how to SAFEGUARD our personal and financial data

There are many cases involving identity theft, months pass before the victim is aware of any wrongdoing. Simply monitoring your credit card and account statements on a weekly basis can greatly decrease your identity theft risk. Therefore, privacy and security of personal and financial data are often beyond your ability to control. You must nearly always give up some bit of personal information to conduct even the most routine financial transaction. Once you provide data, its security is outside your control. However, there are some steps that you can take to optimize the chances your data will be safe.

Tip 1. Educate yourself with knowing what data is required for a certain transaction and set limits accordingly. For example, a check cashing company may ask for your phone number, but you should question the need to supply your Social Security number.

Tip 2. Recognize your “status” with the financial institution. Are you a “customer” with a continuing relationship, or a “consumer” with no data security protections?

Tip 3. If you want to optimize your security protections, cash checks or use ATMs with institutions where you are a customer and have an ongoing relationship.

Tip 4. Ask your financial institution about its data security program. You may not get an in-depth response or a copy of the company’s written policy, but you are entitled to assurance that the company takes data security seriously. Security is often discussed on a company’s web site along with its privacy policy.

Tip 5. Keep up with the news. Just because a financial institution has a single publicized instance of a security breach does not mean it’s a bad company. An important indicator is what that company does to help its customers after a reported breach. For example, does the company offer to provide free credit monitoring services to limit the threat of identity theft?

Tip 6. Read privacy notices carefully, and exercise any opportunity to opt-out. This is not only important to protect your privacy, but opting out also gives you a measure of control over the security of your information.

Tip 7. Always keep in mind, there is no blanket protection for either privacy or data security. Guard your personal data like you would your money. Remember, your personal information may be more valuable than your money, especially to an identity thief.

Tip 8. Never provide personal data in response to an unsolicited e-mail. Many identify thieves are now sending e-mails that appear to be from a financial institution, such as a bank. This is a fairly recent ruse identity thieves use to obtain your information. The scam is called “phishing.” The return e-mail address or linked web site may look like it came from a legitimate company. But keep in mind, legitimate businesses do not ask for personal information via e-mail -- unless you make the first contact.