As you prepare for the holiday do identity thieves.

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Identity theft sucks!

And it will suck your time, money, business and energy right out from under you if you are not on guard and aware of the various forms of fraud that one can all too easily fall victim to. The holiday season is peak season for crime and most especially -identity theft.

USA Today reports today...Theft of personal data more than triples this year

Thieves are systematically pilfering sensitive personal data from companies, government agencies, colleges and hospitals like never before. More than 162 million records have been reported lost or stolen in 2007, triple the 49.7 million that went missing in 2006, according to USA TODAY's analysis of data losses reported over the past two years. See More

What is identity theft?

Identity theft occurs when someone uses your personally identifying information, like your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes.

The FTC estimates that as many as 9 million Americans have their identities stolen each year. In fact, you or someone you know may have experienced some form of identity theft.

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 months or years 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 and pay higher interest rates and insurance premiums because of negative information on their credit reports. 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? They often sell it to mulitple thieves.

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.
•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.

What can you do to help fight identity theft?

A great deal.

Awareness is an effective weapon against many forms identity theft. Be aware of how information is stolen and what you can do to protect yours, monitor your personal information to uncover any problems quickly, and know what to do when you suspect your identity has been stolen. Your time, energy and name are valuable to you -and thieves. Armed with the knowledge of how to protect yourself and take action, you can make identity thieves' jobs much more difficult! Knowledge is power.

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