First and foremost you MUST take steps to protect your Personal information. This includes:

Shredding any and all personal information to be thrown out. This includes preapproved credit card applications, any financial documents, credit card receipts, etc. My rule: when in doubt, shred it!

Guard your mail. Be aware of what you put into your mail box and what comes (or does not come) in your mailbox. You may want to have a locked mailbox or a mailbox away from your home. At minimum, be aware of what mail you are expecting. If you don’t receive your regular mail, don’t wait, investigate immediately.

Protect your information online. NEVER respond to emails asking you to verify any personal information. When in doubt, pick up the phone and verify the request.

NEVER give out any personal information over the phone, never give in to requests to verify personal information.
Only do business/use your credit card online with secure sites. Look for the VeriSign or security lock at the bottom of your browser page.

Opt out to decrease the amount of offers and solicitation you receive (with your name and information on them).
Be aware of ATM scams.

Check bank and credit card accounts for accuracy.
Keep a list of account and phone numbers: credit card companies, banks, etc. to cancel accounts should the need arise.

Know the content of your credit report and check it regularly. You are entitled to one free credit report per year. This does not count as a credit inquiry and hence does not count against you.

Use Your Common Sense!

Come back for part 3, to find out what to do if you have fallen victim to Identity Theft.

(c)JM Hofmann, MBA