It isn't possible to prevent identity theft altogether. Criminals can commit identity theft relatively easily because of lax credit industry practices and the ease of obtaining information - although the advent of the PIN number instead of a signature for credit card use should help reduce the incidence according to the experts. However you can reduce your risk of fraud by following a few tips:

1. Check you credit rating annually to ensure things are OK from a central record basis. There are quite a number of web sites offering this service quite cheaply.
   
   
2. To minimize the amount of information the thief can steal, do not carry extra credit cards in your wallet or purse. Also don't walk about regularly with your passport or birth certificate except when needed.
   
   
3. At work store your wallet or purse safely - don't trust any circumstances to be safe. Thefts within the work place are rife!
   
   
4. To reduce the amount of personal information that is "out there" consider the following:
   
   
   • Remove your name from marketing lists. This will reduce the number of pre-authorised loan offers and eliminate most of the junk mail bearing identifiers.
     
     
   • Buy a shredding machine - they cost very little from stationery suppliers.
     
     
   • Sign up to have your name removed from telemarketing records.
     
     
   • Have your name and address removed from telephone directories
     
     
   • Opt out of the sale or sharing of information when given the opportunity by forms or when ordering via the Internet.
     
     

5. When away from home for an extended period have your post held at the Post Office or ask a trusted friend, neighbour or relative to ensure it is taken in and out of sight.
   
   
6. When ordering a new cheque book, ask to collect it from the bank - don't have them send it to your home address.
   
   
7. When paying bills, don't leave them in envelopes at a reception desk. If stolen, your cheques can be altered and cashed by the imposter.
   
   
8. Reduce the number of credit cards you actively use to a minimum. Consider canceling unused accounts as even though they aren't used they appear in your credit rating and thieves may be tempted to take the details. However be aware that reducing the number of cards you hold may adversely affect your credit rating!
   
   
9. Keep a list or photocopy of all your credit cards, bank accounts and investments (account numbers, expiry dates and phone numbers of the customer service and fraud departments) so you can quickly contact these companies in case your credit cards have been stolen or accounts used fraudulently.
   
   
10. Never give out sensitive numbers over the phone, Internet or by post unless you have a trusted business relationship with the company and when you have initiated the call.
    
    
11. At home start by adopting a "need to know" approach to your personal data. A person calling you doesn't need to identify you by personal information they hold such as your mother's maiden name, although you may be fairly asked to give it if you are calling them.
    
    
12. Always take credit card receipts with you. Never toss them in a waste bin. When shopping, put receipts in your wallet or purse rather than in your shopping bag.
    
    
13. Never allow your credit card number to be written onto your cheques. In parts of the USA this is against the law - it ought to be here too.
    
    
14. If you are expecting a replacement card to arrive, watch the post and if it doesn't arrive when you think it should, contact the issuer.
    
    
15. Make a call if you don't get statements on accounts when you should do so.
    
    
16. When creating passwords and PINS (personal identification numbers) don't use obvious numbers e.g. date of birth, house numbers, consecutive numbers or anything else that could be easily discovered by thieves. Where possible it's best to create passwords that combine letters and numbers.
    
    
17. Memorise all your passwords. Don't record them on anything in your wallet or purse.
    
    
18. Shield your hand when using a bank ATM machine.
    
    
19. Install a firewall on your home computer to prevent hackers from obtaining personal identifying data and financial data from your hard drive.
    
    
20. Install and update virus protection software to prevent a worm or virus from causing your computer to send out files or other stored information.
    
    
21. When selecting passwords create ones that combine both numbers and letters and upper and lower case.
    
    
22. When shopping on line, do business with companies that provide transaction security protection.
    
    
23. Before disposing of your computer, remove data by using a strong "wipe" utility program. Don't just rely on the "delete" function to remove files containing sensitive information.
    
    
24. Each month carefully review your credit card, bank and phone statements, looking for unauthorised use.
    
    
25. When filling out loan or credit applications, find out how the company disposes of them. If you're not convinced with the answers take your trade elsewhere.
    
    
26. Store personal information at home securely, especially if you have a roommate, outside help or have service work done at home.