How Do You Prevent Credit Fraud?

Every year there are news reports of billions of dollars, being swindled through credit card fraud. In fact, identity theft is the easiest crime to do in countries like the USA. This is certainly not good news. Any person can take hold of your credit information and can apply for credit in your name. Someone can log in your credit card details online and transact in your name while the bill is slapped on you.  The person committing an ID fraud on your account can wreak havoc with your bills and your credit rating. Do not be surprised if you are turned down for a job or credit because of this menace

It is your duty to make sure that your personal information does not leak its way through to other people. Quite bizarrely, identity thefts are usually done by people who are close or related to the victim. Destroy and shred with the help of a paper shredder, all the pre-approved credit mails and offers that you get in the mail. Always sign every single credit card with 'please ask for photo id' as an alternative of just a signature. Never give out any private information like the SSN or credit card details over the phone unless you make the call and you are well aware of whom you are talking to. Get a tri-bureau credit report which gives latest and up to date information from all the three credit bureaus. Invest in a credit monitoring system. This detects changes on your credit file and alerts you of any credit applied in your name.

If you live in the United States, you can your credit reports from the "Big Three" once a year. Equifax, TransUnion, and (crud, can't remember the third) will each provide you with an annual report.
Rather than getting all three simultaneously, arrange for one in January, one in May, and one in September (or whatever months you choose). Spacing them out gives you a better chance of catching errors.

I wouldn't invest in a credit-monitoring system. They simply charge you to do what you can do for free every quarter. The only exception would be if you know you have an ongoing problem.

One last thing you can do (but it varies by state) is put a "freeze" on your credit. Some states only allow this if you're a victim of fraud, but many allow for all. No *new* credit cards can be applied for in your name under the freeze. You can continue to use your current credit, but if you decide to buy a new oven with that store's new line of credit, you need to remember to call and temporarily lift the freeze.