Protect Yourself From Identity Theft

Identity theft is one of the fastest rising global crimes. Some fraudulent schemes to capture the confidential information of a person include Phishing and various telemarketing ploys. Other methods rely on taking advantage of an innocent victim's carelessness or ignorance. Mostly, a victim will tell you after the fact "I had no idea".

In terms of online security, information databases store vast amounts of personal information. Moreover, there is a lot of financial and medical information on publicly accessible computers. And while the technology has been around for decades, identity theft has really become a major criminal activity only in the last ten years or so.

In years past, bank and credit card computer systems were all connected via private networks. Massive amounts of sensitive information were being stored but the access points to that information were very limited. Today, businesses do an excellent job of keeping information secure given the demands placed on their resources. But with the growth of the World Wide Web and the ease of global access, the exposure points to that data have also increased dramatically.

The number of knowledgeable individuals with computer and networking expertise has grown many-fold. Hacking programs are readily accessible on the Internet with just a few simple searches. Potentially, a thief does not need any expert knowledge required to write their own scripts or programs. The barriers to entry are lower than ever for cyber-crime.

At the same time, e-commerce and online banking have become the norm. More and more, business is conveniently facilitated by virtual providers such as PayPal, eBay and Click-Bank.

This means that there are many more ways to access your private financial data such as bank accounts, credit card accounts, social security numbers, addresses, phone numbers and so on. Financial institutions and governments take the risk of a security breach very seriously. But vulnerabilities in the system still exist and most of these soft spots are right on your own home or small office computer - where security is the most vulnerable.

Tough to crack passwords, regular password changes, password confidentiality, robust operating systems, routers, firewalls and advanced software applications are all within the control of private individuals. In large part, therefore, the responsibility rests on the shoulders of the individual to become aware, to seek out reliable information and even the necessary training to protect their electronic data.

Now that wireless Internet connections have become cheaper and easier to install - and therefore, more common - the risk is also greater. A data thief can easily drive by your house or walk by your apartment with a laptop and access your home or small office computer network if it is not adequately secure.

The result of that lessened security means that your data is out in the open. Any theft of your personal information can also lead to the theft of your identity. Once enough of your private information is captured, a thief can use it to pretend that they are you. They can successfully masquerade as you online and begin to take control of your identity - completely unbeknownst to you.

And it's not just your electronic data that can be stolen. Thieves will pinch mail from your home mailbox or sift through your garbage and recycle bins just looking for the right bits of information that will allow them to begin the process of impersonation fraud.

In terms of electronic data storage and transmission, a few simple guidelines can help improve your level of protection. Choose odd passwords with special characters and change them at least every 60 days. Don't share passwords with anyone. Keep your computers and network physically secure, just as the professionals do. Don't leave your personal data storage devices including PDAs and cell phones, where they can be easily stolen - such as an unlocked car or unattended coat pockets.

Beyond computer and network security, don't forget to secure your important documents in safes or lockable filing cabinets (this can also protect them from fire). If you are discarding any sort of storage medium or paper document, destroy the physical CDs/DVDs, notebooks, hard drives and shred paper.

Anything with your account numbers, signature or other personal information can be used to steal your identity and your money. Many of the precautions that you can take fall into the category of common sense. Others will require some research, education and regular preventative action.