Consumers must be wary and be proactive about preventing identity theft and credit fraud. The first and best approach is to avoid becoming a victim. First, avoid having credit instruments, such as credit cards, checks, or balance transfer checks stolen. Consider renting a post office box, a installing a locking mailbox. Do not have mail or packages left at your doorstep when you are away. Do not leave your purse or wallet in your car.
Second, protect your personal identifying information. Be cautious about providing information such as account numbers, birthdates, and social security numbers to anyone unless they are reputable and have a policy for protecting your personal identifying information.
Third, purchase a home shredder and destroy documents with personal identifying information, or documents that can be used to commit identity fraud. These include bank statements, credit card statements, medical account records, and other financial documents. These can also include applications and preapproved credit offers.
Order your free annual credit report and monitor the credit accounts periodically or prior to an important credit application, such as for a mortgage. You are entitled to a free annual credit report. It is not necessary to pay for a credit monitoring service. You are also entitled to a free credit report if you are denied credit.
