Identity Theft: What is Identity Theft and How to Protect Yourself

Identity theft is now rated as the fastest growing criminal activity of modern times, replacing illegal drug sales. The reason is simple: it pays.

And For the perpetrators, it offers the highest profit margin with the least risk. It is not easy to catch these modern-day criminals, and even when they do get caught, the penalties are often light. The victims are left to suffer and clean up the mess, which often takes many years.

How to Protect Yourself

There are all types of advice out there on how to protect yourself from ID theft. Most of that information (shredding your documents, for instance) is well-meaning and good. But today's thief if much more sophisticated.

You can make yourself virtually identity theft proof by placing a fraud alert on your credit report with all the three major credit bureaus. This 1) stops the credit bureaus from selling your information and 2) stops creditors from approving new credit applications without first calling you at the number listed on your credit report.

One advantage or disadvantage (depending on your circumstances) of placing a fraud alert on your credit report is that this stops credit card and other credit-related junk mail on its tracks. The reason is that marketers now cannot easily access your file. Why is this an advantage or disadvantage?

Well, it is an advantage if you do not wish to receive junk mail. The disadvantage is that if you're trying to establish or rebuild your credit, you will not receive easy pre-approved credit card offers, or low-hanging fruit if we may call it that.