According to the latest statistics, identity theft is one of the fastest growing crimes in the nation.� Every year 700,000 Americans are the victims of identity theft, and that number continues to grow every year.� All a person needs to become an imposter is personal information such as name, address, telephone number, cell telephone number, bank account numbers, Medicare card number, driver's license number, Social Security number, credit card and debit numbers, date of birth, mother's maiden name, of which alot of these things can be found on the internet. So we can say that identity theft happens when someone illegally obtains a person's identifying information and using this information, an imposter can open new credit card accounts, drain one's bank accounts, purchase automobiles, apply for loans, open utility services and on and on. Because credit card companies lose such a small percentage of their money, it is estimated at 2%, they have little financial incentive to do anything about it.

Thankfully, many credit card companies offer double protection for things like shopping on the internet, but most only offer protection against identity theft in the form of insurance.� You pay an extra $3 per month and if someone every makes fraudulent purchases in your name, you are not responsible.� That does not work, however, if the person used your personal information to obtain a credit card in your name.� Identity theft and credit card fraud go hand in hand, as accessing someone else's credit is often the motivation for stealing that person's identity.� 

Identity thieves use a variety of low and hi-tech ways to get personal information. There is no way to completely guard all personal information. By being aware of ways that thieves get information, one can minimize the risk of someone becoming your imposter. The following are common ways imposters use to get personal information of others.

• Stealing mail is the most common way of getting information containing bank statements, credit card statements, investment statements, pre-approved credit card offers, insurance statements, credit reports or end of year tax documents.

• Intercept information sent electronically such as e-mail, public pay phones, cellular phones or cordless telephones.

• Obtain personal information shared over the Internet from unsecured sites.

• Purchase personal data from "inside sources" such as employees at your place of work, store employees, or financial institution employees.

• Complete a "change of address" form to divert your mail to a different location.

• Obtain your bank account number, then order new checks sent to a different address.

• Use "pretext calling" when contacting financial institution employees to pose as a customer to obtain personal account information to create fraudulent accounts or to sell to debt collection services, attorneys, or private investigators for use in court proceedings.

Consequences can be disastrous.� On getting one's personal information, identity thieves can use it in many ways.  If they get one's credit card number, they can call the credit card company and request a "change of mailing address" for that account. The thief then makes charges on the card. Because the billing statement goes to the new address, it may be some time before the card holder would be aware that anything is amiss. It is very important that bank statements and credit card statements be checked for accuracy as soon as they arrive. Also, it is a good idea to keep a list of expected statements and the approximate dates they should arrive so the diversion can be discovered early.

When thieves get your Social Security number, date of birth, and mother's maiden name they can open a new credit card account in your name and their address. Those unsolicited pre-approved credit card applications are easy for thieves to use to establish a new account. Accounts can be charged to the limit and you won't know that the account exists until the unpaid account is turned over to a collection agency and the credit bureaus have placed the delinquency on your credit report. This can ruin your credit and you may not realize it until a loan application is turned down. It can take lots of time and grief to correct your credit history. Identity thieves can open bank accounts in your name but with their address and write bad checks on the accounts. They can also obtain loans using your identity.  Not only is the person whose identity was stolen left with huge bills to pay, the thief often destroys the victims credit, making it difficult for the victim to buy a house or a car or take out legitimate loans.

It is therefore extremely important that you take steps to protect yourself from identity theft.  It is also important to remember that identity thieves, like most predators, are opportunists.� If they can't find your information easily, they will give up and move on to the next target.� The trick is to make your information too difficult to find to be worth their while.

Often, there are no warning signs that identity theft has occurred. However, some reasons for concern are:

• Your monthly credit card and bank statements suddenly stop arriving.

• You are denied credit for no apparent reason.

• You start getting bills from companies you do not recognize.

• Credit collection agencies try to collect on debts that do not belong to you.

Federal Law Enforcement
Report the crime to the Federal Trade Commission (FTC). The FTC collects complaints about identity theft from consumers and stores them in a secure online database called the Consumer Sentinel that is available to law enforcement agencies worldwide. The FTC provides information on ways to resolve problems resulting from identity theft and refers individuals to various private and government agencies for further action.

Federal Trade Commission
Consumer Response Center
600 Pennsylvania Avenue, N.W.
Washington, DC 20580
1-877-IDTHEFT
http://www.consumer.gov/idtheft/

Credit Reporting Agencies
Contact the fraud units of the three credit reporting agencies: Equifax, Experian and Trans Union. Ask them to place a fraud alert on your credit report to help prevent new fraudulent accounts from being opened. Keep track of when it expires so you can ask for another one if necessary. However, not all creditors check your credit report before issuing a new account. As an ID fraud victim, you are entitled to a free copy of your credit report. Also, ask the agencies for a copy of your credit report every three months once you have become a victim. This can help determine how many and which accounts listed are fraudulent. You can also identify the existing accounts that have been stolen.

Equifax
Tel: 1-800-685-1111
http://www.equifax.com/

Experian
Tel: 1-888-397-3742
http://www.experian.com/

Trans Union
Tel: 1-800-916-8800
http://www.tuc.com/

Creditors
Notify all creditors and financial institutions in writing and by phone that your name and accounts have been used without your permission. If an existing account has been stolen, ask the creditor or bank to issue you new cards, checks and account numbers. Carefully monitor your account activity on your statements. Immediately report fraudulent activity to the issuing company.

Local Law Enforcement
Immediately report the crime to local police. Provide them with as much documentation as possible. Make sure that the accounts are listed on the police report. Also, get a copy of the police report. Credit card companies, banks and credit reporting agencies may require you to show a police report to support your claim that a crime was committed.

Record Keeping
In the process of resolving the theft of your identity, be sure to keep records of all correspondence with the creditors and government agencies you contact. Include the date and name of contact. Follow up all telephone contacts with a letter and keep a copy.

Utility Companies
Ask utility companies (local and long distance telephone service providers, gas, electric and water companies) to watch out for anyone ordering services in your name. If someone has ordered services in your name, cancel those accounts. If you are having trouble with falsified accounts, contact your state Public Utility Commission.

Additional Steps

• If your bank accounts have been tampered with close those accounts, destroy any checks and cut up any ATM cards. Ask for password protection when opening new accounts.

• If your checks have been stolen or misused, stop payment on all checks. Open a new account and reissue checks to legitimate creditors. Also, ask your bank to notify its check verification company to stop giving approval for any of the stolen checks.

• If you believe your investments or brokerage accounts have been tampered with, report it to your account manager and the Securities and Exchange Commission.

• Even if you think a problem is resolved, check your credit report every six months for several years after your identity was stolen.

• If you suspect your name and SSN are being used by an identity thief to get a driver's license or non-driver's ID card in your name, contact your Department of Motor Vehicles.

How to Protect Your Identity

Although there is much private information about you located on the Internet already, there are many steps you can take to prevent someone from stealing your identity.� One way, to lower the risk of becoming an identity victim, is to limit the amount of personal information you use and share online. Be cautious about responding to email or telephone requests for information supposedly needed to update account information. This is likely to be a scam. Use only secure Internet sites when making purchases. Consider subscribing to an identity guard service, such as Privista or credit bureau Equifax. These services monitor the credit report of individuals for 10 unusual activities, such as address changes, Social Security number changes or new account openings. There is a charge for these services. Also one can get the a copy of his/her credit report from each of the three major credit bureaus in the U.S. (Equifax, Experian, and TransUnion) annually and analyze for signs that someone has opened accounts in your name or fraudulently misused existing accounts.

Also be sure to: