Keep personal documents in a safe place, preferably under lock and key. If you must keep a written note of your PIN number, don’t keep the note with your card; if you keep your ATM card in a wallet, don’t put the note in the wallet, or even in the same pocket as the wallet.

The next steps to prevent identity theft are alertness and caution during all financial transactions. When you pay for goods with your credit card, don’t allow the card to be taken out of your sight. When you visit the ATM to withdraw cash, check that the machine looks the same as usual, if anything looks remotely altered, go to another machine; a skimming device might have been attached by a thief. Look around to check if anyone seems to be standing a bit too close, in case they are trying to see your PIN number as you type it in.

Always shred or burn any old documents which bear even the tiniest amount of personal data, never throw them away whole. Don’t underestimate the importance of any document; a utility bill can be used as proof of residence by an identity fraudster.

The next step to prevent identity theft is to be wary when using your credit card. If you are paying for goods with your credit card, make sure you don’t allow the card to be taken out of your sight. The person dealing with the payment might electronically skim your card, or write down the card number and security number, that’s all a thief needs to make purchases with your card online.

Never give out personal information to anyone who calls you on the phone. Never mind if they sound 100% genuine, identity thieves know exactly how to approach their victims and can sound totally plausible.

If you receive an email asking you to click a special link to update your details, don’t comply; send it straight to the trash folder even if you believe you know the sender. Emails like this are “phishing” emails, any details you type in will be recorded by logging equipment for a thief to download.

Be careful with passwords. Never tell anyone else your passwords. Don’t use the same password for all purposes, have a separate one for everything. Don’t use obvious words as passwords; use a mixture of letters and numbers where possible. Don’t use your date of birth or consecutive numbers as a PIN number.

The first steps you need to take to prevent identity theft are easy to implement; it is simply a matter of cultivating good habits in relation to protecting your personal privacy. The next step is to learn more about protecting your personal privacy. Joining a fraud protection monitoring scheme should also be seriously considered.

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Identity theft (or “identity fraud” as it is sometimes called) is accomplished when a thief obtains sufficient personal data about you, to be able to impersonate you in some way. This “impersonation” does not require the identity thief to appear in public disguised as you; it usually just means the thief will use your name and other private details to obtain financial gain.

The more sinister forms of identity theft involve a fraudster assuming a victim’s entire identity. In these cases the identity thief will obtain documentary proof of identity such as a passport or driver’s license in the name of the victim. If the identity thief then leaves the country to take up residence abroad under another identity, the chances of catching him are practically nil.

Identity theft can be accomplished with a very small amount of documentation; a bank account number and a utility bill as proof of residence gives an identity thief an easy way to use your private identity to obtain credit.

The key to successful prevention of identity theft is awareness. If you ensure you are aware of how identity theft is accomplished, you will be better equipped to protect yourself and your family from the devastating invasion of privacy involved in cases of identity theft.

The following are six very common ways in which thieves obtain information to enable them to accomplish identity theft.

Card Skimming

To accomplish identity theft through card skimming, all the thief needs is the chance to get hold of your credit card details (including the security number). This is often done by using a small electronic device to scan the card, but it can also be done by simply writing down the details. To avoid theft due to skimming fraud, you should never let anyone take your credit card out of your sight.

Mail theft

When you move house, make sure you notify everybody of your change of address. To be safe, you should have the Post Office redirect your mail for a year. Identity thieves will use ordinary junk mail to accomplish identity fraud; those “pre-approved” loan offers are money in the bank to fraudsters.

Dumpster diving

There are people (commonly known as “dumpster divers”) who make money out of sifting through trash and stealing discarded documents containing personal information. Every personal document you throw away needs to be shredded before it is thrown out, or burnt.

Phishing email fraud

Phishing emails are an easy way for identity thieves to steal personal information. The way phishing works is that you receive an email which appears to be from your bank, or credit card company. The email warns you that there has been a security breach, and then requests that you click on the link provided and log into your account. If you click the link it takes you to a phony website and, when you log in, everything you type will be recorded and downloaded by the fraudsters.

Theft of documents

Any document bearing personal information, even an old credit card receipt can be useful to identity thieves. Always keep your private documents in a safe place where they will not be seen by the casual visitor.

Third party privacy breaches

Occasionally a legitimate company (for example, your credit card company) will be the source of a leak of private data. This might be done by accident, but it could also happen as the result of the actions of a dishonest member of staff.

The final example of how identity theft is accomplished, is the most difficult to control. You cannot prevent criminal activities of dishonest employees. Your best defence is early detection of the crime by using a fraud prevention monitoring service.