Protecting Your Identity: Protection Programs

By Michele Blandino

Identity theft has always been a problem, however in recent years, the increase in the widespread ability for people to shop, conduct banking and pay bills online, has increased public awareness and in the process, has spawned an entire industry that develops and sells products to minimize the threat.

While some protection plans can be helpful in minimizing your liability should you fall victim to identity theft, there are plenty of steps you can take to reduce the risk that someone will steal your personal information. Here are some ideas:

Good Habits Can Reduce the Threat

It should go without saying that you should never give your personal identification information to anyone, nor should you write it down anywhere. Second, you should only provide your social security number (SSN) when absolutely necessary. If your SSN is requested, ask if there is another form of identification you can provide. Likewise, you should never provide your SSN or credit card information to someone who solicits you by telephone or online unless you initiated the contact.

When mailing bills or other important material, you should deposit the letters into a secured mailbox at your post office rather than leaving it in your home mailbox for pickup. Also, do not leave your incoming mail in the mailbox for an extended period of time; aside from providing a clue to would-be thieves that you are away from home, mail that is left in a curbside mailbox is particularly vulnerable to being stolen without your knowledge.

When disposing of old bank statements, credit card receipt and credit card bills, shred them before depositing them into the trash. Many identify thieves obtain their information from your trash; shredding the documents will make it virtually impossible for them to obtain the information they need.

When shopping online, be sure to patronize only those sites that are secure. Secure sites allow your information to be encrypted as it travels through cyberspace making it more difficult for hackers to intercept.

Are Protection Programs Worth the Cost?

Most banks and credit card companies offer plans that offer protection from financial losses caused by identity theft. While these plans are relatively inexpensive – they average about $10 per month – they may not be the answer for everyone. For example, because most companies will notify you via e-mail if a suspicious transaction is identified, services of this type will only benefit you if you check your e-mail on a regular basis. Before signing up, be sure to ask about the company’s notification process; if you are not online frequently, ask if you can be notified via telephone instead.

On the other hand, you should definitely consider buying protection if you have been victimized in the past. Even if the person who stole your information has been caught, you can never be fully assured that your information still isn’t in the hands of an accomplice. Similarly, if you are in the process of buying a home or securing a loan for any purpose, unpaid balances can harm your chances of securing that loan.

In the end, it’s important to know that there is no foolproof way to protect yourself against identify theft, however, taking a few precautions can help reduce the risk.