Place a fraud alert on your credit reports and review your credit reports. Contact any one of the nationwide consumer reporting companies to place a fraud alert on your credit report. Fraud alerts can help prevent an identity thief from opening any more accounts in your name. The company you call is required to contact the other two, which will place an alert on their versions of your report, too.  Equifax: 1-800-525-6285 Experian: 1-888-EXPERIAN (397-3742) TransUnion: 1-800-680-7289

In addition to placing the fraud alert on your file, the three consumer reporting companies will send you free copies of your credit reports, and, if you ask, they will display only the last four digits of your Social Security number on your credit reports.

Close the accounts that you know, or believe, have been tampered with or opened fraudulently.

Contact the security or fraud department of each company where you know, or believe, accounts have been tampered with or opened fraudulently. Follow up in writing, and include copies (NOT originals) of supporting documents. It's important to notify credit card companies and banks in writing. Send your letters by certified mail, return receipt requested, so you can document what the company received and when. Keep a file of your correspondence and enclosures.

When you open new accounts, use new Personal Identification Numbers (PINs) and passwords. Avoid using easily available information like your mother's maiden name, your birth date, the last four digits of your Social Security number or your phone number, or a series of consecutive numbers.

File a report with your local police or the police in the community where the identity theft took place.

Get a copy of the police report or, at the very least, the number of the report. It can help you deal with creditors who need proof of the crime. If the police are reluctant to take your report, ask to file a "Miscellaneous Incidents" report, or try another jurisdiction, like your state police. You also can check with your state Attorney General's office to find out if state law requires the police to take reports for identity theft. Check the Blue Pages of your telephone directory for the phone number or check www.naag.org for a list of state Attorneys General.

File a complaint with the Federal Trade Commission.

By sharing your identity theft complaint with the FTC, you will provide important information that can help law enforcement officials across the nation track down identity thieves and stop them. The FTC also can refer your complaint to other government agencies and companies for further action, as well as investigate companies for violations of laws that the FTC enforces.

You can file a complaint with the FTC's Identity Theft Hotline, toll-free: 1-877-IDTHEFT (438-4338); TTY: 1-866-653-4261; or write: Identity Theft Clearinghouse, Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580.

According to a report of the President's Identity Theft Task Force, identity theft (a fraud attempted or committed using identifying information of another person without authority), results in billions of dollars in losses each year to individuals and businesses.

The final rules require each financial institution and creditor that holds any consumer account, or other account for which there is a reasonably foreseeable risk of identity theft, to develop and implement an Identity Theft Prevention Program for combating identity theft in connection with new and existing accounts. The Program must include reasonable policies and procedures for detecting, preventing, and mitigating identity theft and enable a financial institution or creditor to:

Identify relevant patterns, practices, and specific forms of activity that are "red flags" signaling possible identity theft and incorporate those red flags into the Program;

Detect red flags that have been incorporated into the Program;

Respond appropriately to any red flags that are detected to prevent and mitigate identity theft; and

Ensure the Program is updated periodically to reflect changes in risks from identity theft.

The agencies also issued guidelines to assist financial institutions and creditors in developing and implementing a Program, including a supplement that provides examples of red flags.

The final rules also require credit and debit card issuers to develop policies and procedures to assess the validity of a request for a change of address that is followed closely by a request for an additional or replacement card. In addition, the final rules require users of consumer reports to develop reasonable policies and procedures to apply when they receive a notice of address discrepancy from a consumer reporting agency.

The final rule-making is issued by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Federal Trade Commission, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision. The final rules are effective on January 1, 2008. Covered financial institutions and creditors must comply with the rules by November 1, 2008.

The government is doing its best to combat identity theft.  Keeping one step ahead of the thieves by checking your free credit report will ensure that no one has stolen your identity.  The government is doing what it can, but you are the first line of identity theft defense.

The crime takes many forms. Identity thieves may rent an apartment, obtain a credit card, or establish a telephone account in your name. You may not find out about the theft until you review your credit report or a credit card statement and notice charges you didn't make—or until you"re contacted by a debt collector.

Identity theft is serious. While some identity theft victims can resolve their problems quickly, others spend hundreds of dollars and many days repairing damage to their good name and credit record.  Some consumers victimized by identity theft may lose out on job opportunities, or be denied loans for education, housing or cars because of negative information on their credit reports. In rare cases, they may even be arrested for crimes they did not commit.

How do thieves steal an identity?

Identity theft starts with the misuse of your personally identifying information such as your name and Social Security number, credit card numbers, or other financial account information. For identity thieves, this information is as good as gold.

Skilled identity thieves may use a variety of methods to get hold of your information, including:

1. Dumpster Diving. They rummage through trash looking for bills or other paper with your personal information on it.  2. Skimming. They steal credit/debit card numbers by using a special storage device when processing your card.  3. Phishing. They pretend to be financial institutions or companies and send spam or pop-up messages to get you to reveal your personal information.  4. Changing Your Address. They divert your billing statements to another location by completing a change of address form.  5. Old-Fashioned Stealing. They steal wallets and purses; mail, including bank and credit card statements; pre-approved credit offers; and new checks or tax information. They steal personnel records, or bribe employees who have access.  6. Pretexting.  They use false pretenses to obtain your personal information from financial institutions, telephone companies, and other sources.

What do thieves do with a stolen identity?

Once they have your personal information, identity thieves use it in a variety of ways.

Credit card fraud:  • They may open new credit card accounts in your name. When they use the cards and don't pay the bills, the delinquent accounts appear on your credit report.  • They may change the billing address on your credit card so that you no longer receive bills, and then run up charges on your account. Because your bills are now sent to a different address, it may be some time before you realize there's a problem.

Phone or utilities fraud:  • They may open a new phone or wireless account in your name, or run up charges on your existing account.  • They may use your name to get utility services like electricity, heating, or cable TV.

Bank/finance fraud:  • They may create counterfeit checks using your name or account number.  • They may open a bank account in your name and write bad checks.  • They may clone your ATM or debit card and make electronic withdrawals your name, draining your accounts.  • They may take out a loan in your name.

Government documents fraud:  • They may get a driver's license or official ID card issued in your name but with their picture.  • They may use your name and Social Security number to get government benefits.  • They may file a fraudulent tax return using your information.

Other fraud:  • They may get a job using your Social Security number.  • They may rent a house or get medical services using your name.  • They may give your personal information to police during an arrest. If they don't show up for their court date, a warrant for arrest is issued in your name.

How can you find out if your identity was stolen?

The best way to find out is to monitor your accounts and bank statements each month, and check your credit report on a regular basis. If you check your credit report regularly, you may be able to limit the damage caused by identity theft. For more information, visit the Detect Identity Theft section.

Unfortunately, many consumers learn that their identity has been stolen after some damage has been done. • You may find out when bill collection agencies contact you for overdue debts you never incurred.  • You may find out when you apply for a mortgage or car loan and learn that problems with your credit history are holding up the loan.  • You may find out when you get something in the mail about an apartment you never rented, a house you never bought, or a job you never held.

This is the time of year when we are all shopping for gifts for family or customers, and the last thing we need is for our bank or credit cards account to be hindered.  That is exactly what these "cyber grifters" are counting on, and unfortunately some of us are tempted to follow the instructions sent to investigate.

First and foremost, DON'T FOLLOW THE INSTRUCTIONS IN THE EMAIL!  If you think there might be a problem, access the account in question as you normally do on your PC and not with the link supplied in the phony email.

I've had some very authentic looking email supposedly from banks, that even went so far as to copy the colors of the bank logo and stationery style.  But, don't fall for the scam.  In fact, don't even open the email, because many are just set to loose a virus program on your computer by being opened.  Simply forward the suspicious email to the 'spoof email" address supplied by your bank, or credit card company.

Nearly 10 million Americans fell prey to identity theft last year, costing businesses and individuals billions of dollars.  Here are some other tips to help you:

1. Understand debit card dangers:  Greater liability than credit cards.  When it comes to fraud, debit cards carry much greater personal liability than credit cards, depending on how quickly you report the loss of the card.  If you fail to report unauthorized use within 60 days of receiving your bank statements, you could lose all the money in the account and be held responsible for the amount of money that has been tapped from your line of credit. 2. Rethink check writing:  That little slip of paper has way too much information. Some experts advise against check writing because it gives away your address, bank account number, signature and license number to complete strangers.  On top of that, there's no federal legislation to limit your liability for forged checks (each state has its own set of rules).  Experts advise that you look into automating your bill paying. 3. Secure your mail:  Your mailbox is a goldmine of information.  Between bank statement, bills, and all those pre-approved credit card offers, your mailbox is loaded with personal data which identity thieves can use to easily apply for a credit card in your name.  Unless you diligently check your credit report, you may never even know about it.  One way to avoid this is to have your mailbox under lock and key, but most of us in Santa Clarita have our mailboxes at the curb in front of our house and the postman frowns on carrying dozens and dozens of keys around.  The other solution is to have a rented mailbox, or to foil 'dumpster-diving" thieves by buying a shredder and destroy documents before discarding. 4. Go virtual:  For shopping online, there are 'virtual" card numbers.  These are randomly generated credit card numbers that are disposable and that on-line shoppers use once and throw away.  It's linked directly to your real credit card account so purchases show up on your monthly bill.  The service is easy to use – and it's FREE!  All you need to do is register with companies offering the virtual card, and they are MBNA, Discover, and Citigroup. 5. Create an emergency identity kit:  Would you know how to contact your credit card company in an emergency?  Create an emergency kit that contains: your account number, expiration date, issuing company name, and emergency contact number for each card you own.  While you're at it, make copies of your driver's license, social security card, birth certificate and passport and store them in a locked box or file cabinet, or a safe deposit box.  I like the safe deposit box best, because this gives you protection in the event of a catastrophe such as fire, earthquake, etc.

This may all seem like a lot of unnecessary work, but if you're ever the victim of identity theft – even just once – you'll realize that it's well worth the effort.

Many of us forget that were it not for what we carry in our wallets or in our purses, we're all John and Jane Doe's if we can't speak due to injury or are unaccompanied by someone who knows us.  How much less stressful is it to know that in a bank box, no matter where you are, there are items that can verify your identity.  Better to be safe, than sorry!