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       IDENTITY THEFT DECLINES 11.2% TO $45.3 BILLION IN 2007

      IDENTITY THEFT AND WHAT YOU CAN DO TO PREVENT

      IDENTITY THEFT USING THE JURY DUTY SCAM

      IDENTITY THEFT: THE BUST-OUT SCHEME

       BEFORE TRANSFERRING A CREDIT CARD BALANCE

      TAKE STEPS TO PROTECT YOURSELF

    BEFORE TRANSFERRING A CREDIT CARD BALANCE

       MORTGAGE FRAUD INCREASES 800 PERCENT IN 2007

     THEFT OF PERSONAL DATA REACHES UNPRECEDENTED LEVEL IN 2007

     STATE LEGISLATORS FOCUS ON IDENTITY THEFT

     IDENTITY THEFT AND WHAT YOU CAN DO TO PREVENT

    STATES PUSH LEGISLATION TO COMBAT IDENTITY THEFT

    IDENTITY THEFT USING THE JURY DUTY SCAM

    IDENTITY THEFT: THE BUST-OUT SCHEME

IDENTITY THEFT LOSSES DECLINE BY 12 PERCENT IN 2006

FTC LISTS IDENTITY THEFT AS #1 FOR THE SIXTH STRAIGHT YEAR

IDENTITY THEFTS COSTS CONSUMERS $57 BILLION IN 2005

TWO INDICTED IN SEVEN MILLION DOLLAR-PLUS CREDIT CARD FRAUD

CREDIT CARDS’ IMPROVE E-SECURITY

MAN INDICTED FOR CREDIT CARD AND FALSE IDENTIFICATION FRAUD

MAN SENTENCED TO FOUR YEARS FOR ID THEFT

HOW TO AVOID BEING A VICTIM OF CHECK WASHING

CREDIT CARD OFFERS RESULT IN RECORD LOW RESPONSE RATES

Identity theft fraud totaled $45.3 billion in 2007, an 11.2% decrease from the $51 billion in 2006 according to the Fourth Annual Study by Javelin Strategy & Research. The decrease was attributed to an increase in consumer awareness and improved security procedures implemented by banks and retailers to their in-store and online security systems, which resulted in frauds utilizing the Internet, phone and mail scams to obtain confidential information on individuals. The average loss fell 6 percent to $5,574 from $5,920. According to the study, 8.1 million adult Americans, or one in 28, learned last year that criminals committed fraud with personal data such as credit card or Social Security numbers. That's down from 8.4 million in 2006 and 10.1 million in 2003.

One of the largest security breaches was reported by discount retailer TJX Companies, which owns T.J. Maxx and Marshalls and resulted in the theft of data from 45.7 million credit and debit cards last year. Fraud from in-store transactions remains the most common form of theft, theft by phone or mail soared to 40 percent of fraud cases from 3 percent. Phone fraud often involved criminals' use of Voice over Internet Protocol, or VoIP, to make very inexpensive calls from anywhere in the world to defraud victims. Geographically, fraud risk was lowest in New England and the Plains states, and highest in California, Illinois, Idaho, West Virginia and Delaware, according to the study.

Adults between the ages of 25 and 34, African-Americans and people who make more than $100,000 were among the most common victims. Younger consumers between 18 and 24-years-old had been among the most victimized groups in 2006, but improved in 2007 resulting from putting more fraud alerts on credit reports. There also was a 21 percent decline to $14.7 billion in new account fraud, where criminals use stolen data to open accounts. New account fraud is the most difficult to detect, the most distressing to victims, and takes the longest to resolve. Fraud in existing accounts fell 6 percent to $30.6 billion. The study also stated that consumers on average spent $691 to clear up a fraud, up from $554 a year earlier although more than half spent nothing.

Consumers can reduce the risk of fraud in many ways, such as:

The study was based on phone interviews last fall with 5,075 people, including 445 who said they were fraud victims and was sponsored by Wells Fargo & Co, credit card network Visa Inc, and CheckFree, a maker of bill-paying software owned by Fiserv Inc.

Identity theft is often a crime of opportunity. To reduce your chances of becoming a victim of identity theft, we recommend the following:

1. Check financial statements promptly. Always review your monthly banking, brokerage, and credit-card statements for accuracy. Report problems immediately.
2. Watch your credit. DO NOT purchase credit reports as you can receive them free (once from each the three credit bureaus annually) by logging in at www.annualcreditreport.com. It is the only official site to provide free reports and it is safe to type in your Social Security number to the site. I recommend that you order your free copy every 4 months alternating the three credit bureaus. Examined your credit reports for errors and report errors promptly and in writing.
3. Opt Out. I strongly recommend that you Opt out of pre-approved credit card offers by calling the Credit Reporting Industry Pre-Screening Opt-Out Number at 888-567-8688 or on the web at OptOutPrescreen.com. Consider "opting out" of information sharing at your financial institutions. (Check your company's financial privacy notice, which is mailed annually and usually posted on company Web sites, to find out how.)
4. Safeguard your Information. Never disclose your Social Security number, birth date, or mother's maiden name unless you initiated the transaction. On paper documents, don't include such data unless required to do so on an official application for employment, financing, or insurance. (Ask employers and financial institutions to offer alternatives.) Never put such information on personal Web pages or publicly posted résumés or directories. Safeguard driver's license, passport and other government ID at all times. Lock desks, cabinets, and safes containing such information in your office and home. Don't carry ID that contains sensitive data like your Social Security number unless absolutely necessary.
5. Shred and destroy. Before throwing out files containing Social Security numbers, account numbers, and birth dates, shred them with a cross-cut shredder. Destroy CDs or floppy disks containing sensitive data by shredding, cutting, or breaking them. Use hard-drive shredding software or remove and destroy your hard drive before discarding a computer. Just deleting files isn't enough.
6. Guard mail. Consider using a locked mailbox or slot to receive mail at home. Deposit mail in postal mailboxes or in the post office to discourage mail theft.
7. Cordless Phones. Don't use cordless phones to conduct sensitive financial or medical business, because eavesdroppers on other phones and those using eavesdropping equipment may be able to overhear your conversations.
8. Verify Web sites. Check privacy and security policies of Web sites before making purchases, trading stocks, or banking online. A professional-looking Web site is no guarantee of security. Don't respond to unsolicited e-mail requests for personal information. Log off your browser after using public Internet-access computers in libraries, Internet cafes, etc. Don't pay bills, bank, or conduct other financial transactions on public computers. If you have a high-speed Internet connection at home, unplug the computer's cable or phone line when you are not using it to discourage hackers.
9. Utilize Fire Walls and Virus Protection. Install firewalls and virus-detection software on your home computers and set them up to automatically update the software to discourage hackers. Use hard-drive shredding software or remove and destroy hard drives before discarding a personal computer.
10. Protect your password. Consider password-protecting all your bank and brokerage accounts. Create passwords at least eight characters long. When prompted for a password, give an incorrect one first. A phishing site will accept it; a legitimate one won't.
11. Emails. Never directly respond to e-mail asking for personal information. If you doubt a message's authenticity, verify it by contacting the institution itself. Forward the fraudulent spam to the Federal Trade Commission at spam@uce.gov and the Anti-Phishing Working Group at reportphishing@antiphishing.org.
12. Avoid spoofed sites. By entering Web addresses directly into the browser yourself or by using bookmarks you create. A secure Web site gives you more assurance. To see whether a site is secure, look at the bottom of your browser's window for an icon of an unbroken key or a lock that's closed, golden, or glowing. Double-click on the lock to display the site's certificate, and make sure it matches the company you think you're connected to.

If you become a victim,

1. Report the crime immediately. Filing a report with your local police and keeping a copy yourself will make it easier to prove your case to creditors and merchants and may help you build a lawsuit if you have to sue to recover losses or clear your name later. In some states, you may have to report the incident in the jurisdiction where the fraud occurred, such as the location of the store where the thief charged merchandise to your account, even if that is not where you live.
2. File a complaint. The Federal Trade Commission investigates interstate and Internet fraud. Download a copy of an ID theft affidavit from the FTC's Web site to help you notify merchants, financial institutions and credit bureaus.
3. Contact credit-reporting agencies. Use the FTC ID-theft affidavit mentioned above to help you do this. Call TransUnion, 800-680-7289; Experian, 888-397-3742; and Equifax, 800-525-6285, to get addresses and instructions. Ask to have your account flagged with a fraud alert, which asks merchants not to grant new credit without your explicit approval. Keep copies of all your correspondence.
4. Notify banks, creditors, and utilities. Close accounts that have been used by thieves. Choose new passwords and PINs for all your accounts and don't use your mother's maiden name as a password. Notify merchants that issued credit or accepted bad checks in your name; use your police report or FTC affidavit as backup.

Identity theft, the fraudulent use of your name and identifying data by someone else to obtain credit, merchandise, or services claimed seven million victims in the U.S. last year, according to a recent survey by Privacy & American Business, a publication of the Center for Social & Legal Research, a nonpartisan think tank. Victims typically lose $800 and spend two years clearing their name. It is an equal-opportunity crime, affecting victims of all races, incomes, and ages. Overall, more than 33 million Americans, about 1 in 6 adults, say they have had their identities used by someone else sometime since 1990, and the Department of Justice says ID theft is the nation’s fastest-growing financial crime. Many victims don’t learn of the crime for several months because thieves often shield their actions by using a different address when they open new accounts in the victim’s name. Financial institutions and other businesses should use encryption and better systems to prevent and detect computer hackers and to control access by insiders, computer security and privacy experts say.

Identity fraud has become a major element in crimes ranging from international drug trafficking to terrorism; Al Qaeda operatives in Spain used stolen credit and telephone cards and false passports and travel documents to open bank accounts and pay for travel and communication abroad, an FBI agent testified before a congressional subcommittee last year. Identity theft is a problem largely because financial institutions, merchants, credit bureaus, and the government do not adequately safeguard vast databases and other records containing consumers’ sensitive information, making it relatively easy for thieves, often insiders to access these data. ID theft usually occurs not because of the carelessness of the individual consumer, but because of the carelessness or vulnerability of the organizations they deal with, including the government. All that ID thieves really need to open credit or bank accounts under your name or to drain your existing accounts are three pieces of information: your full name, Social Security number, and date of birth.

Every day, some 27,000 Americans have their identities stolen. In about a third of those cases, crooks use the information to open new accounts in their victim’s name. Thirty-six states and the District of Columbia have a new tool promoted by Consumers Union and other consumer groups to stymie thieves: security-freeze laws that allow consumers

to protect their credit record from predators. A freeze essentially locks up the information needed to conduct a credit check, and creditors won’t open new accounts without that check. An imposter will be foiled, but you can lift the freeze using a PIN if you want to open new accounts. A security freeze provides much stronger protection than the fraud alert that is currently available under federal law. An alert placed on a credit file amounts to a caution flag that is supposed to trigger added scrutiny by creditors. Twenty-eight of the states that have security-freeze laws make this safeguard available to everyone, whether or not he or she has been a victim of ID theft. Most states that offer a security freeze make it free to identity-theft victims and some provide it at no charge to seniors. For those consumers who want the freeze but aren’t victims of ID theft, most state security-freeze laws allow each of the three major credit bureaus to charge $5 to $10 to initiate the protection or to lift the freeze.

Credit bureaus have a financial incentive to make it easy for potential creditors to check credit reports and make a lot of money from selling to consumers more expensive credit-monitoring services, which are unnecessary, especially when a security freeze is in place. Most states allow consumers to request this protection by e-mail or by phone, and require credit bureaus to lift the freeze within 15 minutes of a request.

Visa and MasterCard now require merchants and big banks that issue their branded cards to use secure Internet technology. They’re using new identity verification and authentication systems for controlling transactions among customers, merchants, and banks. In addition, both now require member banks and merchants to encrypt personal data stored on their servers.

The IC3 (Internet Crime Complaint Center), a partnership between the FBI and the NW3C (National White Collar Crime Center) issued a report for the year 2006. It's brimming with interesting statistics, including the Top 10 IC3 Complaint Categories:

The cost of your stolen identity on the black market.

Too many people have access to the documents. Few managers should have access, and records should be kept under lock and key. Companies that are frequent targets for identity fraud, including cell-phone services, retailers that offer instant credit, and large banks, are investing heavily in systems designed to detect fraudulent credit applications. ID Analytics has designed one that assigns a score like a credit score to a credit application. A high score means the identity of the applicant is probably stolen or fake. The software has detected fraud in 7.5 percent of credit applications. Under another system, a Social Security number that doesn’t correspond to the birth year of the applicant might trigger a warning. But too many merchants still don’t check. Systems that monitor an organization’s connections to the Internet and that prevent and detect hacking are a must to deter ID thieves and virus attacks.

To address this growing problem of Identity Theft, Senators Patrick Leahy (D-VT) and Arlen Specter (R-PA) recently introduced a bill, the Identity Theft Enforcement and Restitution Act, that gives victims the chance to seek restitution of costs incurred if anyone is convicted. The bill also expands the power of law enforcement agencies to deal with cases of identity theft.

While it increases identity-theft penalties, the crime is so easy, and the risk of getting caught is so low, that this is only part of the solution. The real solution to identity theft is to impose duties on companies and government agencies to protect information. But data protection is only half the equation; consumers must be educated to avoid falling for phishing scams. One issue is that because of a shortage of resources in law enforcement, only about 10 percent of identity-theft cases are investigated. Unless you are a victim of some major cybercrime, you really are not going to be able to tap into this restitution.

California leads other states and the federal government with its identity-theft laws. Consumers Union’s West Coast Regional Office helped push for many of them. Many consumer-rights, privacy-rights, and law-enforcement advocates say they want to see other states copy the laws, which do the following:

• Require that consumers be notified of security breaches that could compromise their personal data, including Social Security numbers.

• Entitle fraud victims to a free credit report every month for a year after they notify credit-reporting agencies that they have been victims of fraud.

• Require individuals requesting birth or death records to provide proof of identity and to sign a form indicating the reason for the request.

• Allow customers to freeze their credit reports if they have been victims of fraud. This requires credit-reporting agencies to get permission from consumers before disseminating their credit reports to lenders. Also, state law requires credit issuers to honor fraud alerts on files and to deny new credit requests until the consumer is notified.

Texas enacted a similar credit-freeze law, which Consumers Union supported. Proponents say such laws go a long way toward preventing identity theft and helping victims to limit the damage. In addition, more than 20 bills concerning identity theft are pending in Congress.

• Require law-enforcement officials to take reports of identity theft in the jurisdiction where the victim resides.

• Limit the use of Social Security numbers.

State Security Freeze Laws

Identity theft is one of the fastest growing financial crimes. Nearly 10 million Americans fall victim each year. The Identity Theft Resource Center reported in 2005, on average, an ID theft victim of new account and other fraud spent 60 hours resolving problems brought on by ID theft, those victims of existing accounts spent an average of 15 hours resolving problems. A Federal Trade Commission study found that identity theft also costs U.S. businesses nearly $48 billion annually, and consumers an additional $5 billion per year.

A security freeze lets consumers stop thieves from getting credit in their names. A security freeze locks, or freezes, access to the consumer credit report and credit score. Without this information, a business will not issue new credit to a thief. When the consumer wants to get new credit, he or she uses a PIN to unlock access to the credit file. These states give consumers this important weapon to prevent identity theft:

Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Hawaii, Indiana, Illinois, Kansas, Kentucky, Louisiana, Maine, Maryland, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, New York, Oklahoma, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Utah, Vermont, Washington, West Virginia, Wisconsin, Wyoming

Arkansas
Applies to identity theft victims with a valid investigative report, an incident report, or a complaint with a law enforcement agency.
Fee of $10 to place, temporary lift or remove.
Effective as of January 1, 2008
For more information on statute (House Bill 2215): http://www.arkleg.state.ar.us/ftproot/bills/2007/public/HB2215.pdf
For instructions on how to place a security freeze in Arkansas, see: www.consumersunion.org/pdf/security/securityAR.pdf

California
Applies to all consumers
Effective as of Jan. 1, 2003, subsequently amended to cap fees on non-ID theft victims
No fee for victims to place the freeze, others pay up to $10 per freeze
Caps fee to lift freeze at $10 for temporary lifting for a time, $12 for temporary
lift for one creditor California Civil Code sections 1785.11.2-1785.11.6. see:
http://www.leginfo.ca.gov/cgi-bin/waisgate?WAISdocID=14008017861+0+0+0&WAISaction=retrieve
How to place your security freeze in California and a link to the
text of the California statute, see: http://www.privacyprotection.ca.gov/sheets/cis10securityfreeze.htm

Colorado
Applies to all consumers
Fees: No fee for first freeze; $10 to place a second freeze, $10 to lift, $12 for temporarily lift for one creditor
Effective as of July 1, 2006
Text of Colorado Revised Statutes 12-14.3-102 et seq, (SB 05-137): http://www.leg.state.co.us/Clics2005a/csl.nsf/fsbillcont3/349195C4D17F1A7787256F8E0001202B?Open&file=137_enr.pdf
For more information on the security freeze law in Colorado, see: http://www.ago.state.co.us/idtheft/securityfreeze.cfm
For instructions on how to place a security freeze in Colorado, see: www.consumersunion.org/pdf/security/securityCO.pdf

Connecticut
Applies to all consumers
Fees: $10 to place, lift, or lift temporarily, $12 to lift for one creditor
Effective as of Jan. 1, 2006
For more information on the security freeze law in Connecticut (Connecticut General Statutes § 36a-701), see: http://www.ct.gov/ag/cwp/view.asp?A=1949&Q=293270
For instructions on how to place a security freeze in Connecticut, see: www.consumersunion.org/pdf/security/securityCT.pdf

Delaware
Applies to all consumers.
$20 to place, free to temporarily lift for a period of time or specific creditor and to remove.
Effective as of September 28, 2006
For more information on the Substitute for SB 109, see: http://www.legis.state.de.us/LIS/lis143.nsf/EngrossmentsforLookup/SS+1+FOR+SB+109/$file/Engross.html?open
For instructions on how to place a security freeze in Delaware, see: www.consumersunion.org/pdf/security/securityDE.pdf

District of Columbia
Applies to all consumers $10 for an initial placement, free for victims of ID theft; no fees to remove permanently or temporarily.
Effective Date: July 1, 2007 For more information on DC Code §28-3861 through §28-3864, see: http://www.dccouncil.washington.dc.us/images/00001/20061218135957.pdf
For instructions on how to place a security freeze in Washington DC, see: www.consumersunion.org/pdf/security/securityDC.pdf

Florida
Applies to all consumers.
No fees for victims of identity theft (with investigative report) and seniors aged 65 years and older.
For all others, there is a $10 fee to place, temporarily lift or to remove a security freeze.
Effective as of July 1, 2006.
For more information on Florida Statute Section 501.005 et seq. (2006 HB 37), see: http://www.myfloridahouse.gov/Sections/Documents/loaddoc.aspx?FileName=_h0037er.doc&DocumentType=Bill&BillNumber=0037&Session=2006 For instructions on how to place a security freeze in Florida, see: www.consumersunion.org/pdf/security/securityFL.pdf

Hawaii
Applies to all consumers.
No fees permitted for ID theft victims. For others, $5 to place, temporary lift or remove the freeze.
Effective as of January 1, 2007 for victims only, for all consumers as of June 15, 2007.
For more on Title 26 Hawaii Revised Statutes Section 1 et seq. (HB 1612) see: http://www.capitol.hawaii.gov/sessioncurrent/bills/hb1612_.htm
For instructions on how to place a security freeze in Hawaii, see: www.consumersunion.org/pdf/security/securityHI.pdf

Indiana
Applies to all consumers
No fee to place, temporary lift or remove security freeze for all consumers.
Effective as of September 1, 2007.
For more information on SEA 403: http://www.in.gov/legislative/bills/2007/ES/ES0403.2.html
And for instructions on how to place a security freeze in Indiana, see: www.consumersunion.org/pdf/security/securityIN.pdf

Illinois
Applies to all consumers
Victims with police reports and seniors 65+ years old do not pay a $10 fee to place, remove, or temporarily remove.
Effective as of January 1, 2007
For more information on 815 ILCS 505/2MM: http://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=081505050K2MM
For instructions on how to place a security freeze in Illinois, see: www.consumersunion.org/pdf/security/securityIL.pdf

Kansas
Victims of ID theft only, with a police, investigative report or complaint filed with a law enforcement agency
No fees permitted
Effective as of Jan 1, 2007
For more information on S.B. 196: http://www.kslegislature.org/bills/2006/196.pdf
For instructions on how to place a security freeze in Kansas, see: www.consumersunion.org/pdf/security/securityKS.pdf

Kentucky
Applies to all consumers
Fees: No fees on ID theft victims who provide a police report.
Others pay up to $10 to place, remove, temporarily suspend, or have PIN reissued.
Effective as of July 11, 2006
Expires after 7 years from date of placement or upon consumer's request, if earlier
For more information on Chapter 367 Kentucky Revised Statutes Sections 1-3 (HB 54):
http://www.lrc.ky.gov/record/06RS/HB54.htm
For instructions on how to place a security freeze in Kentucky, see: www.consumersunion.org/pdf/security/securityKY.pdf

Louisiana
Applies to all consumers
No fees for ID theft victims or persons age 62 or older.
For others $10 to place, $8 to lift, no fee to remove the freeze.
Effective as of July 1, 2005
Louisiana Statutes Annotated § 9.3571(H) to (Y) , see: http://www.legis.state.la.us/leg_docs/04RS/CVT4/OUT/0000LW18.PDF
For instructions on how to use the security freeze in Louisiana, see: http://www.ag.state.la.us/calerts/alert0015.aspx

Maine
Applies to all consumers
No fees on ID theft victims who provide a police report.
Others pay up to $10 to place, remove, temporarily suspend, or have PIN reissued, and $12 to lift for a specific creditor.
Effective as of Feb. 1, 2006.
For more information on 10 MRSA §1313-C: http://janus.state.me.us/legis/LawMakerWeb/externalsiteframe.asp?ID=280015326&LD=581&Type=1&SessionID=6
For instructions on how to place a security freeze in Maine, see: www.consumersunion.org/pdf/security/securityME.pdf

Maryland
Applies to all consumers
No fees on ID theft victims who provide report of alleged identity fraud or with an identity theft passport.
Others pay $5 for each placement, temporary lift or removal.
Effective as of January 1, 2008.
For more information on SB 52: http://mlis.state.md.us/2007RS/bills/sb/sb0052e.pdf
For instructions on how to place a security freeze in Maryland, see: www.consumersunion.org/pdf/security/securityMD.pdf

Minnesota
Applies to all consumers.
Fees: No fees on ID theft victims who provide police report.
Others pay $5 to place, remove, temporarily suspend, lift for specific creditor.
Effective as of August 1, 2006 For more information on statute (Senate Bill
2002): http://www.revisor.leg.state.mn.us/bin/bldbill.php?bill=S2002.4.html&session=ls84
For instructions on how to place a security freeze in Minnesota, see: www.consumersunion.org/pdf/security/securityMN.pdf

Mississippi
Applies to identity theft victims with a police report, investigative report or complaint which the consumer has filed with a law enforcement agency.
Fee of $10 to place.
Effective as of July 1, 2007
For more information on statute (Senate Bill 3034): http://billstatus.ls.state.ms.us/documents/2007/html/SB/3000-3099/SB3034SG.htm
For instructions on how to place a security freeze in Mississippi, see: www.consumersunion.org/pdf/security/securityMS.pdf

Montana
Applies to all consumers.
No fee for victims, $3 for all others to place or lift the freeze and $5 replacement PIN.
Effective: July 1, 2007
Bill: SB 116. To see the text, go to: http://data.opi.mt.gov/bills/2007/billpdf/SB0116.pdf.
For instructions on how to place a security freeze in Montana, see: http://www.doj.mt.gov/consumer/consumer/securityfreeze.asp

Nebraska
Applies to all consumers.
No fee for ID theft victims, one time $15 fee for all others.
Effective: September 1, 2008
Bill: LB 674. To see the text, go to: http://uniweb.legislature.ne.gov/FloorDocs/Current/PDF/Slip/LB674.pdf.
For instructions on how to place a security freeze in Nebraska, see: www.consumersunion.org/pdf/security/securityNE.pdf

Nevada
Applies to all consumers
No fee for ID theft victims who submit a police report, for others $15 to place, $18 to lift, $20 to lift for one creditor
Effective as of October 1, 2005.
For more information on NRS 598C in easy to read bill form: http://www.consumersunion.org/pdf/security/NV_security_ freeze_law.pdf
For instructions on how to place a security freeze in Nevada, see: www.consumersunion.org/pdf/security/securityNV.pdf

New Hampshire
Applies to all consumers
No fee for ID theft victims who submit a copy of a police report, investigative report, or complaint to a law enforcement agency, for others $10 to place, temporarily lift or remove
Effective as of January 1, 2007
For more information on statute to be enacted as New Hampshire Revised Statutes
Annotated 359B:23 (SB334): http://www.consumersunion.org/pdf/security/NH_security_ freeze_law.pdf
For instructions on how to place a security freeze in New Hampshire, see: www.consumersunion.org/pdf/security/securityNH.pdf

New Jersey
Applies to all consumers
No fee for initial freeze. Up to $5 to remove, temporarily lift or have PIN reissued.
Consumers are also permitted to make such requests directly to consumer reporting agencies via secured electronic mail.
Effective as of January 1, 2006
Text of 56:11-44 et seq. in bill form: http://www.njleg.state.nj.us/2004/Bills/S2000/1914_R1.PDF
For information on how to place a security freeze in New Jersey, see: http://www.njdobi.org/creditfreeze.htm

New Mexico
Applies to all consumers.
Free for residents over 65 years of age, identity theft victims with copy of police or investigative report.
Effective July 1, 2007 Text of bill, SB 165: http://legis.state.nm.us/Sessions/07%20Regular/final/SB0165.pdf
For information on how to place a security freeze in New Mexico, see: www.consumersunion.org/pdf/security/securityNM.pdf

North Carolina
Applies to all consumers. No fees for ID theft victims with valid report/complaint with law enforcement agency.
For others, up to $10 to place, remove, or temporarily suspend.
Effective as of December 1, 2005
For more information on North Carolina General Statutes §75-63: http://www.ncga.state.nc.us/enactedlegislation/statutes/pdf/bysection/chapter_75/gs_75-63.pdf
For instructions on how to place your security freeze from the North Carolina Attorney General, go to: http://noscamnc.gov/yourself.html

North Dakota
Applies to all consumers.
No fees for ID theft victims with valid copy of a police report or police case number documenting the identity theft, investigative report, or complaint to law enforcement agency. For others, up to $5 to place or temporarily lift.
Effective as of June 1, 2007.
For more information on North Dakota: http://www.legis.nd.gov/assembly/60-2007/bill-text/HRDH0400.pdf
For instructions on how to place your security freeze in North Dakota, see: www.consumersunion.org/pdf/security/securityND.pdf

New York
Applies to all consumers.
Free to place first time for everyone. After first time, or to lift temporarily or remove there is a $5 fee except for victims who pay no fee.
Effective as of November 1, 2006
For more information on the law: http://www.consumersunion.org/campaigns/pdf/security/NYSecurityLaw.pdf
For instructions on how to place your security freeze in New York, see: www.consumersunion.org/pdf/security/securityNY.pdf

Oklahoma
Applies to all consumers, no fees for ID theft victims with investigative report
and no fees for seniors 65 years +.
Effective as of January 1, 2007
For more information on this Title 24 of Oklahoma Statutes Sections 149 and
150 (SB 1748): http://www.consumersunion.org/pdf/security/OK_security_ freeze_law.pdf
For instructions on how to place your security freeze in Oklahoma, see: www.consumersunion.org/pdf/security/securityOK.pdf

Pennsylvania
Applies to all consumers, $10 to place but no fees for ID
theft victims or seniors 65 years +. Freeze lasts 7 years.
Effective as of Jan. 1, 2007
For more information on SB 180, see: http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2005&sind=0&body=S&type=B&BN=0180
For instructions on how to place your security freeze in Pennsylvania, see: www.consumersunion.org/pdf/security/securityPA.pdf

Rhode Island
Applies to all consumers. No fees for ID theft victims or seniors 65 years +. For others, $10 to place, temporary lift and remove the freeze.
Effective as of Jan. 1, 2007
For more information about Rhode Island Statutes 6-48-1 et seq. (H7148), see:
http://www.rilin.state.ri.us/Billtext/BillText06/HouseText06/H7148Aaa.pdf
For instructions on how to place a security freeze in Rhode Island, see: www.consumersunion.org/pdf/security/securityRI.pdf

South Dakota
Applies to identity theft victims with a police report.
No fees, only freezes credit report, expires after 7 years from date of placement or upon consumer's request, if earlier
Effective as of July 1, 2006
Text of statute (SB 180): http://legis.state.sd.us/sessions/2006/bills/SB180enr.htm
For instructions on how to place the security freeze in South Dakota, see: www.consumersunion.org/pdf/security/securitySD.pdf

Tennessee
Applies to all consumers. No fees for ID theft victims. For others $7.50 to place, free to temporary lift, $5 to remove the freeze.
Effective Jan. 1, 2008
For more information about the Tennessee bill, HB 200, see: http://tennessee.gov/sos/acts/105/pub/pc0170.pdf
For instructions on how to place a security freeze in Tennessee, see: www.consumersunion.org/pdf/security/securityTN.pdf

Texas
Applies to identity theft victims with a police report. Applies to all consumers beginning September 1, 2007.
No fee for ID theft victims. For others, $10 placement fee, temporary lift for period of time and removal, $12 for temporary lift for specified creditor.
Effective as of September 1, 2003 for victims only, and September 1, 2007 for all consumers.
For more information on SB 222: http://www.capitol.state.tx.us/tlodocs/80R/billtext/pdf/SB00222F.pdf
For instructions on how to place your security freeze in Texas, see: www.consumersunion.org/pdf/security/securityTX.pdf

Utah
Applies to all consumers
Reasonable fees
Consumer can temporary lift or "thaw" freeze within 15 minutes of electronic request
Effective as of September 1, 2008
Text of statute (Utah Code Ann. §13-45-102, 13-45-201 et seq.) see bill version SB 71: http://www.le.state.ut.us/~2006/bills/sbillenr/sb0071.htm
For instructions on how to place a freeze in Utah beginning in Sept 2008, see: www.consumersunion.org/pdf/security/securityUT.pdf

Vermont
Applies to all consumers.
No fees for victims; $10 to place, $5 to lift temporarily or remove for all others
Effective as of July 1, 2006.
Vermont Statutes Annotated, Title 9, Sections 2480a to 2480n Click on Sections 2480a to j to view the text of the statute: http://www.leg.state.vt.us/statutes/sections.cfm?Title=09&Chapter=063
For instructions on how to place a security freeze in Vermont, see: http://www.atg.state.vt.us/display.php?smod=198.

Washington
Applies to identity theft victims, including persons who receive a notice of a security breach of computerized personal information.
Will apply to all consumers beginning July 1, 2008.
No fees for ID theft victims or persons over 65. $10 fee for others to place, remove, or lift the freeze when available to all consumers.
Effective as of July 24, 2005; for all consumers beginning July 1, 2008.
To be codified at Sec. 19.182 RCW. Text of statute: http://www.leg.wa.gov/pub/billinfo/2005-06/Htm/Bills/Session%20Law%202005/5418.SL.htm
For instructions on how to place your security freeze in Washington, www.consumersunion.org/pdf/security/securityWA.pdf
or http://www.atg.wa.gov/ConsumerIssues/ID-Privacy/SecurityFreeze.aspx

West Virginia
Applies to all consumers. No fee for victims, $5 for all others to place, remove or lift the freeze.
Effective: July 2, 2007 Bill: SB 428. To see the text, go to: http://www.legis.state.wv.us/Bill_Text_HTML/2007_SESSIONS/RS/BILLS/SB428%20SUB1%20enr.htm
For instructions on how to place a security freeze in West Virginia, see: www.consumersunion.org/pdf/security/securityWV.pdf

Wisconsin
Applies to all consumers
No fee for an "individual who submits evidence satisfactory to the CRAs that the individual made a report to a law enforcement agency.
Up to $10 for others to place, thaw or remove freeze. Passed March 16, 2006.
Effective as of January 1, 2007
Text of Section 138.25 Wisconsin Statutes (AB 912): http://www.legis.state.wi.us/2005/data/AB-912.pdf
For instructions on how to place a security freeze in Wisconsin, see: www.consumersunion.org/pdf/security/securityWI.pdf

Wyoming
Applies to all consumers. Free for ID theft victims.
For others, $10 to place, temporary lift and remove the freeze.
Effective July 1, 2007.
See link for text, scroll down to SF0053: http://legisweb.state.wy.us/2007/billindex/BillCrossRef.aspx?type=SF.
and has a fee of $10 per step, free for ID theft victims
For instructions on how to place a security freeze in Wyoming, see: www.consumersunion.org/pdf/security/securityWY.pdf

For more information on security freezes, see the Model State Clean Credit and Identity Theft Protection Act, http://www.consumersunion.org/pub/core_financial_services/001732.html

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     "HOUSE OF CARDS" INVESTIGATION REVEALS ID THEFT RING IN NEW YORK

Thirty-eight people living in New York have been charged with stealing consumer data to create counterfeit credit cards that were then used to purchase high-priced computers and televisions, authorities said. The 16-month investigation into the ring, dubbed "The House of Cards" by police, discovered that the group was using credit and debit card numbers, stolen from an undisclosed major retailer.

Investigators traced the identity theft ring back to China, where police believe hackers were based when they stole the account numbers of tens of thousands of American consumers, according to the Queens County District Attorney's Office on Thursday. Many of the 38 people who were arrested lived in Queens or Brooklyn and were Chinese in origin. The individuals charged were part of a gang responsible for using equipment to manufacture counterfeit credit cards and driver's licenses. The quality of them fake cards and licenses were exceptional.

They purchased expensive goods, such as TVs, laptops, gaming consoles and jewelry from stores in New York, Texas and Arizona and then resold at a discount, over the Internet. Particularly unsettling is the fact that, in a number of cases, the defendants are charged with using bogus documents to purchase airline tickets and then using those documents as identification to board aircraft. Those arrested face up to 25 years in prison.

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        IDENTITY  THEFT USING UNSECURED WI-FI AND PUBLIC COMPUTERS

A Colombian man pleaded guilty to a 16-count indictment involving an internet-based fraud scam intending to steal the personal information of more than 600 people. Mario Simbaqueba Bonilla, 40, admitted in U.S. District Court in Miami to illegally installing keystroke logging software on computers in hotel business centers and Internet lounges around the world. The software collected the personal information, including passwords and other personal identifying information that the victims used to access their bank, payroll, brokerage and other accounts online.

Bonilla used the data he intercepted from his victims to steal or divert money from victims' bank, payroll and mortgage accounts into other accounts he created in the names of other victims. Then using a complex series of electronic transactions designed to cover his trail, he transferred the stolen money to credit, cash or debit-card accounts and had the cards mailed to himself and others at commercial mailing addresses. He used computers in Colombia to targeted U.S. residents, including Defense Department personnel. According to the DOJ, Bonilla used the stolen money to buy expensive electronics and luxury travel accommodations in various countries including Hong Kong, Turks and Caicos, France, Jamaica, Italy, Chile and the United States.

Federal agents arrested Bonilla last August when he flew into the United States on an airline ticket purchased with stolen funds, had a laptop purchased with stolen funds in his possession that contained the names, passwords and other personal and financial information of more than 600 people. Bonilla used the unsecured, wireless, electronic transmissions of the hotel guests (unsecured wireless is often available in hotel lobbies) to also access or capture information.

Consumers should be wary of accessing bank accounts from shared public computers that could have keystroke loggers or other malware on them or accessing their accounts while using their own computers on unsecured Wi-Fi or other public networks. When you travel, think twice before entering personal or financial data on a public computer.

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        BEFORE TRANSFERRING A CREDIT CARD BALANCE

Are you staring at that attractive advertisement for switching credit card companies by transferring your balance from one card to another? While many of these offers are truly great deals, balance transfers and card-switching is not something to jump into, eager as you may be. You need to do your homework first: Do enough research and investigating in order to determine whether it in fact is worth it or a good idea to make the transfer.

First, find out if it is in fact worth it. Generally speaking, these attractive advertisements and super credit card deals advertise very low introductory rates if you transfer your current balance from an existing credit card onto this new one. You can stumble upon these offers anywhere (online, in the mail, on a flyer or via a telephone call from credit card company salesperson) and you need to determine how great these deals really are, or if you’ll just end up paying much more in fees and interest in the long run.

Read the fine print. Read everything. Read it through several times so that you make sure you understand what it is saying. It may appear to be a bunch of financial jargon that you might not think is very important, but the truth is, this information is valuable and critical to your decision in whether or not you make the big switch. Call the credit card Company and ask any questions you might have. If the deal is solid and they want to make a sale, generally they should be able to help you out in any way.

What do you need to find out about the deal? Here is an example. Let’s say that the advertised introductory rate is 6% (a low rate) on credit card B if you transfer your balance from credit card A, where you currently rack up an APR of 18% (a standard rate). You come across another offer, showcasing credit card C with an introductory rate of 9%. At first glance you may think, "Well, let’s go with credit card B: it’s the obvious choice here." However, after reading the fine print, you discover credit card B’s special rate only last six months, and afterward the APR is 20%, whereas credit card C’s higher rate lasts for a year and the interest rate after that is 18%, the same as yours on credit card A.

In other words, you have to factor in a lot of variables when making the decision to switch your balance from one credit card to another. Besides comparing the introductory rates being offered, the length of the offer and what the regular interest rate is, you’ll also need to take into account balance transfer fees, annual fees, late fees and other fees, as well as whether the teaser rate applies to balance transfers only or also purchases, among other considerations.

Something else to keep in mind is that you may not actually qualify for the special rate being offered, depending on your credit history and credit rating. Before you make the big plunge, make sure you know exactly what you will be getting. There may also be other conditions. For example, some credit card companies may penalize you for one late payment and take you off the introductory rate onto their regular rate, which may be higher than your current card’s rate.

However, many credit cards with these introductory rates offer great deals for people interested in switching credit cards and transferring their balance over and can be more than worth it. The important thing to do your research read the fine print and ask questions to determine which credit card and deal is the right one for you.

Once you’ve selected the right credit card offer, the next step is to fill out the balance transfer application form completely and accurately. Next, make the minimum payment on your original credit card while you wait for the balance transfer to go through. When it has gone through, the new company should send you a notice, after which you’ll need to verify the transfer with your old company so they can send you a zero-balanced billing statement. Finally, cancel your old card since you don’t need it anymore.

Note: This article is courtesy of CreditorWeb.com, where you can compare balance transfer credit card offers and apply for credit cards online. "http://www.creditorweb.com/categories/balance-transfer-credit-cards.html"

You cannot protect yourself completely from Identity Theft because your personal and financial information is out of your control. Information including your social security number, address, and personal financial data is stored in several locations around the country such as banks, credit bureaus, retailers, hospitals and other places that have been known to let that information out of their control.

Consumers can take steps to protect themselves against internet scams which can be as simple as ignoring promises of great wealth from other countries such as the emails from Nigeria.

As home values skyrocketed earlier this decade, banks gave money to anybody and mortgage fraud increased eightfold, from 5,623 in 2002 to 46,717 this year, according to the Federal Bureau of Investigation. One of the most notable was an alleged three-year scam that used fabricated appraisals to defraud Lehman Brothers and another lender out of $142 million in loans.

The fraud based in Beverly Hills followed a simple plan of buying inexpensive houses in exclusive areas at market value, fabricate paperwork valuing them at two or three times as much, and then securing loans based on the inflated values. The masterminds were developers Mark Alan Abrams, 46, who had a record of multimillion-dollar civil fraud, and Charles Elliott Fitzgerald, 47, a bigamist who fled the country in 2003 and was later arrested in Samoa, according to interviews, federal prosecutors and a civil lawsuit filed by Lehman Brothers Bank. They allegedly were assisted by star real estate agents Joseph Babajian and Kyle Grasso. Abrams and Fitzgerald allegedly collected millions, spending some of the proceeds on private jet flights and vintage wines and much of the rest to buy more houses to keep the scam alive from 2000 to 2003. Five people, including Abrams, await sentencing after pleading guilty to bank fraud and other charges. Fitzgerald, Babajian, Grasso and two others pleaded not guilty and are slated for trial next year.

The median home price in Beverly Hills was $310,000 in 1992 and a decade later, at the height of Abrams' and Fitzgerald's alleged scam, it had increased to $1.16 million. Houses sold within days. Interest rates fell and lenders capitalized by writing anything-goes loans, some requiring no proof of borrowers' ability to repay them.

Abrams had gone into real estate that ended in a 1989-liquidation bankruptcy that listed 700 creditors with more than $30 million in claims. One creditor won a $2 million civil fraud judgment against Abrams in 1997, but recently said he had yet to be paid any of it. Fitzgerald and Abrams met in 1999 through Babajian, whose big-name clients have included TV personality Ryan Seacrest, boxer Oscar De La Hoya and British pop star Seal and based their companies in Beverly Hills.

They allegedly enlisted two appraisers to inflate houses' values, and an Americorp Funding broker to package fraudulent applications for 40 loans directly funded by Lehman, according to the bank's lawsuit. "In addition to the direct funded loans, Lehman also acquired an additional 44 loans from other lenders, which appear to show the same pattern," the lawsuit states. The two men used their own escrow companies to produce fake settlement documents and their own notary to validate them.. They relied on Babajian and Grasso to get title insurance for the homes' inflated values, the government claims, and rented some of the houses to help cover the payments. The appraisers valued the houses (in the $700,000 range) at around $2.5 million and records showing comparable sales prices for properties nearby.

On April 17, 2003, Lehman sued Abrams, Fitzgerald, Babajian, Grasso, appraisers, escrow officers and others for fraud after it reviewed documents obtained by a court-appointed receiver and discovered that they had been caught with 43 others totaling $80 million -- for $142 million in all, according to an amended complaint filed three months later.

The loss or theft of personal data such as credit card and Social Security numbers soared to unprecedented levels in 2007, and the trend is not expected to turn around anytime soon as laptops disappear with sensitive information on a weekly basis and hackers sidestep security procedures.

And while companies, government agencies, schools and other institutions are spending more to protect ever-increasing volumes of data with more sophisticated firewalls and encryption, the data just walks out the front door on a unsecured laptop. "More of them are experiencing data breaches, and they're responding to them in a reactive way, rather than proactively looking at the company's security and seeing where the holes might be," said Linda Foley, who founded the San Diego-based Identity Theft Resource Center after becoming an identity theft victim herself.

The Identity Theft Resource Center reported that more than 79 million records were compromised in the United States in 2007, almost four times the nearly 20 million records reported in all of 2006.

The web site www.attrition.org estimates that more than 162 million records were compromised in 2007 in the U.S. and overseas combined including 49 million in the U.S. The biggest difference between the groups' record-loss counts is that 94 million records were exposed in a theft of credit card data at TJX Cos., owner of discount stores including T.J. Maxx and Marshalls. The breach accounts for more than half the records reported lost this year on both groups' lists. The Identity Theft Resource Center counts about 46 million (the number of records TJX acknowledged in March) were potentially compromised, whereas Attrition's figure is based on estimates from Visa and MasterCard officials who were deposed in a lawsuit that banks filed against TJX.

The breach is believed to have started when hackers intercepted wireless transfers of customer information at two Marshalls stores in Miami which acted as an entry point that led the hackers to eventually break into TJX's central databases. TJX has said that before the breach, which was revealed in January, it invested "millions of dollars on computer security, and believes our security was comparable to many major retailers."

With wireless data transmission more common, hackers increasingly are expected to target what many experts see as a major vulnerability. Eavesdroppers appear to be learning how to bypass security safeguards faster than ever, said Jay Tumas, the head of Harvard University's network operations, at a recent conference for information security professionals.

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State legislators have made protecting consumers from identity theft a priority, according to a new study by Aite Group, which revealed that there are more than 200 bills focusing on identity theft pending at the state level. Financial institutions must be prepared to act on individual state legislation to avoid costly fines. Many states are already putting laws in place to protect their citizens. These pending bills on identity theft fall into three categories according to the Aite study.

1. Fifty-eight percent address the issue of security freezes, in particular the rights of consumers to have their credit reports locked down in cases where identity theft is suspected or possible. The proposed bills would allow victims of identity theft to request that a security alert be placed on their credit reports.
2. Twenty-four percent of bills are broad measures that define identity theft, including a revision of the definition of "personal identifying information," as well as prevention methods and potential solutions.
3. Eighteen percent of bills focus on breach of information requirements and the response a financial institution must adhere to when personal information is mishandled.

In total, Aite reported that there are more than 1,300 bills currently pending before the 50 U.S. State legislatures covering a range of issues that could impact financial institutions. Other hot-issues beyond targeted include mortgage lending, payday lending and credit card operations.

On average, only one in 700 identity thieves is caught and brought to justice and with 9.9 million Americans having their identity stolen, there is little fear of repercussions.  Identity theft is often a crime of opportunity. To reduce your chances of becoming a victim of identity theft, we recommend the following:

1. Check financial statements promptly. Always review your monthly banking, brokerage, and credit-card statements for accuracy. Report problems immediately.
   
2. Watch your credit. DO NOT purchase credit reports as you can receive them free (once from each the three credit bureaus annually) by logging in at www.annualcreditreport.com. It is the only official site to provide free reports and it is safe to type in your Social Security number to the site. I recommend that you order your free copy every 4 months alternating the three credit bureaus. Examined your credit reports for errors and report errors promptly and in writing.  If you purchase a credit monitoring service, which I don't recommend that you do, make sure it monitors all three credit bureaus: Equifax, Experian and Trans Union. Ask them to notify you by phone, email or text message as soon as the breach occurs. Some companies  only send out monthly or quarterly statements.  The monitoring service should cost about $10 a month. Note: Check for credit information on your children as their identities can be stolen too. If you are considering ID theft insurance. make sure you READ THE FINE PRINT. Many people assume the insurance companies will replace stolen funds, but most only cover expenses associated with clearing up your credit such as legal expenses.
   
3. Opt Out. I strongly recommend that you Opt out of pre-approved credit card offers by calling the Credit Reporting Industry Pre-Screening Opt-Out Number at 888-567-8688 or on the web at OptOutPrescreen.com. Consider "opting out" of information sharing at your financial institutions. (Check your company's financial privacy notice, which is mailed annually and usually posted on company Web sites, to find out how.)
   
4. Safeguard your Information. Never disclose your Social Security number, birth date, or mother's maiden name unless you initiated the transaction. On paper documents, don't include such data unless required to do so on an official application for employment, financing, or insurance. (Ask employers and financial institutions to offer alternatives.) Never put such information on personal Web pages or publicly posted résumés or directories. Safeguard driver's license, passport and other government ID at all times. Lock desks, cabinets, and safes containing such information in your office and home. Don't carry ID that contains sensitive data like your Social Security number unless absolutely necessary.
   
5. Shred and destroy. Before throwing out files containing Social Security numbers, account numbers, and birth dates, shred them with a cross-cut shredder or one that reduces paper to confetti.  Destroy CDs or floppy disks containing sensitive data by shredding, cutting, or breaking them. Use hard-drive shredding software or remove and destroy your hard drive before discarding a computer. Just deleting files isn't enough.
   
6. Guard mail. Consider using a locked mailbox or slot to receive mail at home. Deposit mail in postal mailboxes or in the post office to discourage mail theft.
   
7. Cordless Phones. Don't use cordless phones to conduct sensitive financial or medical business, because eavesdroppers on other phones and those using eavesdropping equipment may be able to overhear your conversations.
   
8. Verify Web sites.  Check privacy and security policies of Web sites before making purchases, trading stocks, or banking online. A professional-looking Web site is no guarantee of security. Don't respond to unsolicited e-mail requests for personal information. Log off your browser after using public Internet-access computers in libraries, Internet cafes, etc. Don't pay bills, bank, or conduct other financial transactions on public computers. If you have a high-speed Internet connection at home, unplug the computer's cable or phone line when you are not using it to discourage hackers.
   
9. Utilize Fire Walls and Virus Protection. Install firewalls and virus-detection software on your home computers and set them up to automatically update the software to discourage hackers. Use hard-drive shredding software or remove and destroy hard drives before discarding a personal computer. I recommend that if you bank online, use a separate computer for music downloads and other online purchases.
   
10. Protect your password. Consider password-protecting all your bank and brokerage accounts. Create passwords at least eight characters long. When prompted for a password, give an incorrect one first. A phishing site will accept it; a legitimate one won't.
    
11. Avoid spoofed sites. By entering Web addresses directly into the browser yourself or by using bookmarks you create. A secure Web site gives you more assurance. To see whether a site is secure, look at the bottom of your browser's window for an icon of an unbroken key or a lock that's closed, golden, or glowing. Double-click on the lock to display the site's certificate, and make sure it matches the company you think you're connected to.  
    
12. Deceased family members.  If a family member dies, contact the three credit bureaus and have a "deceased" alert put on the report of the family member who died.  Inform the Social Security Administration by mailing a certified copy of the death certificate.

    If you become a victim,

1. Report the crime immediately. Filing a report with your local police and keeping a copy yourself will make it easier to prove your case to creditors and merchants and may help you build a lawsuit if you have to sue to recover losses or clear your name later. In some states, you may have to report the incident in the jurisdiction where the fraud occurred, such as the location of the store where the thief charged merchandise to your account, even if that is not where you live.
   
2. File a complaint. The Federal Trade Commission investigates interstate and Internet fraud. Download a copy of an ID theft affidavit from the FTC's Web site to help you notify merchants, financial institutions and credit bureaus.
   
3. Contact credit-reporting agencies. Use the FTC ID-theft affidavit mentioned above to help you do this. Call TransUnion, 800-680-7289; Experian, 888-397-3742; and Equifax, 800-525-6285, to get addresses and instructions. Ask to have your account flagged with a fraud alert, which asks merchants not to grant new credit without your explicit approval. Keep copies of all your correspondence.
   
4. Notify banks, creditors, and utilities. Close accounts that have been used by thieves. Choose new passwords and PINs for all your accounts and don't use your mother's maiden name as a password. Notify merchants that issued credit or accepted bad checks in your name; use your police report or FTC affidavit as backup.

Identity theft, the fraudulent use of your name and identifying data by someone else to obtain credit, merchandise, or services claimed seven million victims in the U.S. last year, according to a recent survey by Privacy & American Business, a publication of the Center for Social & Legal Research, a nonpartisan think tank. Victims typically lose $800 and spend two years clearing their name. It is an equal-opportunity crime, affecting victims of all races, incomes, and ages. Overall, more than 33 million Americans, about 1 in 6 adults, say they have had their identities used by someone else sometime since 1990, and the Department of Justice says ID theft is the nation’s fastest-growing financial crime. Many victims don’t learn of the crime for several months because thieves often shield their actions by using a different address when they open new accounts in the victim’s name. Financial institutions and other businesses should use encryption and better systems to prevent and detect computer hackers and to control access by insiders, computer security and privacy experts say.

Identity fraud has become a major element in crimes ranging from international drug trafficking to terrorism; Al Qaeda operatives in Spain used stolen credit and telephone cards and false passports and travel documents to open bank accounts and pay for travel and communication abroad, an FBI agent testified before a congressional subcommittee last year. Identity theft is a problem largely because financial institutions, merchants, credit bureaus, and the government do not adequately safeguard vast databases and other records containing consumers’ sensitive information, making it relatively easy for thieves, often insiders to access these data. ID theft usually occurs not because of the carelessness of the individual consumer, but because of the carelessness or vulnerability of the organizations they deal with, including the government. All that ID thieves really need to open credit or bank accounts under your name or to drain your existing accounts are three pieces of information: your full name, Social Security number, and date of birth.

Every day, some 27,000 Americans have their identities stolen. In about a third of those cases, crooks use the information to open new accounts in their victim’s name. Thirty-six states and the District of Columbia have a new tool promoted by Consumers Union and other consumer groups to stymie thieves: security-freeze laws that allow consumers to protect their credit record from predators. A freeze essentially locks up the information needed to conduct a credit check, and creditors won’t open new accounts without that check. An imposter will be foiled, but you can lift the freeze using a PIN if you want to open new accounts. A security freeze provides much stronger protection than the fraud alert that is currently available under federal law. An alert placed on a credit file amounts to a caution flag that is supposed to trigger added scrutiny by creditors. Twenty-eight of the states that have security-freeze laws make this safeguard available to everyone, whether or not he or she has been a victim of ID theft. Most states that offer a security freeze make it free to identity-theft victims and some provide it at no charge to seniors.
For those consumers who want the freeze but aren’t victims of ID theft, most state security-freeze laws allow each of the three major credit bureaus to charge $5 to $10 to initiate the protection or to lift the freeze.

Credit bureaus have a financial incentive to make it easy for potential creditors to check credit reports and make a lot of money from selling to consumers more expensive credit-monitoring services, which are unnecessary, especially when a security freeze is in place. Most states allow consumers to request this protection by e-mail or by phone, and require credit bureaus to lift the freeze within 15 minutes of a request.

Visa and MasterCard now require merchants and big banks that issue their branded cards to use secure Internet technology. They’re using new identity verification and authentication systems for controlling transactions among customers, merchants, and banks. In addition, both now require member banks and merchants to encrypt personal data stored on their servers.

The IC3 (Internet Crime Complaint Center), a partnership betweeen the FBI and the NW3C (National White Collar Crime Center) issued a report for the year 2006. It's brimming with interesting statistics, including the Top 10 IC3 Complaint Categories:

The cost of your stolen identity on the black market.

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   STATES PUSH LEGISLATION TO COMBAT IDENTITY THEFT

Too many people have access to the documents. Few managers should have access, and records should be kept under lock and key. Companies that are frequent targets for identity fraud, including cell-phone services, retailers that offer instant credit, and large banks, are investing heavily in systems designed to detect fraudulent credit applications. ID Analytics has designed one that assigns a score like a credit score to a credit application. A high score means the identity of the applicant is probably stolen or fake. The software has detected fraud in 7.5 percent of credit applications. Under another system, a Social Security number that doesn’t correspond to the birth year of the applicant might trigger a warning. But too many merchants still don’t check. Systems that monitor an organization’s connections to the Internet and that prevent and detect hacking are a must to deter ID thieves and virus attacks.

California leads other states and the federal government with its identity-theft laws. Consumers Union’s West Coast Regional Office helped push for many of them. Many consumer-rights, privacy-rights, and law-enforcement advocates say they want to see other states copy the laws, which do the following:

• Require that consumers be notified of security breaches that could compromise their personal data, including Social Security numbers.