A simple trip to the grocery store can turn into a nightmare quickly when identity theft has occurred. Your debit or credit card may be refused. Your name may turn up on their 'do not accept' bad check list. You know you don't have bad credit, and yet...How does this happen?

Perhaps you’ve lost your wallet, or someone has entered your mailbox without your knowledge taking a recent credit card bill or credit card offer. What about the salesperson that called you on the phone recently and persuaded you to purchase an item or service from them? Or that cell phone call you made to the pizza place using your debit card number, could that have been it?

Any of these situations can result in the theft of your identification. What happens next can put you in a financial mess for years to come. How can you protect yourself? Simple practices can reduce the risk for you.

• Minimize the amount of identification information that you carry as well as the number of credit cards. Carry only what you really need.
• Put passwords on your credit card, bank and phone accounts but do not use an obvious password such as your birthday, address, Social Security number or phone number.
• Provide your Social Security number only when it is absolutely necessary such as for wage and tax reporting purposes, or for a credit check. When possible, ask to use a different type of identification. Don't carry your Social Security card with you. Leave it in a safe place.
• Guard your mail from theft. Deposit outgoing mail in post office collection boxes and promptly remove mail from your mailbox after it is delivered.
• Pay attention to your billing cycles and follow up with creditors if your bills don't arrive on time. A missing credit card bill could mean that an identity thief has taken over your account and changed your billing address.
• Shred or tear documents containing personal information prior to throwing them out. Such documents include charge receipts, credit applications, insurance forms, expired charge cards, and bank checks and statements.
• Never EVER provide personal information over the phone, through the mail or over the Internet unless you have initiated the contact or know whom you are dealing with. Identity thieves can pose as bank representatives, Internet service providers or even a government employee to trick you into revealing sensitive information.
• Notify credit bureaus immediately if you detect errors on your credit report. Call them first and then follow up in writing. In addition, provide the same information in writing to the creditor involved in the error.
• Order a copy of your credit report from each of the three major credit reporting agencies each year and check them for accuracy. Credit bureaus can legally charge you up to $8.50 for the copy.
• Find out who has access to your personal information at work or school and verify that the information is kept in a secure location.
• Do not leave personal mail, identification, applications, or other items in plain view in your room or car. Place them in a drawer or out of view. Most thieves will steal when easy opportunities present themselves. By putting your valuable identification away, you reduce those opportunities.
• Limit the amount of credit cards you apply for. This reduces the amount of mail you receive that thieves love to intercept.
• Although it is a violation of the eavesdropping laws, it is easy for cell phone conversations to be monitored over the radio.
• Never leave your purse or wallet unattended when fueling your vehicle or at any time. See the important video below.