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Identity theft is the new black for organized crime. In the information age, information is valuable. Protecting identity theft victims can be difficult because of the amount of information that is passed and stored on a daily basis. Transactional databases which hold all of your private personal information are ubiquitous and not very secure. Another part of the problem is that most of us are very attached to our identity. Unless you are Jason Bourne, you probably only have one. Protecting identity theft target information does not only include getting a good paper shredder and a good locking briefcase. It can be done by creating a separate legal identity and then getting a credit card under that identity.
Protecting Identity Theft Victims Step One: Get A Legal Business Entity
Anyone who owns a car, house, or other large asset, or if you are an entreprenuer or even if you just have a side business selling lemonade on the side of the road, it is a good idea to operate under a recognized legal entity. You will want to speak with an attorney about which legal entity is best for your situation and how to be sure to operate it correctly, but some of the most common are corporations, LLCs and partnerships. These act as a legal barrier between some of your own personal information and liability and the outside world. The legal entity is your first line of defense because it adds one more layer of protection between yourself and anyone interested in your assets and information, much like anonymous browsing protects your internet searches. Operating under a legal entity can also help you to maintain the status of independent contractor, a valuable tool of privacy and tax savings.
Another big consideration when operating under a legal entity is the state where you set up your legal entity. Considerations like cost to form, cost to maintain, laws affecting how you are operating, and the tax effects of different states can all impact your decision. Operating as a legal entity instead of in your own name can allow you to employ tax strategies which could potentially save you an incredible amount of money.
Protecting Identity Theft Victims Step Two: Get A Business Credit Card
Once you are properly operating as a business entity, you can apply to most credit card companies for a business credit card. Business credit card holders share business information that is stored in the transactional databases rather than their own, personal information. Even if that information is compromised, it is much easier to kill a business entity and start over with a new one than it is to fake your own death and start over with a new identity that you steal from a hobo. You can also feel a little bit like Jason Bourne by carefully crafting how your business entity’s identity appears to others, and using the most adventagious identity at the right time.
Protecting identity theft victims before identity theft occurs can include a lot of different strategies. From using cash, to using anonymous web surfing, using a ghost address or using business entities and business credit cards, you can place one more protection between your information and organized crime. If you want to form a complete strategy to protect your personal and financial privacy, you can get the book How To Vanish.