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Identity Theft has been called "the fastest growing crime in America," affecting millions of Americans each year. Nearly 10 million people fall victim to identity theft yearly, costing consumers an estimated $5 billion in out-of-pocket losses and businesses $48 billion, according to the Federal Trade Commission.

What steps can you take to protect yourself against identity theft? While there is no foolproof way to protect yourself against identity theft, there are important steps you can take, and habits you can practice, to reduce your chances of becoming an identity theft victim:

1. Protect your social security number and driver's license number. Avoid carrying your social security card in your wallet or purse. If your health plan or other card uses your social security number as an identifying number, request that this be changed. Don't put your social security number or driver's license number on your checks.
   
   
2. Be careful about what you say on the phone. A popular tactic of identity thieves is to listen in on your conversations. If you order a product or service over the phone, or give anyone personal information, make sure you are in a secure and private location to avoid the chances that you will be overheard.
   
   
3. Don't give out your personal information unless you initiate the contact. Thieves constantly devise ways to capture personal information from victims. Pretending to be a bank, department store, government agency, or other "official entity," they may call you, email you, or send you unsolicited mail hoping you fall for the scheme. Never respond to a request to verify your social security number, account information, or password. The bottom line: Don't give out your personal information unless you initiated the contact.
   
   
4. Don't throw away your identity! One of the easiest ways for identity thieves to steal your identity is to go through your garbage. Thoroughly shred or tear up your papers and personal information before you throw them away. Pre-approved credit card offers, convenience checks, and any other personal information should also be destroyed.
   
   
5. Protect your computer against viruses and spies. Don't allow the personal information on your computer to be readily accessible to thieves. Use strong passwords with at least 8-10 characters, including a combination of numbers, letters, or symbols. Use firewall, virus and spyware protection that is updated regularly. Download free software only from those sites that you know and trust. Steer clear of links in pop up windows or in email.
   
   
6. Be a smart and careful online shopper. The Internet offers a convenient way for visitors to shop and buy online. However, you should be familiar with, and trust, the website you are visiting before entering your credit card number or other personal information. Sites should feature full encryption for your protection.
   
   
7. Check all of your bills and bank statements carefully. Open your bank statements and credit card bills as soon as they arrive. Check very carefully for any unauthorized charges or withdrawals and report them immediately. If you notice that a bill doesn't arrive on time, follow up with the company quickly, because a late bill may mean someone has broken into your account and changed the contact information to hide charges that are fraudulent.
   
   
8. Stop pre-approved credit card offers. Pre-approved credit card offers are very tempting to identity thieves who may search through your mail. You can stop the majority of these pre-approved offers by requesting that your name be removed from marketing lists. The number to call is 888-5OPTOUT, or 888-567-8688.
   
   
9. Do business with responsible companies who protect your information. When a company you are already doing business with requests additional personal information, ask why it is needed, how it will be used, and whether it will be shared. Another important question is how it will be protected. Responsible companies will be happy to provide you with this information. If you aren't comfortable with the response, you should consider working with an alternative company.
   
   
10. Monitor your credit reports on a regular basis. One of the most important things you can do to give yourself a "first line of defense" against identity theft is to check your credit reports from all three credit bureaus on a regular basis. You can do this for free once per year through www.annualcreditreport.com, or you may order your 3-in-1 credit report that features a side-by-side comparison of all three of your credit reports. When you review your credit reports, look carefully for any items that you don't recognize, or for any discrepancy that appears. Check your reports carefully as they may provide you with early indication that you have already been victimized by identity theft.

Get Your Credit Score, Credit Report and 3-Bureau Credit Monitoring Free for 30 Days at Credit Learning Center

Note to Readers: Lessons ten of this series will focus on the immediate steps to take should you become a victim of identity theft.

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