Get the real story on protecting your data

What you really can do about it

You're absolutely right to be concerned about the widespread dissemination of your personal financial data. Not only does such information-sharing lead to more e-mail, snail mail and telemarketing spam, but you become more vulnerable to identity theft as more databases collect your information.

That's because identity theft is sometimes an "inside job." Unscrupulous employees collect names, Social Security numbers and other critical information to make fraudulent charges on your accounts or open bogus credit accounts in your name, or they sell it to criminals who do the same. You can't prevent this type of invasion, but you can reduce your odds by limiting, as much as you can, who gets your data.

And that takes work. It's not as easy as dialing a toll-free number. Among the steps you need to take:

• Read the fine print. Financial companies often slip their data-sharing policies in with all the ads and other junk that accompany your bills. These notices seem to be designed to be ignored -- they tend to be small, densely-worded brochures in barely readable type.

• Take action. Once you've read the policy, let the company know you don't want it sharing or selling your information. Some notices provide some kind of form for you to fill out, but they don't make it easy -- there's usually no addressed, stamped envelope. You'll have to do the work yourself.

• Get active. Some states -- including California, Vermont, New Mexico and North Dakota -- make businesses get your permission before they share or sell your information. In other words, business has to convince you to opt in, rather than your having to "opt out." If you like that idea, contact your lawmakers.

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• Pass it on. Bookmark this column and e-mail it to whoever ships you that stupid, misleading e-mail. You can help stop an aggravating hoax and help disseminate real information about protecting privacy.

Liz Pulliam Weston's latest book, "Easy Money: How to Simplify Your Finances and Get What You Want Out of Life," is now available. Columns by Weston, the Web's most-read personal-finance writer and winner of the 2007 Clarion Award for online journalism, appear every Monday and Thursday, exclusively on MSN Money. She also answers reader questions on the Your Money message board.

Updated Feb. 11, 2009

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