Identity theft affects nearly 10 million Americans ever year. Thieves target people that do not safeguard their personal information because they are easy prey. Instead of passively waiting for someone to steal your identity and deal with the headache that ensues, be proactive with your sensitive information.

Here are Five Simple Methods to Prevent Identity Theft

• Safeguard your Social Security Number (SSN). Arguably the most important number associated with your name is your SSN. It is linked to your taxes, financial records, bank statements, bill accounts, etc. If a theft can obtain your SSN, the getting a few extra pieces of information about you, which is most likely listed somewhere publicly, is easy. Therefore, you can protect your SSN by: not carrying it around with you in case you lose your wallet; not pre-printing it on your checks; and by avoiding giving your SSN out even for identification if at all possible.

• Don't give information over the phone. Releasing sensitive data via the telephone is extremely unwise. Criminals constantly develop ploys to trick innocent people into handing over the keys to their identity. A common practice is to be aggressive or offer tempting rewards that you must act now to receive. Protect yourself by; (a) not giving out information over the phone; and (b) asking suspicious callers to place you on their do not call list.

• Secure financial records on your computer. Antivirus software is a good start when protecting your computer. However, hackers may still circumvent your virus protection software so you may want to store your sensitive information on a flash drive and physically remove it from the computer when you are done updating records. Also, a good practice is to memorize your passwords or write them down on a piece of paper that is locked away in a safe. Electronically stored passwords, unless on your flash drive, are still fair game for hackers. Another safe practice is to never reply to emails asking you for private data. If you have questions about an email you've received, check out their website or use some verification method to authenticate a request.

• Protect your credit cards. If you want to be safe, require photo identification on all your credit cards. You could still have your card stolen, but this measure should make it more difficult to use the card. in addition, keep backup records of your credit card numbers, pins, passwords, etc. in a safe so you can quickly cancel a stolen card. One stringent method to protect your credit cards is to not carry them around with you. This may not be practical in every situation but on most days when you're not planning on using your credit card, it might even stop some compulsive spending.

• Destroy private records. A trash can is a theft's treasure chest. Everyday, people discard bank statements, bills, ATM slips, credit card offers, documents with personal information, and so on. A shredder is a wise investment to protect you from prying eyes. Destroying all mail and statements that contain personal information will help prevent identity theft.

Be proactive in your approach to identity theft. Waiting for someone to steal your identity is like waiting for a train while standing on the tracks—when it hits you, it won't be pretty. However, the sad truth is no matter how hard you try, there is no guarantee you won't be a victim. Thus, you should check your credit report at least once a year, if not quarterly, to squelch fraudulent activity. If you do find dubious activity, notify the authorities immediately. Again, the best way to prevent identity theft is to proactively safeguard your information and confirm no unauthorized activity is on your credit report.

Additional information to fight identity theft.