Just leave it at home.

2. Give out your social security number only when absolutely necessary.  Just because an application asks for this information does not mean that you have to give it to them.  There have been several instances, particularly at doctors’ offices where I have just skipped that line and no one has questioned me about it.  I don’t want that information lying around for a wayward employee to pick up.

3. Limit the number of credit cards you carry.  Keep one all-purpose card for making purchases that require a credit card and pay off and close the others.  This will make it easier to monitor your credit activity and immediately recognize any fraudulent charges.

4. Never place your paid bills in your mail box for the mail carrier to pick up.  Always take these bills to a US Postal Service office or drop box.

5. Fill out all credit applications thoroughly.  Do not leave any blank spaces for someone else to fill in.  Write clearly, with pen, crossing out any lines that you do not need to fill in.

6. Be “paranoid” when using your ATM or debit card.  Cover your hands when typing in your PIN.

7. Buy a Diamond-Cut or Crosscut Shredder.  This is a must-have tool for everyone.  Shred everything – credit card receipts, old bank statements, medical or prescription statements/information, everyday bills and any document that carries your personal information on it.

8. Check your credit report annually and repair any mistakes immediately.  For more information check out our recent article on managing your credit report. 

9. When shopping online it is important to look for the following:

   -  The Trust-e symbol or a Better Business Bureau online seal. These indicate the seller has been independently audited and deemed trustworthy.

   -  A secure site for performing financial transactions.  In the web address you should see https instead of http.  This will ensure a secure, encrypted session.

   -  Read and print out privacy policies.  Know how a website will use your information.

10. Never give out your social security number, bank account number, credit card number, PIN number or passwords to anyone calling you on the phone, e-mailing or texting you.  If the representative is truly from your financial institution, they should already have that information on file.  When in doubt about the caller’s true identity, ask for their name and tell them that you will call them back on the number that you have for the company.  Do not call them back on a number that they provide.  Look the number up on the internet or in the phone book.

11. Use a Uni-Ball Pen to write checks and sign all important documents. These gel pens are inexpensive and contain Uni "Super Ink," which is specially formulated to reduce document fraud and check washing, a traditional form of identity theft.

12. Make sure that your computer is protected by anti-virus software containing a firewall.  This will decrease the chances of your computer being hacked and all of your financial information being stolen.

13. Make a photocopy of the front and back of every card in your wallet and file it in a safe place.  If your wallet is stolen or lost you will have all of the information readily available to immediately call all of the financial institutions to cancel cards and memberships.

14. If you have some extra money in your budget, you may want to consider membership in an identity protection service such as LifeLock.  They monitor your credit information for you and if your identity is stolen while you are a member with them, some of these agencies will pay up to a million dollars to restore your good credit.

15. Do not assume that because your child does not have a credit card their identity is safe.  Increasingly, thieves have been stealing the identities of children because they are less likely to be caught.  Very few people check their children’s credit report.  When you check your report, check your child’s social security number for a credit report.  He/she should not have one.

If your information has already been stolen or compromised, don’t panic!  Take a deep breath and head on over to the Identity Theft Resource Center’s website  They have a list of all the steps you will need to take to manage the situation.  The damage may already have been done but you can minimize the blow to your credit by taking quick action.

Don’t be a victim.  With a little vigilance you can help protect your financial integrity and that of your family. 

Kim is the wife of one rockin' Worship Pastor and full-time mom to four crazy and beautiful kids. Toss in a part-time job, housework, writing, training for a foster care license and what passes for a social life these days and she’s still wondering how she fits 32 hours into a 24 hour day.