Are you using weak passwords?

You probably already know not to create passwords using any combination of consecutive numbers or letters such as "12345678", "lmnopqrs", or adjacent letters on your keyboard such as "qwerty." And you've probably heard that using your login name, your spouse's name, or your birthday as your password are also big no-nos. But did you know that you should never use a word that can be found in the dictionary, in any language? That's right. Hackers use sophisticated tools that can rapidly guess passwords based on words in the dictionary in different languages, even common words spelled backwards.

If you use a common word as your password, you might think you're protected if you replace letters of that word with numbers or symbols that look like the letters such as M1cr0$0ft or P@ssw0rd. Unfortunately, hackers know these tricks too.

Step 1: Create strong passwords that you can remember

You could come up with a completely random combination of numbers and symbols, but that's not very practical. How would you remember it? Chances are you'd write it down and keep it in the top drawer of your desk and then it's no longer such a great password after all.

A strong password is one that is at least eight characters, includes a combination of letters, numbers, and symbols and is easy for you to remember, but difficult for others to guess.

Create a strong passphrase

The easiest way to create a strong password that you won't have to write down is to come up with a passphrase. A passphrase is a sentence that you can remember, like "My son Aiden is three years older than my daughter Anna." You can make a pretty strong password by using the first letter of each word of the sentence. For example, msaityotmda. However, you can make this password even stronger by using a combination of upper and lowercase letters, numbers, and special characters that look like letters. For example, using the same memorable sentence and a few tricks, your password is now M$8ni3y0tmd@.

If you still think that's too hard to remember, you could try a more common phrase, such as "You can't teach an old dog new tricks." If you're using a common phrase make sure to inject at least one number or symbol into the password. Such as U(t@0DnT.

Step 2: Keep your passwords a secret

Keeping your passwords safe means keeping them a secret. Don't give them to friends and don't write them down and keep them at your desk or in an unprotected file on your computer. Your house could get broken into, or more likely your child may give a friend access to your computer or your desk and that friend may not have the best motives when it comes to your privacy.

Even if you know not to write down your passwords or give them away to friends, you should also be wary when giving them to the Web site where you created the password in the first place. A new way in which hackers trick people into giving away their passwords and other personal information is through a scam called "phishing." Phishing is the practice of sending millions of bogus e-mails that appear to come from popular Web sites like eBay or Amazon. The e-mails look so official that many people will respond to requests for their login name and password.

Microsoft, eBay, Amazon, PayPal, or any other reputable company will never ask you to send your password through e-mail. If you receive a request for your password, social security number, or other sensitive information via e-mail, notify the company immediately by phone or through their Web site.

Step 3: Manage your passwords

The safest password technique is to create a new, strong password for every Web site or login that requests one. This is almost as impractical as remembering a long string of random characters. An easier solution is to create a handful of strong passwords and use those at sites you want to keep most secure, such as your bank, brokerage, or bill paying company. Then create another small set of easier to remember passwords that you can use everywhere else.

Remember, a strong password is one you change every few months. Just as you make a date with your computer to run updates, backup software, and clean out old programs, you should also regularly change passwords.

Step 4: Monitor your accounts

Creating stronger passwords can help protect you against identity theft. However, it does not guarantee that you are protected. If someone does steal your passwords, the faster you catch on and notify authorities, the less damage a hacker can do. Make sure to monitor all your monthly financial statements, and call the appropriate company or bank immediately to report issues. Also, review your credit report each year.

Next steps to protecting yourself Identity theft can happen if someone steals your password, but there are other ways for hackers to break into your computer. You can continue to improve your computer's security by keeping your software up to date and using a firewall.