Tom Tightwad had an exceptional credit history and kept his credit score above 800. He always paid his bills on time. Yet he also enjoyed the finer things in life. Mr. Tightwad loved his cigars, which he bought online with his credit card. He often did this at the library on the weekend. One day Tom was filling out another order when a desk worker came over and told him a dog was urinating on his car. Tom ran out, but no dog could be found. Tom scratched his head and walked back in to finish his order.

A month later, Tom Tightwad decided to access his free credit report. Tom was shocked by what he saw. Someone had bought an “interesting” online subscription in his name! “Darn it!” thought Tom, as he banged his head on his computer screen.

OK, so you can get most “interesting” things for free online, but think about it. Do you want some creep using your credit card information to buy things using your money? Hell no! That’s why you need to learn a few strategies to protect yourself from credit card fraud and identity theft.

First Line of Defense – Guarding your information

Admit it- making purchases online feels futuristic and convenient. You can also sit in your underwear while doing it. But when you’re in a public place, you need to take special steps to guard your information (and be fully clothed):

• Clear your logins and passwords. Don’t assume that by exiting a screen you’ve erased the information.
• Beware of pop-ups asking for personal information. Make sure you are on a website with security controls.
• Use a credit card to make online purchases rather than a debit card. Credit cards have better protection guarantees.

Second Line of Defense – Watching your information

You’ll want to continuously check your information and sniff out suspicious activity. Please don’t literally sniff them.

• Check your bank and credit card statements for unexplained purchases, like a B-cup bra when you are clearly a C.
• Check your credit report ONLY at www.annualcreditreport.com. Other sites offering a credit report may try charging you fees to see it.
• Make sure your mailing address on your bank and credit card statements and your credit report is correct. Identity thieves will fill out change of address forms so you won’t get their delinquent payment notices until it’s too late.
• Completely destroy outdated bank statements, credit card applications, bills, and anything with your personal info on it. You can shred them or burn them. You can even eat them. Be creative.

(Optional) Third Line of Defense – Protection Services

Banks and specialty companies offer identity theft protection, but it comes at a price. For a few hundred dollars a year, you can have the company issue fraud alerts on your credit report, which will make creditors hesitant to give credit in your name. Of course, you can always issue the alerts and freezes yourself, so you don’t need to pay for a service to do it for you unless you are really paranoid. Also, for experienced thieves, this is only a slight setback.

The identity protectors can also freeze your credit report, which prevents companies from opening up new credit. You can still use existing credit, but you won’t be able to get new credit. This is good if you know that thieves have been using your credit info, but sometimes YOU need to acquire new credit. You will then need to contact the three credit bureaus to unfreeze your report, which can take up to three days, and you may need to pay a fee.

Remember, if you just take care of your personal information, you don’t have to end up like Tom Tightwad.