by Heather Kaefer

Created on: November 15, 2008

Protecting Yourself From Identity Theft

As technology grows and becomes more advanced, unfortunately so does identity theft. Experts estimate that this is the fastest growing crime in the United States, with millions of people reporting each year that they have been the victim of identity theft and fraud. From stolen credit cards to complete identity theft, these types of incidences are becoming more prevalent and are also increasingly more difficult to detect. However, despite the grim reports and statistics, there are still several ways to protect yourself against this damaging and invasive crime.

The Different Types of Identity Theft

Identity theft is defined as a crime in which an impostor illegally obtains personal information in order to impersonate someone for fraudulent purposes. Identity theft can range from the simple stolen or lost wallet to the complicated and widespread crime ring, but one thing remains constant, your sensitive information has been compromised in some way and is now being used illegally for someone else's financial gain.

Your identity could easily be at risk if you've lost or have had your wallet, purse, or mail stolen. While the majority of identity theft cases can be resolved quickly and painlessly if the fraud is detected early enough, others can be rather serious and the ensuing damage can take many years to recover from. The good news is that most creditors and lenders will only hold you responsible for the first $50 of the theft or fraudulent charges to your account.

What to do if Your Identity is Stolen

If you're the victim of identity theft the first step you should take is to gather all of the facts related to the issue. Scour your bank accounts and credit card statements as well as your credit report for clues as to what degree of theft has occurred.

Once you have discovered the fraudulent activity you can send letters disputing the charges and request that your creditors cancel them. You can also request for a security alert to be put on your credit report and if the theft is serious, you should also file a police report.

Protecting Yourself

Prevention is critical when it comes to identity theft. While it isn't healthy to be paranoid, you can still never be too careful when it comes to your personal information and your finances. The best security measures you can take are being cautious and aware of what's going on with your accounts. Check each of your accounts carefully on a regular basis for signs of suspicious activity and invest in a paper shredder. Paper shredders are invaluable for making sure all of those preapproved credit card offers you get in the mail don't end up in the wrong hands. There are many sizes and types to choose from with some as low as $10-15.

And, of course, you should always guard your social security number along with your bank and credit card account numbers. Thieves can even do damage with only a name and birth date.

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