Final answer:
To avoid identity theft, one should protect their credit cards, use secure mailboxes, create unique passwords, install antivirus software, and update contact information with their bank. Regular monitoring of financial statements and enabling two-factor authentication provide additional security. It's also critical to be aware of phishing attempts.
Step-by-step explanation:
How to Avoid Identity Theft
Identity theft, commonly known as True-name Fraud, poses significant risks, as unauthorized individuals use stolen personal information to commit fraud or theft. Here are five protective measures to help avoid falling victim to identity theft:
- Protect your credit and debit cards by keeping them secure, monitoring account activity, and notifying your bank if cards are lost or compromised.
- Protect your mailbox from theft by using a locking mailbox or a mail hold service during prolonged absences.
- Use strong and unique passwords and PINs that are hard to guess for all your accounts and avoid using the same password across multiple sites.
- Install anti-virus software on your computer to prevent malware from stealing sensitive information.
- Notify your bank when you change your address or phone number to prevent your statements or new cards from being sent to the wrong address.
Regularly monitoring your bank and credit card statements, shredding sensitive documents before disposing of them, and enabling two-factor authentication can further reinforce your defenses against identity theft. Remember to be vigilant about phishing emails and suspicious links, as these are common tactics used by identity thieves.