If you have been a victim of identity theft, you know how difficult it can be to re-gain control of your finances. Identity theft can completely ruin your reputation and the good credit you have worked so hard to build. If you are a victim of identity theft, you need to take the following steps as soon as possible:
1. Place a fraud alert on your credit reports as soon as possible. You should order copies of all your credit reports and check the information. By placing a fraud alert on your account, you will prevent an identity thief from opening new accounts under your name. You only need to call one of the three major credit bureaus in order to place a fraud alert on your account. Here are the numbers for the 3 major credit bureaus:
Equifax 1-800-525-6285
Experian 1-888-397-3742
TransUnion 1-800-680-7289
2. Close all the account that you know of, or suspect have been tampered with or opened fraudulently. You will need to call the security or fraud department of each company and inform them that your account has been tampered with. You will also need to send a letter in writing via certified mail to each company to inform them that you account has been tampered with. When you open a new account, be sure to set PIN numbers that are hard to guess. Far too often people use PIN numbers that correspond with their birthdays or anniversary's. If you notice that charges or debits have been made on your account, you need to dispute those transactions immediately. Ask the creditor to send you the company's fraud dispute form and write a letter to the company at the "billing inquiries" address.
3. File a complaint with the Federal Trade Commission. By calling the Federal Trade Commission at 1-877-ID-THEFT, you can file a formal complaint that will help police officers be on the lookout for identity thieves.
4. File a report with the local police or the police in the community where the identity theft took place. When you file a report with the police, you should ask them to attach the ID Theft Complaint into their police report. This will help you if the thief is caught and you need to pursue legal action to reclaim your identity.

How do I prevent identity theft?
If you are not a victim of identity theft, you need to take some steps in order to avoid becoming one. Unfortunately there isn't a clear method to prevent identity theft. Due to carelessness on the individual, lax credit industry practices, careless workplace procedures and faulty internet security systems, an identity thief can obtain your information easily.

One of the best steps you can take to avoid becoming a victim of identity theft is to check your credit report often. The 3 major credit bureaus are required to provide you with at least one free credit report each year. A good idea is to order a report from one bureau in the beginning of the year, order another report from a different report in the middle of the year, and the final report toward the end of the year. The main reporting information is the same with each credit bureau and this will allow you to view any fraudulent activity that may have occurred on your account.

Another important step you can take to protect your identity is to reduce the total number of credit and debt cards you carry in your wallet. You should only carry one or two credit or debit cards in your wallet at one time. If your credit or debit card offers online banking, you should check your account on a daily basis to monitor any drastic changes.

Sadly in our society, many individuals cannot be trusted. When you use your debit or credit card at a restaurant or store, pay close attention as to how the magnetic strip is swiped on your card. Unfortunately there have been cases where dishonest employees use devices called "skimmers" to quickly swipe the card and then they can later download the account number and data onto a personal computer. You should also check your card if it leaves your site. Many thieves have been known to take your card and replace it with a "dummy card" that looks just like yours. Some consumers are unaware of the switch until they go to use their card and the thief has already charged hundreds or thousands of dollars to your account.

Most everyone will tell you to avoid using your debit card when you shop online. This advice is simply to protect your bank account. Most credit cards have a better protection system against online fraud.

It is a smart idea to keep a photocopy of all your bank accounts, credit cards, debit cards and account numbers. Keep this information stored in a secured place, like a lockbox. If you suspect your accounts have been tampered with, you can quickly find all the financial information you need to contact your lenders immediately.

Never, ever give out your social security number, debit or credit card, or other personal information over the phone, mail or internet unless it is for a trusted lender or creditor. You should initiate the call with this company. Your bank will never ask you for personal information over the internet. Most banks will send you a letter and call you if there is a problem with your account. Sadly many consumers are becoming victims of identity theft by responding to fraudulent emails that claim they have won a free vacation and all they need is their social security number, credit card number and expiration date to confirm the free trip.

Always take your credit or debit card receipts with you. It is unwise to dispose of your receipts in public trash or to leave them in the machine. If you leave the credit card receipt in your shopping bags, you might as well leave your wallet in there too! Many thieves will sift through garbage looking for credit card receipts that are in shopping bags.

Check the expiration dates on your credit cards and know when you will be receiving a new credit card from the company. If you do not receive a new card, contact the credit card issuer immediately.

Some credit card companies offer credit monitoring services. Depending upon which company you select, you will have to pay a monthly or yearly fee in order to track your credit. Many individuals like the added benefit of seeing their credit report on a monthly basis and feel that their identity is safe because they receive alerts if anything looks suspicious.

When you create your passwords, use a password that is strong and easy to remember. Always avoid using the last 4 digits of your social security number, your mother's maiden name, your birthday, middle name, pet's name, or anniversary. All of these passwords are easy for an identity thief to figure out. It is a wise idea to create passwords that are a combination of letters and numbers.

Most financial institutions will have an extra level of security to your online account system. If they do not, ask them to include an extra security feature to your account. Typically you will enter your password, and then you will be prompted to enter an additional password or PIN before you can gain access to your account.

Always memorize your passwords and never carry them with you in your wallet. If you need to write them down, do so, but store them in a safe place where a thief won't be able to find them.

When you are using an ATM machine, entering a PIN number, or using your credit card in a public place, always shield your hand. Many thieves will look over the persons shoulder to obtain the PIN number.

Avoid printing your social security number on checks and on your driver's license. Your social security number should only be released when it is absolutely necessary. Typically you will need it for banking records, employment records, and tax forms. There is no reason Circuit City and Wal-mart need your social security number written on your check. Never say your social security number out loud when you are in a public place. If your social security number needs to be written down, be sure to shred that piece of paper after you are done with it. It is also a smart idea to leave your social security card in a locked area in your home, never carry it in your wallet or purse.

Hopefully some of the above advice will protect you from becoming a victim of identity theft. If you have a computer, be sure you have firewall installed to protect hackers from stealing your personal information off your hard drive. Always install and update virus and spy ware protection programs as well. Lastly, password-protect any file on your computer that contains personal data. Remember that the best passwords have a combination of letters and numbers.