An identity security system (10) that reduces the likelihood of identity theft and fraud includes a central system (12) and a portable wireless device (15). The central system (12) stores personal data of a party including information regarding one or more payment cards of the party, one or more bank accounts of the party, driver license data of the party, and/or other identification data of the party. The wireless device (15) electronically connects to the central system (12). With the present system, using the wireless device (15), the party can pay for a transaction using the one or more of the payment cards, cause funds to be transferred to or from the bank accounts and/or provide identifying data if necessary.