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.
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.
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.
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