Best Practices
Ten Ways to Avoid Identity Theft (Parker Associates)
- Keep your Social Security card in a secure place and give out the number only when necessary. Ask to use other identifiers whenever possible.
- Guard your purse or wallet. Never put either one down unless your hand is connected to it.
- Limit the number of checks and debit / credit cards you carry to only what you will actually need.
- Check credit card and bank statements carefully for unauthorized charges.
- Close credit card accounts you don't use on a regular basis.
- Shred all documents containing personal information -- especially pre-approved credit card offers -- with a cross-cut shredder.
- Before revealing any identifying information, ask how it will be used and secured, and whether it will be shared with others.
- Order copies of your free credit reports from the three credit bureaus at least once a year and check them carefully for accuracy. (See numbers below)
- Place passwords on credit card, bank and phone accounts. Avoid using easily available information such as mother's maiden name, birth date, phone number, etc. Instead use an eight-character combination of letters and numbers.
- Use a locked mailbox or a post office box to send/receive mail.
Five Ways to Avoid Auction Fraud (MSN Money)
- Do your homework: Be sure you understand what you're bidding on, its relative value and all terms and conditions of the sale, including the seller's return policies and who pays for shipping. This is especially important on sites such as eBay, where a bid is considered a binding contract.
- Establish your top price and stick to it: If you've done step No. 1 above, you should be able to set a price that is a good value for the item. Most sites make it easy to set a limit and make bids automatically up to the price you specify.
- Identify the seller and check the seller's feedback rating: If nothing else, negative feedback should send up a warning. It's also important to see whether the seller's feedback rating would make your purchase ineligible for the site's insurance coverage. In addition, eBay's ID verification program offers extra assurance that the person you're doing business with is who they say they are.
- Evaluate your payment options: A third-party payment system such as PayPal, Billpoint or c2it prevents anyone from seeing your credit-card number and provides the full protection of paying by credit card. Alternatively, when buying from a seller who can accept credit cards directly, you may want to use the new single-use credit-card numbers, which -- as their name implies -- expire after each purchase. These are available from American Express, Discover and MBNA.
- Consider using an escrow service: his is especially important if the seller doesn't accept credit cards or third-party payments, and the price will exceed the amount covered by the site's insurance policy. Be aware that there is an added fee for using these services -- Tradenable, for example, charges 4% for purchases up to $25,000.