Creating a Theft-Proof Home

I've said it before and I'll say it again. One of the reasons identity theft is such a pervasive crime is that it can happen anywhere, even in your own home, and committed by those you least expect. Like the young couple from Philadelphia who earned notoriety around the world when their identity theft spree earned them the title of a modern Bonnie and Clyde.

Before being caught and sentenced to more than four years in prison in 2008, the pair went on a global jet setting spending spree blowing more than $120,000 in stolen funds. To fund their spending spree they simply stole the identities of their friends and neighbors by burglarizing their homes.

A reporter for a newspaper in Silicon Valley spent years chasing down an identity thief who burglarized his home one afternoon and stole some personal financial documents. That one crime of opportunity led to an exhaustive cat-and-mouse game with the thief as the victim's information was sold and resold on the global black market for stolen information.

That one theft resulted in a number of different thieves showing up at numerous banks with the victim's Social Security number, bank account numbers and even real drivers' licenses in the victim's name. And in another case, a victim of identity theft was arrested two years after a burglar stole his birth certificate and created a new identity. When the victim showed up at a police department to complain about a new bank account opened in his name, he was promptly arrested because his identity was now in a database of other crimes committed by his new clone.

Identity theft has quickly become the crime of choice for burglars. As one expert said, it's much easier for a thief to walk down the street with your Social Security number written on his hand than your brand new 46" LCD TV tucked under his arm. Not only will your Social Security number fetch more than your TV, the thief can sell the information over and over again. And once your personal information is on the black market, it will be there forever, forcing you to fight the same battle month after month and perhaps even year after year.

But these incidents and many more like them serve as a powerful lesson that while we often worry too much about hackers stealing our personal information from private databases at the other side of the world, we have as much if not more to fear from the thieves in our own backyard.

So What Can You Do?

Think Like a Thief

Do a security survey of your home from the perspective of a thief, focusing on the easiest ways into your home, the places a thief could enter your home without being seen, and where you keep personal information in your home.

Create a Set of House Security Rules

This is a simple checklist of things that you and any family members should be aware of and rules that should be followed. Those rules should include things like how mail is handled, internet and email use, how to deal with spam, how to recognize scams, how to manage financial paperwork etc.

Lock Down Your Computer

Your computer will always be a target for hackers, spammers, and identity thieves so it's important that you devote the time and resources to make sure all computers in your home are as hack proof as you can make them.

Every computer should have the latest in anti-virus and anti-spyware software, and if you know where to look it can cost you nothing.

Just as important as having the right software is making sure it's always up to date. Identity thieves and malware authors are always changing their tactics and codes, and up-to-date security software is the best way to stay ahead of them.

Protect Your Financial Information

Whether thieves come into your home through the internet or through a back window, chances are they're after the same thing — your personal financial information.

So do your best to frustrate them. Hide your most sensitive financial information, and especially anything with your Social Security number, in a place that's almost impossible for a thief to find.

If that data is on a computer, make sure it's protected with strong passwords and a good encryption program.

And don't leave financial information lying around the home in plain sight, especially things like bank and credit card statements, pre-paid credit card offers, tax returns, payslips, checkbooks and credit cards, and any other sensitive financial correspondence.

Create Security Zones

A typical security zone might be a place you do your bookkeeping, store your financial information, or a home office. If you have a lot of sensitive information in these locations, then keep them off limits to as many people as possible.

Get Physical with Security

If burglary is a big risk in your neighborhood, you can bet those thieves are after your Social Security number. So think about creating layers of security defenses around your home to deter burglars.

These layers could include a burglar alarm (even a fake one if it's all you can afford), good security lighting that senses movement close to the house, and good window and door locks.

If you can afford it, a simple video surveillance system can be a great deterrent and the sight of a surveillance camera is often enough to persuade a burglar to pass your home by and look for an easier target.

Make sure you take a close look at every entry point to your home and that these doors and windows are all as secure as possible.

And finally, it's time to get rid of that old habit of hiding house keys in secret places that you think a burglar would never dream of looking. Believe me, they know exactly where to look.

Be Wary of Visitors

Identity theft is often a very personal crime, very close to home, and committed by people you least expect.

Those people can include family members, friends, neighbors, and even occasional visitors. So to avoid the risk that someone you trust betrays that trust, don't leave any temptations lying around.

If you have cleaners, contractors, or service people coming to your home, make sure you supervise them as much as possible and keep all financial information out of sight.

Shred It!

It's a sad fact that every home today should have a personal shredder, because throwing out sensitive financial documents these days is no longer a safe thing to do.

Thieves will often go through garbage in search of things like pre-paid credit card offers that they alter and use to create new credit accounts in your name. A decent personal shredder can cost as little as $50 and can be a very worthwhile investment. But only if you use it!