Prevent Identity Theft Fraud

You receive a credit card statement and somehow your balance has ballooned beyond the maximum allowed. But how? You use that card only for travel. Funny, all the charges are in Denver, within a week of your last sales call there. Everything from electronics to nightclubs to furniture have been charged. Purchases you know you never made. You are a victim of identity theft.

Your identity is not safe until you take steps toward protecting your information

And you are among the 1.2 million reported cases in 2008, with experts estimating that this is only the tip of the iceberg. Many identity theft fraud cases either go undetected or unreported.

What's in a Name? More Than You Might Think

Maybe you are well aware of it either through personal experience or through news reports. But what many are unfamiliar with is the almost impossible task of repairing the harm identity theft causes. Or how hard it is to prevent identity theft fraud on you own.

The good news is that you don't have to go it alone, a consumer sheep amongst the identity thief wolves. No, in addition to government measures intended to identify and prosecute culprits under new laws, innovative entrepreneurs have developed monitoring and encryption services to prevent identity theft fraud. Most include credit reporting services as free perks for enrolling in their identity protections services. One such company, LifeLock even offers a million dollar guarantee that they will keep your identity safe. And all for a low monthly fee of only $10!

What Is Identity Theft Fraud?

Basically, identity theft is the use of another person's identifying information, such as credit card, social security, or driver's license numbers, without their permission to commit financial or other frauds. The Federal Trade Commission (FTC) describes identity theft as "a fraud which is committed or attempted using a person's identifying information without lawful authority."

But the Fair and Accurate Credit Transactions Act of 2003 defines identity theft fraud as"a fraud committed using the identifying information of another person."

Common Ways Identity Thieves Get Your Information

Think it's hard for a criminal to get a hold on your private information? Think again! Here are just a few ways the ingenious thieves take identities:

False address change forms - Identity thieves target a neighborhood or an apartment complex and fill out postal service change of address forms. Mail is then forwarded to a P.O. Box or other address where they comb through mail in search of vital, private information like credit card numbers and Social Security numbers.
Common theft - A purse can be a treasure trove of private information from account numbers to PIN numbers to online passwords.
Deception - Identity thieves posing as you or government officials, either in person or over the phone, can sometimes convince clerical people at a doctor's office, department store, or employer to reveal personal information.
Dumpster diving - People's garbage is no longer private property in most, according to the laws in most areas. So, credit card statements, bank statements, Social Security documents, and many other discarded items can provide identity thieves with all they need to commit their fraudulent activities.
Skimming - This is a high tech approach that uses an electronic device to steal credit card information at the point of purchase or online through e-commerce sites.
Phishing - Identity thieves pose as real companies or organizations by way of unsolicited pop-up messages or e-mails, and request personal information such as account number or Social Security numbers. E-mail scams from Africa and Asia claiming the recipient has won a large sum are of this type.

What's an Honest Consumer to Do?

There are many ways to prevent identity theft fraud, but it can happen to anyone, thanks to ever-smarter, tech savvy identity thieves. So, the best way to protect yourself is to enroll with an identity theft prevention company. Choose one that not only offers protection, but remediation and repair of your identity and financial losses should it happen. Companies like LifeLock can guarantee your identity up to $1 million for just $110 a year! That's a mere fraction of what you could lose with the initial fraud. Then add to that the legal costs and personal effort that go into setting things right.

Whatever you decide to do to protect yourself from identity theft fraud, start doing it today - before it's too late.