How can you effectively protect yourself from identity theft?

Reviewing your credit report annually is a crucial step in protecting yourself from identity theft. This practice allows you to monitor your financial activity, check for inaccuracies, and identify any suspicious accounts or transactions. Regularly examining your credit report can help you catch any signs of identity theft early, enabling you to take swift action if you notice unfamiliar accounts or inquiries. By ensuring that your credit information is accurate and up to date, you can mitigate the risk of unauthorized use of your personal information.

Engaging in activities such as scanning personal documents before discarding them, while helpful in protecting your information, does not provide the same level of comprehensive monitoring as regularly reviewing your credit report. Sharing passwords and PINs in your household significantly increases your risk of identity theft, as it could lead to unauthorized access to sensitive information. Segregating data collected by apps and devices is also beneficial, but it does not address the monitoring of your credit report, which is directly linked to identity theft prevention. Thus, annual credit report reviews stand out as a proactive measure for safeguarding your identity.