MSN Money

Learn about the 'nuclear bomb' of identity-theft protection, the one way to freeze out ID thieves.


When the method the criminals used to steal IDs was known, old-school tactics were far more common than higher-tech approaches, according to Javelin. Here's how it broke down in 2007:

33% of the incidents were due to lost or stolen wallets.

23% of victims were "shoulder surfed" while conducting a transaction (the thief watched over the victim's shoulder as the victim punched in a PIN or used a credit card).

17% were victimized by family members or other people they knew. (Read "8 signs you may know an identity thief.")

12% were victimized online.

7% were victimized as a result of data breaches.

So the answer to the first question is "false."

Continued: How to protect your information

That's actually good news, since there's a lot more you can do to protect the information that's under your control than the stuff that's out there in somebody else's database.

Such as:

Program the following numbers into your cell phone so you can quickly report lost or stolen cards: American Express, 1-800-268-9824; Discover, 1-800-DISCOVER or 1-800-347-2683; MasterCard, 1-800-MASTERCARD or 800-627-8372; Visa, 1-800-VISA-911 or 1-800-847-2911.

Shield the keypad with your hand anytime you type in a PIN, and palm a credit card so the numbers don't show while you're waiting in line or finishing a transaction.

Keep your checks, account statements and other sensitive financial information in a locked filing cabinet. This is especially important whenever people you don't absolutely trust will be in your home, such as during parties, when you're having work done on your house or during any family gatherings that include sketchy relatives.

Set up e-mail alerts in your bank and credit card accounts to inform you when large transactions have been made or when your balance reaches certain limits.

Monitor your credit reports. You can access reports from each of the three major bureaus once a year at the government's free site. If you're at high risk for identity theft or will be in the market for a loan in the next few months, consider getting a credit-monitoring subscription. (Read "Should you hire a credit watchdog?" for details.)

Never click on a link embedded in an e-mail, even if the message looks like it legitimately came from one of your financial institutions. Open a new browser window and type in the institution's URL yourself.

Consider blocking access to your credit reports if you've already been a victim of identity theft or are at high risk. (Read "Should you freeze your credit report?")

Cancel paper bills and statements. Monitor your accounts and pay your bills online. People who monitor their accounts online tend to catch fraud much faster. (Read "Go paperless for safer banking.")