Here are three ways to prevent identity theft without much work.
Use a password manager
Many people use a few fairly weak passwords across all websites. If a hacker gets into your Netflix account, he tries the same password at your bank and your 401(k).
The best solution is a password manager. This is a piece of software that creates and stores a unique strong password for each website you use.
For further detail, see our articles on using a password manager to avoid getting hacked and the top five reasons to use a password manager.
Freeze your credit
Bad guys want to get loans in your name. A life of luxury for them, ruined credit for you.
These days, it’s easy to freeze your credit so only you can borrow in your good name. When you need a loan, just unfreeze temporarily. Pro tip: freeze your kids’ credit too. No one watches a 5-year-old’s credit, so the pickings are easy.
For further detail, see our articles on how to freeze your credit and how to freeze your kids’ credit.
Use a PIN to file taxes
The IRS and some states offer an identity protection PIN (IP PIN) for filing taxes. Once you sign up, you get a new IP PIN every year.
Using an IP PIN stops bad guys from filing a false tax return in your name to claim a refund. This makes it harder for you to file your legitimate return, and delays your refund for months.
For further detail, see our article on how to prevent a false tax return in your name.
If these three ways to prevent identity theft aren’t enough, here are ten. If it’s too late and your identity has been stolen, here’s what to do.
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