5 Ways to Prevent Identity Theft

Millions are affected by identity theft each year.

Even Federal Reserve Chairman Ben Bernanke was hit by identity theft, so no one is immune.

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But have not fear, there are easy steps you can take to protect yourself that are not only easy, but also cheap.

Here are 5 easy ways to prevent identity theft:

1. Buy a paper shredder

The fist step will cost you the most money, but don't panic. We're talking $60 for a paper shredder.

You don't need a shredder that will make julienne fries, just one to destroy your documents. Shred junk mail, bills, or any other paper with identifying information.

And $60 is better than the time and money that a dumpster diving thief will cost you.

2. Lock your mailbox

You may already have a locked mailbox. If not, consider getting one, or buying a lock for your current mailbox and giving the post office a copy of the key. This can cost you as little as $10.

You don't want an identity thief to check your mail before you do!

3. Monitor EVERY credit card

You may have multiple credit cards, but only use one because you don't want to cancel any.

Canceling credit cards is known to hurt your credit score, so keep them, but make sure you monitor them, even if you haven't used them.

If someone got a hold of your personal information, they could call the company and ask for a new card, saying that the other card was lost. And then you'd get a bill for a card you thought was collecting dust.

And the best part is, it doesn't cost you anything!

4. Don't carry stuff with you

Another step that won't cost you anything. Don't carry your PIN, Social Security number, or extra credit cards with you. Don't even keep them in your car.

Store them in a secure location, in case you get robbed and have those vital numbers stolen.

5. Check your credit report

Check your credit report at least once a year. Catching something early on will help you in the long run.

This step starts out free, but there are options to pay for a credit monitoring service for more thorough information.

For your free annual credit report, click here.