If you become a victim of identity theft there is going to be a lot of hassle and even money involved. As a result, we recommend credit monitoring as the best way to get identity theft protection.

At the same time, the risk of becoming an identity theft victim is fairly low (below 5%), and thus, if you do not want to spend the money for a credit monitoring service, here are a few tips from the FTC that you can do yourself, for free:

• Protect your Social Security Number (SSN)
  • Don’t carry your Social Security card in your wallet, and ask to substitute another number for your driver’s license number (if your state generally uses your SSN as a default driver’s license number). Substitute another number for your SSN as you health insurance policy number.
• Treat your mail and paper garbage carefully:
  • Shred personally identifying documents if you no longer need them. According to the Good Housekeeping magazine, 40% of all identity thieves get personal information from people’s mail and other papers.
  • Mail your personally identifying mail in post office collection boxes or take it to the post office.
  • Stop your mail if you’re going to be on vacation or away from your mailbox for an extended period of time.
  • Limit the number of pre-approved/prescreened credit offers you get in the mail by calling: 1-888-567-8688. Note: You will be asked to provide your Social Security number, which the consumer reporting companies need to match you with your file.
• Password-protect your credit card, bank, and phone accounts with generic strings of numbers and letters, rather than using your birthdate, mother’s maiden name, and the last four numbers of your Social Security Number.
• Verify a source before sharing your personal information:
  • Don’t give out personal information on the phone or through the mail or Internet unless you are CERTAIN you know who you’re dealing with.
• Safeguard your purse and wallet, and if you store information at home or work, keep it in a secure, preferably locked, place.

More tips on how to avoid identity theft are available from the FTC.