Here's what you need to know to protect yourself from identity theft.

What's Below:

How can my identity be stolen?
If my identity gets stolen, what can the thief do with my personal information?
Will I be held responsible if a thief uses my identity to commit a crime?
What can I do to protect my identity from theft?
What should I do if I discover that my identity has been stolen?
Are there any laws that specifically prohibit identity theft?

How can my identity be stolen?

Identity theft is a growing national epidemic. The Federal Trade Commission's 2003 report on identity theft called it the fastest growing crime in the nation, with nearly 500,000 victims, costs to businesses of $48 billion, and costs to consumers of nearly $5 billion.

Someone could steal your identity very easily by:

• stealing your wallet
• filling out a change of address form for you and collecting your mail
• snatching your unshredded pre-approved credit slips from the trash
• ordering unauthorized credit reports on you by posing as a potential employer or landlord
• looking over your shoulder at phones and ATM's to gather PIN numbers (sometimes with binoculars or listening devices)
• using phony telemarketing schemes to con you into giving your personal data
• illegally tapping a computer at a business to which you have provided information or by which you have been granted credit (this is often done by dishonest or disgruntled employees), or
• gathering sensitive information and using it as a way to extract revenge (this is usually done by a former friend, lover, roommate, or co-worker -- and it's more common than most people realize).

Perhaps the most frightening (and most thorough) way for a thief to steal someone's identity is by purchasing it at one of the identity search companies that have sprouted on the Internet. For as little as $49.99, these companies will sell you someone's Social Security number (the heart of identity theft), their mother's maiden name (the second most valuable piece of information), their home and employment address, their previous addresses, their credit history, and more.

If my identity gets stolen, what can the thief do with my personal information?

A lot. A thief can cash a check, obtain a loan, open credit accounts and charge them to the max, rent an apartment, buy a car, purchase a cell phone and talk to someone long distance all day, and, worse, commit a serious crime -- all in your name.

Will I be held responsible if a thief uses my identity to commit a crime?

Yes and no. From a monetary standpoint, if a thief uses your credit card in a credit scam, you'll likely be responsible for only $50, or possibly nothing. However, you may spend months hassling with credit agencies, financial institutions, and police departments trying to clear your name and repair the lingering damage. Almost certainly you will have to take time off from work to write letters, make calls, collect evidence, and demand action.

There is also the cost of anxiety and mental suffering to consider. Victims of identity theft report that police agencies are sometimes dismissive or even abusive, credit reporting agencies unresponsive, credit collection agencies hostile, and credit grantors disbelieving.

When victims are actually accused of committing crimes, they are sometimes repeatedly detained by police and have trouble trying to convince law enforcement officials that the person they're holding is not the person they want. See Fact Sheet 17(g): Criminal Identity Theft at http://www.privacyrights.org.

What can I do to protect my identity from theft?

Minimizing the disaster of identity theft depends primarily on your vigilance in guarding your privacy. You've got to guard your personal information diligently. Here are some tips for keeping your private information secure:

• Never carry your Social Security card in your wallet.
• Don't have your Social Security number or your driver's license number pre-printed on your checks.
• Use your initials (instead of your first name) and last name on your checks. If some one takes your checks, they will not know if you sign your checks with just your initials or your full name, but your bank will know.
• If you have a P.O. Box or work address, put that address on your checks instead of your home address. Put your work phone number on your checks instead of your home phone number.
• When writing a check to a credit card account, do not put the complete account number on the "For" line -- just use the last four numbers.
• Install a locking mailbox or a mail slot that goes directly into your house. Send your mail, especially payments, directly from the post office (don't put it in the mailbox for the postal carrier to pick up).
• Order your credit report every year. Promptly respond to any inaccurate information.
• Change your passwords and PIN numbers regularly. Don't use obvious codes such as birthdays, or the name of your spouse, child, or pet. Memorize passwords and PIN numbers and shred any piece of paper on which they are written.
• Diligently review credit card statements, phone, and utility bills. Call if you don't recognize a charge or phone call.
• Always take your credit card receipts, and never throw them away in public.
• Tear up or shred any offers of pre-approved credit cards you don't intend to use and beware of offers from companies you don't recognize. It's easy to create an official-looking and completely phony credit application offering you pre-approved credit if you provide your Social Security number, mother's maiden name (for supposed security reasons), and a signature.
• Don't give personal information over the phone unless absolutely necessary, and don't ever give it unless you initiated the phone call. If someone calls who says they are calling from your bank or credit company, ask for a number to call them back -- and then make sure it's really an official number.
• Beware of anyone asking for your Social Security number. If they refuse to complete a transaction without it, consider taking your business elsewhere.
• Pick up your new checks from the bank instead of having them sent to your home.
• Don't put personal information on a computer home page or personal computer profile.
• If you find your personal information posted somewhere on the Internet, demand that it be removed.