Identity Theft: Don't Let it Happen to You

Identity theft is a growing concern for many people. It can cause both financial problems and emotional pain for its victims. Identity theft can destroy your life for months or even years.

When a criminal obtains access to your personal or financial information, that's considered identity theft. These details are used to commit acts of fraud against you. The most common cases of identity theft involve credit card and check fraud. In many cases, the ultimate consequence is the ruination of your credit.

These criminals will take out a credit card and open a bank account using the victim's identity. With a credit card, they'll purchase expensive merchandise that they turn around and sell for cash. With a bank account, they can take out a loan in your name for thousands of dollars. Most often, the thief just vanishes.

Credit isn't the only thing that can be destroyed through identity theft. Frequently, a thief will take your personal information and use it to get a driver's license. If the thief then rents a vehicle and uses it to perpetrate a crime, you'll be the one the police come looking for. Your good name can be destroyed. Even when it's proved that you were a victim, not a criminal, you will continue to be associated with the event.

The good news is that there are lots of tips to prevent identity theft from happening to you. You can never be completely sure of avoiding identity theft. But you can take steps to make it less likely that you'll be a random victim.

Your personal and financial documents are an identity thief's primary target. From bills to bank statements, your mailbox is generally loaded with the details of your personal information. All too often, so is the garbage bin outside your house.

Don't throw away any piece of paper that contains your personal information; always shred it first. Buy an electric shredder to make the job more convenient. Many financial institutions and companies these days provide their bills and statements electronically, so take advantage of this where you can.

Other common, everyday habits can also lead to identity theft all too easily. Never carry your birth certificate, checkbook, or social security card on your person. Checks can be the worst. Not only is your personal information included, your detailed banking information is right there for the taking. Some people even put their social security number right on the check. Avoid this at all costs!

Some common sense and knowledge can go a long way to prevent identity theft. No one wants to go through that painful ordeal.