You and Your Personal Information
It's not just that someone out there wants to use your Master Card. Identity theft is a systematic plan to adopt your personal credit profile. The purpose is to trade on your good name and the stellar credit history that you have painstakingly developed. Your best defense is to be knowledgeable about privacy issues, and be aware of the risk of disclosing any personal information.
Let's face it. If you place an order online, or apply for credit, open a bank account, or file tax returns, even see a new doctor, you will have to disclose identifying information. You can't NOT give out personal information. What you should do is keep a record of all of your transactions that involve personal information, so if there is a breach of privacy you will be able to track the source. You should make and keep a copy of all your identifying information. Don't forget to include your passport, driver's license, birth certificate, naturalization papers, and all your health insurance and credit or charge cards. Then, put the copy in a safe place, and remember where you put it. If you need to question charges or cancel accounts, you will have all the appropriate numbers in one place.
Elaborate systems for verifying your identity often just get in the way of your transaction. You can probably remember your mother's birthday or her maiden name, but who can remember what "favorite animal" you typed in? Or which account has which PIN, because you were told not to use the same one for every account? Choosing an obvious PIN may be risky once someone knows your birthday or your zip code, but the purpose of choosing a PIN you can remember is to facilitate your transaction. Ideally, you should select a random group of numbers and letters for each account, and change them every few months. Of course, that's cumbersome. Keyboard patterns and meaningful words or numbers will be infinitely easier to remember. The most sensible advice, however, is to NEVER disclose your personal identification numbers or let anyone else use your bank card, credit card, online accounts.
By far the most vulnerable piece of personal identification is your social security number. Although it is not accepted as identification, and was never intended to be an identification number, it is a key to your credit history and profile. Refusal to disclose, however, is rarely an option. Any reporting to any government, Federal, state or local, will require your "TIN" ("tax payer identification number") which is, of course, your social security number. Leases, contracts for sale or purchase of real estate, applications for bank loans, credit accounts, mortgages, even for employment, will call for your social security number. When you are asked, first offer the last four digits. If that's not enough, ask what privacy protections are in place.
Protect yourself against identity theft. Don't share information. Read privacy policy disclosures carefully. "Opt out" whenever you can. Report any unfamiliar or suspicious charges. Learn as much as you can about privacy policies and the "politics" of privacy.