Preventing Identity Theft It's unfortunately not possible to prevent identity theft and credit fraud entirely. But, by managing your personal information carefully, and with a full understanding of its importance, you can substantially reduce the likelihood that identity theft will happen to you. The following tips show you how to prevent identity theft. How to Outsmart Identity Theft Thieves Be careful about giving out personal information. Whether on the phone, by mail, or on the Internet, never give anyone your credit card number, or other personal information for a purpose you don't understand. Ask to use other types of identifiers when possible, to prevent Identity Theft. Protect your post. To stop a thief from going through your rubbish or recycling bin to get your personal information, tear or shred your receipts, credit applications, insurance forms, bank statements, expired charge cards, and credit offers. Deposit outgoing post in post office collection boxes or at your local post office. Promptly remove post from your postbox after it's delivered. If you plan to go away, contact the Royal Mail about their Keepsafe service. These action will reduce the possibility of identity theft. Guard your credit cards. Minimise the information and the number of cards you carry in your wallet. If you lose a card, contact the fraud division of the credit card company. If you apply for a new credit card and it doesn't arrive in a reasonable period, contact the issuer. Watch cashiers when you give them your card for a purchase. Also, when you receive a new card, sign it in permanent ink and activate it immediately. All these can reduce the risk of identity theft. Pay attention to billing cycles. Contact creditors immediately if your bills arrive late. A missing bill could mean an identity thief has taken over your credit card account and changed your billing address. Safeguard personal information in your home. Especially if you are having service work done in your home, employ outside help, or have a flat mate. Find out who has access to your information at work. Be sure to verify that records are kept in a secure location, and are accessible only to employees who have a legitimate reason to access it. Be smart about passwords and PINs. Memorise your passwords and personal identification numbers instead of carrying them with you. Avoid using easily available information like your mother's maiden name, your birth date, your phone number, or a series of consecutive numbers. This is a regular identity theft tactic. Other Important Facts Zero responsibility doesn't mean zero problems. Because credit card companies must limit consumer responsibility to £50 in most cases of fraud, and because many new cards include "zero responsibility" protection, some people think there's no reason to worry about credit fraud. But in its most advanced form -- identity theft -- credit fraud can cause wide-ranging long-term problems. Identity thieves can use your personal information to take over your credit accounts and open new ones and undertake identity theft. They may even use your good credit to get a job, take out a car loan, or rent a flat. Check your credit report regularly. Checking your credit report can help you catch mistakes and fraud before they wreak havoc on your personal finances. Make sure your report is accurate and includes only those activities you've authorised.