Identity theft is one of the fastest growing crimes in the United States, with as many as 750,000 Americans becoming victims every year according to government estimates. Identity theft is a type of fraud in which a thief uses your personal information to conduct transactions in your name. Criminals may, for example, appropriate your identifying details to open or empty bank accounts, obtain credit cards, or take out loans.

There are steps you can take to reduce the risk of having your personal
details stolen, as well as ways to detect a theft early and minimize the damage done to your credit.

• Monitor your credit reports regularly for any suspicious transactions. Each of the three major credit rating agencies, Experian, Equifax, and TransUnion, are obligated to provide consumers with a free annual credit report upon request. You can access the reports through a website co-sponsored by the agencies, www.annualcreditreport.com. A thorough review of these reports, also known as credit file disclosures, should alert you to any unusual activity.

• Do not provide sensitive data in response to e-mail or telephone solicitations. If you are interested in an offer, take down the caller’s contact information and verify that the company is legitimate before revealing your personal details. You can bar telemarketers from calling you by registering your phone number with the Do Not Call Registry at www.donotcall.gov.

• Filter out unwanted e-mail by installing anti-spam software on your computer. To protect your computer, install firewall and antivirus software programs that include automatic updates. Use a secure browser when conducting online transactions.

• Invest in a mailbox with a lock or rent a P.O. box. Criminals have been known to intercept confidential correspondence and offers from financial services companies. Also, store sensitive information in a secure place in your home.

• Destroy records containing private financial information by tearing or shredding, and do not dispose of credit card receipts or ATM statements in public trash receptacles. Thieves have been known to "dumpster dive" to obtain the details they need to commit fraud.

• Protect your accounts with passwords or access numbers that cannot be easily deduced. Avoid using your Social Security number, your birth date, your phone number, your mother’s maiden name, your children’s names, or a series of consecutive numbers. Never carry your Social Security number or passwords with you.

• Before disclosing identifying information to businesses, employers, or other institutions, ask how the information will be stored and handled.

• Keep close track of your credit and ATM cards. Check your credit card and bank statements carefully for any suspicious purchases or withdrawals.

If you have reason to believe your identity has been stolen and misused, report the theft immediately to the fraud department of one of the three major credit bureaus, asking them to place a "fraud alert" on your file. This alert will prompt creditors to contact you before allowing a new account to be opened in your name or an existing account to be altered. Calling just one bureau is sufficient, as the company you contact will report the problem to the other two bureaus. After placing the fraud alert on your file, you will be entitled to request one free copy of your credit reports from each of the credit agencies, even if you have already received reports that year.

You should also immediately contact creditors or other companies with accounts in your name that may have been affected by the fraud, instructing them to close the accounts immediately. The next step is to file a report of the theft with the police in the community where the crime was committed. Finally, file a complaint with the Federal Trade Commission (FTC), which maintains a database used by police and other law enforcement authorities for identity theft investigations. Be sure to keep written records of your efforts to alert creditors and the appropriate authorities to the theft. $