As many as 9 million Americans may be the victims of identity theft each year. You may discover the misuse of your information when you review your credit card statement and notice charges you didn’t make. This situation can usually be resolved quickly by contacting your credit card company. But you may not detect the theft unless you review your credit report or are contacted by a debt collector. In some cases people have spent years attempting to repair the damage done to their credit rating and identity. It all depends on what the thief did with the information.

Prevention Tips

Prevention is easier than fixing the situation after it occurs. Be aware of how your information can be stolen and to try to prevent those situations from taking place. Shred documents before you throw them away. Even those credit card applications that come in the mail that you don’t want to sign up for. Your information can easily be found and used by dumpster divers. A pre-approved credit card application is a blessing to these thieves.

Be careful what information you share online or over the phone. Phishers steal your information by pretending to be an institution that needs your credit information or social security number. Never just follow a link in an email that seems to be from an institution you do business with, such as your bank. These links often go to sites set up to mimic the real site and convince you to input your account details.

Be careful where you use your credit card. Skimming is the process of stealing your information while swiping your card for a legitimate purchase. You won’t be able to detect the actual skimming, but you’ll notice unusual charges. Sometimes purchases that seem too good to be true are. They may be a way to try to lure you to using your card for a purchase so that the vendor can skim your card information.

Of course there are some instances of identity theft that none of us can prevent. Thieves may get hold of your information by stealing your purse or wallet. Some thieves have even stolen mail from locked mailboxes. Or someone may use various techniques to convince another financial institution to give them your information. With these cases, you’ll only see the evidence of the theft after it has occurred.

What do I do if my identity is stolen?

We wouldn't wish it upon anyone but, regretfully, it happens. These are the steps you should take if your identity is stolen. First, breathe. Don't get worked up and make any rash decisions. If you know it has been stolen, call the issuing company and specifically tell them what has happened. They may cancel the card before any more fraudulent purchases are made. Filing a police report may help protect your rights. Take steps to protect your personal information and review your credit report each year. If you notice any unusual activity, contact your credit card company or bank immediately. If you’re dealing with an unknown vendor, paying by cash might be a better option in person. Careful research can help for online purchases.