Microsoft has released a helpful factsheet outlining key steps to protect your privacy online.
One great tip is to give nonsense answers to security questions. Often when you sign up for a new web service you will be asked to supply answers to security questions such as where you were born, your mother’s maiden name, your first best friend, or where you went to elementary school. There is nothing that says that you have to provide factually correct answers to these questions. It is actually better to put nonsense false answers to prevent criminals from correctly answering the question with help from a little Internet research.
For example, when I am asked for the name of my elementary school I would put: Great.balls.of.fire.88.* I would then store this answer in a password manager such as 1Password or KeePass. This extra step provides an easy extra layer of security on my accounts.
* I do not actually use this answer, but you get the idea.