Identity fraud is real, it can hit anyone and it can be financially crippling.

We are absolutely stunned by the number of questions we’re getting asked on twitter, Facebook and by email at the moment from people;

. stung by internet scams.

. who have had their credit card drained.

. denied credit because of a mistake on their credit records.

All of these problems start with identity theft and it is frightening how common it has become.

Life is so busy and so electronic that it seems we are becoming slack with protecting our important information. Or maybe we’re just not upgrading our safeguards to protect us from the electronic crooks using the convenience of new technology to attack us.

We’re far more likely to be mugged electronically than physically.

It’s time we all came up with a new action plan to protect what we’ve got.

1. Protect your snail mail

Almost 1.2 million Australians have had personal mail stolen and often those letters contain bank and credit card statements. Contact your lender, tell them your statements have been stolen and find out what security measures can be taken.

Get a lock for your mailbox and get the post office to hold your mail when you go on holidays to prevent the post being stolen again. If you move house make sure you redirect your mail to your new address.

From now on give paper the flick and opt for online statements.

2. Safeguard personal details

Never give out personal details unless you know exactly who you’re talking to, why they need that information and what it’s going to be used for.

Grill everyone from your bank to your dentist.

Think twice about throwing any documents containing detailed personal information in the bin. We’re not being paranoid here, but do you know who looks through your rubbish either on the street or at the garbage depot?

Think about buying a cheap shredder at the hardware store to destroy things like bank statements, those pre-approved credit card applications you get in the mail, and credit card receipts.

3. Use and constantly change passwords

Hands up those who use the original password or PIN given to them by the bank or haven’t changed the default password on their wireless modem at home? Embarrassing isn’t it. This is the bread and butter assumption of the cyber crooks.

Protect your finances and put passwords on all your accounts. BUT change them regularly and don’t use words or numbers easy to guess, like your birthday, your postcode or even your mother’s maiden name.

Passwords should be a mixture of numbers and characters as well as upper and lower case to make them extra hard to crack. Keep your PIN numbers and passwords to yourself and try to memorise them.

4. Keep track of your cards

Know where your debit and credit cards are at all times. Contact your financial institution as soon as you realise any of your cards have been lost or stolen.

Get rid of any credit cards you haven’t used in say six-months. The more cards you have the greater the risk of loosing track of one or not picking up on fraudulent transactions.

Think about having one credit card (or debit card) with a low limit to use on-line or for phone use so your risk is limited.

5. Don’t be tricked

Beware of phishing scams, which con you into giving your personal details or bank account information to thieves. They often send emails, which look like they’re from a financial institution or other business, and ask you to click on a link to a fake website. You may then be fooled into handing over your details.

No legitimate bank or institution will ever ask a customer for their personal details over the phone, by email or the net. So that should be your general rule of thumb.

6. Check your statements

Thoroughly read statements for your savings, cheque and credit accounts to make sure there are no fraudulent transactions. If you have opted to receive electronic statements, instead of paper ones in the mail, take the time to log into online banking and go through your transactions.

We can all get a bit slack in checking statements but it is worth it. You will be amazed at how many mistakes you’ll pick up.

7. Monitor your credit report

Get a copy of your credit file so you know what’s on it. Then set up an alert service so you’re notified of any irregular activity.

Veda Advantage holds our credit records. Its alert service tells you every time an application for credit has been made in your name or if your personal details have been changed.