Identify theft is big business these days. By following the 4 steps below you will stand a much better chance of protecting your identity from being stolen and causing you lots hassle and trying to repair the damage bad credit history.

Step 1 - Ensure your computer has the following programs installed, regularly updated and working every time you are online.

Anti-virus - AVG or Avast are recommended.

Firewall - ZoneAlarm is recommended.

System cleaner - ccleaner is recommended

Anti-spyware program - AVG Anti-Spyware and Lavasoft Adaware 2007 are recommended.

All recommended programs are free for home use. Please use a search engine to find their download locations. By using the programs above you will ensure that your computer is ready to combat most of the online infections and people wishing to hack into your computer.

Step 2 - Limit what personal details you make available on social networking sites. If you use Facebook, bebo, Myspace or any similar social networking site then be aware that some personal details that you entered when signing up are available for most people to see. Your location, your surname, email addresses and phone numbers etc are visible and these can and will be used by fraudsters to clone your identity. Re-visit what details you have input on any social networking site.

Step 3 - If you use chat rooms or use an instant messenger program then do not give out any credit card, bank account or personal details, especially to people you have just met online. They may seem genuine, but if they are not it will take them less than one hour to clone your details and start wrecking your credit history and spending your money.

Step 4 - Shred all unwanted personal data. Yes, you may know this, but do you actually do it? Use a cross cut shredder. They cost a bit more than the straight-line shredders, but they are worth it. Shred everything you don’t want. Bank statements, credit card statements, and phone bills, even junk mail. Don’t throw it away if it has your address or any personal details on it. If any piece of mail contains any personal details, then shred it.

Step 5 - Check your bank and credit card statements regularly, without fail. If you spot anything suspicious, then get on the phone quick smart and query it. Especially if you see a holiday, computer, flights or trip to the moon [ok I exaggerate a little here!] that you never purchased.

Step 6 - When buying anything over the Internet you should use a credit card rather than a debit card. You have much more protection when purchasing goods via your credit card. Phone up your credit card firm and ask what type of protection they offer. If they don’t, I’d advise moving to a company that does offer online protection.

Step 7 - When out and about shopping never let your credit or debit card leave your site. Especially in the UK now, there is no reason as chip and pin means that you only need to enter your pin for any purchases, which can be done with portable terminals. Be very careful at restaurants and petrol stations, these seem to be the worst culprits for cloning cards.