Watching Out For Identity Theft

To help stem the tide, Congress passed a new anti-identity theft law this year, stiffening the potential prison sentences for these crimes. But as with many potential security issues, some preventive steps can be a wise investment. Experts recommend taking multiple measures to guard against identity theft:

Do not give out personal information on the phone, the Internet or in person unless you have initiated the contact and are sure of the other party's identity. Resist "phishing" — do not fill out official-looking (but bogus) forms arriving unsolicited over e-mail.

Use a shredder before you put financial statements or personal documents in the trash.

Do not carry around your Social Security card – you may lose it. Keep this and other important documents in a safe place in your home.

Decline to give your Social Security number to businesses asking for it. Few actually need this information. If your Social Security number appears as your driver's license identification number, ask to have a new number placed on your driver's license instead.

When picking passwords for financial accounts, avoid obvious choices, like your mother's maiden name or your birthday.

Keep regular track of the bills you expect to receive, and follow up with creditors if they do not arrive.