Student Identity Theft Protection Guide

Identity theft is the fastest growing crime in the United States, and an increasing number of identity theft victims are children. Minors are particularly vulnerable targets since their parents don't normally check their credit reports, which can allow the crime to go undetected for years. And in some cases, lack of credit history makes it easier to obtain credit in a child's name.

What you may not realize is that college students are just as susceptible as children, if not more so. Many colleges and universities continue to use students' Social Security numbers for identification purposes, which means that these sensitive digits could be plastered on ID cards, grades, and other official paperwork. Students are often bombarded with preapproved credit offers, and may also receive letters regarding financial aid. Since students move frequently and may neglect to forward their mail, sensitive information is more likely to fall into the wrong hands. And since almost 30% of college students ignore their checking and credit card balances, they are far less likely to notice if they do become victims of fraud.

We have compiled a list of tips to help college students prevent identity theft.

1. Protect your sensitive personal information.

Your sensitive personal information can be used to withdraw money from your bank account, make fraudulent charges on your credit cards, or to accumulate debt in your name. Sensitive personal information includes your Social Security number, credit card and bank account numbers, any other personal finance data (such as paperwork regarding financial aid), your driver's license number, medical information, and even your date of birth, address, and phone number.

Your Social Security number is the key to your identity. In the hands of an identity thief, it can be used to open new accounts in your name. You should never carry your Social Security number or card with you in your wallet. If you haven't already memorized your Social Security number, do so. You might consider leaving your Social Security card at your parents' house, and making a photocopy of it that can be locked up and brought out only when needed. If your college uses Social Security numbers as your student ID, request a new student ID with a randomized number that is not tied to your Social Security number. When filling out paperwork, you should only provide your Social Security number when absolutely necessary. In many cases, you will be asked for your Social Security number as a matter of course rather than necessity, in which case it is perfectly acceptable to decline.

Paperwork that includes sensitive personal information should be stored in a safe, unobtrusive place, such as a locked file cabinet. Don't leave these types of documents in your backpack or purse, and keep track of your wallet. Your dormitory and campus may feel safe and comfortable, but it is not uncommon for identity thieves to take advantage of that trusting environment. Your roommate and new friends may seem perfectly nice, but there's no need to tempt them by leaving your sensitive personal information lying around for the taking.

2. Protect your laptop.

Your laptop almost certainly contains a wealth of sensitive personal information. This access to your identity is far more valuable than the computer itself. That's why it's crucial to take a few basic precautions to protect your laptop and the information it contains.

One of the best ways to prevent laptop theft is to be conscious of the fact that laptops are extremely tempting and relatively easy targets for thieves. Never leave your laptop unattended in a library, café, or other public place. Don't leave your laptop in your dorm room with the door unlocked. You may want to consider purchasing a lock that secures your laptop to a desk or table. There are also alarms that will alert you if someone attempts to move your laptop, or if you and your laptop are separated by more than a set distance, as well as laptop tracking and recovery services. At the very least, you should label your laptop with your name and contact information, write down the serial number, and put a brightly colored sticker or other identifying mark on your laptop so that you can recognize it easily.

Use passwords to protect the information stored on your computer. Ideally, you should not store any passwords on your computer, or allow your web browser to remember passwords. If you must, at least be sure to use a strong primary log-in password to prevent unauthorized access to your laptop. Memorize this password, and don't save it or write it down anywhere on or around your computer. Whenever you are finished using your laptop, be sure to log out. For additional protection, you can encrypt sensitive data and disable instant message logging.

And of course, Internet security software is essential. Hackers use spyware, viruses, and phishing to gain access to your files, your passwords, your bank account and credit card numbers, and your PINs. The best way to thwart cybercriminals is to install software that offers thorough protection against a variety of threats, and set that software to update automatically. Since hackers take advantage of vulnerabilities in your operating system, web browser, and other software, you should promptly install all recommended patches and updates whenever they become available.

3. Be savvy when using the Internet, especially social networking websites.

Internet security software is a necessity, but there is no substitute for common sense. Understand the risks associated with social media and be smart when browsing the web.

Sharing personal data can make you an easy target for online attacks. An identity thief could use information about your classes, your network of friends and family, or your hobbies and interests to impersonate a trusted friend or convince you that they have the authority to request personal or financial data. They might also be able to guess your passwords or the answers to password security questions. Use privacy settings and common sense to avoid scammers. Most social networking sites allow you to control how much of your profile is revealed to users inside and outside your network. Adjust these settings to meet your individual needs, but in general, you should limit the amount of personal information you post. For example, never publish your full name, Social Security number, birth date, or address. Limit your circle of contacts. Consider restricting access to your page to a select group of people and setting your profile to "private" to prevent uninvited members from viewing your personal information.

Whether you are on a social networking site or any other website, you should always exercise caution when clicking on links or downloading files. Avoid opening links or downloads from strangers. Shortened URLs from shortening services such as TinyURL and Bit.ly can be used to obscure the true link destination and trick you into downloading malicious software. Phishing emails that seem to be from a financial institution or social networking site can send you to a spoofed website designed to capture your username and password. When in doubt, type the website address into your browser, or use a link in your bookmarks menu, rather than clicking on a potentially misleading link in an email. Never enter your password or account number unless you've verified the site's authenticity. Above all, pay attention and follow your instincts. If a website seems suspicious, click away.

Don't use a public computer to shop online or conduct online banking. And when using a public computer for any reason, remember to log out of all websites and the computer itself once you are finished.

4. Don't ignore snail mail.

Postal mail can provide many opportunities for identity thieves. Bank and credit card statements and routine paperwork from your college or university contain all the personal data necessary to open fraudulent accounts. Identity thieves can also use unsolicited, preapproved credit card offers to apply for credit cards in your name through the mail.

You should always shred preapproved credit card offers before discarding them. If you wish, you can prevent financial companies from sending these preapproved offers by filling out a request form at OptOutPrescreen.com. To reduce other types of junk mail, visit the Direct Marketing Association's mail preferences service website and ask that your name be removed from marketing mailing lists.

Consider signing up for online bank and credit card statements and discontinuing paper statements. As with all paperwork that contains sensitive information, store your statements in a safe place or, if you discard them, shred them thoroughly first.

You may want to think about getting a post office box for your personal mail, or maintain your parent's address as your permanent address. The latter will reduce the chance of mail going to an out-of-date address. Otherwise, make sure to fill out a change of address form at the post office when you move, to ensure that your mail gets forwarded to the current address.

5. Take responsibility for your finances.

Whether you have been earning and budgeting your own money for years or you still rely on an allowance from your parents, it's time to take responsibility for your own finances. Review your bank account and credit card statements regularly, and report any unauthorized charges immediately.

You should also begin to give some thought to your credit history. If you have not already done so, you should check your credit report for fraudulent or erroneous information. Since some businesses only report to one credit bureau, it is best to request your credit report from all three (Equifax, Experian, and TransUnion) to ensure that you have not already been victimized without your knowledge. If an identity thief opens a new account in your name, that information should appear on at least one of your three reports. For more information about establishing and protecting your credit, check out Credit 101, another NextAdvisor.com guide specifically created to educate young adults.

Avoid signing up for a credit card with vendors on campus. If you are interested in signing up for a credit card, it is safer to contact the credit card company directly.

6. Consider a proactive identity theft solution.

There are several companies that provide comprehensive protection against identity theft. These services work to prevent, detect, and, if necessary, resolve identity theft on your behalf. Depending on the service, protective measures include fraud alerts to help prevent new lines of credit from being opened in your name, junk mail reduction, public and private database scanning for misuse of your personal information and more. To learn more about identity theft protection and the various companies that offer this service, take a look at our reviews and comparison chart.

7. Take action immediately if you think you have been victimized.

If your credit or debit card is lost or stolen, call the bank or credit card company right away and cancel the card. You should also notify your bank right away if you notice any unfamiliar activity on your bank or credit card statements.

If you suspect that you may have become a victim of identity theft, contact the fraud departments of the three major credit bureaus and request that fraud alerts be placed on your files.

Equifax: 800-525-6285

Experian: 888- 397-3742

TransUnion: 800-680-7289

Review your credit reports for inquiries from companies you haven't contacted, accounts you didn't open, and debts that you can't explain. Check that your personal information is correct. If there is any incorrect information, contact the relevant credit bureau to have it removed. Close any accounts that have been tampered with or opened fraudulently. And file a complaint with the Federal Trade Commission and with your local police.

If you subscribe to an identity theft protection service or a credit monitoring service, your service provider will handle these steps as well as providing additional guidance and assistance.

8. Help curb identity theft by sharing these tips with other students.

College students may find it difficult to muster up much concern about identity theft. You have a sense of invincibility, your campus feels like a safe and friendly environment, and you have more interesting and immediate things to think about. But the risk of identity theft is very real, and unfortunately, it will likely be a growing risk for years to come. Restoring your identity can be an expensive and time consuming process. It is far better to take a few sensible precautions than to suffer the consequences of becoming a fraud victim. In addition to protecting yourself, you can help curb the threat of identity theft by sharing this guide with your friends and classmates.

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Next Advisor web hosting guide: The cPanel

Web hosting is a service that allows you to put content (such as a blog, website, photo album) on the Internet, at a specific domain that you own. Sounds simple enough, but what does that actually look like? Once you pay your fee, what do you actually get, and what do you do next?

The first thing you should do is get comfortable with your web host's control panel. The control panel is the fundamental way you manage your web hosting. This includes installing your blog, looking at visitor statistics, changing settings, managing files, installing web site creators, adding subdomains, the list goes on. In fact, there are so many things that most control panels are a little overwhelming. Here's the popular cPanel control panel, which powers a number of web hosting solutions, including Web Hosting Pad, Just Host, Host Gator, HostPapa, IX Web Hosting, and others :

There are a lot of choices here (click here for a full view). In fact there are way more than you probably need, at least right now. The good news is that you don't really need to know all of them. On the left you'll find a bunch of statistics related to your account. You'll find this more useful further down the road. Right now, a lot of it will be blank. Taking up most of the page is the menu of options, looking a bit like a Windows operating system circa 2001. The nice thing is, you can actually rearrange these panels, so you can drag the ones you use least down at the bottom.

The most common modules you'll probably want to use first are Email Accounts (located under Mail), and the various blog and sitebuilding add-ons grouped together as Fantastico Deluxe (under Software/Services).

Email is very easy to set-up on cPanel, simply choose a user name and a password (it will even create one for you, if you prefer). The mailbox quota is optional, and best left at its default. cPanel will create your email address and then provide you with the configuration settings for your email program.

Fantastico De Luxe is a different beast altogether, in fact it's a whole other control panel. It's your one-stop shop for add-on modules like WordPress (for blogging), CubeCart (for creating a shopping cart), 4Images Gallery (for building an image gallery), and Soholaunch (for creating a website). It looks like the Macintosh operating system circa 2001. On the left you see your options. Next to that, you see the add-ons you have installed (if any).

For the sake of demonstration, let's install WordPress. WordPress is the web's most popular platform for blogging. First, click the WordPress link on the left. When you see the WordPress installation screen, click "new installation."

Now you need to make some decisions, the most important being where you'd like to install your blog. If you want it to be the page that people see when they arrive at your website, just leave this space blank. If you plan on having the blog as part of a bigger website, you might want to put this at a directory like: blog (so type "blog" into that box).

You'll also need a username for the blog. It's also time for another password. Since WordPress does not ask you to confirm the password make sure you write it down. Or, better yet, copy and paste it into a text file. Your admin nickname will be visible to people who view your blog, so choose something you want people to see. Next, enter an email address (notifications will be sent to you at this address). Your blog needs a name, which doesn't have to be the same as your domain. Finally, you can enter a description, which can be as simple or complex as you want. You can always change title and description later.

You will get one more screen telling you everything is working right and ready for installation. You can ignore the bit about the MySQL user, because you won't need to know that. Just click "finish installation." When it's been installed correctly, you'll see a confirmation of your information, including the url where you will administer your blog. As Fantastico suggests, you should bookmark it.

The process of installing other modules will be similar. If you want to get back to your cPanel, just click the "control panel" icon at the upper left.

Those are the basics. If you've done the above you'll now have your own email address and blog set up.

What's next? Try building a site. Depending on your web host, some site builders are located in the Fantastico panel, and some will be found in the cPanel. Or try an offline site builder like Adobe Dreamweaver, Apple iWeb, or Microsoft Expression.

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Lose the Weight this Year: A Common Sense Dieter's Guide

In theory, losing weight is simple. Just consume fewer calories. In practice, however, losing weight can be a difficult endeavor, fraught with obstacles. But by using common sense and adhering to a few basic principles, you can increase the odds that your diet will be a success.

Have realistic expectations

Dieters with unrealistic expectations about how long it will take to reach their weight loss goals are more likely to give up on dieting altogether. They are also more likely to fall into a cycle of starving themselves and then overeating. Many people would like to lose a great deal of weight very quickly, but slow and steady weight loss is healthier and more likely to lead to long-term success. Smaller, more attainable goals are more productive.

Losing one to two pounds each week would be a reasonable goal, for example. Focusing on short-term goals can also help dieters stay on track. If your long-term goal is to lose 25 pounds, you should assume that this will take at least three months, and keep yourself motivated by concentrating on losing the first five pounds, or on getting through the day without eating too much.

Determine your weight loss goals before you begin a new diet, and plan accordingly. Consider factors such as your age and body type when setting these goals. Genetics do play a role in determining your body type, but they provide a range of weights that are possible, depending on your diet and exercise habits. And your metabolism slows as you age, which means that you sometimes have to change your diet and exercise habits if you want to avoid gaining weight.

Ask yourself why you want to lose weight, how much you want to lose, whether you will be willing to move past minor setbacks or plateaus, whether you will be able to focus on your weight loss goals, and whether you're committed to losing weight for yourself, rather than for someone else.

If you have trouble setting realistic weight loss goals for yourself, there are many valuable online resources that can help. The diet programs reviewed here at NextAdvisor.com include tools that can help you create a solid, realistic plan.

Choose the right diet for you

One of the most crucial steps toward achieving your weight loss goals is choosing the right diet. Most diet plans will help you lose some weight initially, but the best diets will also help you keep the weight off permanently. Fad diets that promise immediate weight loss often do more harm than good when it comes to losing and maintaining weight, and diets that advertise easy or painless weight loss are not usually effective. A good diet is flexible, and doesn't usually require you to completely give up certain types of food. It is much harder to stick to a healthy eating plan if it is overly strict.

When choosing a diet plan, it helps to take your personality and lifestyle tendencies into account. If you tend to be impulsive, you may need to concentrate on avoiding temptations. If you tend to snack mindlessly, you should avoid situations where you are likely to eat without paying attention, such as snacking in front of the television. If you eat to alleviate anxiety, boredom or depression, you should focus on breaking those habits.

With so many diet plans to choose from, you may find the diet analysis services offered by eDiets helpful in determining which plan is the best for you. This online diet program also gives users access to registered dietitians, who will answer questions and give advice.

Eat nutritious meals in sensible portions

It may seem obvious, but a strong emphasis on sensibly portioned, nutritious meals should be an integral element of any good diet plan. You may find that strictly monitoring your calorie intake works best for you, or you may prefer a more low-key approach to dieting, but either way, you should strive to make healthy decisions about food.

If you're hungry, eat something. Don't skip meals or starve yourself, because you'll probably wind up overeating later on.

If you can, cook your own meals as much as possible. When you make your own food, you know exactly what you're eating. It is easier to make healthy choices when you are in control, such as using low-fat plain yogurt in place of sour cream and mayonnaise and buying low-fat cheese and milk instead of full-fat versions. You're also more likely to slow down and connect with your food, rather than eating quickly and mindlessly. It it's difficult for you to find time to cook, plan ahead by making extra food when you do have time and then freezing it for future use. eDiets, WeightWatchers and other online diet services offer meal planning tools, recipe databases, and grocery shopping list generators to help you. If you simply don't have time to cook, meal delivery services from Nutrisystem, eDiets DeliciouslyYours and Diet-to-go make eating well-balanced, correctly portioned meals nearly effortless. These services provide breakfast, lunch and dinner as well as snacks and desserts.

When you do eat at a restaurant, you can still strive to make healthy choices. Many of the online diet services reviewed at NextAdvisor.com include guidance and nutrition information to help you when ordering at a restaurant. Skip the bread. Eat slowly, since it can take up to 20 minutes for your body to register that you are full. Don't count on the restaurant to determine the correct portion size for you; ask how generous the servings are, and if they're big enough, either share with your dining companions or plan to bring some food home for another night.

Most of us are conditioned to believe that we are supposed to clean our plate, but our plates often contain far more food than we should be eating. There can be a great deal of pressure to eat more than you should at family gatherings, for instance. Don't let your family derail your diet plan. Be polite but firm when you've had enough to eat.

If your stomach is grumbling between meals, there's no need to suffer until dinnertime. Eating snacks between meals can help you avoid eating too much later in the day. The trick is to eat healthy snacks, and only eat them when you are actually hungry. Try to eat foods that you don't normally have during meals. Moderate amounts of fruits, vegetables, nuts, cheese and yogurt make good, healthy snacks. If you must eat cookies or candy, keep your portions small. When you buy chips or other snack foods, read the nutrition information to find out how many calories, grams of sugar you will be eating, and avoid anything with "partially hydrogenated vegetable oil." You should also check the serving size, which frequently turns out to be much less than the amount you actually eat at one sitting. The perfect snack should fill you up and give you energy for around 100 calories or less. It should include some carbohydrates, about 5 grams of fiber, at least 5 grams of protein, and a little bit of unsaturated fat. If you find yourself tempted to snack on unhealthy foods at work, plan ahead by bringing a supply of healthy snacks to your office. Avoid resorting to the vending machine. If you find yourself snacking due to stress or boredom rather than hunger, try chewing gum instead.

If you do indulge in foods that aren't part of your diet plan, don't give up. An occasional treat isn't going to ruin your diet, but giving up altogether definitely will. If you find yourself in a situation in which you can't avoid eating foods that are not part of your diet plan, don't beat yourself up about it. Drink water, so you can at least feel good about your beverage choice, and move on by planning to eat extra healthy the next day.

Exercise regularly

The best way to lose weight is to combine diet and exercise. When you embark on a new diet plan, you should also begin exercising regularly. In many cases, a new exercise routine will actually make it easier to eat healthier foods. And if you've eaten more than you should have, you can always compensate by taking a brisk walk or going for a run to burn those extra calories.

The most effective exercise routines combine cardio, which burns calories, with weight lifting, since building muscle increases the number of calories your body burns while at rest. An online diet service such as eDiets or WeightWatchers can be especially helpful in this regard, offering personalized fitness plans and access to certified fitness trainers as well as fitness news and tips.

Track your progress

Dieters who weigh themselves regularly and track their progress generally find it easier to notice missteps and stick to their diet and exercise plan. Recording your progress helps you stay focused on your weight loss goals and move past challenges. The online diet services reviewed at NextAdvisor.com include a variety of tools to help track your progress, as well as online support systems to help keep you motivated.

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Credit 101

If you are a high school or college student, now is the best time to begin establishing a credit history, and that means that it's also time to learn how to use credit responsibly. You may have one or two credit cards already, or perhaps you're just beginning to consider applying for your first. Either way, it is crucial to be informed about credit before making financial decisions that will impact you for the rest of your life.

Building a credit history may not seem like a priority for you right now, but planning ahead will benefit you immensely in the future. Paradoxically, in order to receive any type of credit, you will nearly always be required to demonstrate a history of using credit responsibly. This means that your credit can determine whether or not you can qualify for a student loan or an auto loan, for example, and if you do receive a loan, your credit will impact your interest rate. Your credit will also determine whether or not you can lease a car, and it may affect your payments. Renting an off-campus apartment will require a credit check. Some utilities, including cell phone plans, require a credit check and if you have poor credit, they may demand a hefty deposit or even refuse service. Sometimes, potential employers check credit reports. Good or excellent credit is required in order to qualify for credit card offers with the best terms and rewards programs.

Your credit report is a record of your payment history for all types of loans and lines of credit. It includes information on whether you pay your bills on time, where you live, and whether you've ever filed for bankruptcy or been sued. If you pay your bills on time every month and stay within your credit limits, you should have a high credit score. If you have defaulted on loans, have a history of late bill payments, or carry a large amount of debt in proportion to your available credit, your score will be lower. To learn more about credit reports and scores, see our FAQ.

Your credit score is similar to your GPA. If you earn very poor grades as a freshman, it will be possible, but more difficult, to raise your GPA when you are a senior. But if you earn good grades during your first few semesters, it will be much easier to maintain a high GPA throughout the rest of your time in school. You can repair poor credit through hard work and diligence, but it is much better to establish a good credit history, and a high credit score, when you are young and have a blank slate.

It is not enough to pay your bills on time and make sure to stay well below the limits on your credit cards. If you are serious about building and maintaining good credit, you should also review your credit report from time to time, and you should keep a close watch on any open credit accounts. This is important because of the risk of identity theft.

Identity theft occurs when a criminal obtains sensitive, personal information such as a credit card number, bank account number, or Social Security number, and uses the stolen data to fraudulently open new accounts in someone else's name. Identity thieves frequently target children, in which case the crime often goes undiscovered for many years, until the victim grows up and attempts to open his or her first credit account only to find that his or her credit has already been destroyed. Living in a dorm at college can also put you at additional risk for identity theft, since more people are likely to have access to your mail, your credit and debit cards, any personal documents you might have, and your computer.

Earlier this year, Rolling Stone published a story about a Drexel student who started out shoplifting but soon moved on to stealing Social Security numbers, driver's license numbers, bank account information and passports from her neighbors and using the pilfered information to open credit cards and bank accounts in other peoples' names. Her boyfriend rigged all the Internet accounts in their building to run through his own computer and installed Spyware on their neighbors' computers. The couple created fake driver's licenses and stole credit and debit cards from their friends at Drexel and the University of Pennsylvania. Their story shows how easy it can be to steal peoples' identities, especially in a college setting.

The best way to detect and prevent identity theft is with an identity theft protection service, which will either set fraud alerts with the credit bureaus to prevent new accounts from being opened in your name without your approval, or simply monitor your credit file and alert you to any changes. To learn more about identity theft protection services, see our reviews and comparison chart.

Another option is to sign up for a credit monitoring service, which will provide you with free copies of your credit report and in some cases, your credit score, and explain what factors are helping or hurting your credit score. A credit monitoring service will also alert you to any chances in your credit file. To learn more about credit monitoring services, see our reviews and comparison chart.

Once you have checked out your credit report to make sure there are no negative or erroneous items that need to be dealt with, you may decide that it's time to apply for your first credit card. There are many credit cards specifically designed for students who have no prior credit history. It is a good idea to begin establishing your credit history with a student credit card, because if you wait until after you have graduated, you may have difficulty qualifying for any credit card offers. The sooner you begin establishing credit, the longer and the better your credit history will be. A few years can make a dramatic difference in your credit score, especially when you are young and your credit report does not yet contain a great deal of information.

There are many other benefits that will come with having your first credit card, in addition to establishing credit and improving your credit score. A credit card is invaluable in case of emergencies. Sometimes, a credit card is required to make reservations at hotels, restaurants, salons, or spas. When shopping, and especially when shopping online, it is much safer to use a credit card than a debit card, because credit cards give you the chance to dispute a charge that you believe to be incorrect. With a debit card, your money will already be gone before you recognize a problem. The ability to dispute a charge can also come in handy in the event of a disagreement with a retailer.

Most credit cards come with a number of other perks. Many offer extended warranties, which means that if you buy something with your credit card and the item breaks after the merchant warranty has expired, your credit card company may still refund the purchase price. There is also retail purchase protection, which will reimburse you up to $500 if a purchase is stolen, destroyed, or accidently broken within the first 90 days. Most credit cards also offer automatic car rental insurance and roadside assistance, and some have a dedicated concierge service to assist cardholders. Certain credit cards give cardholders access to airport lounges or tickets to exclusive events.

When selecting a credit card, it is important to read the terms carefully and to compare a number of credit card offers before making a decision. Some schools allow credit card companies to set up tables on campus, where credit card representatives lure students with t-shirts, candy bars, or other free gifts. You should beware of these attempts to convince you to apply for a credit card without carefully considering the terms. Having several credit cards, especially at a young age, is often a recipe for disaster.

There are many factors to consider when comparing credit card offers. (And a free t-shirt should not be one of them!) The ideal credit card would offer cardholders a low APR, no annual fee, and an excellent rewards program. Realistically, though, it is more likely that you will have to decide which of these criteria are most important to you when considering credit card terms. Other factors to consider are the credit limit and the various fees and finance charges associated with the card. Take your own financial situation into account when comparing offers. Are you likely to carry a balance, or will you pay your credit card bill in full each month? Realistically, will you take advantage of a points or travel miles rewards program, or would you be better off with cash rebates?

NextAdvisor.com's student credit card reviews explain the more significant differences between different credit card offers, and should be helpful in determining what type of card is right for you. And for more information about credit cards plus definitions for many common credit related terms, see our credit card FAQ page.

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Inside the Internet's Financial Black Markets – How Identity Thieves Buy and Sell Your Personal Information Online

Not so many years ago, "identity theft" occurred when someone stole your purse or wallet and made purchases with your credit cards or checkbook, or impersonated you by using your driver's license or passport. A more sophisticated identity thief might obtain your Social Security number or other personal information, perhaps by peering over your shoulder as you filled out a form or riffling through your trash, and open new accounts in your name. During this more innocent time, you could avoid becoming a victim of identity theft by taking relatively simple precautions, such as canceling a credit card as soon as it was lost and tearing up potentially sensitive documents before discarding them.

Identity theft is quite a bit different now. It has evolved into a sophisticated and profitable underground economy, characterized by specialization of the production of goods and services, outsourcing of production, multivariate pricing and adaptable business models. On hidden online message boards, anonymous users advertise and trade stolen information and illegal services.

Many of these black market forums are run from computer servers in Russia, China, Romania or other regions in which Internet security practices or legislation are not yet well developed. These data trafficking websites last for around six months before being rerouted through a new server in order to evade law enforcement. The most popular sites are in Russian, although there are also Vietnamese, Spanish, Chinese, Arabic and English websites. The variety of languages and geographical limitations also make it virtually impossible for authorities to prevent this online trafficking.

Registered board members buy and sell stolen credit card information, including card numbers, CCV numbers, expiration dates and cardholder names. Stolen credit cards have a relatively brief shelf life before the theft is discovered and the account is closed, so this type of data is usually bought in bulk and must be replenished constantly. According to Symantec's most recent Internet Security Threat Report, 50 credit card numbers sell for around $40.00 and 500 credit card numbers cost $200.00, making each card worth $0.40 to $0.80, when bought in bulk. An individual card number may cost as much as $20.00. The price of credit card numbers has been steadily decreasing over the past few years, which indicates that availability is increasing. Cards from the European Union cost more than those from the United States, presumably because there are approximately eight times as many credit cards circulating in the United States than the European Union. Rarer cards, such as those from smaller countries or smaller credit card companies, are typically twice as expensive as their more popular counterparts.

Banks accounts are the most commonly advertised item for sale, according to Symantec. In some cases, there are online forms that allow criminals to indicate the various types of data they have to sell or would like to purchase: address, date of birth, Social Security number, driver's license number, mother's maiden name, PIN numbers, passwords, etc. Account information that includes additional personal details and accounts with higher balances are advertised for considerably higher prices.

Thriftier shoppers can purchase raw data by the megabyte, then sort through the data themselves and sell it for more money. High-rollers can buy complete identities, which include all the information one would need to open new accounts in someone else's name. In bulk, 50 identities cost roughly $100.00. Full identities are very popular on the black market, probably due to their versatility and ease of use.

Hackers, phishers, spammers and other cybercriminals also advertise their services on these message boards. Programmers sell malicious code that gathers confidential information in various ways. Phishers create fake websites that imitate real websites or emails that appear to come from a bank or other trustworthy entity in the hopes that victims will be fooled into revealing passwords and other sensitive information. Spammers help the phishers reach their intended victims by gathering email addresses and sending phishing emails. Some criminals sell encoding devices and others sell blank credit cards and algorithms that can be used to encode the magnetic strip with a stolen account number, producing a usable card. Cashiers take the encoded plastic to ATMs and make daily withdrawals until the account id depleted. Droppers receive merchandise purchased with stolen credit cards at secure drop points.

Sometimes, sellers must pay a fee in order to advertise on black market forums. Site administrators or reviewers verify the integrity of the goods or services offered before they can be posted for sale. Registered users build a reputation rating based on peer reviews, similar to eBay. This prevents users from attempting to cheat one another by refusing to pay for goods or services rendered, or failing to provide promised goods or services once payment is received. The untrustworthy criminals who engage in this sort of scam are called rippers, and black market forums work hard to expose them as such.

The actual trading occurs off the message board, either via private messages sent through the forum or over anonymous online chat programs like ICQ. Payments are made using online payment systems like PayPal or money wiring services. Transactions may also be made in WMZ's, which are electronic monetary units equivalent to American dollars, issued by a company Moscow called WebMoney Transfer. Large transactions are sometimes split up, and sometimes cybercriminals are paid in merchandise or large numbers of compromised accounts.

E-gold, another electronic currency that claims to be backed by gold bullion, has been one of the most popular payment systems among cybercriminals. In July, E-gold Ltd. and its corporate affiliate, Gold & Silver Reserve Inc., pled guilty to conspiracy to engage in money laundering and conspiracy to operate an unlicensed money transmitting business. How this will impact financial transactions within this underground economy remains to be seen.

In addition to facilitating illegal transactions, these black market forums also provide a venue for aspiring identity thieves to learn tricks of the trade. Veteran criminals offer their shared wisdom, advising newcomers on how to make payments and the best time of the month to make purchases with a stolen account.

In 2004, the United States Secret Service arrested 28 key members and ringleaders of a group called Shadowcrew for their involvement in facilitating the cybercriminal black market. "Operation Firewall," as it was called, revealed some of the first details of this underground economy. Since then, the cybercrime economy has expanded and matured, becoming more profitable and more difficult for the authorities to infiltrate. The Symantec Internet Security Threat Report states that "organizations and individuals currently operating within this underground economy appear willing and able to change their business models or adopt new ones in response to changes in the threat landscape."

The extent of this black market economy for personal information is certainly shocking. Luckily, there are many steps that consumers can take to help limit the risk that they will be victimized by identity thieves.

Guarding your own personal information is the first and foremost way to avoid becoming an identity theft victim. There are many precautions you can take to protect yourself.

Although cybercriminals now rely on an arsenal of increasingly sophisticated technology to steal data, some identity thieves are still doing things the old fashioned way. Dumpster diving is still a very real threat, so you should continue shredding sensitive documents and consider opting out of preapproved credit card offers.

Many attempts to gain access to your personal data through the Internet can be thwarted by security software. Firewalls and updated virus and spyware protection will prevent malicious software from forcibly installing itself on your computer. All of the Internet security software providers included in our reviews and comparison chart also offer anti-phishing protection that will alert you when you are visiting a suspected phishing site. Regardless of what type of Internet security software you have, you should always be vigilant and skeptical when downloading files and clicking on unknown links. Phishing sites imitate well-known financial or social networking sites and attempt to lure potential victims into downloading malicious software or revealing their log-in information.

You should also avoid revealing sensitive personal information online, particularly on social networking sites like Facebook and MySpace. According to Symantec's Internet Security Threat Report, an unnamed two social networking sites, believed by industry executives to be the two biggest, MySpace and Facebook, were together the target of 91% of U.S.-based phishing attacks. For more about how to safeguard your identity while using social networking sites, see our Facebook and MySpace Identity Theft Protection Guides. A lost or stolen laptop or iPhone can also put you at risk for identity theft. Symantec reports that theft or loss of computer or other data-storage medium is the cause of the most data breaches that could lead to identity theft, accounting for 57% of the total during the second half of 2007. For more information, see our guides on how to safeguard your personal information in the event of a missing laptop or iPhone.

Unfortunately, common sense safety measures like creating strong passwords and canceling a lost credit card can only protect you to a certain extent. Symantec's report shows that educational institutions account for the most data breaches that could lead to identity theft and that government is the top sector for total identities exposed. If your credit card or bank account information or your Social Security number is included in a government database, a business's database or the records of an educational institution, you are at risk of having your personal information compromised by a data breach. You cannot prevent this from occurring, but there are services that can help keep you as secure as possible.

TrustedID, Identity Guard, LifeLock and Identity Truth are all identity theft protection services that specifically address the risks of the Internet's black market for stolen personal data. Each of these services utilizes advanced technologies to scour thousands of websites where criminals buy and sell stolen credit card numbers, Social Security numbers and other information. Additionally, each of these services offers proactive protection against various forms of financial identity theft and varying levels of recovery assistance in the case that a subscriber is victimized by identity thieves. While it would be great if these services could prevent all identity theft, the truth is that none of them is totally fool proof. That being said, we believe that these services represent some of the best identity theft protection available. You can learn more by visiting the NextAdvisor.com identity theft protection service reviews and comparison.

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How to recover from a lost or stolen iPhone

Apple's iPhone, like any smart phone with the capability to store significant amounts of personal information, can put you at risk for identity theft if it is lost or stolen. Fortunately, there are many precautions you can take to ease the pain of a lost iPhone. If your iPhone has already been lost or stolen and you have not taken these proactive measures, your options are more limited, but there are still steps you should take to mitigate the risks and costs of iPhone loss.

What to do BEFORE your iPhone is lost or stolen

Guard against identity theft with an identity theft protection service. To an identity thief, a lost or stolen iPhone is a potential goldmine of information. Losing your iPhone could expose your online bank account, online brokerage account, name, address, telephone number, and email address, passwords, e-mails and other personal data to a criminal. If your iPhone does go missing, an identity theft protection service will help prevent and detect identity theft.

Password protect your iPhone. Setting a a password on your iPhone is very simple and adds an immediate layer of security should it be stolen.

From the home screen of your iPhone:

• Click on the Settings button
• Click on General
• Click on Passcode Lock
• You will be prompted to enter and confirm a four digit passcode for your iPhone

Your iPhone passcode is now set and you will be prompted to enter the four digit number any time you attempt to access your phone. This simple step can greatly decrease the chance that a criminal is able to access your personal information on your iPhone if it is lost or stolen. While having a passcode will potentially prevent unauthorized access to information stored on your iPhone, it is still possible to make outbound calls. So, it is important to alert your wireless carrier immediately after you discover that your iPhone is lost or stolen so you are not potentially liable for calls made by someone else.

Download GadgetTrak from the iTunes App store. GadgetTrak is a free iPhone application that can geo-locate your phone from any web browser. GadgetTrak is available for all versions of the iPhone and iPod Touch. This application is probably more useful for cases where your iPhone is lost rather than stolen because a knowledgeable thief could simply disable the application. Despite this downside, we strongly suggest that iPhone owners download GadgetTrak since it is a free application and could be very helpful if your iPhone is lost or stolen. You can visit the GadgetTrak website for more information.

Write down your iPhone's IMEI Number. Your iPhone's IMEI, or International Mobile Equipment Identity, is a fifteen digit number that can be used by wireless carriers to identify your specific device. It is located on the back of your iPhone near the FCC ID and serial number (you may also want to write down your iPhone's serial number for your records, although this information is not really that useful in helping with recovery). Keep the IMEI number in a safe place so you can easily find it if your iPhone is ever lost or stolen.

Keep your iPhone backed up by frequently synching with iTunes. It is a good idea to always make sure that all of the information on your iPhone is also backed-up on your computer by frequently syncing through iTunes. This will make the process of recovering the data from your lost or stolen iPhone relatively painless. For even more protection you may want to consider using an online backup service to store copies of all of the files on you computer. This way you still be able to restore your files if both your iPhone and computer go missing at the same time.

Treat your iPhone like its cash equivalent. You wouldn't leave two crisp hundred dollar bills lying around so don't be as careless with your $199 iPhone. Treat your phone with the same level of security and care you use when safeguarding your wallet, purse or other important items.

What to do AFTER your iPhone is lost or stolen

Guard against identity theft with an identity theft protection service. If you didn't sign up for a service before your phone went missing, we recommend you do this as soon as possible since identity thieves will usually start working as soon as they get your information. Losing your iPhone could expose your online bank account, online brokerage account, name, address, telephone number, and email address, passwords, e-mails and other personal data to a criminal. If an identity theft does try to use information from your iPhone, an identity theft protection service will be your best defense as well as provide you the services you need to recover from identity theft should the worst happen.

Notify your cellphone carrier. You should contact AT&T, the exclusive cell phone carrier for the iPhone, as soon as you realize that your phone has gone missing. AT&T will be able to deactivate the wireless account associated with your iPhone which will prevent criminals from running up big cell phone bills in your name that you could potentially be held liable for.

File a police report. While some police will not be particularly interested or concerned about helping you recover your iPhone, others are surprisingly helpful. We have read online accounts from a police detective that claims to have recovered four out of five stolen iPhones in cases brought to his attention. This is when it is useful to have the IMEI number available.

Notify your contacts. All of the personal information stored on your lost or stolen iPhone is now potentially accessible by anyone, especially if it is not password protected. It is important for all of the contacts stored in your phone to know that their personal contact information is potentially in the hands strangers. It is not uncommon for criminals to perpetrate crimes against those listed in the phone's contact list by posing as the rightful owner.

Notify your employer. If your iPhone is linked to your company's network or has confidential business information stored within, you need to notify your employer immediately. It is a good idea to let your supervisor or other company official know as soon as you realize your phone is missing. Make sure to change the password on your work email address immediately if it is linked to your iPhone. This will prevent the phone from being able to download additional email messages.

Change all your online passwords. Your iPhone has a powerful web browser with the ability to store any of your online passwords for easy access to web based accounts. Whoever has your lost or stolen iPhone in their possession can now potentially gain access to your online bank and brokerage accounts, email, PayPal, eBay, Amazon and any social networking websites you belong to. Change those passwords now to prevent your online accounts from being compromised.

You may also be interested in our lost or stolen laptop recovery guide.

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How to deal with a lost or stolen laptop

Since a recent study drew attention to the startling number of laptops that are lost or stolen at U.S. airports, we thought it would be useful to outline some of the best ways for consumers to deal with laptop loss. Aside from the immediate financial loss and the loss of valuable files, a missing laptop can drastically increase your risk of becoming an identity theft victim. Fortunately, there are many precautions you can take to ease the pain of a lost laptop. If your laptop has already been lost or stolen and you have not taken these proactive measures, your options are more limited, but there are still steps you should take to mitigate the risks and costs of laptop loss.

What to do BEFORE your laptop is lost or stolen

Consider laptop tracking with LoJack for Laptops: LoJack provides tracking software that can locate your laptop via IP address when the thief logs onto the Internet. Their Absolute Theft Recovery Team promises to work with the police to get your laptop back (see site for more details).

Backup your files with an online backup service. The loss of important and valuable files such as financial documents, emails, digital photos and music can be far more frustrating and problematic than the loss of the laptop itself. By storing copies of all your files with an online backup service, you can be sure that if your computer goes missing or your hard drive fails, all those files can be easily recovered. Online backup services are easy to use, totally secure, and can save you a great deal of time, money and aggravation.

Guard against identity theft with an identity theft protection service. To an identity thief, a lost laptop is a goldmine of information. Losing your laptop could expose your online bank account, online brokerage account, name, address, telephone number, and email address, passwords, e-mails and personal accounting data to a criminal. If your laptop does go missing, an identity theft protection service will help prevent and detect identity theft.

Protect sensitive data. Make passwords work for you, not against you. Ideally, you should not store any passwords on your computer. This includes passwords that are stored in your web browser, tool bars or in a plain text format. Many Firefox users are not aware that under a default setting, Firefox stores all your passwords in plain text, alongside usernames and web addresses. To access and erase your stored passwords, go to your menu bar and select Tools, and then Options, and then click the Security tab. From the Security tab, you can go to Saved Passwords and then select Remove All.  If you must store passwords on your computer, you should at least be sure to use a strong primary log-in password to prevent unauthorized access to your laptop. Memorize it, and don't save it or write it down anywhere on or around your computer. Firefox also offers users the option of creating a master password, which must be entered once per session and protects other saved passwords. You can do this by going to the Security tab in the Options menu. There are several websites, such as GoodPassword.com, that will help you create very secure passwords. You can also encrypt sensitive data and disable instant message logging.

Use a laptop tracking and recovery service. There are a variety of products and services that are designed to either prevent laptop theft and loss or locate a missing laptop. If you are concerned about laptop theft at your office or in a hotel room, you can purchase a lock that is similar to a bicycle lock, which will deter thieves. There are also various alarms that will either alert you if someone attempts to move your laptop, or if you and your laptop are separated by more than a set distance. There are many different recovery services that use GPS to track a lost or stolen laptop when it connects to the internet. Some tracking software can be removed by reformatting the hard drive, but others are embedded into the computer itself and are more difficult for thieves to deactivate. Adeona offers high quality laptop tracking software that can be downloaded for free at their website.

Insure your laptop against loss or theft. Some computer manufacturers and distributers offer warranties that cover loss or theft. You can also purchase laptop insurance through a third party, or as part of your homeowners or renters insurance.

Label your laptop with your name and contact information. It is a good idea to label your laptop with your name and phone number in case it is lost and someone finds it and attempts to return it to you.

Be sure that you have the serial number for your computer recorded somewhere in your home. Reporting a missing laptop will be easier and more likely to be effective if you have the make, model and serial number on hand.

Be aware of the risk of laptop theft. One of the best ways to prevent laptop theft is to be conscious of the fact that laptops are extremely tempting and relatively easy targets for thieves. Do not leave your laptop unattended in public. At airport security checkpoints, pay attention to your laptop as it goes through the x-ray machine. Put a brightly colored sticker or other identifying mark on your laptop so that you can recognize it easily.

What to do AFTER your laptop is lost or stolen

Subscribe to an identity theft protection service. If you haven't already, you should definitely subscribe to an identity theft protection service as soon as possible after a laptop loss. Once your personal information has been compromised, there is no way of getting it back. But an identity theft protection service such as LifeLock or Identity Guard can help prevent criminals from using that information to open accounts in your name.

File a police report. While some police will not be particularly interested or concerned about helping you recover your laptop, others are surprisingly helpful. This is when it is useful to have the make, model and serial number available.

File a complaint with the FTC. If your laptop is stolen, this will serve as a record of the crime. It helps the FTC to analyze and detect patterns of wrong-doing, and may be helpful in the event of an investigation into the theft of your laptop or any identity theft that occurs as a result of your lost laptop.

Change all of your online passwords. Whoever has your computer can now gain access to your online bank and brokerage accounts, email, PayPal, eBay, Amazon and any social networking websites you belong to. Change those passwords now to prevent your online accounts from being compromised.

If your laptop contained information relating to any financial accounts, notify the financial institution immediately. If you use Quicken or other personal finance software, it is likely that your computer contains a map to all of your financial accounts. You should notify the fraud departments of each of the accounts you believe may have been impacted. Representatives from each of these companies will be able to provide you with information on what to do next, which may include changing the personal information on accounts or even closing them entirely.

Notify your employer. If your computer contained confidential corporate information pertaining to your job, you should notify your employer so that your company's IT staff can take precautionary measures to protect other peoples' personal data. In some cases, failure to do so could mean that you are breaking the law.

Keep an eye on Craigslist and eBay. It's a long shot, but if you are really desperate to get your computer back, you could try monitoring Craigslist and eBay. You could also check local resale stores and computer repair shops. There's always a chance that it might turn up.

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NextAdvisor.com guide to protecting your identity the LifeLock way

Many of LifeLock's critics claim that the service provides little value because everything that LifeLock does for its subscribers can be done by consumers for free. So, we decided to put this common criticism to the test.

We have reviewed the major features of LifeLock's service and compared them with the steps you could take to accomplish the same thing. We have also provided our own opinion as to which approach is more consumer friendly and effective.

Setting Fraud Alerts

Fraud alerts are annotations made on your credit file that let potential lenders know that your identity may have been compromised. When a lender sees a fraud alert on your credit file he or she must take reasonable measures to confirm your identity prior to extending you an offer of credit. This process makes it difficult for identity thieves to open new accounts with credit card companies, cell phone carriers or any other service provider that reviews your credit report. However, fraud alerts only help prevent new account identity theft. They will not prevent identity thieves from accessing existing credit card, banking or other accounts.

Fraud alerts stay active on your credit file for ninety days and must be renewed in order to be effective. You technically only need to set a fraud alert with one credit bureau every ninety days as each credit bureau is required to notify the other two when a fraud alert is set. However, it is a good practice to set fraud alerts with all three credit bureaus directly if you believe you are at risk for identity theft. This prevents any type of technical glitch or administrative error that could prevent notification of your fraud alert from being transmitted from one credit bureau to another. You can learn more about fraud alerts by visiting our Guide to Fraud Alerts and Credit Freezes.

The LifeLock Way

LifeLock sets fraud alerts on behalf of each of its subscribers when they sign up for the LifeLock identity theft protection service. Additionally, they renew those fraud alerts every ninety days on behalf of their customers to ensure that the fraud alerts do not lapse.

The Do-It-Yourself Way

Each of the three credit bureaus, Experian, Equifax and TransUnion, has a separate processes for setting fraud alerts. In order to be effective, you will need to set fraud alerts every ninety days and we recommend setting fraud alerts with each of the three credit bureaus.

Equifax: 1-877-576-5734; www.equifax.com

Experian: 1-888-397-3742; www.experian.com/fraud

TransUnion: 1-800-680-7289; www.transunion.com

NextAdvisor.com Opinion

We give the edge to LifeLock. It is true that setting up fraud alerts can be a very simple process for the do-it-yourselfer. That being said, we feel that LifeLock's ongoing maintenance of fraud alerts ensures that subscribers never have to worry about the alerts lapsing.

Opting Out of Pre-Approved Credit Offers

One of the most common ways that identity thieves perpetuate identity theft is by stealing your mail. The mail that you receive every day is full of personal information and can easily enable an identity thief to either open new accounts in your name or to access existing accounts without you knowing. This typically happens in one of three ways.

First, identity thieves may file a change of address form with the United States Postal Service and have your mail re-routed to another address. This allows them full access to any information that you receive in the mail. The USPS has actively cracked down on this by requiring additional verification from the requester to have mail forwarded. As such, this type of mail theft is decreasing in popularity.

Second, identity thieves may go "dumpster diving". This is the practice of literally going through your garbage to retrieve sensitive documents and mail that you have thrown away without properly destroying it.

Finally, identity thieves may simply steal your mail right from the mailbox by grabbing it before you do. There have also been reports of postal employees or their associates that have "gone bad" and lifted sensitive mail prior to it even reaching the intended recipient.

In each of these cases, some of the most potent identity theft fuel that criminals can get their hands on when stealing your mail is pre-approved offers of credit or other financial offers that are sent to you by banks, mortgage companies, insurance companies or other institutions. These pre-approved offers can be used to perpetrate new account identity theft in which the identity thief opens new financial accounts in your name and runs up charges on them that you may be liable for paying.

The financial companies that make these offers of credit to consumers determine your creditworthiness by using information on your credit report without your authorization (this is called a "soft inquiry" or "soft pull"). While such inquiries are totally legal and do not impact your credit in any way, it is possible to opt out from any future preapproved or prescreened offers of credit.

The major credit bureaus, including Equifax, Experian and TransUnion, jointly created the website OptOutPrescreen.com to enable consumers to do just that. The site allows you to opt-out from receiving prescreened offers of credit for five years or permanently. You can also opt back in if at some time in the future your situation changes and you would like to begin receiving firm offers of credit again.

The LifeLock Way

When you sign up for the LifeLock service it automatically opts you out of receiving pre-approved credit offers and will even help you reduce other marketing offers and junk mail you receive. Additionally, LifeLock will resubmit your opt-out and junk mail requests as they lapse.

LifeLock also recently released an innovative feature called TrueAddress which monitors change of address forms submitted to the United States Postal service in the name of any LifeLock customer. This helps prevent identity thieves from stealing your mail by rerouting your postal mail.

The Do-It-Yourself Way

Here is how to process a five year opt-out of receiving any preapproved or prescreened offers of credit through OptOutPrescreen.com:

1. Visit OptOutPrescreen.com

2. Select the 5 year opt-out from the list of options on the screen and click on the submit button.

3. Enter the required information on the following screen. OptOutPrescreen.com will attempt to opt you out even if you don't provide your social security number or date of birth, however it is possible that your opt-out request could fail without this information. Since the OptOutPrescreen.com website uses significant security measures, you shouldn't worry about submitting this information directly. Keep in mind that your social security number and date of birth are NOT REQUIRED to process an opt-out from firm offers of credit.

4. Click on the "confirm" button to submit your information to OptOutPrescreen.com and initiate your opt-out request.

Once your request is submitted your opt-out will be processed within 5 business days. You may still continue to receive prescreened offers over the next several weeks following your opt-out, but potential creditors will no longer be able to prescreen your credit for firm offers of credit.

It is also possible to process an opt-out request by calling 1-888-5-OPTOUT (1-888-567-8688).

NextAdvisor.com Opinion

OptOutPrescreen.com makes the process of opting out of prescreen offers very simple. However, the addition of TrueAddress service makes LifeLock's protection from criminals targeting postal mail superior to anything consumers could easily do on their own.

Ordering Your Free Annual Credit Report

Under the terms of the Federal Credit Reporting Act (FCRA) every American adult is entitled to one free credit report from each of the three credit bureaus each year. These reports can be ordered all at once from each of the three credit bureaus or they can be ordered at different times. Either way, you may request one free credit report from each credit bureau every twelve months.

The LifeLock Way

LifeLock orders your free annual credit report for you each year. You never need to request your free annual credit report from any of the three credit bureaus as long as you are a LifeLock customer.

The Do-It-Yourself Way

The three credit bureaus created AnnualCreditReport.com to simplify the process of requesting the FCRA mandated credit reports to consumers. Credit reports can be requested online or by phone. If you request a credit report online you will receive it immediately, but those requested by phone will take up to 15 days to be processed. Learn more by visiting www.annualcreditreport.com.

NextAdvisor.com Opinion

It is a dead heat between LifeLock and the do-it-yourselfer when it comes to ordering annual free credit reports.

Replacing Stolen Personal Documents

If your wallet, purse, briefcase or backpack is stolen chances are the thief got away with some or all of your important documents. This may include identification such as a driver's license or passport, credit cards, Social Security card, insurance card, checkbooks or travelers checks.

Identity thieves can use this type of information to perpetrate any number of crimes against you. For example, they may siphon money from your bank accounts, run up charges on your credit cards, gain access to your Social Security administration account or even hijack your medical benefits.

The LifeLock Way

LifeLock offers the unique WalletLock service. If your wallet, purse or any individual personal documents are lost or stolen, you simply call LifeLock and let them know. From there, a WalletLock specialist will contact all the appropriate financial, state and federal institutions to ensure that your accounts are cancelled and documents replaced.

There are a few caveats. LifeLock obviously can't replace personal items such as pictures, and any cash that is stolen or lost will not be covered. However, this service, which is free to all LifeLock customers, will undoubtedly save you time, money and frustration if you do experience loss or theft of your personal documents.

The Do-It-Yourself Way

The process of replacing all of your personal documents will greatly vary based on the type and number of items that are stolen from you. However, it is likely that you may have to do some or all of the following:

• Credit cards will need to be cancelled and reissued. If you have multiple credit cards from multiple issuers this means a number of calls.
• Bank account numbers will need to be changed and checks will have to be cancelled and reissued.
• Driver's license or identity card will need to be reissued by your state's Department of Motor Vehicles.
• Social Security card will need to be reissued by your local security administration office.
• Passport will need to be cancelled and reissued at your local post office or embassy (if you are traveling abroad.
• Insurance cards will need to be reissued.

This likely means many, many phone calls and in-person errands to successfully replace all of your missing documents and to insure that the stolen items can't be used to perpetrate any number of identity theft crimes against you.

NextAdvisor.com Opinion

There is no contest between LifeLock and the do-it-yourselfer when it comes to replacing lost or stolen personal documents. The ease of LifeLock's WalletLock service is a huge time saver for subscribers and is far more efficient than trying to replace personal documents without LifeLock's assistance.

Recovering From Identity Theft

At this point, every American is at legitimate risk of having their identity stolen. Hundreds of thousands of people are victimized by identity theft each year in the United States and that trend shows no signs of slowing. It is important for consumers to understand their recovery options since there is no 100% foolproof way to prevent identity theft.

The LifeLock Way

In the unfortunate case that a LifeLock subscriber is victimized by identity thieves, he or she must notify the company within 30 days of first learning of the crime. Once LifeLock has been notified, a customer support representative will be assigned to the case and will work to verify the claim.

Once a claim has been verified, LifeLock will assign a third party recovery specialist to engage with the consumer, evaluate the identity theft incident and take all the necessary steps to fix the problem. Each identity theft crime is different so the steps taken to recover the subscriber's identity will vary from incident to incident. The recovery specialist is both an educational resource that can inform victims of their rights and the course(s) of action that may be taken to remedy the situation and a proactive advocate that will work on the victim's behalf to obtain information, complete applicable forms and generally guide the subscriber through the recovery process.

While much of the heavy lifting can be completed by the recovery specialist, there are some key actions required by the LifeLock subscriber while the company is working to recover his or her identity. First, the subscriber must file a police report in person with his or her local authorities. This is not only required by LifeLock, but many identity theft experts, including the Federal Trade Commission (FTC), suggest that this is the first step that any identity theft victim should take.
Some examples of steps that LifeLock may take to assist a victimized subscriber may include:

• Contracting an expert to help re-establish the individual's credit score back to where it was prior to the incident as necessary
• Canceling and replacing all identity cards, driver's license, passport, credit cards or other important documents as necessary
• Spending up to $1 million dollars to restore the identity of the victimized subscriber (excluding restitution and lost wages)

According to LifeLock, most identity recovery cases are resolved within 30 days of notification by a victimized subscriber.

The Do-It-Yourself Way

Where do we begin? The actual steps to recover a stolen identity will vary, but it likely means hours spent on the phone with attorneys or private investigators, researching solutions and completing required forms and reports. The average identity theft victim spent $1,884 and 231 hours to recover his or her identity, according to a recent study by the Identity Theft Resource Center.

NextAdvisor.com Opinion

We believe that LifeLock's recovery assistance and million dollar service guarantee are one of its biggest selling points. There is no question that recovery from identity theft with LifeLock is much better than the DIY option.

After reviewing LifeLock's service features and the options available to the do-it-yourselfer, we are confident that most people are simply better off with LifeLock protecting their identities than without it. We encourage our readers to learn more about LifeLock and identity theft protection services in general by visiting our guide to identity theft protection services.

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How to read, analyze and dispute your Equifax credit report

Equifax is one of the three major credit reporting bureaus in the United States.

In this guide we are going to walk through a sample version of Equifax's online credit report with FICO score. If you don't already have your Equifax credit report you can get instant online access to an Equifax or three bureau credit report and FICO score at Equifax.com. This service will provide you with a free Equifax credit report, a free FICO credit score and a free trial of a credit monitoring service that will help you keep an eye on any changes to your credit file. Since Equifax offers a 30 day free trial, you can sign up without any risk.

You are also entitled to one free credit report per year from annualcreditreport.com. Keep in mind that credit reports ordered through annualcreditreport.com do not include a FICO score, which is a good indicator of your overall credit health. If you choose to order your Equifax credit report through annualcreditreport.com or purchase a credit report without a FICO score, however, this guide will still be applicable, after the first section.

We will explain how to read each section of the report and how to spot potential errors that may be lowering your credit score and costing you money or impacting your financial life in other ways. Like most of the other credit report and monitoring services, Equifax offers consumers the option to purchase what is known as a "3-in-1" or "three bureau" credit report which includes information from Equifax, Experian and TransUnion. Keep in mind that if you purchase a three bureau credit report from Equifax, which we strongly suggest since it will give you insight into how lenders view you across all three bureaus, the information from the Experian and TransUnion sections of the report will have been provided by the respective bureaus.

So, even though you will be able to view the information side by side, any disputes on non-Equifax information will need to be taken up directly with the appropriate credit bureau. The first installment of our "How to read, analyze and dispute credit reports" series explains how to review information from Experian, and a future installment will explain how to review information from TransUnion.

With that said, let's dive right into your Equifax credit report.

Section #1: Credit Score

This section tells you your FICO credit score, explains what factors are affecting your score, what your score means, and how you can improve it.

The score summary section gives you your FICO score, which is a number between 300 and 850, and tells you whether your score falls in comparison to other consumers. It also breaks down the major factors affecting your score.

The section titled "Understanding Your Score" breaks down the reasoning behind your FICO score in more depth, and lists the specific factors that are both hurting and helping your score. This section also offers suggestions on how to mitigate any of the detrimental factors.

The next section explains what your FICO score means to lenders, and how it will impact their perception of your loan risk.

The FICO Simulator is a useful tool that predicts how your score might change over time. The first three tabs let you play with different scenarios to see what actions could raise or lower your score, and the fourth tab advises you on the best strategy for improving your score.

Section #2: Credit Summary

The purpose of this section is to provide a quick snapshot of your current and prior credit history by showing the total number of open and closed credit accounts in your name, your outstanding balances for different types of credit accounts in your name and your history of delinquent accounts.

This section lists a variety of information all of your credit accounts. The types of accounts in this section include:

• Mortgage – this section includes accounts related to real estate that you have purchased.
• Installment – this section includes fixed amount credit accounts such as auto loans. Installment accounts are typically for a fixed amount and are paid off over time.
• Revolving – this section includes revolving credit accounts such as credit cards. They are called revolving accounts because although they may have an upper limit on what can be borrowed at any given time you can use as much credit as you have available.
• Other – this section includes additional accounts that don't fit into any of the other category types.

For each type of credit account listed above this section will list the following information:

• Total Number – the total number of credit accounts by type that have been reported to Equifax throughout your recorded credit history. This number will include both open and closed accounts. For example, if the count for your installment accounts is ‘2? then it would mean that Equifax has data about two different installment accounts in your name, even if some of those accounts have been closed by you or the creditor.
• Balance – the outstanding balance of all accounts of a particular type. This is what you owe to all the creditors of this particular credit account type according to information reported to Equifax and will be listed as an actual dollar amount.
• Available – the unutilized credit remaining on each account.
• Credit Limit – the maximum amount of allowed credit for each account.
• Debt to Credit Ratio – the percentage of your available credit that you are currently using.
• Monthly Payment Amount – the amount that you pay each month.
• Accounts with a Balance – the number of accounts of each type that carry an outstanding balance.

Here are some important things to look for in this section:

• Make sure that the number of accounts of a specific type, total accounts or total balances don't seem higher than they should be.

If you see any inaccuracies in any area of the credit summary section you should move immediately to the account history of your credit report which will have more detailed information on an account by account basis. This will help you further investigate whether or not your credit report contains errors.

Section #3: Accounts

The purpose of this section is to provide detailed information on all credit accounts that you have ever opened that have been reported to Equifax.

For each account listed in this section, there will be specific information about the type of account, the current status, dates and payment amounts, and any negative information associated with

This section also includes an 81 month payment history of each account listed that gives potential creditors insight into how you have kept up on your existing accounts. This information is represented graphically to show your account performance in each month.

The information that is reported in account payment history includes:

• * – This account is paid on time and in full.
• 30/60/90/120/150/180 – The number of days the account has been past due.
• CA – This account is outstanding and has been sent to a third party for collection.
• CO – This account is outstanding and the creditor is no longer attempting to collect payment.
• F – Property related to this account has been foreclosed.
• VS – Property related to this account has been voluntarily surrendered.
• R – Property related to this account has been repossessed.
• NR – No data is available for a particular month. This is usually because either the account was not open or the creditor has not reported information to Equifax in a given month.

Here are some important things to look for in this section:

• Make sure that the information in this section is accurate. Pay especially close attention to any information related to delinquency, collections or past due accounts either in the account details area or in the 81 month payment history, as all of these things negatively impact your credit report and credit score.
• Make sure all of your accounts in good standing are represented. Not all creditors report account data to all credit bureaus, so Equifax may not have access to information on all of your positive account information (of course, this means that they may not have access to negative account information as well). If you don't see an account that you believe to be in good standing listed in your Equifax credit report then contact your creditor and ask them if they report your account information to Equifax.
• Make sure you recognize all of the creditors and accounts listed in this section. Any unrecognized accounts could mean that your financial information may have been compromised and that identity thieves may have opened accounts in your name.

Keep in mind that different creditors report information to Equifax in different cycles so some information, such as the balance listed on your account, may not be totally up-to-date. This is fine as long as you have verified that it is an account that you recognize and that the information listed was accurate at some point in the recent past. If you don't see this type of information update over time it is a good idea to contact your creditor to see if there are any problems with your account or ask how frequently they report your account information to Equifax.

Section #4: Inquiries

The purpose of this section is to show what companies have requested your credit report from Equifax. This includes inquiries that may impact your credit rating, and inquiries that do not. Equifax treats these two types of inquiries very differently.

Inquiries that may impact your credit rating (hard inquiries):

• Are generated as a result of action taken by you such as completing a credit, insurance, mortgage or other loan application or due to the transfer of an account by the creditor to collections.
• Remain on your Equifax credit report for up to two years.
• Are viewable by creditors when they review your credit report.

Inquiries that do not impact your credit rating (soft inquiries):

• Are generated when a company pulls your credit report to evaluate you for an offer of credit that you have not requested. Pre-approved offers from credit card companies that you receive in the mail are typically generated as a result of a soft inquiry by the creditor who sent the offer to you, for example.
• Have no impact on your credit report or credit score.
• Are not viewable by anyone other than you.

For each inquiry, whether it is a hard or soft inquiry, the following information will be listed:

• The name of the company that requested the inquiry.
• The type of business that company operates. For example, if you filled out a credit card application with your bank the resulting inquiry would be listed as ‘Banks & S&Ls'.
• The date the inquiry was requested.

Here are some important things to look for in this section:

• Make sure that all of the hard inquiries are accurate. If you don't recognize the name of a company listed in this section then research it to find out whether or not you had actually initiated a credit inquiry with them. Keep in mind that some organizations have consumer brand names that are different than their actual corporate names, so you may not recognize the name listed in the report even if it is a valid inquiry. Searching for the company name in an Internet search engine such as Google or Yahoo is a good way to find out who they are.
• Make sure to take note of the total number of hard inquiries and their dates. Since hard inquires stay on your credit report for up to two years and have some negative impact on your credit report and credit score it is good to be aware of the number and age of hard inquiries that have been reported to Equifax.

If you find hard inquiries that don't appear to be accurate it is best to contact the company that made the inquiry first. The creditor will be able to research the purpose of the inquiry and assist you with getting it removed from your credit report if it was mistakenly reported to Equifax.

While soft inquiries won't impact your credit report or credit score in any way, as they are only viewable by you, there are ways to eliminate or at least limit the number of soft inquiries you receive. The fair Credit Reporting Act (FCRA) allows consumers to opt-out of receiving pre-screened offers of credit by calling 888-567-8688 or by visiting optoutprescreen.com.

Section #5: Negative Information

The purpose of this section is to document any information that could hurt your credit score. This includes negative accounts, accounts that have been turned over to a collection agency, and public record information. Public record information includes federal district bankruptcy records, state and county court records, tax liens and monetary judgments that have been levied against you. In some states overdue child support is also reported in this section. Public record items typically will stay on your credit report for 7 to 10 years.

The negative accounts section will list any ‘past due' accounts that have been reported to Equifax in your name. These include both open and closed accounts. Creditors will typically report a delinquent account to Equifax if it has gone unpaid for at least 90 days, although it can technically be reported sooner.

The collections section will list any accounts that have been turned over to a collection agency by one of your creditors because they believe the account has not been paid as agreed.

The public records section will list information about any bankruptcies, judgments and tax liens.

Here are some important things to look for in this section:

• Make sure that the number and dollar amount of delinquent accounts for each type of credit looks accurate. This is an important area to focus on because errors by creditors or accounts fraudulently opened in your name by identity thieves are likely to become delinquent accounts before they are sent to collections. By catching delinquent accounts early you can prevent them from being sent to collections, which can have a significant negative impact and, often, a higher cost to you.
• Make sure that the number of collections accounts looks accurate. Once an account has been sent to collections it will begin to have a significant negative impact on your credit score. Whether you simply have not been able to pay your bills, the creditor has made a reporting error or you have fallen victim to identity thieves, the collections section should be carefully scanned for accuracy.
• Make sure that any public record items are accurate.

Section #5: Personal Information

The purpose of this section of your credit report is to document your personal information such as name(s), age, address and work history.

The specific information listed in this section includes:

• Full legal name
• Any alternative names you may currently or have previously used to obtain credit
• Social Security number
• Date of birth
• Current and previous addresses
• Current and previous employers
• Any alerts that have been placed on your credit file

Here are some important things to look for in this section:

• Make sure that your name is correctly displayed and that any alternative names or alias are accurate. If there are alternative names listed that you have never used then it could be a sign that Equifax has confused your credit file with that of another consumer with the same or a similar name.
• Make sure your year of birth is accurate. Again, an error in this section of your credit report could mean that you are being confused with another consumer.
• Make sure that there are no addresses where you have never lived or employers that you have never worked for listed in the respective sections. Keep in mind that it may take some time for these sections to update when you move to a new residence or take a new job. For this reason, it is fine if the information is outdated as long as it is still accurate. For example, it is not a problem if you have recently changed jobs and your credit report still lists a former employer as your current employer. However, if your credit report were to show that you currently or previously worked for an employer by whom you were never employed, then you may have a problem.

Section #6: Dispute File Information

If you find information that you believe is inaccurate on your credit report it is important to act quickly as these errors could not only be costing you money, but could also be early warning signs of possible identity theft. Luckily, Equifax makes it fairly simple to dispute any credit report item that you believe to be inaccurate.

From this section of your credit report, you can simply click the link that says, "Click here to begin an online investigation of information found in your file." This will take you to an online dispute resolution form. Be ready with the confirmation number located at the top of your credit file. When submitting your dispute, provide an explanation as to why you believe that the particular item is inaccurate. You should be as descriptive as possible. Just saying "This is wrong" or something similar will not be sufficient. You should provide specific reasons as to why you believe the information on your Experian credit report is erroneous as well as any supporting evidence that you may have. Equifax will review your request and notify you within 30-45 days of their decision on the dispute. If the dispute is resolved in your favor, Equifax will remove or correct information that is inaccurate or cannot be verified during their investigation.

If you would like to receive the results of your dispute through mail as opposed to email, you should submit your dispute by mail or by phone.

In addition to disputing inaccurate information with Equifax, we strongly suggest that you contact the company that reported the account information to them in the first place. Under the Fair Credit Reporting Act (FCRA) both the credit bureau and the company that reported the information are responsible for the accuracy of account information on your credit report. If you believe that one of your creditors has reported inaccurate information then you should contact them directly. Each company has a different dispute resolution process but it is a good idea to contact their customer service department as a first step, as they will likely be able to provide you with the appropriate steps to take.

Conclusion

Your credit report is like your resume for potential lenders. It gives insight into the positive and negative elements of your credit history based off of information reported by your previous creditors. It is important to not only limit the number of negative items on your report by practicing healthy credit usage habits, but to make sure you have insight into any potential erroneous or inaccurate information as those errors may be costing your thousands of dollars or more.

We invite you to check out our online credit report monitoring service comparison guide where you can learn more about credit reports and monitoring from a variety of service providers.

We hope this guide has been a helpful tool in enabling you to better understand the information on your Equifax credit report and, just as importantly, get a better idea as to how potential lenders may view you. Stay tuned for our next installment where we will cover the specifics of reviewing your TransUnion credit report.

In the meantime, let us know if you have any feedback on this guide or if there are any additional questions you may have about your Equifax credit report by leaving us a note in the comments.

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MySpace Identity Theft Protection Guide

Our Facebook Identity Theft Protection Guide provides six tips to prevent Facebook users from being victimized by identity theft. These six tips concentrate on two areas in which users can be proactive in protecting their identity and personal information: limiting the amount of personal information available and restricting your Facebook profile to people you know and trust. Many of these tips are also applicable when using MySpace, but there are some significant differences between various social networking sites. While Facebook is primarily geared toward one on one interaction with people you know in real life, MySpace is more frequently used to establish a larger and more public online presence and facilitate contact with large groups of people. While we still recommend that users only accept friend requests from people they know, we realize that this is not necessarily realistic. If you do choose to make your MySpace profile visible to strangers, we strongly encourage you to be extremely careful when publishing any information about yourself. Presumably, you would not walk around in public wearing a t-shirt printed with your birthday, phone number and address. So use the same discretion on MySpace.

Tip #1: Decide how public you want your MySpace profile to be, and select your privacy settings accordingly.

MySpace does offer some privacy settings, although they are not nearly as comprehensive as the privacy settings on Facebook. You can access these settings by clicking on the "My Account" link near the upper right hand corner of any page on the MySpace website. From the "My Account" page, click the "Privacy" link. This will take you to the "General Privacy" page, where there are six options for restricting your visibility.

Online Now: Whether you choose to show people when you are online is up to you, but bear in mind that the more "time and place" data that you expose, the easier it will be for people to determine what your daily routine is like. That knowledge could be used to victimize you. (See Tip #3.)

Birthday: This is an important piece of personal information that can potentially be used by identity thieves. It is safest not to make it visible, particularly if you accept friend requests from strangers.

Profile Viewable By: Who you allow to view your profile is a very important decision, as it should determine how much information you decide to publish. If you choose to make your profile visible to everyone, or everyone 18 and over, you should treat it like a personal website and keep personal information to an absolute minimum. If you choose to make your profile only viewable by your friends, and only accept friend requests from people you know, then you can basically follow the six Facebook security tips.
Photos: It is almost never a good idea to encourage the circulation of personal pictures on the Internet. We suggest that you uncheck this option.

Block Users By Age: This is at your discretion, although you should seriously consider preventing users under 18 from contacting you if you are a teacher or work in some other profession where you are a figure of authority for minors. Also, bear in mind that many users' MySpace profiles do not reflect their actual age.

Block Users: While this may be a useful feature for you, it will not really help protect you from identity thieves, since you can't possibly know who they are ahead of time.

Tip #2: Limit the amount of personal information available on your MySpace profile.

If you do choose to make your MySpace profile visible only to your friends, and only accept friend requests from people you know, then the six Facebook security tips apply here as well. Many MySpace users, however, either make their profile visible to everyone, or accept friend requests from strangers, or both. If your profile is visible to strangers, you should be especially careful when publishing any information about yourself.

Exposing your full name, date of birth, phone number, email address, or home address to the general public is extremely foolish. Revealing personal information about your spouse or significant other can put you both at risk of having your identities stolen.

Identity thieves can use your phone number and home address to submit a change of address form with the United States Postal Service and have your mail forwarded, allowing the thief to gain access to financial or other sensitive information that would allow them to open a credit card or other accounts in your name. They might also use contextual information in your profile to deduce what your user names and passwords could be for various accounts, and hack into these online accounts with this information.

Our recommendation is to limit the amount of information available on your MySpace profile. Specifically:

• Do not list your full date of birth, phone number, or home address on your MySpace profile.
• Limit the amount of contextual password clues on your profile pages. Identity thieves know that many people use personal information, such as birthdays, a spouse or significant other's birthday or name, anniversary dates, mother's maiden name or pet's name as password on their personal account. It is also a good idea to refrain from using personal information in your online passwords, as this makes your personal accounts much more vulnerable to being hacked.

Tip #3: Limit the amount of "time and place" data that you expose through MySpace.

MySpace users often publish information about their schedule and whereabouts on their profile, or in MySpace's forums. Information about the exact location of your home, school, or office, as well as information about your immediate or upcoming plans can help criminals victimize you in a number of ways. Personal photographs can be even more revealing, since any number of seemingly insignificant details could be used to uncover information about your whereabouts or daily routine.

By revealing when you will be away from your home, even indirectly or unintentionally, you put yourself at risk. Criminals can use this information to determine when your home may be most susceptible to a burglary, which could open you up to any number of forms of identity theft or worse.

Tip #4: Remember that even people you know can be identity thieves.

Even if you do make your MySpace profile visible to only your friends, and only accept friendship requests from people you know, you should still be very cautious when revealing personal information online. Several recent studies show that a significant number of identity theft victims know the person that victimized them.

According to Javelin Research, 17% of identity theft crimes are perpetrated by people that the victim knows, such as friends or family members. The credit bureau Experian found that 55% of identity thefts perpetrated against children were committed by someone the victim knew.

Even if you believe that all your MySpace friends are people you know and trust, we strongly recommend that you still follow all of these security tips to avoid falling victim to MySpace identity theft.

Tip #5: Read and follow the safety tips provided by MySpace.

MySpace recently added an extensive section to the website dealing with safety. You can access this section by clicking on the "Safety Tips" link at the bottom of any page on the MySpace website. These safety recommendations are mainly directed at teenagers and their parents, but there is other information that should be helpful and valuable to any user.

Tip #6: Consider an identity theft protection service.

Identity theft, whether online or in the real world, is a real and growing threat. We recommend that all consumers consider using a proactive identity theft protection service to protect their identities. Two such services that we have reviewed and recommend are Identity Guard and LifeLock.

Each identity theft protection service is different, but most will:

• Set fraud alerts with the 3 major credit bureaus so that new accounts cannot be opened in your name without your knowledge.
• Provide you with identity theft insurance that will reimburse you on costs and expenses you incur as a result of being victimized.
• Provide you with copies of your credit report.

You can learn more about the various benefits of identity theft protection services and learn more about the specific services we have reviewed by visiting our identity theft protection service guide and comparison.

While social networks like MySpace can be fun and productive services, it is important for users to be aware of the risks that they pose. We believe that taking proactive steps to protect your identity on MySpace will only improve the amount of enjoyment you can get out of the service.

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