Identity theft happens when someone uses information from your personal identification documents or any other source in order to impersonate you. Usually the information is used to perpetrate either financial fraud or some other crimes. Below are the most common forms of identity theft:

Financial Fraud

The average identity theft victims may be the target of:

• Debit & ATM Fraud
• Checking Account Fraud
• Savings Account Fraud
• Credit Card Fraud
• Store Credit Account Fraud
• Loan Account Fraud
• Mortgage Account Fraud

Less often but most devastating can be fraud related to brokerage accounts. Identity thieves often change your address and then file a bankruptcy in your name without you ever knowing about it.

Identity Cloning

This is when someone steals your identity, possibly moves you to another state or town and acts out their lives as if they are you. They use your good credit rating to get secure financing for everything including homes, cars and clothing.

Preventing Identity Theft & Credit Fraud

Preventing identity theft and credit fraud is something everyone needs to be cognizant of - especially with the rapid rise in ID theft cases. This increase is due to the relatively low-risk, high-reward gamble it offers criminals. All it takes is your Social Security number and a few other easy-to-obtain pieces of data and they can assume your identity and commit credit fraud.

For victims it can be a costly and time draining ordeal, causing great emotional and financial distress. Here are some tips for preventing identity theft:

Just Say No!

Tell merchants no if they ask for your credit card number on your personal check. Not only is it illegal in some states, but it leaves consumers vulnerable to identity theft. Never write your Social Security number on checks either, or worse, ask to have it printed on your checks. If a thief gets your check with your Social Security number you can be in deep trouble.

Monitor Your Credit

Monitor your credit report on a regular basis. If you find errors like changes of address you did not initiate or new accounts you did not open you should be very concerned, make sure you review your credit at least annually before things get out of hand. It's also important to watch your monthly billing statements for any suspicious activity or items you didn't order.

Protect Your License Number

Don't have your driver's license number printed on your checks. And when it's time to order new checks request your driver's license number be removed if it was previously imprinted on your checks.

Pre-Approved Credit Offers

Shred all pre-approved credit card offers you get in the mail. Once you decide not to accept a pre-approved credit offer, shred it before you forget and it gets thrown out with the other junk mail. These pre-approved credit offers can easily be retrieved from your garbage by someone wanting to assume your identity.

Opt Out

Don't want the constant flood of pre-approved offers, call 1-888-5 OPT OUT (1-888-567-8688) to be removed from the lists of all three major credit bureaus.

Secure Your Mail

Make sure no-one but you and your mail carrier have access to your mail box. Be sure it is securely locked or located where others can't get into it.

Shred It!

Shred everything containing personal information that you wish to discard old or cancelled checks, statements, bills, insurance information, etc. Make sure nothing gets in your trash that could help someone steal your identity.

Identity Theft Services

If you’re worried about identity theft you may want to consider an identity theft service such as Liberty Identity Theft Service – a leading provider of identity theft crisis resolution, education and defense services. For more information about this service click here.

For more information take a few moments to read this brochure*, or check out the Federal Trade Commission's Identity Theft home page.

If you think your credit may have been tampered with, you can get a free annual copy of your credit report at www.annualcreditreport.com.

*This document is in Portable Document Format (pdf) which can be read by Acrobat Reader. If you do not have the Acrobat Reader software or plug-in for your browser to view online, you can Get Acrobat now.

This article on preventing identity theft is offered for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues on this topic.