Unraveling identity theft

Unbeknownst to you, someone could be posing as you this very moment. He or she could be using your personal information to open a fraudulent bank account, obtain a credit card or commit other crimes. The Federal Trade Commission says some 3.3 million American consumers were victims of identity theft within the last year. The FTC estimates some 27 million cases of identity theft and account theft have occurred over the past five years.

Consumers need to protect their credit and their identities just as they would any other precious possession. They must keep the information close at hand and reveal sensitive information such as Social Security numbers, bank account numbers, credit card numbers and date of birth only when necessary. E-mails or telephone callers who request such information should raise suspicion since it is unlikely that legitimate businesses or financial institutions that need that type of information would contact customers in this manner.

It helps to keep one's purse, wallet and mail under strict control at all times. In a quarter of all identity theft cases, information was stolen through the mail or the loss of a wallet. About 13 percent said the information was stolen during a purchase or another transaction.

Consumers need to be careful about to whom they give their credit card. They should destroy charge slips and check their accounts annually with the three credit reporting bureaus. They should also carefully scrutinize monthly credit card and bank or credit union statements.

None of these steps is foolproof. But given that business losses resulting from identity and credit theft are ten-fold that of consumers, businesses are working hard to track credit and identity thieves. Some entrepreneurs have begun offering identity theft insurance and other protections to wary consumers.

If you discover that your credit card, account or personal information has been lifted, expect to spend a considerable amount of time unraveling the damage. The FTC says consumers could spend 15 to 60 hours repairing their credit history, depending upon whether existing accounts were pilfered or fraudulent new accounts were opened.

The best course is to disclose information on an as-needed basis and keep a vigilant watch over your credit and other accounts. Many factors may be out of one's control, but consumers needn't play into the hands of practiced credit and identity thieves.