5 Steps to Avoid Being an Identity Theft Victim

Do you know how safe is your identity? There are 13.1 million people who actually fell victim to identity theft in 2013, according to Javelin's 2014 Identity Fraud Report. And with the Target and Heartbleed breaches, there's a big risk that the number will increase over time. No one is exempted from identity theft, which is why it's important to know what steps you can take to protect yourself from becoming a victim of this crime.

1. Be aware of who has access to your personal information

Over the years, we have given out our personal information to a variety of people and businesses such as doctor's offices, grocery stores, employers, retail or department stores. Even if these exchange of information are somewhat innocent, it's still important for you to be aware which companies and people store your personal information as well as exactly who has access to that stored information. Before giving anyone your personal information, ask yourself these questions first: How is my information stored? Who will have access to my information? What's your privacy policy? Why do you need this personal information? Once the company, institution, or person responded to these questions, then you can decide whether you're comfortable to provide them your personal info.

Aside from being aware of who you provide your personal information to, you should also make sure to limit the amount of personal information that you post on social media sites, as well as verify that your information will only be viewed by your "friends" or people whom you know in real life.

2. Monitor your bank statements regularly

It is also important to keep an eye on your bank statements when you receive them every month. This includes not only your checking and savings account, but also any credit card or investment accounts which you receive a billing statement for. Before putting them straight to your shredder, take the time to go through each statement and make sure that each transaction is valid and that you were the one who made all of those. Report any unfamiliar or suspicious transactions as potential fraud to the respective bank, even if the amount is less than $5. Identity thieves often try out the credit or debit cards first to make sure it's working before they complete a larger transaction.

3. Enter your personal information on secure websites only

Every time you'll be entering your personal information on the Web or access a website that contains personal information, make sure you're using a secured website. How would you know if a site is actually a secured and trusted site? First thing to check for is that the URL should begin with "HTTPS" which stands for "Hypertext Transfer Protocol Secure." If a site contains this in the URL, your information is being encrypted, or changed into coding so that only the intended recipient will be able to view or access it.

Another way to determine if the website you're accessing is secured is by looking at the address bar and see if it changes color. Popular browsers such as Google Chrome, Mozilla Firefox, Internet Explorer, and Safari has this feature wherein it lets you know that a website is secure by displaying a lock on the left side of the URL and/or highlighting the URL in green.

4. Don't trust anyone asking for personal information via phone or email

Scam activities are now rampant nowadays wherein you would receive an email informing you that your bank account or information has been compromised, and that the only solution to fix it is to click the link provided. If you received an email that is similar to this one, do not click on the link and mark the email as spam as this is a clear example of phishing scam. In addition, if you receive a phone call from someone introducing themselves as a representative of your bank, health insurance, doctor's office, or other institutions and are requesting some personal information from you, don't hesitate to end the call by hanging up the phone.

Even though it sounds like the email or phone call is legit, you should still refuse giving out your personal information and instead, visit or contact the said bank or company to verify if the call or email you received did come from them.

5. Protect your devices and gadgets

Aside from keeping your personal information private, it is also necessary to keep your devices such as your smartphone, laptop, and tablet protected from any kind of viruses, malware, and spyware. To do this, you may want to download and install a reliable Internet security software onto your devices to protect them from these harmful attacks and to alert you of any potential threat to your privacy or any information stored on your computer or gadget. For example, if you come across a suspicious website, these Internet security software will warn you that a threat has been detected and will take the needed action immediately before any harm is done to your device. Now, most Internet security software allows you to protect up to three computers for less than $100/year. For a detailed review of the most commonly used Internet security software today, click here.

There's no way to completely protect oneself from identity theft, however, by following this guide will help you reduce your chances of falling victim to this dangerous crime. Being vigilant and cautious is always the key to keeping your personal information and finances safe from cybercriminals who are always standing by on the Internet, waiting for an opportunity to steal other people's hard-earned money.