Paul Ferraresi

Since January 2005, more than 100 million people have been affected by identity theft. Even when financial losses from them are low, there is still stress, frustration and hassle in putting your credit and finances back together. Here are some ways to avoid becoming another identity theft statistic:

• Place fraud alerts on your credit report. These alerts, available through credit bureaus, require your verbal approval before a new credit line can be opened under your name.
• Order all three free credit reports—not just one. Take advantage of your free annual credit reports, now a right under federal law. Get one from each bureau, since many companies will only report to one or two bureaus.
• Review your credit report carefully. Look for accounts you do not recognize and look at the “inquiries” section for names of creditors from whom you haven’t requested credit.
• Opt out of unsolicited credit card offers. Opt out of pre-approved offers of credit at www.optoutprescreen.com. You can choose between a five-year opt-out period and permanent opt-out status.
• Remove your name from direct-mail marketing lists. You can do this at www.dmaconsumers.org.
• Become acquainted with a shredder. Merely tearing up your mail just won’t do anymore. All your discarded mail (including the envelopes) should go through a shredder before it goes to the trash.
• Encrypt your wireless internet connection. At least 80% of Americans who access the Internet through a wireless connection use an unsecured network, which makes a hacker’s job really easy.
• Consider an identity theft protection service. There are a number of options, take your time. Make sure the service you choose can prevent identity theft—credit monitoring services will only notify you after something happens.