Identity theft is a broad term used to describe an entity that misrepresents itself, i.e. represents itself as something else.

Most often you will hear about credit card fraud or bank fraud where an individual opens an account or receives a loan using someone else’s name and personal information, but this also applies to businesses, so those of you with businesses think about your business as having an identity to protect also.

Private (personal or business) information is what needs to be protected. Think about where you are when you input your passwords or when people ask you for your social security number or bank account number. Look to see whether others are around.

Would you input your ATM pin number and invite everyone to see? Would you tell the people behind you in line what your number is? I’m guessing not.

Be aware of your environment.

Here are five more things you can do to protect yourself:

1. Shred your documents, including those unsolicited credit card offers that seem to arrive in the mail every day. Use a diamond cut shredder or shredding service.

2. Review your credit report, at least annually. It can be done for FREE at www.annualcreditreport.com. Look for accounts that you do not recognize and follow-up with the bank or credit card company holding those accounts.

3. Close accounts you do not need.

4. If making online purchases, use a separate credit card.

5. Review your bank and credit card statements either online or monthly. Make sure you recognize the transactions. If not, contact your bank or credit card company immediately.

The key point here is to be aware of your private information and to protect it. Prevention is much easier than having to unravel a long-term identity theft.

Steve Geertz, CPA, CFE is a Principal for BG & Company LLC. Contact him at steve.geertz@bgco-llc.com or 425-891-8752.