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.