How do you keep track of your passwords? All in your head? Written on scraps of paper? How often do you lose them? Ever had one stolen?

I can’t even tell you how many clients homes I’ve done where important passwords are written on a paper scrap and taped on the computer. I try not to panic when I see this, but it’s SO DANGEROUS. With my background in eCommerce, I’ve seen my fair share of identity theft victims, and I can’t help but think how easily some of them could’ve prevented it.

So how many passwords do you have? If you’re like most people, it’s between 4 & 40. 4 is manageable, but tack on just a few more and suddenly people’s brains explode. Personally, I have 64 passwords at the moment and my memory’s not what it used to be, so I need a little help keeping track. Especially for the sites I only go to a couple times a year. So what do I use?

I use my electronic password organizer. It works like an address book so it's alphabetical (Visa password goes under "V", eBay goes under "E", etc.). I can paste in the site URLs for the login pages which saves me time, and I keep my usernames, passwords, notes like answers to my secret questions, etc. You can also follow the instructions to password protect the file so if anyone sneaks onto your computer, they can't just open it.

For those of you who are "paper people", this password book by Innovention Lab is terrific and is less than $20.

Tips for Creating Secure Passwords

• Use 8 characters or more; 14 is ideal.
• Combine both upper and lowercase letters with numbers and symbols such as a period, @, #, and $
• Pick letters from a phrase that’s meaningful to you to create a “pass phrase.” (“Do you know the way to San Jose?” could be D!Y!KtwTSJ?)
• Select a unique password and not one that you are using for some other purpose, such as your PIN at the bank or your password to another system.
• Change your passwords every 72 days or less.
• Avoid sequences or repeated characters like “12345678,” “222222,” “abcdefg.”
• Avoid sending your password over email.
• Test the strength of your passwords with a password strength checker.

According to this BBC article, more than 70% of people would reveal their computer password in exchange for a bar of chocolate. Read that again. A BAR OF CHOCOLATE. So if you’re part of that 70%, what do you do when you get ripped off?

1. Place a fraud alert on your credit reports, and review your credit reports.
2. Close the accounts that have been tampered with and dispute any transactions, and open new accounts.
3. File a complaint with the Federal Trade Commission.
4. File a report with your local police or the police in the community where the identity theft took place.

For more in depth info, click here. If only the thieves would put their creative skills to use for good and not evil…….