According to the Federal Trade Commission (FTC), identity theft is the fastest growing crime in America. Over the last 5 years, identity thieves committed crimes against some 27 million individuals, or nearly 1 in every 20 adults. Within the past year, identity theft affected more than 10 million individuals and cost consumers and businesses more than $53 billion.  For criminals, identity theft is a relatively low-risk, high-reward endeavor. Thieves are difficult to apprehend — and even when caught, are seldom prosecuted.

For victims, it can take months or years and thousands of dollars to clear their good name and credit record. In the meantime, they may be refused loans, lose job opportunities and even be arrested for crimes they did not commit. That is why it is important to understand what identity theft is, how it happens and how to protect yourself. If you become a victim, your best defense is to recognize it quickly and take immediate action to mitigate its effects. To do so, you must know how to detect identity theft and how to respond if your information is stolen. Do not hesitate to seek appropriate professional advice if legal issues should arise regarding your specific situation.

• Open fraudulent bank or credit card accounts in your name, then write bad checks or incur charges. The overdrawn or delinquent accounts appear on your credit report.
• Change your billing address and incur charges on your existing credit card accounts. Because you never receive the bills, you are unlikely to recognize the problem for some time.
• Use your good credit to secure loans.
• Establish wireless phone service in your name.
• Buy vehicles by taking vehicle loans in your name.
• Use your name and background information to obtain employment.
• Use your name during an arrest for crimes ranging from traffic violations to felonies. If they are released from custody and fail to appear for their court date, an arrest warrant may be issued in your name.

How Does It Occur? and How to identify it.
Identity thieves may use simple or sophisticated means to steal information, such as:

• Taking your wallet.
• Going through trash bins for unshredded credit card and loan applications and papers containing personal information such as SSNs, dates of birth or phone numbers.
• Stealing newly issued credit cards, utility bills, insurance statements, benefits documents or other information from unsecured mailboxes.
• Completing a change of address form to divert your mail to another location.
• "Shoulder surfing" at Automated Teller Machines (ATMs) or telephone booths to capture Personal Identification Numbers (PINs).
• Posing as a loan officer, employer or landlord to obtain your credit report.
• Hacking into your identifying information via the Internet.
• Conducting phone or e-mail scams stating you must provide personal information to claim a prize or update an account.
• Stealing files from your employer, doctor’s office or other businesses that maintain your personal records.
• If it happens to you here is what you do.

Resources:

Information regarding Identity Theft and Fraud can be obtained by contacting the Federal Trade Commission by calling toll free 1-877-IDTHEFT (438-4338).

A copy of the publication "When Bad Things Happen To Your Good Name" is available in text, and PDF formats, or by mail. It is available in both English and Spanish.

Other Trade Commission publications regarding Identity Theft include:

• Identity Crisis... What to do if Your Identity Is Stolen
• Identity Thieves Can Ruin Your Good Name: Tips for Avoiding Identity Theft
• Getting Purse-onal: What to do if Your Wallet or Purse Is Stolen

For a complete list of publications, available from the Federal Trade Commission write to: Best Sellers, Consumer Response Center, Federal Trade Commission, 600 Pennsylvania Ave., NW, Washington, DC 20580; or call toll-free 1-877-FTC-HELP (382-4357), TDD 202-326-2502.