Protection Against Identity Theft

As a security expert, people are always asking me how they can get good protection against identity theft.  With all the phishing scams, hack attacks, and other forms of stealing personal information, protection from identity theft is more important than ever.  The problem is that there is no simple solution.  The hackers are getting better and better, and we as consumers are getting more and more exposed.

Really, the only sure form of protection from identity theft nowadays is to live as a hermit with no contact with technology at all.  This, obviously, is not a practical solution for any of us.  The only other solution is constant vigilance.  If you really want protection from identity theft, you should use strong encryption whenever possible, have a firewall to protect your computer, check your credit information and credit score every month or two, and document every monetary transaction you make.  This is too much work for most people, and even many security experts – colleagues of mine – do not do all of these things.  Nevertheless, they are necessary if you want protection from identity theft.

Even these steps do not guarantee that you are protected from identity theft, but they do guarantee that if your identity is stolen, it will be more easily recovered.  If you can document where you live, what you have spent money on, and any other details of your personal and financial life, you can prove to whatever banks, creditors, or other institutions which receive your stolen identity that it was not you who made those transactions. 

Having your identity stolen is an incredible pain in the neck even if you have done all you can to ensure your protection from identity theft.  Still, it will be much better than if you have no proof or documentation of your activities.  I had a friend who had no protection from identity theft, and traveled the world for several years.  He came back when his bank account was mysteriously emptied out.  He had to actually borrow money to get a plane ticket home.  When he came back, he found that his credit and all his finances have been trashed by an invisible assailant.  Although he reported the identity theft, it took years to get his financial situation straightened out.  Even now, his credit is not what it was before.  If he had had protection from identity theft, and not insisted on being such a free spirit, it would've been a matter of months instead of years to get everything straightened out.