Personal Finance Advice

You already know that you need to protect your personal financial information.  It’s difficult to read through a personal finance website or magazine without running across an alarmist article about identity theft, but it’s with good reason.  Nobody is immune to identity theft, but there are certainly some things you can do lessen your chances of experiencing this huge hassle.

Here are some tips for keeping your personal financial information out of the hands of a potential identity thief:

Shred your documents.  If you receive bank statements, credit card bills, or anything else that has your personal financial information on it, don’t just toss the paperwork into the trash or recycle bin when you’re finished with it.  Shred it first.  You might be amazed at the lengths some thieves will go to get their hands on information, and digging through your trash is one of them.

Close your browsers.  After you have completed a financial transaction online you should log off the website and close the browser, especially if you are using a communal computer that other people have access to.  Also keep in mind that you never really know what types of programs are on community computers, so waltzing up to a computer in an Internet Cafe and checking all your account balances may not be the best idea.

Don’t advertise your information.  Suppose you’re sitting in the subway, trying to utilize the time by getting some financial tasks taken care of.  When you call your bank for some information they ask you for a slew of information to verify your identity, such as your account number, your address, and your name.  It’s a bad idea to loudly and clearly give all this information to your bank over the phone in a crowded area because you just never know who is listening.

Know that thieves are everywhere.  This may seem a little paranoid, but the fact is that identity thieves often know their victims…sometimes they are even related to them! Don’t leave your credit cards sitting around in plain sight, don’t conduct PIN transactions with your pal looking over your shoulder, and don’t even think about letting a friend borrow your ATM card.

Be careful who you give information to.  Just because someone calls you on the phone and sounds official it doesn’t necessarily mean that the person is indeed an employee of your financial institution.  Never give out personal information during phone calls you don’t initiate, and use the same caution when you conduct financial dealings online.  Remember that a pop-up chat request probably isn’t from your bank.  Ignore the IM request and contact your financial institution.

The truth is that you can fall victim to identity theft even if you are really careful about who has access to your information.  Be sure to periodically check your credit report and always review your bank and credit card statements before you shred them.