The moral of this story is that you need to do everything possible to protect yourself from those determined to steal another person’s identity for the purpose of buying goods and services or to obtain credit or loans illegally.

Recently the federal government reported that 10 million people were the victims of identity theft in 2008. Too many consumers wait until they become victims to take a proactive approach to identity theft prevention. They watch for the lock icon on website screens and change their passwords periodically and still find themselves trying to undo damage to their credit as a result of identity theft.

The government wants every consumer to understand their options when it comes to preventing identity theft and online fraud. One of the many issues the government faces when trying to prosecute these kinds of cases is finding the people or organizations that committed the fraud in the first place. With all the benefits gained by having access to the internet, it is also possible for criminals around the world to get access to your account information unless you take special precautions.

Once a criminal has your account information he or she will usually try to use that information to continue fraudulent activity to buy goods or services or to borrow money in your name. There was a case of a woman who had her identity stolen and didn’t know it for months because she seldom used her charge cards.

The thief had stolen her credit information and then changed the mailing address on the account so she didn’t get a statement. By the time she realized what had happened, there were thousands of dollars of debt incurred.

That leads to the first important fact. It is up to consumers to regularly check their loan and credit card accounts for accuracy. If a thief has used an existing account, then you can certainly prevent the thief from opening up any more accounts.

It is possible to place a ‘fraud alert’ on your account so creditors know to use extra caution when approving new credit under your name. The law requires creditors to use “reasonable policies and procedures” when it comes to verifying your identity.

There are two kinds of fraud alerts. The first is a temporary 90 day alert that expires. This alert is used by people who suspect their identity has been or will be stolen or who believe they have exposed themselves to this type of fraud. If you know you have been a victim, you can add a fraud alert to your credit report that will remain for up to 7 years.

It is now also possible to put a credit freeze on your credit report. The credit freeze will stop someone from opening a new account or a line of credit. The freeze can be left in place for up to 7 years also. If you need to create a new account, it’s possible to temporarily lift the freeze so a lender can do a credit check.

Each state has different laws and fees related to these actions, but the general rules are the same across the board. If you want to place fraud alerts or credit freezes, it is recommended you contact one of the 3 major credit agencies – Equifax, Experian or TransUnion. The one you contact will inform the other 2 national credit reporting agencies.

Keeping updated on current laws concerning protecting your identity is important. One thing that is always pointed out is that you must move quickly when you suspect someone is trying to commit fraud using your personal information. The longer you delay, the more likely you will become a victim.

Think of it as putting a great big padlock on your credit information, making it far less likely that criminals will gain access and turn your life upside down by stealing your identity. It is called both a credit lock and a security freeze but the service is the same.

Just recently all three of the major credit agencies provided the ability for individuals to lock their credit reports providing limited access to the information in their credit report. This proactive measure isn’t free. But then can you put a price on your protecting your identification. Anyone that has had their stolen can tell you the cost to restore things to normal can be substantial. Services like TrustedID and Lifelock offer credit lock as part of their services.

Although a credit freeze provides superior protection, nothing is fool proof and this is no different. It cannot halt duplications of ID that’s not related to your credit. So for example, if someone fraudulently creates a drivers license or social security card it can’t do anything to protect you from those fraudulent activities.

It also doesn’t stop all companies from accessing your credit information. Credit companies and lending institutes that you have or have had business with will still have access to your credit report, however new companies won’t be able to access it.

You will continue to get those pre-approved credit card notices in the mail because the credit bureaus can legally continue to sell your name and address to credit card companies. The only way to stop this is to visit http://optoutprescreen.com.

Collection agencies that are acting on behalf of the financial institutes you have existing contracts with, child support agencies, government, or law enforcement will continue to have access to your information.

One draw back to the credit lock is the amount of time it takes to fill out the paperwork plus it requires certified letters. You also have to remove the freeze to allow access and then put it back on. It doesn’t protect your identity to just freeze a couple of reports. It’s all or nothing. So if you put the freeze on and then want to apply for a new car loan you will need to lift the freeze to the credit bureaus and then put it back on. The cost varies but it’s about $10 each time. That compared to the cost of getting your identity back is really peanuts.

You might consider one of the services like Lifelock or TrustedID, which offer it as part of their package. It can save you a bundle and you get other services to increase your protection a little more. And in today’s world of white collar, educated criminals we need all the help we can get to keep our identity safe.

There are many different fraud scams and identity theft scams, so many that they all begin to blur after awhile. It’s important that you can identify the most common online identity theft scams.

The Nigerian fraud scam is one most of use have been exposed to at one time or another. This is the one where a wealthy foreigner emails you to tell you that they need to move millions of dollars out of the country and for your help they’ll pay you a nice percentage as a reward. But before long they’ll be complications, officials to pay off, and so forth, which you will be asked to, pay all the while dangling a large carrot of a sizable fortune. Who falls for this scam are those that are greedy, naive, or suckers. Remember if it sounds too good to be true it is. An awareness of other similar type scams would be wise.

Website spoofing involves a site that has been designed to look like that of a legitimate site like credit card or bank, but really, it has been created by a scammer in an effort to collect personal information from the visitors that come to the site. Once the scammer collects the information it can be used for id theft, to create fraud using credit cards information collected. The message here is be sure that you are on the site you think you are.

Phishing is another way of collecting personal information. This is accomplished by sending out an email that requests a password or personal information, and it indicates it’s urgent. It’s similar to website spoofing but it’s a scam accomplished through email.

Today there is a lot of fraud that also occurs over the telephone requesting personal information such as Sin numbers or passwords. Other scams involve moneymaking schemes, and often the promise of big cash prizes. It will help to remember that if you need to give them money it’s not a prize.

It’s important to remember that you should keep your information secure and not share it with any source that you are unsure of. Online never provide your password or credit card information unless you are sure about the site you are on, never follow a link in an email, and remember if it sounds too good to be true it is.

On a regular basis, you either hear about or read about a woman who has become victim to a male scammer whose only real objective is to get into the woman’s bank account.

Leigh Anne McElhaney was one of those women. Like many women on the single dating scene, they’d just like to meet Mr. Right, fall in love, and start a new life. Within a month of meeting Dave Moore, he was living with her, and he certainly knew how to say just what she wanted to hear.

Then Leigh discovered her bank account short some money. Then things began to unravel and she discovered her new boyfriend hadn’t only stolen from her, but he had also stolen her neighbor’s id and obtained credit cards in her name, which he was paying for with Leigh’s bank account

Florida was seeing a rash of men playing the wealthy young bachelor. They were often pretending to be doctors and they would ask their girlfriends to open up a joint account with them. The women would think nothing of it, since these guys were wealthy, so they would open the account and deposit their money, only to walk off with their money.

Male scammers make their living by seeking out single women so that they can gain access to their finances. You might be surprised to discover just how quickly this happens, and how often it happens. Ladies you need to take some precautions. Here are some tips to keep you financially safe.

Know who it is you are seeing – don’t be satisfied with who he says he is. Find out who he really is. Authenticate him and don’t fall for any joint bank accounts or personal loans.

You also need to be checking your credit reports more often if a new man has come into your life.

Keep your investments, insurance policies, credit card numbers, bank accounts, and PIN’s to yourself.

Don’t discuss your assets – both those you have and those you expect are off limits.

Keep on top of scams going on in especially in your area. These scams tend to have patterns they follow.

Listen to your gut and what it’s telling you. If you’re getting bad vibes, find out if there’s a way you can actually have him checked out. Maybe you are lucky enough to know someone in law enforcement.

Be careful with your financial information online. You might be startled to find out it takes only seconds to create a phony identification on social network sites and someone could be after nothing more than your finances.

Just because the man you are dating is buying you pretty things and spending money on you, doesn’t mean he has any money. You could be a victim in a long list of victims. Most of the men you meet will be honest individuals but it’s that small percentage you need to be on guard to. The bad guys are great talkers and all around good con artists so be wary.

If you become a victim of this crime you will soon find out just how serious it is. Once your identity has been taken it is a long drawn out process to get it back, and this causes serious issues if you want to get financing or a loan for anything. In fact, even once your identity has been recovered you may still be feeling the effects.

Many reports have been done on this phenomenon already, and they all show one thing very clearly. Credit card protection programs don’t often hold up very well when you need them most. Most individuals who have their identity stolen still end up with 20,000 or more dollars in debt remaining after they’ve employed all the “liability protection” programs they can, fixed every issue they can fix, and even offered proof that it was not them making a legitimate use of their card when the charges in question were made. It’s not fair, but it happens every single day, and it could happen to you.

Many people don’t take the threat seriously. You might think, “who would want to be me?! I don’t even want my identity! Why would anyone else?,” but you’d be quite surprised at how desperate some criminals are. Anybody can become a target. Consider all the different ways in which you leave yourself exposed to the threat of identity theft each and every day.

Every time you pay with your card at a restaurant, what happens? The waiter or waitress comes and takes your card, vanishes into the back of the house for an indeterminate period of time, and then comes back. Everything seems okay, but what if it isn’t? They’ve just had access to the your credit card numbers, expiration date and everything. If they asked to see your ID as well, as many do, then they’ve also had access to your birth date, address, and full name. You’ve just exposed yourself.

So, what can you do? The most obvious step to protecting yourself is to not rely on your protection programs to save you. While they can cover some of the expenses you may end up facing, and it’s better to have them than not have them, you can’t count on them for everything; not by a long shot. Instead, you must become educated about the facts regarding identity theft. Learn how to think like an identity thief. Learn the techniques and tactics employed by thieves when they steal your identity and then come up with new ways to subvert those techniques. It’s a dirty game in the world of finance right now, so you have to be on the lookout for yourself. It’s sad to say, but your financial future may well depend on it!

Now that you know the dangers of identity theft, as a credit card holder you can take the crucial steps to avoid it whenever possible. Knowing how and where a thief can get to your private information is best the preventative step in avoiding identity theft.

This article is not directly related to ID theft, but the prevention of fraud is very similar to that of ID theft and  should be beneficial to the majority of you

The Consumer Federation of America, one of the country’s biggest consumer watchdog groups, released a warning recently: the more desperate you are financially, the more vulnerable you are to the predations of unscrupulous white-collar criminals. These are scammers who wont’ hesitate to turn your worry to their cruel advantage. Thus, in the wake of the past year’s economic troubles, more and more Americans are potential victims of fraud.

“In economic hard times, consumers are even more vulnerable to phony promises to help them financially or money-making schemes,” explained CFA leader Susan Grant.

The CFA had just issued a survey that confirmed Grant’s generalization. Locally-based consumer interest groups from throughout America reported that some of consumers’ most consistent complaints of fraud concerned loan providers, car salesmen offering criminal “deals,” and online organizations promising mortgage and debt relief.

One example par excellence of today’s scammers was an organization that recently operated in the state of Georgia. This company enticed its customers, desperately hit by the housing crisis, to pay hundreds of dollars supposedly to save their houses from foreclosure. The company promised to help consumers appraise and refinance their homes, and to help them fill out the complicated paperwork that these processes entailed. In the end, this company performed no services for its customers. In effect, it took their money and ran.

These days, consumers have to be more vigilant than ever to avoid becoming the victims of a scam. How can you tell if you are encountering the smooth talk of a criminal? Here are five ways.

First, take note if that car salesman, broker, or loan agent seems to be exerting undue effort to convince you to buy his or her product, or to enter into agreement with the company that he or she represents. Beware of emotional appeals, or threats. Real companies generally offer compartively simple services or goods, and allow their products to speak for themselves. They are rarely ingratiating or pushy.

Second, be especially concerned about “too good to be true” offers. Do not let your desperation be your guide. If something seems too good to be true, it probably is.

Third, investigate companies that you deem suspicious, or that investments from you. The Better Business Bureau is a useful organization to help you towards this end. If you’re buying something costly over the Internet, demand references, and contact those references. Find out if that online company you’re buying from has an address.

Fourth, it’s helpful to use a credit card to pay online businesses instead of taking money directly out of your bank. That way, if you find that you have paid for a scam, you can convince your credit card company to refund you. This is considerably easier than demanding a refund from your bank. Do pay off your credit card purchase as soon as you can, to avoid being dragged into debt, however.

Finally, leave a paper trail. Ask for specific, written agreements regarding any offer you take up. Make sure to read those agreements, and don’t be afraid to contest a point you aren’t okay with.

For the most part, once an individual throws out his or her trash, there is no legal recourse to it and there can be no expectation of privacy. This means anyone is free to go through a person’s trash once it is in a public area waiting for disposal. As unsettling as rifling through trash may sound, it is one of the top methods by which identity thieves get their hands on prized information.

It is not uncommon for many to assume tearing up a credit card or bank statement will be a deterrent for thieves. However, these types of criminals are a determined bunch that has no problem piecing mail together to find out what they need to know. With names, addresses and account numbers, credit card and bank statements provide solid information for thieves. That is why shredding these documents into small pieces becomes so important. For added security, experts recommend using a paper shredder with a crosscutting motion. This more or less turns a document into confetti, something that stops identity thieves right in their tracks.

Personal paper shredders can run anywhere from thirty dollars on up to more than one hundred dollars. Doctor’s offices, insurance agencies and other businesses that deal with sensitive information on a regular basis would be wise to opt for a large scale professional shredding service. Original documents should always be kept safe; however, records that are outdated or no longer needed should also be shredded rather than tossed out. As ahs been found, thieves are never beyond using outdated information.

Examples of information and documents that should be shredded are [there will be others based on your personal circumstances]:

• Utility bills
• Legal or insurance documents
• Pay stubs
• ATM receipts
• Credit card and bank statements
• Any papers with a Social Security number
• Any papers displaying a maiden name
• Luggage tags
• Pre screened credit card offers
• Medical records
• Copies of transcripts
• Old résumés
• Unlaminated employee identification tags
• Address labels
• Cancelled checks or checks from defunct bank accounts
• Old credit reports
• Extra birth certificate copies
• Investment statements
• Old driver’s licenses
• Old airline tickets
• Old passports and visas
• Transcripts
• Tax forms
• Employment records
• Records displaying PIN numbers
• Documents that contain signatures

Items that offer any kind of personal information should never be left to chance and thrown out without shredding. Even if an identity thief can only gain a small amount of information at a time, it is not uncommon for fraudsters to stake out a target over several weeks. This allows crooks to build a good portfolio of information that they can later use to their advantage.

Unfortunately, it is not always a thief looking for medical treatment that can cause problems. It is not uncommon for doctors with less than scrupulous ethics to fraudulently bill insurance companies in order to seek reimbursement for bogus procedures. With access to thousands of records, doctors can pick patients that only see a doctor once per year and use their information several times before they ever find out.

A new venture for organized crime rings is not only dealing in stolen medical records but stolen billing codes from legitimate doctors’ offices. Fly by night clinics are set up offering free health screenings, which then take a patient’s information and bill an insurance company for any number of phony tests and x rays.

Once an individual is identified as a victim of medical identity theft, he or she also faces the problem of correcting their medical history. Unlike a credit report where one has the opportunity to challenge wrong information and have it removed, this is not the case for medical records. This means an individual can face having incorrect information in their medical history for years to come.

Any time an individual moves or switches doctors it becomes crucial to separate the victim’s data from the fraudster’s. In addition, when the hospital is left to absorb the costs of fraud, the mark still goes on the victim’s credit history. This can end up making getting loans, purchasing an automobile or landing a job extremely difficult.

To cut down on large dollar losses, many hospitals now require picture identification upon checking in for a procedure. The identification is then scanned and kept with the patient’s file. In addition, many medical facilities are gearing up to make the move to digitize patient records and keep them encoded in order to prevent pilfering.

Only certain parts of those records will be available to certain staff members and only a few will have complete access at all. Proponents feel this will greatly help deter medical record theft; however, others feel this will only be a temporary fix until thieves find the means to catch up. Either way, both hospitals and the population at large agree that the current state of the situation is simply unacceptable.

The chance that something of this nature so financially damaging can strike without warning has spurred many into opting for dependable identity theft programs. Like insurance, these services generally offer to cover certain costs that can arise during typical identity theft situations. This can be anything from lawyer’s fees to wages that may be lost during a lengthy credit restoration process. In addition, these services often provide credit monitoring as well, a service that keeps a sharp eye on an individual’s credit report so their time and energy can be focused on the more important aspects of life.

In general, credit card companies and other financial institutions are known to offer their own form of identity theft program as an incentive or perk to their customers; however, there are private companies that dedicate themselves expressly to providing elite identity theft services as well. Though there are hundreds of programs to choose from, the following are examples of the most well known identity theft programs:

Identity Guard- this service offers a basic four level credit monitoring service to match a budget of any size. Users have the opportunity to add on certain products and services and will have access to with their credit score as well.

Features include: Identity Theft Insurance of $20,000 with $250 deductible, fraud resolution and recovery services, free yearly credit reports, quarterly updates on credit monitoring

LifeLock- this system comprises of sending out ninety day fraud alerts to the three main credit bureaus on a regular basis. This prevents an individual having their information used for establishing new credit.

Features include: new fraud alerts every ninety days with Experian, TransUnion, Equifax and ChexSystems, fraud alerts, identity theft insurance of up to $1,000,000; fraud resolution and recovery services, free yearly credit reports, removal from pre approved credit card and junk mail lists, ISO 27001 certified information security standard, identity theft protection for children

Loud Siren- this system also comprises of sending out ninety day fraud alerts to the three main credit bureaus on a regular basis. This prevents an individual having their information used for establishing new credit.

Features include: new fraud alerts every ninety days with Experian, TransUnion and Equifax; fraud alerts, a current audit history to assist with credit disputes, a no deductible Identity Theft Insurance of up to 25,000 dollar, in addition to a $1,000,000 guarantee, fraud resolution and recovery services removal from pre approved credit card and junk mail lists; Loud Siren also inserts their number in a consumer’s credit report to head off potential fraud. Members are then alerted to inquiries in a discreet manner.

Because it has recently become so widespread, many assume identity theft is a whole new phenomenon. However, identity theft has been practiced by the less than scrupulous throughout history. In the early times when personal records were scant, it was not unheard of for identity theft to be perpetrated for the gain of status, authority or even a stately inheritance. Even as the world became more organized, slipping into another identity to gain access to money, goods and benefits was still a rather easy task.

In the years after the death of Jesus Christ it was not uncommon for individuals to go around proclaiming to be the risen savior Himself. Of the many, one individual traveled the area of Arles, France with an attendant whom he called Mary close to the end of the sixth century. The two wandered about performing miracles and gaining much in the way of remuneration in addition to followers. Unfortunately, the two met an ambassador of the local Bishop who killed the perpetrator and chased off his companion.

Paulus Tigrinus is known for duping Pope Boniface IX and many other patriarchal officials into believing he was the Patriarch of Constantinople. He thereby was able to reap a number of benefits and rewards from royals of the highest court before being exposed as a fraud.

Because travel was rare and information did not spread as quickly as it does today, the death of a royal or other aristocrat often allowed fraudsters to impersonate officials in other parts of a country or region. Both Russian and French courts have a long history of identity thieves claiming to be officials of or heirs to the throne with forged documents. So convincing were some, several con men and women were able to convince a number of individuals, both rich and poor, to fund their fake courts and live well before moving off or being found out and punished thusly.

In early 1900, a German man by the name of Wilhelm Voigt pilfered his town’s municipal accounts by donning a discarded captain’s suit and working for months to amass a small brigade of military personnel. He then stormed the Kopenick meeting hall, arrested the mayor and absconded with an amount equal to approximately $300,000.

Among other con jobs, Joseph Weil spent part of his life pretending to be major investor in the Chicago area in the 1920’s. He used the swanky executive offices of banks which were very good for impressing well to do potential investors. He would then convince them to entrust him with large cash deposits for bogus land and business opportunities.

As time and technology evolves, there is a never ending battle to thwart identity thieves as they come up with new ways to work their old tricks. Luckily, the recent victimization of a large number of people has also created a massive amount of awareness. Many are taking steps to keep their information and their futures safe by shredding credit cards statements, never giving personal information over the phone, visiting only secured websites and opting for identity theft protection and credit report monitoring.