Identity Theft

LinkedIn users, it's time to change your password. It's been reported today that 6.46 million encrypted LinkedIn passwords have been leaked on the internet.

The hacker posted on a Russian forum and claimed he hacked the professional networking site, and he has uploaded millions of encrypted passwords as proof. Be warned that even though the passwords are encrypted, Mashable says "an attacker might be able to crack many of the passwords using very cheap resources in a relatively short amount of time." The hacker did not include usernames, although there is some speculation that he has access to usernames.

The company said on Twitter that it is looking into the matter. Meanwhile, it's highly advisable for users to change their passwords right now. GeekSugar has great tips on how to create a hacker-proof password.

Protect yourself by learning what identity thieves are up to with this helpful Business Insider story.

More than 11.6 million consumers reported identity theft in 2011, a 13 percent jump over the year prior and a figure that's likely to rise as we continue our love affair with digital banking.

MoneyGram, the second largest money transfer business in the US, has learned a thing or two about the lengths fraudsters will go to in order to dupe consumers.

Sometimes the key to sniffing out the bad guys is to throw on your skullcap and think like one.

Here are four things they say identity thieves don't want their victims to know:

Related: 10 Heart-Wrenching Dating Scams That'll Break the Bank

Your trash is treasure: Go ahead and toss those credit card offers in the trash — if you want some savvy crook to sign up under your name. "A good rule of thumb is to shred all personal documents before disposing, from unsolicited credit card applications received in the mail to receipts received at retailer checkout locations," says MoneyGram's Kim Garner, senior vice president of global security and investigations.

Read on for more.

Since Halloween is coming up in just a few days, it seems fitting to talk about the various scary money situations that people find themselves in. I recently addressed tips for bankruptcy and what to do when you're laid off, but today I'm going to talk about what to do when something (or things) is stolen from you. Even if this hasn't happened to you, it's a good idea to know what to do when the time comes so you don't freeze up and act out of panic.

When your home is robbed: Once you find your house has been broken into, immediately leave your home and call 911. Stay in a safe place while you're waiting for the police to come, because you don't want to run the risk of bumping into the criminal. Wait until the police come before you take further action, which means you shouldn't search your home or touch anything before the cops come or you'll be tampering with evidence. Then, walk through your house and create a list of things that you notice missing from your home. If you have not taken photos of the items before the theft, make sure you write a detailed description of them. You will need to submit this list to the police and your homeowner's insurance. When you're reporting the crime and claiming insurance, start working on ways to make your home safer. For example, you can do things like get a good alarm system, lock up your valuables, and secure your windows and sliding doors.

When your identity is stolen: If you've been monitoring your credit report and all of a sudden you see strange activity like new credit cards being opened or if you're seeing weird charges on your credit card bills, someone may have stolen your identity. First decide whether you want to place a fraud alert or a credit freeze. With a fraud alert, the creditor will be more cautious when giving credit in your name and all you need to do is place the alert with one credit bureau, which will then notify the others. A credit freeze is the more secure option — you can't be considered for new credit until you've disabled the freeze. The latter option provides more protection, but it's also more of a hassle and you have to pay a fee. You'll have to individually freeze your credit with all three agencies.

Read on for more tips.

Unfortunately, my sister's been hit — someone got a hold of her bank account information and opened a couple new store charge accounts, racking up quite a sum in fraudulent charges. She's not completely negligent with her personal financial information, so I was pretty surprised they got their hands on all of these sensitive stats, but in the digital age, keeping track of your finances means there's no room for carelessness. Stay up to date with your bills and financial statements and follow these tips so you're always on top of it:

• Don't carry around your social security card, ever! — It's simple, I know, but nonetheless important to remember. There's no reason to have this card on you while you're out running errands. Store it safely at home, always.
• Read your financial statements carefully — Read all of your bills and statements. If your accounts are online, sign on regularly and be sure you're monitoring the account's activity. If something seems off, don't hesitate to call your bank or credit card company to find out what's going on. This also means staying on top of your credit report and knowing your credit score. Sites TransUnion, Equifax, and Experian are each required by law to provide you one free credit report a year, so take advantage. If ever something seems amiss, it's always better to be overly cautious than to be sorry later.

To get the rest of my tips read on.

We're thrilled to present this smart LearnVest story here on Savvy!

This morning, I received an email from my first cousin telling me she was in dire straits and needed me to send her money to rescue her. Although the email was signed with her name and contained her normal email signature, it was a scam.

She confirmed this through a follow-up email a few hours later telling everyone to disregard her plea for help. So you never fall for a hacker trap like this, check out the email—and the warning signs that it’s not real:

1. I Was BCCed

Immediately, be suspicious of any seemingly personal email that’s not actually sent to you but rather to many people using the BCC option.

2. It Didn’t Even Say My Name

After all, if she really were going to ask me for help, I’d hope that she’d at least address the email to me. You don’t ask for emergency money to be wired to you in a generic email.

Read on for more clues to figuring out what a scam email looks like.

We're thrilled to present this smart LearnVest story here on Savvy!

We love the motto “be prepared.”

But when it comes to the average American’s wallet, there’s such a thing as over-prepared. From the looks of our bulging billfolds, we must be heading out each day to open a new line of credit, fill out a W-2, shop at several department stores, use a few gift cards, return an item or two, and grab a fro-yo at our favorite punch card spot on the way home.

1,000 wallets and purses are stolen every two minutes in America (44% of LearnVest readers have had their wallets lost or stolen once, while 8% have had theirs stolen twice or more). While it’s smart to be concerned with online security (check out our article on creating the perfect password here), 76% of identity thefts result from the theft of something physical, like a wallet. Additionally, it costs an average of $8,000 to recover from identity theft.

Most police who receive reports of stolen wallets lament the same thing: people carry way too much stuff in their wallets, handing their entire lives over to identity thieves.

So before you leave the house, read our list of what NOT to keep in your wallet, so you can pare down to just the essentials — and protect your finances and identity.

Social Security Card

This is the number one thing to NOT keep in your wallet. If a thief gets ahold of your Social Security card, he can open credit cards, take out loans or even buy a car — it makes you very vulnerable to identity theft. There is no need to carry this around as an extra form of ID, and even the U.S. government's website recommends leaving your card at home in a safe place. Your Social Security number is only nine digits — just memorize it.

(Learn how to safely store your important information; read this.)

Read on for more items you shouldn't keep in your wallet.

We're thrilled to present this smart Kiplinger story here on Savvy!

Someone stole my stinking wallet while I was pushing a cart at the supermarket. And, to add insult to injury, the wallet was snatched during National Protect Your Identity Week.

I learned a few valuable lessons from the experience, which I would like to share. Here’s what I did wrong, what I did right and how I will be more prepared if it ever happens again (not that it will).

Lesson 1: Stay alert — even in the frozen-food aisle. When I got to the grocery store, I set my purse down in my shopping cart and began walking up and down, turning my back every so often to grab a bottle of this and a package of that. I shouldn’t have been so trusting. When I got to the register, I realized that my wallet had been plucked from my purse and I couldn’t pay for my groceries. I offered to put them all back (and felt grateful that the thief had not taken my purse, with my keys, phone, and datebook).

Lesson 2: Crooks can work fast. So keep the number to report lost or stolen cards handy. Everyone knows that the first thing to do is cancel your credit and debit cards. (Actually, the first thing I did was call my Mom. But right after that I called the bank.)

The crooks were quick: By the time I had retraced my steps in the grocery, driven home and looked up the “800” numbers to call to report missing cards and freeze my accounts, they had already used my cards. The first place they ran was to an office-supply store less than a block away from the grocery. They bought just less than $10 worth of stuff. Why pens and pencils? Why not big-ticket items? Police say criminals often test cards they steal by making small purchases first. They continued to try their luck at department stores and fast-food restaurants, but by that time I had frozen my accounts.

On the semi-frantic drive from the grocery to my apartment I wondered why I had never programmed the toll-free number to report a lost or stolen card into my cell. It’s more important than the pizza-delivery number I have in there.

Read on for what to do when you lose your wallet.