With the rise in the cases of identity theft happening every year, people are now aware of the subsequent damages it can bring to their financial health. For some, it's a nightmare difficult to sort out and can financially leave you behind. Scams and frauds have stoked identity fear to consumers, but there's really nothing to be afraid of. Although becoming a victim of stolen identity is stressful and time-consuming to repair, there are some simple and cost-effective ways to help protect you against the blows brought about by identity theft. Take note, though, that these sensible precautions lessen the risk of identity theft, but do not totally stop it.

Check credit reports for free

First things first - maintain an error-free and fraud-free credit by inspecting your credit reports once every four months. Reports can be ordered from one of the three big credit reporting companies, and make sure to look for reports that indicate purchases you haven't made, because these may be indicative of theft. Free credit monitoring is a great and cost-effective way to increase your identity theft detection and knowledge, and one of the most basic aspects of prevention. Finally, if someone makes illegal purchases or false applications using your name, all of those will appear on your credit report, which means you can make remedial actions immediately.

However, there's a downside to manual credit checking. Always keep in mind that credit reports contain a wide range of pertinent details about you, your purchase details and financial history. Regular checking for mistakes is crucial to maintain a good record, but one of your reports may be different from another. This means that not all three credit reporting companies have same reports, so you still have to crosscheck all reports with each other. But since only one report can be issued to you once in four months, you still have to wait before you can order your next report. Next, a once-every-four-months credit check can still leave you vulnerable to id theft even though you regularly check your credit files.

Credit monitoring and identity theft insurance

Availing of id theft insurance coverage is a good back up for free credit checks. It enables you to become more focused on credit monitoring, because these organizations scrutinize your files on regular intervals. You are guaranteed to spot identity theft activities on your account, because identity theft insurance firms for any changes will instantly alert you on your credit files. Aside from credit monitoring, they also provide coverage for any losses related to identity theft if in case you become a victim of one. Just choose the right identity theft insurance for your need - they should check all your reports from the three credit-reporting firms, they are a well-established business, and they have a round-the-clock support center to ensure that they'll assist you in case of urgency.

Employ basic consumer protection

• Don't provide personal information to a stranger or someone you have just met, especially if the conversation is via the internet or a phone call. Personal identifying information should only be provided to someone you really trust or to an organization you're making business with.
  
  
• Get a shredder to shred all credit card offers, old utility bills, credit card statements, bank statements or checks, and any other documents that have your personal and financial information. Shredding helps prevent thieves from stealing them from your garbage bins.
  
  
• Make sure your social security number is not with you all the time. Your SS number can be a good catch for pickpockets because this can be used to open up new credit lines or file for insurance using your name.