Now that your credit card bills are filled with holiday purchases and the economy is still struggling, I thought it would be a good time to talk about identity theft and ease some of your financial worries.

Because I'm Canadian, the advice provided here will be based on the Canadian system, but I'm sure the general principles apply, no matter where you live.

Protect Your Personal Identity

This will come as no surprise to most: don't throw away financial papers (even those pre-approved credit card applications) without first shredding them. Dumpster diving is once again on the rise, and the thieves are looking for any piece of paper that contains information about you and your accounts: utility account numbers, credit card numbers, social insurance number, date of birth, etc. Shred everything!

Protect your computer. Make sure to install (and regularly update) anti-virus and anti-spyware programs. Never download attachments that you don't recognize and never click on a link contained in an email that was sent by a stranger. Why? A worm, virus, Trojan horse, keylogger, etc. could soon invade your computer and transmit your personal information over to an identity theft (and it could also destroy your whole system). NEVER download games or music from these "sharing programs". They're illegal and you run a very serious risk of infecting your computer (and your entire home network) with dangerous viruses.

Every year, you should request a copy of your credit report from TransUnion and Equifax (it's free if you request the paper version by mail). These are the two credit bureaus in Canada, and they keep all sorts of information on you: home and work addresses for several years, information on all your mortgages, personal loans, car loans, bank accounts, credit cards, etc. If you are victim of identity theft and you don't know it yet, that's the best way to find out. Each account will be described with a letter and number (e.g., R1). If you discover an account that you didn't open, or even mortgages that you did not request... Time to call the police and report it! Identity thefts could really ruin your life in many ways. Make sure to fix any and all mistakes before it's too late!

If you still have an unsecured mailbox (that anyone can open), remove your mail as soon as it is delivered. A lot of thieves steal your personal mail to get your credit and other financial information. With taxes that will be due soon, you could receive some pre-filled forms that contain your SIN. You don't want this information (and your credit card information) to get in the wrong hands!

There are many other ways to ease your financial worries and avoid identity theft, but I hope these short tips have given you some ideas on how to feel safer and more relaxed about the safety of your personal information.

Book of the Month

Don't forget to check out my my two book of the month recommendations. This month, I recommend a mystery with a brave heroine and a very simple yet enlightening astrology book.

Remember to Relax