How to Prevent Identity Theft
To prevent online identity theft, create passwords from random combinations of letters, numbers, and characters that can't be guessed. Additionally, use a different password for everything you do, so even if one is comprised, the others will still be safe. It's also a good idea to keep your passwords in an encrypted password manager program or in a notebook you have on hand. At home, set up your Wi-Fi network with a password and change it frequently, since hackers can easily access open wireless networks. Since the same is true when you're out, try to avoid using personal information on public Wi-Fi networks.
Use strong passwords and PINs. Your passwords and PINs shouldn't be something anyone could guess, even if they had access to some of your personal information. Avoid names, addresses, and birth dates. If you use words or numbers that are familiar to you, disguise them with hard-to-guess code, like the Vigènere Cipher. You also might try online programs, available for free, that provide virtually unbreakable randomly generated passwords. Make sure all passwords you use include both lower-case and capital letters, numbers, and other characters such as hyphens or asterisks. Avoid using the same password for multiple accounts. Each of your passwords should be unique so that if one of them is compromised, the thief does not have access to anything else. Keep passwords and PINs safe. Never store passwords or sensitive information unencrypted on your computer. If you have a physical "cheat sheet" of log-in information, keep it locked up. If you need to keep passwords in a digital format, store them in a password manager program that is encrypted. You also can store them on an external hard drive that is only attached to your computer for offline backups. Avoid using autofill, particularly for banking or credit card websites, unless your computer is secure or never leaves your house. Turn on two-factor authentication. Many email services and popular social media platforms allow you to log on using two-factor authentication, or 2FA. This enhanced security protocol adds an extra step to confirm your identity even after you enter your username and password. Typically you will get a text message with a code that you have to enter. Once you enter the code, you'll be able to access your account on the site. With 2FA, a hacker would not be able to access your account, even if they gained your username and password. Regardless of whether you enable 2FA or not, make sure you completely log out of any service you're not using – don't just close the window or tab on your browser. Create log-in passwords for all your devices. Whether you plan to take a device outside your home, all should have log-in passwords so the information cannot be accessed in the event someone gets ahold of the device. On most devices, you also can set up security so that the device is completely disabled or the hard drive erased after a certain number of incorrect password attempts. Change your log-in passwords on a regular basis, and don't write them down anywhere near your computer. For example, don't write the log-in password on a sticky note affixed to your computer case. Protect your computer. Identity thieves use complex software such as spyware and key loggers to obtain sensitive information. A strong and regularly updated firewall, anti-virus program and anti-spyware program will provide most of the protection you need. These programs often are provided as software-as-a-service, in which you download the application online and pay a monthly fee for updates. If you're not sure what is best for your computer, contact your local computer retailer for advice. Beware of phishing scams. You may receive a seemingly harmless email asking you to verify certain things such as your password, account number, or personal identification information. Any email seeking this sort of information should be an immediate red flag for you. The best response is to contact the service provider directly and ask what's up. Most banks and credit card companies don't send emails like this, including those with internal links asking you to verify the information. Save the email and contact the company directly by calling the customer service number or by visiting their website. Don't click on any links in the email. Other phishing scams include false lottery wins, requests for money to "help" people who have lost money/tickets/house, etc. and claims from Nigerian princes on-the-run. Check the website of your country's government department that is responsible for updating on regular scams (consumer affairs and security agencies usually). Some non-profit consumer watchdog agencies also have similar information available online. Restore old computers to factory settings. Whether you're selling an old computer, recycling it, or throwing it away, make sure you get rid of it safely. Restoring it to factory settings ensures all of your information is gone. Do the same with mobile devices. Keep in mind that a tech-savvy person can even recover information that has been deleted from a hard drive. You can download free scrubbing programs online, or ask a trusted computer retailer or tech-savvy friend to help. Information on how to restore your computer to its factory settings should be included in the manual that came with your computer, or you may be able to find a step-by-step guide online. Encrypt your hard drive. Most Apple- and Windows-based computers have an option that allows you to easily encrypt the information on your hard drive. Check the security tab in your settings and follow the prompts to activate encryption. If your hard drive is encrypted, the information on it cannot be used even if it is accessed by a hacker or would-be identity thief. Observe the same caution when transmitting information online. You should see a little lock icon if the website you're using is secure. Don't enter personal information unless you see that symbol. Take care when posting on social media. Check your security settings on your social media accounts, and avoid posting personal information publicly, or publicly "checking in" to places. Identity thieves as well as burglars can use this information to identify targets. If you're going on a vacation, wait until after you return to post any pictures or stories about your trip online. Avoid "friending" anyone you don't know "in real life." They may not be who they claim they are, and may be using your posts to gain information about you so they can exploit you or steal your identity. Check security when shopping online. When shopping online, verify security symbols and encryption before entering any credit or identification details. You also want to check the URL and make sure it's legit – avoid using links from an unsolicited email. Don't store information on any store's website. It may be convenient but it's also a possible loss to you if the site is hacked. Keep a separate credit card just for online purchases. That way if your information is compromised, you can easily cancel that card and your bank account or other credit cards won't be affected. Never use a debit card linked to your bank account online. Shred sensitive documents. Old billing statements or any other documents that contain any personally identifying information (even if it's just your name and address) shouldn't just be binned. There are " dumpster divers " who are willing to wade through old coffee grounds and rotten orange peels to get their hands on your data. Invest in a cross-cut or diamond-cut shredder rather than one that shreds in strips that can easily be put back together. If you don't have a shredder, tear the documents into small pieces instead. Divide the pieces between two bags, then dispose of the bags separately. Don't dispose of sensitive documents in public, including receipts. They can be picked out of the bin and used to steal your identity. Some cash registers won't print receipts unless requested. If you don't want a receipt, let the cashier know. If this is not possible, take the receipt with you and dispose of it. Protect your snail mail. Mail services are common sites for identity theft activity. One of the most frequently used non-technological methods for identity theft involves rerouting your mail using a false change-of-address card. If you have a mailbox that can be easily accessed by others, consider getting a high-security locking mailbox or a post office box for financial mail. Check your mail frequently so no one gets to it before you do. Opting into "paperless" statement programs with banks and credit cards can reduce the amount of sensitive financial information being sent to you through the mail. Opt out of pre-screened credit offers. Many thieves will use offers to apply for credit in your name at a different address, or will try to use cash advance checks. In the United States, you can eliminate this opportunity and help prevent identity theft by calling the opt-out number to stop receiving credit card offers. In other countries, check with your government's consumer protection agency to find out what options exist for reducing or eliminating your junk mail. It can take some time for an opt-out notice to take effect. In the meantime, ensure you're shredding or otherwise securely disposing of any pre-screened offers you receive. Keep valuable documents locked away. Personal documents related to your identity, such as your Social Security or national insurance card, birth certificate, and passport, should ideally be stored in a fireproof safe. These documents are a potential gold mine for identity thieves, and should be treated as though they are more precious than anything else you own. Along with identity documents, you also should store financial documents, unused credit cards, and any other paperwork with sensitive information, such as account numbers and passwords. Secure your home Wi-Fi network. An open wireless network allows hackers to infiltrate your network and potentially gain access to your computer itself. Set up a network that requires a password for access, and change that password regularly. Some strangers will even park their car outside your house and sit there while they use your Wi-Fi, so put a password on it. Most routers come with a default password used for setting up the network. Once the network is set up, create your own password. If you don't feel comfortable setting up the network on your own, hire a licensed network technician to set it up for you and walk you through the security settings. Avoid broadcasting personal information. Even when you're at home, you still need to be cautious when discussing sensitive matters over the phone. This is particularly true if you live in a densely populated area. If you have to make a phone call related to employment, billing, or financial information, go to a quiet, secure area of your house. Don't make important phone calls out in the parking lot of your apartment complex, on your front porch, or on your patio or balcony. You never know who might overhear. Likewise, don't leave any documents with your personal information lying around outside, even for a moment. Get a house sitter while traveling. If you're going to be gone away for more than a night or two, having someone stay at your house or check in on it regularly can keep it from being obvious that you are out of town. Identity thieves will see a house with piled-up mail piled as an easy target because it's obvious you're not at home. This is also true if the lights are out for extended periods of time. Another option, if available to you, is to set your house lights on a timer that would mimic the movement of people. Watch out for "shoulder surfers. " That person behind you in line at the ATM or the supermarket may just be another shopper, or they could be paying close attention to you in hopes of seeing your account balance or PIN. Shade the monitor area with your hand when typing in your PIN and block others' view of the screen. Do this even when no one is around. Some thieves use binoculars or install cameras so they can watch you from far away. Carry only what you need. There typically is a lot of identifying information in your wallet or purse. If stolen, the person can use that information to steal your identity. For your protection and to help prevent identity theft, leave anything at home that you aren't planning on using. Don't keep all your credit cards in your wallet. Keep them in a safe or other secure location in your home, and only take with you the card you're going to use. Write "SEE ID" in your signature block on the back of the card rather than signing it. You also can secure credit cards by changing them to a PIN-only option, if possible. Avoid carrying blank checks, or any identification other than what you need. For example, you should carry your driver's license if you're driving, but you won't need your passport if you're in your home country. Thieves can access your social security number if you have your social security card in your purse or bag. Consider leaving it stored in a locked storage location and only bring it on trips where it will be needed. Secure your bag or wallet. Even in relatively safe areas, pickpockets or purse snatchers look for easy opportunities. You can keep what information you are carrying secure by always keeping your wallet or purse close to your person and within your line of sight. Go for a cross-body bag, rather than one you merely dangle from one shoulder. Avoid allowing the bag to hang behind you, as someone could reach in without you even knowing. If you carry a wallet, consider attaching it to your body with a chain or bungee cord. Don't just stick it into your back pocket as someone could easily pull it out. Never leave your wallet or purse unattended, such as at a restaurant or grocery store. Avoid using insecure public Wi-Fi networks. If you're out and about, it can be convenient to take advantage of the free public Wi-Fi available at many cafés, libraries, and public parks. However, if these networks are open to all, they come with risks. Even if the network requires a password, you should still consider that network open if the password is available to anyone. Avoid doing any banking or transmitting any sensitive personal information when using these networks. Doing so provides an opportunity for hackers to access whatever information you have stored on your hard drive. Use only ATMs with adequate security. Ideally, if you want to get cash with your debit card, you should use an ATM located inside a bank branch – even if you have to go a little out of your way. Private ATM machines, particularly those outdoors, present a tremendous risk. Look for security cameras, and inspect the machine carefully for signs of tampering before you use it. Avoid ATMs located in out-of-the-way places.Stay away from poorly-lit ATMs at night. These not only put you at risk of identity theft, but also put you at risk of being assaulted or mugged. Inspect card readers before swiping. ATM skimming occurs when thieves put a device over top of an ATM card reader that steals the information from the card when you swipe. These skimming devices also can be found on unattended point-of-service card readers, such as those on gas pumps. Look carefully for signs of tampering. Many gas pumps, for example, have a tampering seal. Do not use the card reader if the seal has been broken, and alert store staff immediately. Contact banks and credit card companies. If you believe someone has stolen your identity, or if your purse or wallet is lost and stolen, call every bank or credit card company potentially implicated as quickly as possible to get your cards cancelled. Not only will this help minimize the damage, but you're more likely to get the full benefit of any legal protection the sooner you do it. Banks and credit card companies typically have a toll-free number you can call to report fraud or identity theft 24 hours a day, seven days a week. It should be listed on the bank or credit card company's website. Tell the operator that you're a victim of identity theft and want your account closed or frozen. Note any suspicious transactions that have occurred. Put a fraud alert on your credit report. In the United States, a fraud alert requires any creditors to take additional steps to verify your identity before issuing any credit in your name. The fraud alert is free, doesn't impact your credit score, and can protect you if you're a victim of identity theft. You only have to call one of the three major credit bureaus. They are required by law to notify the other two. Request a fraud alert by visiting one of the credit bureau's websites, or by calling Equifax at 1-888-766-0008, Experian at 1-888-397-3742, or TransUnion at 1-800-680-7289. The initial fraud alert is good for one year. You can extend this period by providing an official identity theft report consisting of a police report and an FTC complaint. You can also renew the fraud alert every year. Change all passwords. As soon as you have reason to believe your identity may have been stolen, take precautions to minimize the damage and change passwords for everything, regardless of whether they contain any sensitive information. This is especially important if a computer or mobile device was stolen, particularly if you stored log-in information on the device. Order copies of your credit report. If you're concerned your identity might have been stolen, review your credit report and note any suspicious transactions or entries, such as requests for credit in your name or new cards for which you never applied. In the U.S., there are three major credit bureaus. You're entitled to a free copy of your credit report if you activate a fraud alert. Read through the report carefully, and dispute any inaccuracies with the credit bureau itself. If cards were opened in your name, you also may want to call the issuing bank or credit card company and explain the situation. File a complaint with the Federal Trade Commission (FTC). The FTC operates a Complaint Assistant website that will guide you step-by-step through the process of filing an identity theft complaint. You will need this complaint to prove your identity was stolen. Once on the website, click on the "identity theft" category to start the online form. Follow the prompts to enter information about your identity theft, including the types of accounts misused or opened in your name. You also have the opportunity to list any potential suspects, even if you don't have their identity. Leave it up to law enforcement to track down the perpetrator. Include as many facts and details as you can. The more information you provide, the easier it potentially will be for investigators to track down the perpetrator. File a police report. In addition to filing an FTC complaint, you also need to file a report with your local police precinct (or the precinct where the theft occurred, if you're traveling). Call the non-emergency number and tell the operator you wish to file a police report for identity theft. Just as with the FTC complaint, give the officer taking your report as many facts and details as possible. Answer all questions thoroughly and honestly. Get a copy of the written report for your records. Follow up in a week or two to check on the investigation, if you haven't been contacted by an officer in that time. Maintain complete records. While you're dealing with the aftermath of identity theft, keep detailed notes of everyone you contact and everything that is said. Send follow-up letters confirming phone conversations so everything is in writing. It can take a lot of effort to restore your credit and reputation after falling victim to identity theft. Keeping adequate written records provides you with proof of every step you've taken, and keeps you from having to repeat efforts. 
Use strong passwords and PINs. Keep passwords and PINs safe. Turn on two-factor authentication. Create log-in passwords for all your devices. Protect your computer. Beware of phishing scams. Restore old computers to factory settings. Encrypt your hard drive. Take care when posting on social media. Check security when shopping online. Shred sensitive documents. Protect your snail mail. Opt out of pre-screened credit offers. Keep valuable documents locked away. Secure your home Wi-Fi network. Avoid broadcasting personal information. Get a house sitter while traveling. Watch out for "shoulder surfers. Carry only what you need. Secure your bag or wallet. Avoid using insecure public Wi-Fi networks. Use only ATMs with adequate security. Inspect card readers before swiping. Contact banks and credit card companies. Put a fraud alert on your credit report. Change all passwords. Order copies of your credit report. File a complaint with the Federal Trade Commission (FTC). File a police report. Maintain complete records. 