Despite identify theft fears, many disregard password importance

Although people remain fearful of the impact identify theft, many are failing to take the appropriate steps to protect their personal information.

According to a recent study conducted by PrivacyGuard, 88 percent of participants said they are fearful about sharing information with a company should it suffer an online security breach. Forty-six percent cited retail as the most concerning sector, followed by credit card companies and government agencies.

Despite the concerns regarding losing their personal information, only 31 percent of respondents said they have a unique password for each website they use.

According to PrivacyGuard, more than 50 percent of participants said they are concerned regarding identify theft during tax season.

"Americans have become increasingly concerned about the risk of identity theft over the past few years," said PrivacyGuard product director Christine El Eris. "However, taxpayers need to be aware of the unique risks they face during tax season."

One method people can use to protect their accounts is a password manager system. The solution constantly generates unique passwords so it is difficult for hackers to obtain sensitive information.