For protection, using as many passwords on your computer as possible is a good idea. Many websites and programs force you to use passwords -- but those shouldn't be the only passwords that you utilize. You should set up your computer to require a password when it is rebooted and to become active again after being idle. By doing this, your personal information won't be easily attained if your computer is stolen -- or if you just leave your desk.
Be creative when deciding your passwords. You definitely should not have one universal password. Instead, use a combination of random numbers and letters for each password.
If you are going to write down your passwords, keep that piece of paper separate from your computer. The best case scenario is to memorize your passwords as soon as possible.
About once every one or two months, you should make it a point to change your passwords. If you suspect that your password may have been stolen or if you logged in using your password on someone else's computer, change your password immediately!
If you are going to share your passwords with anyone (your spouse, for example), be sure to fully explain how important it is to keep the passwords private and avoid any activity that could accidentally lead to your passwords being stolen.
For more tips on identity theft, check this out:
6 ways to protect yourself from identity theft
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