Approximately 43 percent of identity theft cases come from low-tech means like stolen wallets and sensitive information on important documents. This is in stark contrast to what most Americans are accustomed to when they think of identity theft: some anonymous hacker stealing their information right from their computers.

That’s not all, though. Just like it isn’t linked only to computer geniuses, recent studies have shown that identity theft is not dominated by any one group of people. Some identity theft offenders strike from the street, while others are white-collar, and a whole range in between. The only thing that really unites all of these identity thieves is a desire for money. Usually, both street-life and white-collar types are struggling to pay for more than they can afford, and they turn to identity theft to help them accomplish that.

There are a number of different ways that these identity thieves can get a hold of someone’s identity. Some ways can be as low-tech as dumpster diving, or as straightforward as bribing someone who works for a bank, mortgage company, car dealership, or state agency to provide them with the information they seek. Identity thieves also steal mail from apartment houses and businesses to find the information they need. Some even pose as fake employers putting out a job advertisement, and people desperate for a job send in their applications electronically, including dangerous information like social security numbers or account numbers in them.

Usually, identity thieves use this information to take out new credit cards, secure a bank loan, or withdraw money from existing accounts. Whichever method they choose, their actions are likely to ruin the victim’s credit, which is devastating in any economic time, but even more painful when credit is already so tight. A tragic number of identity theft victims also lose the money that was stolen, and it can take months or years to fully recover from a theft.

One of the biggest problems with respect to identity theft is that most Americans are ignorant of how identity theft can happen. It isn’t just leaving private information on the Internet for people to find, or having your computer hacked into. Any documents with your social security number, credit/debit card number, checking or savings account number, and other sensitive information can easily result in an identity theft.

It’s difficult to say why so many Americans are more worried about identity theft coming from a hidden assailant across the Web than from a missing wallet or important document, but some suspect that it’s the way identity theft is portrayed in the media. The unfortunate truth is, a story about some genius teenage hacker from halfway across the world is much more interesting than another story about someone who got his wallet stolen.

Nevertheless, it’s important to be on the lookout not just for virtual theft, but also theft in the form of documents, credit/debit cards, and more. If Americans are more alert about the different ways identity theft can occur, its prevalence can hopefully diminish over time.

Just last year 9 million Americans discovered their identity had been stolen, a number that continues to grow each year. Technology has left us much more vulnerable than in the past, because someone, thousands of miles away, with the right skills can hack into credit bureaus, medical records, banks, credit companies, and your very own computer. Identity theft has racked up more than $20 billion dollars in fraudulent purchases but who pays?

In most cases, you won’t be financially responsible for any money. However, in a few states you may be responsible for the first $50. However, you will be faced with the loss of a great deal of time as you get your identity back and things all squared away, and time is money!

If you suspect that something is going on and that you might be the victim of identity theft, you need to contact the police immediately and file a police report. That’s a key element to eliminate your responsibility for the financial losses.

Next, you need to begin to contact every single creditor and tell them to suspend credit and not to authorize any future purchases on you account. That means department stores, Visa, MasterCard, banks, travel, petro, and financial institutes.

The credit card companies don’t care about your identity theft until it shows up on their doorstep, which is why over 90% of all reporting of identity theft comes from victims rather than the card issuers.

It can be quite sometime before it even comes to your attention. If you ask for your free credit report yearly this might be when you catch it. Or it might be when you find yourself being threatened with legal action for delinquent payments.

You may not be on the hook financially for the purchases but you can expect to spend 600 or more hours of your time to clean up your credit report and get the credit history repair under way. In fact, sometimes it takes years to finally get things straightened out and removed from your credit report.

You’ll need copies of your police report, and you might even need an accountant, and/or lawyer. You’ll be paying them their regular fees to help you straighten out this big mess so you aren’t haunted with bad credit that’s not yours for years.

Chasing down information, calling to try to correct mistakes, and the ongoing repetition of the same thing repeatedly, can become very frustrating, so before your identity becomes stolen do your part to try to reduce your risks. You might also consider the services of one of the many excellent paid services. A little bit of time now will save you a lot of time in the long run.

One of the most important steps consumers can take to limit the possibility of their identity being stolen is making it difficult for would-be thieves to obtain those important account access numbers. Once a thief has a social security number, a birth date and other relevant information, it’s possible to open an account online or even borrow money.

The Wall Street Journal has reported that the fear of identity theft is driving a new industry and changing consumer habits. There are now neighborhood events called Shredder Day that are held. A mobile shredding unit is parked in a central location and people can bring all the paper documents they want to have shredded.

Shredder Day events are sponsored by a number of organizations including the government, local businesses and neighborhood groups. Many times the event is turned into a charity fund raiser too.

People showing up for these shredding events bring varying amounts of documents. Some carry their paperwork in boxes while others pull children’s wagons. They bring bills, advertisements, bank statements, account statements and tons of other papers that households collect. Most houses have a stack of paper sitting somewhere that is a mishmash of personal documents and unimportant mail that will be looked at “one day”.

Identity theft is a serious affair deserving serious attention. One of the reasons people accumulate documents with sensitive information in their homes is simply because it would take too long to shred all the material using one of the small home shredders sold in local discount stores. The mobile shredding trucks carry industrial sized shredders that can quickly turn many pounds of paper into confetti. In fact the large shredding can shred 6,000 pounds of paper in one hour.

Many people have become victims of identity theft because they made it easy for thieves to obtain their information. In one case the thieves broke into a house and stole the middle set of checks from a box of checks. They didn’t take anything else in order to not arouse suspicion. The owners discovered the checks were missing when some of the them were returned for insufficient funds.

It doesn’t take much information for a thief to steal an identity. All that is needed is a victim’s name, address, and social security number.

Of course there is another reason it’s important to shred documents and it has nothing to do with identity theft. Paper that is shredded during Shredder Day using a shredding company’s unit is then recycled into other products like paper towels or napkins.

If your neighborhood does not have a Shredder Day then it’s a good idea to contact your local governmental office responsible for management of the environment and see if

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.

Savvy seekers watch out for well-known red flags. For example, an individual who can never be called or contacted any way other than e-mail may warn of another person already in the picture. Someone who asks for pictures but refuses to send any in return is another unspoken warning, and of course, anyone who asks for “help” with such issues as bills can be a bad sign.

But one danger of online dating that most people don’t anticipate is the possibility of being an unwitting partner in criminal activity by a significant other who flatters, flirts and makes promises.

Jailed For Being Too Trusting?

This month, Pennsylvania-based news source The Daily Item reported the arrest of Joyce Newton, who stands accused of receiving stolen property, identity theft and criminal conspiracy to commit identity theft. Newton says she’s innocent and was only following instructions from a South African online paramour, who asked her to ship certain products to him.

Newton and a man identified by the Item only as “Omega” struck up an online friendship in 2003. It quickly led to more, including gifts from “Omega,” according to Newton. He even sent her daughter Christmas gifts, Newton claims.

He then asked Newton to receive a shipment and forward it to him. When she asked him why he couldn’t simply have the goods shipped directly to him, he claimed it had to do with policies on shipping internationally, Newton says.

But the goods—including computers—were purchased using the stolen identities of a New Jersey couple, according to prosecutors. Newton maintains her innocence, but faces serious charges that could ultimately put her in jail.

Smart Online Dating

Because it may be difficult for adults to meet eligible singles, online dating has been enormously popular since its inception. Online dating can be a good way of making introductions without having to make promises, and of “screening” possible dates ahead of time, making it an appealing and sensible alternative.

However, online “meetings” have their downside: it’s generally easier for an individual to misrepresent him- or herself on the web versus in person, where realtime personalities may differ widely from internet banter.

A somewhat less drastic repercussion of misrepresentation is disappointment (and not asking for a second date). But like “Omega,” some individuals deliberately prey on the lonely, looking for someone they feel they can dupe into doing their dirty work for them.

In addition to tips on avoiding internet dating dangers (which are easily searchable on the web), watch out for the following when looking for love online:

• An individual who wants too much, too soon. Super-rushed relationships may mean someone who’s hiding something, experts say.

• An individual who lives an unreasonable distance away. Yes, relationships can develop of their own accord even between international couples who meet up on the web based on shared interests or membership to a site or forum. But in general, if a person who lives very far away (particularly another country) deliberately and aggressively seeks a relationship, ask yourself why he or she doesn’t want to form a relationship with someone he or she has more access to.

• Someone who asks for special “favors”. If you haven’t met yet or if you’ve only met a handful of times and your paramour asks you to do a “big favor”–especially if it makes you uncomfortable—beware. If the “favor” involves mysterious packages, sending messages to an unknown party or sending money, it’s very possible he or she has been grooming you for just this purpose from the beginning…and you may be unwittingly engaging in criminal activity.

Above all, if anything about the relationship makes you question or gives you an uneasy feeling, be smart: discontinue the relationship. NEVER act overly needy and NEVER allow yourself to fall victim to someone who aggressively pursues you whether you want it or not. This way, you can weed out potential disasters to find someone who really is right for you.

It’s also common knowledge that ID fraud is a crime that started out strong and just seems to be growing from there, with some predictions stating 2009 could be the heaviest ID crime year yet.

The obvious answer would seem to be that authorities should crack down, initiate more investigations and prosecute more ID theft and related crimes.

But could the movement toward government involvement in this across-the-nation crime be impinging on the privacy rights of some people, including those innocent of any wrongdoing?

Consumers Demand Greater Security Against ID Theft

There’s no doubt that identity theft has become a major contender among theft felonies in the U.S.

According to the Identity Theft Resource Center (www.idtheftcenter.org), a staggering 45 data breaches were already reported between Jan. 1 and Feb. 3 of this year. Also according to the ITRC, data breaches increased 47% in 2008 over the previous year.

Savvy consumers have upped their own personal security by watching their accounts more closely, as well as by investing in smart solutions such as credit monitoring systems.

But many individuals believe that the companies they deal with are secure, and that more government involvement can only help rather than hinder.

The issue that has emerged in the wake of tighter laws and federal involvement, however, is that in the eagerness to halt the growing crime of ID theft, innocent individuals are being stripped of their privacy.

A Case in Point

Amalia Cerrillo’s Weld County, CO-based translation and tax services business was unexpectedly searched last October by investigators with the Sherriff’s office for records showing fraudulent Social Security numbers.

Cerrillo’s business caters to individuals who wish to pay their taxes, and some of those workers may be illegals, according to the New York Times article that reported the incident.

In the minds of many, illegal or not, paying one’s taxes is the right thing to do, and there was no way for Cerrillo to know whether any of her clients weren’t actual U.S. citizens. And the question has arisen as to whether the search and seizure of records was more of a veiled attempt at weeding out illegal immigrants than a warranted part of what is known as Operation Numbers Game, spearheaded by local officials.

A different opinion states that illegal immigration is a problem that should be pursued if it is circumstantially discovered through similar busts…and that ID fraud needs to be stopped no matter what the method.

As for Cerrillo, “My clients want to do what any other American does,” she commented, with the intimation being that providing a safe service for those waiting for green cards to pay taxes can only be a boon to the economy, as well as a show of good faith on the part of the payers.

The Government Maintains its Stance

Ironically, stopping immigrants who have not yet become citizens or started the process with a green card could cost the U.S. financially in the long run, experts point out.

In fact, according to IRS data, some $50 billion was paid in taxes by illegals between 1996 and 2003.

Regardless, a felony is a felony, officials pointed out in the New York Times article. “I don’t care whether they are meth addicts or illegal immigrants. What matters most to me is that they are committing felonies through identity theft,” said District Attorney Ken Buck.

Caught in the Crossfire

But what about individuals who are citizens and who worked and paid their taxes legitimately?

The American Civil Liberties Union (ACLU) of Colorado believes innocent individuals’ privacy is being violated by such actions as the search on Cerrillo’s business, with tax records of literally thousands of individuals being combed over by the Sherriff’s Office investigators.

In that light, the ACLU filed a lawsuit in January to just that effect. The ACLU said it believes Weld County officials has violated the privacy of literally thousands.

Cerrillo herself does not face charges.

Should the Government Take Any and All Measures?

The question remains: in the very legitimate cause of derailing identity theft attempts, how far should the government be allowed to go? And whom should it be allowed to search in the spirit of “serving the greater good”?

We’d love to hear from you. Please speak out on either side of this very sensitive and increasingly important issue. We’d love to hear your comments on the Cerrillo case, other similar cases or the matter of government v. personal watchdogging in order to prevent ID theft.

Why Should you Shred?

ID Thieves have dumpster dived for years, finding medical records and patient information outside doctors’ offices and lawyers condominiums. Sometimes the people you entrust with your information are careless. Asking for your records to be returned to you so you can oversee their shredding is not unreasonable.

How to Shred

A cheap shredder simply slices the paper into ribbons, often not completely detaching them from one another. The resulting perforated strips can often be taped back together by enterprising thieves, and personal identifying information extracted. A crosscut shredder, on the other hand, cuts each sheet into hundreds of tiny slivers, rendering it almost impossible to reconstruct.

What to Shred

Items that should always be shredded are old bills, particularly credit card bills and statements, as well as bank statements and payment information for mortgage or vehicle loans. If you simply make a habit of shredding junk mail as well, you won’t have to worry if you are receiving unwanted credit card applications – simply shred the info and toss it, after writing down the company’s information so you can contact them and request that no more offers be mailed to you.

When You Can’t Shred

Of course, you can’t shred the internet, and with so much of today’s commerce taking place online you need to know how to protect yourself. Change passwords often, and use random letter and number combinations. Secure your PC or laptop with the best defenses you can afford, and pay attention to suspicious emails, avoiding clicking any links until you are sure they will cause no harm.

Invest in some form of inexpensive credit alert program, that will notify you instantly if your social security number is used in any way without your approval. Insurance is also available to help minimize your losses if you are the victim of ID theft. Take advantage of these safe guards for your piece of mind.

If you answered “yesterday,” you already know a bit about space faking. The term was coined for individuals assuming someone else’s identity over the internet–typically a well-known character.

Many of us do it on forums or networking sites. When we do, it’s obvious to us that we’re just having a bit of fun, and we make sure others know it, too. But not every space faker you meet on the internet is as obvious…or has motives as innocent.

Warning from Australia has Global Implications

Australian news source The Sydney Morning Herald pointed out in a Jan. 4 news story that space faking could hold identity theft dangers. The Herald revealed that Australian Prime Minister Bob Debus recently commented on the dangers of space faking, a warning that internet users the world over would be wise to heed.

“Clever people may be able to use fake identities to gather clues about your identity, and then go on to commit crime,” Debus said. “All users have to be aware that strangers can access information you put on the internet.”

Where Danger Lurks

But how can something as innocent as putting up a picture of a politician, celebrity or even a well-known novelist lead to identity theft?

Prime Minister Debus pointed out that there’s a fine line between jokingly posing as another individual and assuming an entirely new identity, complete with photos and other personal information.

And the latest trend, where actual users have reported that their identities were “borrowed” by space fakers with no reference to jest, is leading governments to reconsider what constitutes fraud…and how it should be punished.

Government Officials Take Action

In an effort to control the growing problem, the Australian government is seeking to institute new laws regarding misuse of another’s identification.

“In the past it has often been difficult to prove a (sic) fraud,” Prime Minister Debus told the Herald. “(But) these new laws would apply across the country and are punishable by up to five years’ jail.”

Keeping Yourself Safe

It’s possible that other nations will follow Debus’ example, cracking down on internet and real-time fraud laws. But with the sheer number of internet users in a given area, it’s unlikely that the government alone will be able to curtail the numerous internet criminals that lurk on networking and other sites.

Know your “friends”: someone who met someone else who is on your boss’s “friends” list could literally be anyone…and could ultimately be difficult to trace should fraud against your identity occur. Don’t be tempted by competitions to obtain the highest number of network individuals on your site; they could become far more trouble than they’re worth.

Wherever possible, set online photo albums to private. Also be sure not to include extraneous identifying information in your photos. For instance, make sure a photo of your brand-new car doesn’t include a view of your license plate. Don’t show pull away pictures of your home, especially if your house number is visible. And never post pictures that include other individuals unless you’ve gotten their permission first.

Not mentioning your town, elementary and high school or where you work may seem obvious, but this warning bears repeating in a world of ever-increasing “familiarity” on networking sites.

A Little Added Insurance

Despite his or her best efforts, it’s still possible for an individual–any individual–to get hacked and have his or her identity used for fraudulent purposes, experts say. And with the world wide web comprising billions of individuals, your identity could potentially be used for months or even years without you knowing it.

Identity theft insurance is the choice of a growing number of individuals who want to take control of their own identity safety. Such “watchdog” programs offer a variety of alerts based on an individual’s bank account, credit cards and even the use of his or her name via the web.

The moral of the story? Use social networking–but use your head…and a great security program. You’ll maximize your internet experience while maintaining peace of mind.

The truth is that each of these can be a matter of public record in virtually all areas of the U.S. Such data is mean to provide security and legitimate information to a given location’s citizens.

But some states are now arguing that public knowledge is expanding too far in the details of people’s lives, crossing the line from helpful information to an invasion of privacy.

Private Lives

The Des Moines Register reported on Jan. 3 that a panel of lawmakers has proposed blacking out certain personal information from public eyes. Iowa’s Identity Theft Prevention Committee strives to balance rights with privacy in what can only be termed a juggling act at best. Of concern to many Iowa citizens is that executing the information blackout could cost the state millions.

In support of its proposals, the committee pointed to complaints by landowners last year of the site IowaLandOwners.org, where Social Security numbers came up in addition to other information.

The site was shut down, but removing Social Security and other information from all records—an act known as redaction—could cost in excess of $2 million, a hefty tab many argue the state doesn’t have at its disposal.

How Far is Too Far?

The state of Georgia apparently sees the privacy matter a different way. In a move that came up against its own set of detractors, sex offenders are required to reveal certain internet access information to their local sheriffs’ office, including screen names and passwords.

The requirement began Jan. 1.

David Rush of Columbia County insisted, “It’s just another way for (sex offenders) to know that we are looking at them, adding, “As long as they’re obeying the law, they have nothing to worry about.”

But many residents argue with this idea, wondering how far such a revelation of privacy could go and whether it might eventually leak into the non-criminal private sector, with revealing information becoming a matter of public search.

Controversial Rulings

Each ruling is, in its own way, controversial and raises legitimate questions, according to experts. Do criminals have fewer rights in every sector of their activities than non-criminals? If so, where is the line drawn? If highly personal information is the public’s right to know, should revealing requirements also extend to those arrested but not convicted? How about individuals suspected of misdeeds but not yet in legal custody?

And beneath all this: what about the fact that revealing identifying information such as maiden names and Social Security numbers could lead to further criminal activity in the form of identity theft?

Toward the Future

No doubt about it: rulings on public records will remain a juggling act for some time to come and must be taken on a case-by-case basis, law experts say.

Meanwhile, both factions—right-to-know advocates and privacy defenders—must agree to disagree on their own states’ decisions or else form committees and organizations of their own to combat what they see as unfair practices. And it bears noting that that in the end, protection is the final aim of both factions.

“The point of (the Illinois information blackout proposal) is not to restrict access,” pointed out Steve Warnstadt (Sen.-D, Sioux City). “The point is to prevent identity theft and personal information from being disclosed from people who don’t have a legitimate reason to have that information.”

Surprise: our experts note that your first rush of credit card statements after the holidays can offer a unique opportunity to catch up with an identity thief in the making.

By giving each transaction from the month or two before Christmas the once-over, you can find suspicious activity before it gets out of hand…and ruins your credit.

Checking Your Receipts

Smart shoppers kept their paper receipts for the 2008 holiday shopping season. If you have some or all of your shopping receipts, organize them now by credit card used rather than by store. As your credit card statements begin coming in, it’s an easy matter of checking each amount against the total on the receipt.

If you didn’t keep every paper receipt, don’t worry. You can still substantially reduce the chances of a bogus charge slipping past your eyes if you take what information you do have and compare it to your statement.

Request a Credit Report

Unless you’re planning on requiring one for another purpose (such as a loan) within the next 12 months, now is also a good time to order a credit report. (You may obtain one free credit report from each of the three largest credit reporting agencies annually.)

Your credit report will alert you to certain fraudulent transactions. For instance, if you see that the report was requested by institutions you don’t recognize and/or you spot requests that took place during times you weren’t trying to secure a loan, someone may have accessed your information. That person (or people) may have attempted to get credit or goods based on your identity.

Checking your credit report is a good habit for other reasons, too; it will tell you if discharged, outdated debts are still showing (and perhaps hindering your credit score) and whether someone else’s debts have erroneously been placed under your social security number.

If You Detect Foul Play

What if you do discover a fraudulent charge on one of your accounts?

First of all, don’t panic. Some incorrect charges may be a simple matter of computer error. Call the credit card company and explain that the charge isn’t yours. The representative will most likely put through a request to investigate the charge. The same will happen if you call your bank to report a withdrawal or other transaction you can’t account for.

If the charges are due to clerical error, they should be reversed without further concern to you. If, however, your financial institution believes the charges are due to fraud, you’ll need to take some further steps of your own to keep the situation from worsening.

Developing a Plan of Action

First of all, though your credit card company or bank has measures to attempt to detect unusual activity, now that your identity has been breached you’ll need to do your own homework. For the next six months, keep an eagle eye on every transaction you make to compare it with your monthly statements. Experts warn that identity theft often starts with smaller expenditures as the thieves “test the waters,” so to speak. Reduce that possibility by reporting anything unusual—even a $5 purchase at a quick-stop shop you can’t account for.

Begin banking at just one ATM, if possible. The city and state of the ATM machine usually show up on a bank statement; if you have one location for these transactions, a different locale will stand out as you go over your statements.

You may also consider a quality credit monitoring service. These services are personalized to watchdog your accounts with a keener eye than most institutions’ generalized measures will detect.

Get off to a happy and financially secure New Year…and make some good ID protection habits that will last a lifetime!