One factor that is curbing the growth of identity theft that we have seen for so many years is that the word is finally out on how to protect yourself from having your identity stolen. Education has been the key to making it difficult for identity thieves to operate. The problem has not disappeared by any means, but criminals are finding it necessary to be more creative in order to get the information they seek.

There are several new scams that are important to understand.

Most people are familiar with phishing. Phishing is a technique used by identity thieves where they send consumers E-mails that appear to be from a legitimate source, such as a bank or credit card company. The E-mail will ask the consumer to verify some important pieces of information, such as account numbers, credit card numbers, or even social security numbers. When the e-mail is returned with the information that was requested, an identity thief has all he/she needs to start buying things and spending money in your name.

Phishing was much more effective in the early part of this decade when fewer people were aware of the scam, but twists have been added so that the phishing scam still works for criminals. A common twist is for the E-mail to warn consumers of phishing scams, remind them not to send sensitive information online, and instead ask the consumer to call a toll free number to verify important account information. The provided phone number is routed to the scam artist, who poses as your bank to take the information that is sought.

Another newer scam being used via the Internet is among people searching for employment at sites like monster.com or careerbuilder.com. A “perspective employer” will make contact with an individual who has posted a resume and ask the applicant to submit to a background check.

Job seekers thinking that the information is being requested by a legitimate source gladly provide a social security number and any other information that is requested. The lesson is to never trust anyone with your sensitive information unless you are 100% sure that it will be protected.

Spoofing is an attempt made by an identity thief to gain access to a secure website or secure information by posing as an authorized user. Spoofing is a tool the identity thieves have found some success in using. One example is creating a website that mirrors an existing website that users feel comfortable sharing information within.

There are several variations of spoofing, but the less remains the same. Internet users should refuse to enter sensitive information anywhere online where they are not 100% sure that the information is secure.

There are countless other scams used by identity thieves to gain access to information, but the basis for each idea is the same. Identity thieves get information from consumers by first earning their trust. Being aware of these scams will help people to avoid them and avoid the damage caused by identity theft.

One of the most alarming elements of identity theft is that it’s a crime that can very often go on for weeks, months, or even years before it’s detected. By the time the victim realizes what has happened, the amount of damage that has been done is catastrophic.

Financial losses can add up without a consumer realizing it, and victims of identity threat often see their credit scores adversely impacted, leading to more financial stress in the future. The key to minimizing the negative consequences of identity theft is discovering early on that someone is using your personal information for their financial gain.

There are several red flags to watch for that will help keep damage to a minimum. Some of these include:

1. Unidentified Items on Credit Reports: There are three major credit reporting agencies that consumers should be aware of: Equifax, Experian, and Trans Union. It’s a good idea to pull your credit report at least annually to make sure that there is nothing unfamiliar open in your name. There are also agencies that will monitor your credit report in your behalf on an ongoing basis for a small fee. Alerting these agencies of any red flags you find is also a good idea.
2. Unexplained withdrawals from bank accounts and credit charges: Unfortunately, there are many people who receive bank statements in the mail and either fail to open them or fail to check them thoroughly. It’s important to be able to account for every transaction with your bank account. It’s easy to monitor most bank accounts online, an activity that could become a weekly habit to keep identity theft damage to a minimum. Credit card statements should also be examined thoroughly to ensure all of the charges are accounted for.
3. Unknown Collectors Calling: If you hear from a collector asking about repayment on a bill that you’ve never heard of, there’s a chance that an identity thief has opened an account and spent money in your name. Do not assume these calls are a mistake. Ask for all of the information that the collector can provide in writing, including a history of the debt, to get an idea of how long the problem has existed.
4. Missing Statements and Other Mail: Once an identity thief is using your credit card or bank account, a common practice is to change the mailing address on your accounts so that statements don’t arrive in your mailbox. Pay attention to when monthly statements normally arrive and investigate if you’re statement is missing. When possible, elect to receive bills and statements online to minimize chances of stolen mail leading to your identity being stolen.

Identity theft can cause serious problems in your financial life today and in the future, as identity thieves will not only spend money in your name now, but ruin your credit for years to come. Paying attention to the above red flags will help you to keep problems to a minimum if your identity is stolen.

One of the crimes getting a great deal of publicity recently is identity theft. In 2007, over 8.4 million adults in the United States were victims of identity theft, with over $49 billion in damages and fraud committed by these identity thieves. Identity theft happens when someone uses another individual’s personal information, such as a social security number, banking information, or a credit card number, without permission to commit fraud. Identity thieves are doing anything from shopping online to opening credit card or cellular phone accounts to renting apartments with information obtained illegally about strangers. There are several steps that individuals can take to prevent themselves to becoming a victim of identity theft.

One of the common misconceptions about identity theft is that most of the problems begin with information that is gathered online. While some identity theft crimes are committed online, according to recent surveys where the source of the stolen personal information is known, nearly 70% of victims reported that their information was stolen without the use of a computer. Methods criminals use to steal valuable information include stealing wallets and purses, stealing mail, and gathering information from victim’s associates. Many of the steps that should be taken to prevent identity theft are common sense, but important nonetheless.

Some available measures to protect your information may include:

1. Be Secure: Many neighborhoods are converting from traditional rows of unlocked mailboxes to mailboxes that require a key to access. Stealing mail is a favorite method of identity thieves. If possible, receive statements and pay bills online to prevent sensitive information from being accessed by criminals digging through your mail.
2. Be Smart: Tricks like looking over your shoulder as you enter a PIN number into an ATM machine work well for identity thieves. Criminals are also willing to look through garbage for the mail you’ve thrown away. For instance, most Americans receive several credit card applications in the mail each week. A shredder can be purchased for less than $20 now and is a great investment when it comes to protecting your identity.
3. Be proactive: Once a criminal has your information in hand, it can take less than 5 minutes for fraud to occur. A stolen purse with a credit card and other personal information inside is a great find for an identity thief. Call your credit card company the minute you think your card may be lost or stolen – the hassle of waiting for a new card to arrive in the mail is nothing compared to the hassle of dealing with the consequences of identity theft, as victims spend an average of 600 hours each dealing with the problems caused by the theft of their identities. Monitor your credit report regularly to ensure nothing suspicious has shown up in your name.

Anyone can be a victim of identity theft, but the above steps can help make sure that it’s difficult if not impossible for criminal to get their hands on your personal information.

One of the crimes getting more attention than many others it today’s high-tech, electronic world is identity theft.  Identity theft is that act of taking someone’s personal information and using that information to commit fraud.  This personal information can be obtained in any number of ways, but regardless of the source of the information, identity theft can have negative financial consequences and be a major inconvenience.   About 10 million Americans become victims to identity theft every year, and the financial damages exceed $50 billion a year in fraud.  The average identity theft victim spends over 600 hours cleaning up the mess that identity theft and fraud can cause, so it’s wise to take precautions to protect your personal information.

Congress finally passed laws regarding identity theft in 1998, but well before that year criminals were still finding ways to steal information and profit at the expense of their victims.  The common scenario finds the identity thief posing as someone else, withdrawing funds from bank accounts or piling up charges on credit cards, and in some cases even buying homes or apartments in the name of someone else.  Eventually, the criminal can disappear, leaving the debt and negative credit consequences in the victim’s name to handle.

There are several things that individual’s can do to protect themselves from falling victim to identity theft.  Although the Internet has opened new doors for criminals looking to steal information, such as phishing scams, nearly 70% of identity theft still occurs the old fashioned way.  Activities such as stealing mail, digging through garbage cans, or even looking over a consumer’s shoulder at an ATM machine can lead to a wealth of information for criminals.  Some measures that you can take to protect yourself include purchasing a shredder to destroy all documents containing sensitive information, using a mailbox that can only be accessed with a key, and being careful not to send confidential information electronically.

Individuals who become identity theft victims may be forced to spend huge amounts of time getting their lives back together.  It’s critical to immediately cancel missing credit cards and contact your bank to put a stop on stolen checks and disable debit and ATM cards when you suspect that someone could be authorizing transactions in your name.  The first step that should be taken if you suspect that someone has stolen your identity is to contact the Federal Trade Commission, the government body assigned to handle identity theft cases.  It would also be a good idea to report the crime to your local FBI office.  Next, you should contact the three credit rating agencies (Equifax, Experian, and Trans Union) to report that fraud may have been committed in your name.

Fortunately, identity theft has actually declined in frequency over the past couple of years as more people have become aware of how easy it is for criminals to access unprotected information.  However, it remains a serious problem with serious consequences for victims.  It’s vital to be vigilant in protecting your information to ensure you don’t fall victim to identity theft.

Check out this story:

Malware Stole Hannaford Data

Spyware and malware isn’t just a problem for the average home user – it can be a threat to large companies too. And they often have a lot more information at stake if their computers are breached.

It’s just another reminder that you always have to be vigilant, no matter what level you’re operating at.

Over the past decade, identity theft has become the fastest growing financial crime and one of the fastest growing crimes overall in the United States. About 10 million Americans become victims of identity theft every year, with financial losses totaling nearly $50 billion in 2007.

One of the reasons that identity theft problems have become so widespread is because of how easy it is for sensitive information to get into the wrong hands. Criminals are getting more creative when it comes to finding ways to take advantage of having an individual’s personal information. Anyone can fall victim to identity theft, and there are several legal issues involved with this growing crime.

In 1998, Congress passed extensive identity theft laws after a few high profile cases made it a crime that needed to be addressed. Leading up to the 1998 lawmaking surrounding identity theft, 94% of financial crimes in 1996 and 1997 involved identity theft.

As more of the transactions Americans participate in each day become an electronic exchange of information, it has become easier than ever for criminals to act anonymously using another individual’s information. In Congress’ report on identity theft, they outlined many of the known methods criminals use to gather information. The report contained accounts of everything from dumpster diving and stealing mail to more sophisticated electronic information gathering tools. The report even showed involvement with organized crime rings in identity theft.

Because there are so many victims of identity theft, investigators usually don’t have the time or resources to follow the clues through every individual case. Unfortunately, most criminals are never caught for this crime.

The Department of Justice and Federal Trade Commission are charged with enforcing identity theft crimes, but because of the difficulty in tracking and apprehending identity thieves, most Federal resources have been dedicated to educating the public and preventing identity theft as opposed to catching the criminals. Other law enforcement agencies, such as the FBI, have formed task forces dedicated to busting identity theft rings with various levels of success.

There are several laws on the books regarding identity theft. Many of these laws deal with the crime of identity theft itself, while others laws are designed to help victims of identity theft effectively restore credit and legal issues that can be extremely time consuming to deal with. Almost always, identity theft is accompanied by other crimes. Theft and various types of fraud are the most common crimes that are committed by identity thieves. There are also laws in place to limit losses to victims of identity theft, provided that they report the crime within a timely manner.

Victims of identity theft should contact the three credit reporting agencies and speak with their Fraud departments as soon as possible. Credit agencies will place fraud alerts on a victim’s credit report and monitor activity closely. Victims should also contact each of their individual creditor’s to close open accounts and open new accounts with new account numbers and passwords. Finally, the victim should alert both local and Federal authorities to report the crime.

Balancing your checkbook every month makes sense for many reasons, but most people have never thought about it in terms of identity theft.

If you’re not checking your bank statements every month, it’s far too easy for someone to steal it from your mailbox without you realizing it. Mail theft is one of the most common ways that identity thieves can get information about you.

If your mail is left in an unsecured place and you don’t pick it up until you get home at the end of the day, how easy would it be for a scammer to pick through it and take the items that would be helpful to them?

By getting into the habit of checking your statements every month, you’ll notice if it’s missing.

If it doesn’t show up when you expect it, there are a few things you should do:

1. Check with your bank to see if there was a delay of some sort.
2. If they did in fact send it on time, double-check for other things that might be missing such as credit card statements.
3. Check with the post office and see if there is a change of address form on file for your address. Why would there be? Someone could have put a fraudulent change of address on file for you so they receive all your mail. If this happens, notify the post office of the fraud immediately.
4. Contact your local police and report the mail theft.
5. Contact your bank and let them know what happened. You’ll want to change your PIN codes at the very least, but you may even need to change account numbers so the information that was stolen won’t be of any use.

Did you know that child identity theft is one of the fastest growing problems with identity fraud?

Most children get a social security number early on, often because their parents need it for some reason. But because they’re young, very few parents ever think to check their kids’ credit reports for unusual activity.

If a child’s social security number is stolen, an identity thief can assume their identity and charge up a great deal of debt without ever being found out.

In many of these cases, nobody is the wiser until the child becomes an adult and gets turned down for credit because of all the problems on their credit report.

Make sure you check your children’s credit report every year when you do your own. You wouldn’t expect to find anything on it, but if you ever do you’ll be able to stop the problem before it becomes too far gone.

Do you have a birthday and are you still breathing?

If so, you’re a potential target. Identity theft can happen to anyone with any kind of credit, bank accounts, a date of birth, a Social Security Number or any other type of personal identifying information.

And yes, that does include children. Identity thieves don’t care about the age of the person they’re pretending to be – they just want that personal information that can be used to get credit or other things in their name.

Even celebrities aren’t immune to it. Will Smith, Steven Spielberg and Oprah Winfrey have all been victims of identity theft.

Now, Will Smith could be a fairly common name so it might slip past but you’d think someone applying for credit as Oprah Winfrey or Steven Spielberg would raise a few flags.

If someone could pretend to be someone that famous and get away with it, what chance does an unknown like you or me have?

Remember the Mission Impossible TV show and movies, when the IMF guy would peel away the rubber mask that he was wearing to look like someone else?

A cool effect, sure, but in reality a thief doesn’t have to look anything like you to steal your identity.

No rubber masks are necessary – just the right identifying information.

That’s why you need to keep yourself safe from identity theft. Sure, your local bank teller may know what you really look like but if the thief walks into a bank across the country with all the proper credentials to be you, they won’t know the difference.

And over the phone or internet, nobody knows what you look like.

These guys aren’t necessarily in it for the long haul. They steal your identity, use it for all they can and then move on to the next victim. Don’t let yourself get overconfident about your safety.

After all, that old saying is true – it’s better to be safe than sorry.

It’s scary to think how many people I talk to that know about identity theft but think that they’re not at risk. I don’t know if they just don’t understand it well enough or they think that they’re not rich enough, well known enough or something that keeps them from being a target.

I certainly hope you’re not in that camp. I mean, take a look at these stats from the Federal Trade Commission (FTC), released in September 2003:

• 27.3 million Americans have been victims of identity theft in the last 5 years

• The total cost of identity theft to consumers is $5 billion and the total cost to financial institutions is $33 billion

• Complaints filed with the FTC in 2003 about identity theft were up 42 percent

• According to CBSNews.com, someone’s identity is stolen every 79 seconds – and the thief opens accounts in their name and goes on a spending spree

And these stats are from almost 5 years ago – don’t you think it’s probably even worse today?

Don’t underestimate your chances of having your identity stolen. Take the necessary precautions to be safe.

I went to pick up the mail at the post office today (I use a post office box for my business address) and when I sorted through the various things, one in particular jumped out at me.

It was a new credit card. But not for me, it was for the person in the next box over.

That’s just an identity theft problem waiting to happen. If the wrong person had found that credit card in their box, they could have taken steps to steal the true owner’s identity (for this card at least) and started charging things up on the card.

Now I realize that the credit card companies take steps to prevent this, such as requiring a authentication phone call from the card owner’s home phone number, but a resourceful identity thief can work around a lot of these types of protection.

I don’t receive a lot of mail so I only check my box every couple of weeks. I really wonder how long that card was sitting there before I found it, and whether the card owner had followed it up at all.

Chances are they hadn’t. Most people pay no attention to the expiry dates on their credit cards. They just know it expires when the new one arrives in the mail.

This is the wrong way to handle it. You should always take note of when your credit cards expire, and make a note to follow up with the credit card company a month or so prior to that date. Find out when you should expect to receive the replacement, and if it doesn’t arrive when expected, call them back and follow it up.

That way, if someone ever grabs your new card before it gets to you, you’ll be able to have the credit card company cancel it and send you a new one.

It may be a bit of an inconvenience, but much less so than having to spend weeks, months or even years fixing your credit and all the other problems that come with identity theft.

If you want to find out more about how to protect yourself from identity theft, take a look at my Online Security Toolkit at http://www.onlinesecuritytoolkit.com