$ Strategies: A Worst Case Scenario

Identity theft is ugly. When it strikes, recovery takes a lot of work; but the injury never heals. Using a false identity for gain is not limited to the riches of bank accounts or credit cards. Criminals use our very online presence to create havoc. We all live with data-risk. We cannot protect ourselves one-hundred percent. It helps to accept this. It also helps if we know how to protect ourselves from the greatest risks. Then we can relax, knowing our exposure is limited.

As Sun-Tzu might say, 'a man who knows himself and his enemy may not win but cannot lose.' There are many avenues into our accounts. They exist for the benefit of our access. Being mindful of that process is important. Passwords, PINs, login names, security questions, smart phones, codes, and biometrics are just the beginning. The ability to separate the authentic from the usurper seems never ending. 3-D printed plastic fingers become keys to locks that cannot be reset – nature provides only one set of fingerprints. Even the complexity of biometrics are now in question. Though it may never be perfect and constantly struggles to keep up, security always improves. As it does, we are wise to take advantage of the technology to monitor and limit our exposure.

So, in this worse case scenario, what is the one thing we can do? The single most important behavior is involvement. Review statements. Check credit ratings. Intentionally limit the number of credit lines. Research an institution before opening a financially-related account. Follow best practices.

There are many things we must be aware of when we share our data online. Never open links in unsolicited emails (better yet, don't open them but report them as spam). Never send account numbers, PINs, or passwords via email or enter personal data into an unsecured site. Use only secure or encrypted sites. You'll know because the address line begins with https:// Limit the number of credit cards used online to one (if possible). For the most part, don't save credit card numbers in any digital format; enter them manually every time. And remember, managing each password is important.

The truly damaging identity theft happens when someone breaches the walls of our credit and is allowed to operate as if from within. From the importance of simple passwords to the ultimate tactic of impenetrable security, my next few post explore strategies to plug these holes.